We all have been cooped up at home during lockdown and the world is changing so that the BC rules business as done BEFORE CORONA / BC will not be effective or rewarding when AC rules will apply in the AFTER CORONA / AC. Are you ready to open when lockdown ends and we all can go back to work in our offices and retail stores?
We in India have done well to control the spread of Corona Virus through extended lockdowns (till today 12 May is Day 49 of lockdown 3.0). It has cost us over 18 lakh crores in lost output so far but we have the least infections globally @ 51 cases per million population and only 1.6 deaths per million population . The government is doing its best to boost economic activity which also needs to be ramped up everywhere and restrictions relaxed even into Red Zones ( which are 130 of 700 districts but account for 70% of GDP ) so that nationally across industries , services including retail and ecommerce the outlook should be positive and everyone confident that soon all of us will be better off in YEAR 1 AC which is what NavratrasUgadi and GudiPadwa 2020 maybe known as later on when India is truly shining and again a Vishwa Guru.
I think we are all feeling unnecessarily lost and sad, and blame destiny and politicians maybe even as daily routine and habits are being forced to change. Some suggestions for you to succeed will be to sell solutions to improve productivity and boost profitability in organizations through MPS , compatible cartridges and even online sales of your own brand of toner and inkjet cartridges which is expected to double or even triple in next 12 months . Printer cartridges sales in India may now be only 8 to 10% of total but in next six to twelve months should be 25 to 33% of total and it’s possible that online sales can even reach 500,000 units pm sooner than you expect. Are you ready for that? You need to build your brand to reach the customer and then consistently deliver a high quality product but hopefully at prices significantly higher than today as you will still be offering them great convenience and huge discount of 50 to 75% less than OEM selling prices to end users . There definitely is no need to sell at 90% lower than OEM PRICES.
You also must enable e-commerce and smartly promote your website which may need to be revamped quickly to make it tick in the new era. You should try to directly reach actual users in those 5900 tier 2 and tier 3 towns and to tens of thousands of resellers, service engineers and refillers working there. Remember that direct sales is more profitable and sustainable for you as you build a larger base of happy and loyal customers who value your brand and their consistently excellent experience when using the toner and ink cartridges you offer. Online sales prices can be better controlled, products quickly delivered and can be lower priced to end users than what they would buy it at today after your product passesthrough your multi-tier distribution channels where the consumer facing seller makes the most profit.
One major fact is that in today’s market OEM companies’ import 82% of SKU lines imported under HSC 84439959 and the biggest aftermarket player imports only 9% of lines imported through NhavaSheva sea port. 75 importers importing through NhavaSheva port and these 75 importers together still have only 18% of total SKU lines imported into India. That implies that for the vast majority of SKU the poor customer can only buy the exorbitantly priced OEM cartridges. So having a wider range of SKU to be offer to your customers is secret of success. This strategy if properly implemented will enable you to win new customers, get higher profits, and have happier and more loyal customers which will yield higher sales volumes also. You can also expect to get larger market share of your existing customers business volumes by offering a full range of SKU even those where volumes may not be as large as of bestselling SKUS.
“Work From Home” has opened up huge new opportunity for printer consumables due to prevailing Corona Virus driven rules and guidelines for millions of employees across all geographies specially in the large and lucrative and most important Red Zones and this is applicable for all types of businesses. There is demand for low-end inkjet ink tank printers for WFH / home office use ( ink tank multifunction color printers @ Rs 15000 each are generally preferred over the lower end monochrome printers as usually companies pay for it ). This trend is driven by fact that children in all schools and colleges are active with online classes and social distancing reduces their attendance in school substantially. They also will be needing printing facility for studying from hard copy at home, rather than sitting in front of their computers / laptops throughout the day.
Taking some or all the above actions is necessary to offset likely lower revenues if you think its going to be business as usual after lockdown is lifted . Lower demand for printouts due to offices and factories and all service providers and even retail stores having to work staggered timing and with only staff at 25 to 50% for next few months. This will result in losses unless you cut jobs and salaries which will be cruel in the times of Corona pandemic. With work from home becoming widespread and being encouraged by government and companies where possible print outs demand will decline in offices and you need to review your operations and plans. Lower economic activity will also reduce demand for prints (India GDP growth in 2020 best case 1% down from 6%).
In our industry there is no choice and all compatibles will necessarily continue to be MADE IN CHINA. Officially there is NO problem for made in China products, nothing as yet atleast. Consumer perception is widespread and increasing that Made in China products must not be used or promoted but everything including OEM are from CHINA. Local remanufacturing is unviable andrefilling will lose out on fear of outsiders infecting staff and access will be restricted or denied in many many offices and organizations due to Corona Virus.
You must continue to partner with your existing trusted large partners as many changes in China too will affect supply as many small manufacturers will close and many more will demand advance payments and higher prices. We at Print Rite and Prime Success will be happy to help you in all ways possible and will ensure you are successful. We can offer you a full range of high quality products over 20000 SKUs, all competitively priced and with proven acceptance and preference across lakhs of users and customers and for all brands, models and types of laser printers, inkjet printers and plotters and copiers/ mfd devices.
India will quickly recover and even the IMF has forecast that growth in India will be 5% + in 2021 which is the highest amongst the largest economies globally. So outlook is positive and you need to be ready for being successful in post Corona era.
We wish you all good health and safety during these challenging and changing times. Stay positive, get ready and be happy.