nternational Data Corporation (IDC) sees 2010 as the springboard for faster growth of the hardcopy peripherals (HCP) market in the coming years. The encouraging economic and political climate in the country bodes well for the HCP market, with the rest of the year expected to be characterized by an upturn in spending.
“Multi-function peripherals (MFPs) are expected to further eat into the market share of single function peripherals (SFPs), in-line with the increasing preference for more efficient and cost-effective printing solutions. Laser SFPs and color laser MFPs are also projected to have double-digit growth, especially with the availability of more affordable models that could call the attention of small offices/home offices (SOHOs), small businesses and, even home consumers.”, says Pamela Joy M. Sumanga, Associate Market Analyst for Hardcopy Peripherals research at IDC Philippines.
From January to June 2010, the HCP market grew by 11.1% compared with the same period in 2009. Shipments of inkjet SFPs and MFPs expanded by 11.8% as consumer sentiment strengthens. Laser SFPs and printer-base MFPs enjoyed a more buoyant growth. Demand for these HCP technologies increased by 24% year-over-year (YoY) in 1H 2010 due to the steady rise of business confidence, which encouraged IT-related purchases.
The copier market, however, dipped by 19.7% YoY. One factor that contributed to the decline was the elections, which triggered delays in government tenders and prompted some channel partners to take a wait-and-see stance in the days leading to May 10. Business optimism gained strength in as early as June in view of the peaceful conclusion of the elections and the promising mandate offered by the new administration.
In 2009, the Philippine HCP market expanded by 7.1% compared with to only 3.6% in 2008. Such recorded growth defied expectations. Considering that the Philippines merely escaped recession and was beleaguered by natural calamities, the unrelenting demand from the government, home users, small offices, and small businesses countered what could possibly have been a dismal year for HCP vendors, since medium-sized to very large firms were observed to have delayed plans for upgrades and/or replacements. Introduction of more innovative and low-priced models, which helped vendors pique the interest of price-conscious consumers, also propelled the growth of the HCP market.
“The challenges and events that transpired in the previous year highlighted the importance of being proactive in addressing the needs and limitations of the consumers. As price remains a major factor considered by consumers, it is essential for vendors to come up with flexible financing terms that could encourage faster movement of products in the market and even aid the adoption of more advanced models. Vendors are also advised to invest on consumer education, considering that the purchase decision process of consumers is becoming more complex. Other than price, product specifications and lifestyle factors, among others, also affect their buying behavior,” said Sumanga.