3d Printing XAnge

A NEW PATH TO PROSPERITY OR YET ANOTHER OVER-HYPED TECHNOLOGY?

XANGE INSIGHTS We at XAnge are blessed to be the financial partners of some of the brightest, most execution-driven and passionate entrepreneurs. From them and our corporate Limited Partners, we receive everyday invaluable ‘digital insights’. It is time now to give back and share some of our sector-specific expertise: this is the core of the ‘XAnge Insights’ reports.

Let’s open the XAnge Insights series with a topic hailed by The Economist as a potential “Fourth Industrial Revolution”: 3D printing.

In 3D Printing we trust. And invested in the topic in 2012.

We believe something big is happening in 3D Printing.

But not what most observers seem to be focused on – more in the following slides.

ABOUT

1. UNDERSTANDING 3D PRINTING The concept The operation The history The market in figures The areas of application The key market players

2. 3D PRINTING, BUZZWORD OF 2014 The context The optimistic point of view The potential for tomorrow The manufacturing big bang The contrarian point of view The XAnge point of view

4. KEY TAKE AWAYS The different point of views There is more to come The final word Contact details

TABLE OF CONTENTS

3. IMPACT FOR BRANDS 3D printing: a friend or a foe? Examples of brands embracing 3D printing A need to rethink marketing A new 21st century approach to marketing

5 6 7 9 11 12 14

37 38 40 44 46

16 17 21 22 26 33 36

49 50 51 52 53

IN A WORLD BECOMING MORE DIGITALISED, REAL TIME, CONSUMING 3D PRINTING IS SUPPOSED

TO RE-INTERPRET OUR MATERIAL WORLD AND RESHAPE OUR VISION OF THE INDUSTRY

FOREWORD

4

3D PRINTING IS SAID TO:

AND MUCH MORE (reshape logistics, reduce the dependency on China, reduce the foreign trade’s deficit…)

REVOLUTIONIZE THE WAY WE DESIGN AND MANUFACTURE

OBJECTS

INSERT EMOTION IN PRODUCT BY REVIVING CRAFT

AND SKILL

BOOST THE LOCAL ECONOMY

ARE ALL THOSE PREDICTIONS ACCURATE?

IS 3D PRINTING JUST AN

EPIPHENOMENA OR IS IT THE 4TH

INDUSTRIAL REVOLUTION?

1 UNDERSTANDING 3D PRINTING

3D PRINTING IS A PROCESS OF MAKING A THREE-DIMENSIONAL SOLID OBJECT OF VIRTUALLY ANY SHAPE FROM A DIGITAL MODEL*. 3D PRINTING IS SAID TO BE AN “ADDITIVE MANUFACTURING”, WHICH CONSISTS OF BUILDING OBJECTS LAYER-BY-LAYER. THEREFORE NOTHING IS IMPOSSIBLE FOR 3D PRINTING. IF YOU CAN IMAGINE IT, 3D PRINTING CAN MAKE IT.

3D PRINTING

*Source: Wikipedia

1. UNDERSTANDING 3D PRINTING: THE CONCEPT

1. UNDERSTANDING 3D PRINTING: THE OPERATION

PLASTICS

METALS

CERAMICS

GLASS

PAPER

LIVING CELLS

POWDERS

FILAMENTS

SHEETS

LIQUIDS

7

TYPE OF MATERIAL WHICH CAN BE USED IN THE 3D PRINTING PROCESS

(NON EXHAUSTIVE LIST)

MATERIAL WHICH CAN BE USED IN THE 3D PRINTING PROCESS

(NON EXHAUSTIVE LIST)

6 MAIN ADDITIVE

MANUFACTURING TECHNIQUES

SELECTIVE LASER SINTERING (SLS)

It uses a laser to fuse small particles (plastic, metal, ceramic..) into a solid mass that has a desired three-dimensional shape. This technique is used for the low volume production of prototype models and functional components.

DIRECT METAL LASER SINTERING (DMLS)

It uses a high powered laser to melt and fuse metal powder into a solid part. It is used for rapid tooling development, medical implants, and aerospace parts.

FUSED FILAMENT FABRICATION (FFF)

A fused filament fabrication tool deposits a filament of material on top or alongside the same material, thereby making a joint. It is used for prototyping and low-volume manufacturing.

STEREOLITHOGRAPHY (SLA)

It employs a vat of liquid ultraviolet curable photopolymer "resin" and an ultraviolet laser to build parts' layers

one at a time.

It is used for rapid prototyping and for complex shapes.

LAMINATED OBJECT MANUFACTURING (LOM)

Layers of adhesive-coated paper, plastic, or metal laminates are

successively glued together and cut to shape with a laser cutter.

It is used for form/fit testing, rapid

tooling patterns.

INKJET-BIOPRINTING

The process is similar to an inkjet printer where each dot of ink at a time form a

shape, except that the ink is replaced by human cells.

1. UNDERSTANDING 3D PRINTING: THE OPERATION

8

Invention of the inkjet printer

which onset the 3D concept

Source: T.Rowe Price

Charles Hull invents the stereolithography

process which makes it possible to print a 3D

object from digital data

INCEPTION BIRTH OF 3D FIRST STEP

The 3D Systems company produces

the first machine that uses the

stereolithography process

(i.e. SLA machine)

MEDICINE PREMIERE

The Wake Forest Institute for

Regenerative Medicine implants a 3D

synthetic scaffold for patients who suffer

from urinary problems

THE BACKGROUND (NON EXHAUSTIVE LIST)

1. UNDERSTANDING 3D PRINTING: A BIT OF HISTORY

9

1976 1984 1992 1999

Source: T.Rowe Price

Food can be printed by using raw ingredients inside syringes

10

1. UNDERSTANDING 3D PRINTING: A BIT OF HISTORY

Founding of RepRap by Adrian

Bowyer. It’s an open source initiative to build a 3D printer

that can print most of its own

components.

Thanks to the viability of the SLS (selective

laser sintering) machine, on-demand production becomes

feasible & realistic

OPEN SOURCING

MASS CUSTOMIZATION PROSTHETIC

A person walks with a 3D prosthetic leg,

with all parts (knee, foot, socket, etc.)

printed in the same structure.

TRANSPORTS PREMIERE

2010: a 3D printed aircraft is designed at

the University of Southampton.

It flies unmanned and was built in 7 days

2011: Urbee is the first 3D printed car by Kior

Ecologic

THE MODERN TIMES (NON EXHAUSTIVE LIST)

2005 2006 2008 2010/ 2011 2013

FOOD PREMIERE

THE MARKET FOR 3D PRINTERS COULD BE WORTH $10.8 BILLION*

BY 2021.

WORLDWIDE MARKETSIZE FOR 3D PRINTERS IN 2012

(UP 29% COMPARED TO 2011)

A 3D PRINTER FOR LESS

THAN $1 ,000

AMAZON IS SELLING 3D PRINTERS THAT RANGE FROM $800 TO $3 ,000.

STAPLES SELLS THE CUBE PRINTER FOR $1 ,300.

MAPLINELECTRONICS IS TAKING PRE-ORDERS FOR

THE £700 VELLEMAN K8200

THE 3D PRINTING INDUSTRY TOOK:

20 YEARS TO REACH $1 BILLION IN SIZE.

5 ADDITIONAL YEARS TO GENERATE ITS SECOND

$1 BILLION.

IT IS EXPECTED TO DOUBLE AGAIN, TO $4 BILLION, IN 2015.

*Source: Wohlers Associates

THE US WILL REMAIN THE WORLD’S LARGEST 3D PRINTING MARKET,

ACCOUNTING FOR SOME 42% OF GLOBAL SALES

BY 2017

11

1. UNDERSTANDING 3D PRINTING: THE MARKET IN FIGURES

A 5-meter long titanium airplane part has been 3D

printed in one piece

MEDICINE

Artificial human tissue with several properties of living tissues is fabricated

with a 3D printer

CAR

An Australian programmer has built its own Aston Martin

DB4 using a Solidoodle 2 3D printer

AIRCRAFT DENTAL

The dental industry has used 3D printers

to make custom parts that require a perfect

finish (crowns, bridges, dentures...)

TIRE

Michelin used 3D printing to mold tire prototypes

12

1. UNDERSTANDING 3D PRINTING: THE AREAS OF APPLICATION

12

EVERY INDUSTRY CAN NOW BE IMPACTED BY 3D PRINTING

2005

FROM INDUSTRIES FAMILIAR WITH 3D PRINTING

Disney researchers develop software to

enable people to create and print in 3D

format mechanical toys

TOYS FOOD

The ChefJet 3D printer produces

edible prints (with flavors like chocolate,

vanilla, mint…)

GUN

World's first 3D printed metal gun by

Solid Concepts

FASHION

Victoria’s Secret printed a 3D lingerie

ensemble for its annual fashion show

JEWELLERY

3D rings printed and cast in gold by

American brand Endswell

13

1. UNDERSTANDING 3D PRINTING: THE AREAS OF APPLICATION

EVERY INDUSTRY CAN NOW BE IMPACTED BY 3D PRINTING

TO INDUSTRIES NEWLY ENGAGED WITH THIS TECHNOLOGY

CAR

FRANCE SCULPTEO*

* XAnge investment

USA 3D SYSTEMS STRATASYS CONFORMIS MAKERBOT

OBJET GEOMETRIES

OPTOMEC ORGANOVO SHAPEWAYS

Z BURLINGTON

GERMANY ENVISIONTEC

EOS EXONE

FRUTH INNOVATIVE CONCEPT LASER

VOXELJET

BELGIUM MATERIALISE

MELOTTE LAYERWISE

SWEDEN ARCAM

HOGANAS

UK DIGITS2WIDGETS

14

1. UNDERSTANDING 3D PRINTING: PANORAMA OF KEY MARKET PLAYERS

3D PRINTING MANUFACTURES & SERVICES (NON EXHAUTSIVE LIST)

HOLLAND ULTIMAKER

PRINTING INVENTION

THE PRINTING INVENTION BY GUTENBERG HAS

REVOLUTIONIZED PEOPLE ACCESS TO

KNOWLEDGE.

BEFORE ONLY A FEW HAD ACCESS TO IT, A

WAY TO CONTROL THE MASSES.

TO THE

FUTURE BACK

3D PRINTING INVENTION

THE 3D PRINTING MOVEMENT IN THE HANDS OF A WIDER VARIETY OF

PEOPLE WILL

CHALLENGE THE BASIC ASSUMPTIONS

OF INDUSTRIAL PRODUCTION, RETAIL, AND

CONSUMPTION.

15

1. UNDERSTANDING 3D PRINTING: BACK TO THE FUTURE

2 3D: BUZZWORD OF 2014?

2. 3D, BUZZWORD OF 2014: THE CONTEXT

BARRIERS TO THE ADOPTION OF 3D PRINTING •  Primarily used for rapid prototyping

•  High cost prices (printers & materials)

•  Fragile materials and poor quality delivered

•  Few choices of materials

•  Few experts having access to the know how and being able to afford the machines

•  Few brands on the market available

20TH CENTURY

21ST CENTURY


ADVANCES FOR MASSIVE ADOPTION OF 3D PRINTING •  Multiple possible uses

•  Falling prices for both printers and material

•  Improvement in the machine’s performance

•  Expanding range of possible material

•  Patent has expired or will soon expire

•  New big comers entering the market (like HP or Konica Minolta)

* Valuation made in 2009


ON THE SAME MODEL ON WHAT HAPPENED WITH HIGH

TECHNOLOGY PRODUCTS (COMPUTER, CAMERA, TV, SMARTPHONE, ETC.), 3D PRINTING FOLLOWS THE SAME PATH

OF PRODUCT DEMOCRATIZATION WHICH TAKES USUALLY 30 YEARS

BEFORE IT BECOMES AVAILABLE TO THE CONSUMER

Remember when in the 1980's an IBM PC would cost around $3,000 (currently the equivalent of $7,127.69*) or a Motorola smartphone $4,000, and weighed over 2 pounds.

TIME

PRICE

“3D IS JUST A GIMMICK”

TERRY GOU CEO OF FOXCONN TECHNOLOGY GROUP

(WORLD LARGEST CONTRACT MANUFACTURER OF ELECTRONIC GOODS)

20

2. 3D, BUZZWORD OF 2014: THE POTENTIAL FOR TOMORROW

IS THIS MAN RIGHT?

FROM A BUSINESS PERSPECTIVE

FROM A CUSTOMER

PERSPECTIVE 21

2. 3D, BUZZWORD OF 2014: THE OPTIMISTIC POINT OF VIEW

THE OPTIMISTIC POINT OF VIEW

“3D PRINTING IS NOT COMPETING WITH CONVENTIONAL MANUFACTURING,

BUT IS HYBRIDISING WITH IT”

THE ECONOMIST, 3D PRINTING SCALES UP

BUSINESS PERSPECTIVE

“JUST AS DESKTOP PUBLISHING TRANSFORMED HOW WE WRITE,

WE THINK DESKTOP MANUFACTURING WILL TRANSFORM HOW WE CREATE”

MICROSOFT BLOG POST

CONSUMER PERSPECTIVE

$230 TO $550 BILLION PER YEAR IMPACT GENERATED BY 3D PRINTING BY 2025

ON THE FOLLOWING APPLICATIONS*

30/50 $ billion

CONSUMER USAGE

DIRECT PRODUCT MANUFACTURING

MOLDS MANUFACTURING

*Source: McKinsey, 2013

$100/300 billion

Reduced cost by: - producing directly (vs. purchasing to retailers) - lowering design & advertising fees embedded in the price of products

$100/200 billion

$30/50 billion

Cost savings by producing low-volume, high-value parts in high technical industries (i.e. medical, transport)

Cost reduction by printing superior 3D-printed molds

22

2. 3D, BUZZWORD OF 2014: THE POTENTIAL FOR TOMORROW C

ON

SU

ME

R

PE

RS

PE

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IVE

B

US

INE

SS

P

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SP

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$4 trillion*

IN SALES OF CONSUMER PRODUCTS THAT MIGHT BE 3D PRINTED (AT RETAIL PRICES) BY 2025

FROM A CUSTOMER PERSPECTIVE

CONSUMER USAGE


WHY?

- Toys -  Fashion (RTW, accessories,

footwear) -  Jewelry

-  Those products are

(almost) easy to make using 3D printing

-  Customization can be done easily and offer a high value for the consumer

MOST AFFECTED INDUSTRIES



24

DIRECT PRODUCT MANUFACTURING



$770 billion*

MARKET SIZE (ANNUALLY BY 2025) FOR COMPLEX, LOW-VOLUME, HIGHLY CUSTOMIZABLE PARTS

WHY?


-  Automobile -  Medical -  Engineering -  Aviation

-  Reduction of total cost (elimination of tooling costs, reduction of handling costs)

-  Shortening cycles of production


MOLDS MANUFACTURING



$30/50 billion*

COST REDUCTION BY PRINTING SUPERIOR 3D-PRINTED MOLDS


-  All the industries with a high consumption of molds

-  Time saving (shortening setup times)

-  Efficiency (eliminating tooling errors)

WHY?

IN ORDER TO BENEFIT FROM COST REDUCTION COMPANIES WHERE LIMITED TO WHERE AND HOW TO PRODUCE, FAVORING MASSIVE CENTRALIZATION OF ASSEMBLY LINES.

PRODUCTION WILL BE MOVED CLOSER TO THE SITE OF CONSUMPTION AND ALLOW SUPPLY CHAINS TO FRAGMENT INTO MANY VERY SMALL-SCALE PARTS PRODUCERS. NEW KINDS OF MANUFACTURING BUSINESS MODELS WILL POP UP, DEPENDING ON WHETHER THE PRODUCTION RUN IS A LIMITED, EVENT-SPECIFIC OR A SHORT-RUN ONE.

26

2. 3D, BUZZWORD OF 2014: THE MANUFACTURING BIG BANG


BEFORE

FIXED MANUFACTURING ORGANISATION

TOMORROW

FLEXIBLE & MOBILE FABRICATION MODEL

FLEXIBILITY AND RAPIDITY SAVE TIME BY BEING ABLE TO

PROTOTYPE RAPIDLY AND TO ADAPT TO THE MARKET NEEDS

IN REAL TIME.

COST AND PRODUCT EFFICIENCY REDUCTION IN PRODUCTION COSTS:

3D PRINTING MAKES IT POSSIBLE TO USE THE EXACT AMOUNT OF MATERIAL REQUIRED, ELIMINATING WASTE FROM TRADITIONAL

MANUFACTURING (IN WHICH UP TO 90% OF RAW MATERIAL IS DISCARDED).

FOR HIGH-VALUE GOODS WHERE RAPID

INNOVATION IS A KEY FACTOR OF SUCCESS (VS ABSOLUTE COST) 3D PRINTING COULD BRING PROXIMITY TO END MARKETS AND ACCESS TO

HIGHLY SKILLED TALENT WHICH IS MORE IMPORTANT THAN HOURLY LABOUR RATES IN

DETERMINING WHERE PRODUCTION IS LOCATED.

ENVIRONMENT FRIENDLY PRODUCT ARE MADE LOCALLY

AND DO NOT REQUIRE TRANSPORT OVER GREAT DISTANCES.

THUS THE PRODUCTS HAVE LESS IMPACT ON THE ENVIRONMENT.

FROM A BUSINESS’S PERSPECTIVE

27

2. 3D, BUZZWORD OF 2014: THE MAJOR BENEFITS OF THIS NEW PRODUCTION MODEL


1 2 3

28


FROM A CUSTOMER’S PERSPECTIVE

MASS PRODUCTION DID NOT TARGET AND WAS NOT MADE ACCESSIBLE TO A LARGE PUBLIC. PEOPLE HAD NO IMPACT ON THE PRODUCT’S DEVELOPMENT.

YESTERDAY

NO ACCES TO FABRICATION

DEVELOPMENT OF A MODEL WHERE PEOPLE HAVE ACCESS TO THEIR OWN PRODUCTION. THIS MODEL PROMOTES: -  A UNIVERSAL ACCESS VIA FREE LICENSING

TO A PRODUCT'S DESIGN -  A UNIVERSAL IMPROVEMENT OF THAT

DESIGN BY ANYONE

TOMORROW

OPEN FABRICATION

THIS NEW MANUFACTURING ECOSYSTEM WILL DEVELOP WITHIN A NETWORK OF COLLABORATIVE PRODUCTION, WHERE OPEN FABRICATION COMMUNITIES ARE THE CENTRE OF THE SYSTEM



TOMORROW

OPEN FABRICATION

A COMMUNITY COMPOSED OF DESIGNERS AND FABBERS ARE APPLYING THE PRINCIPLES OF DIY,

OPEN-SOURCE, AND COOPERATIVE COLLABORATION AROUND 3D DEVICES

ON THE MODEL OF “CREATIVE COMMONS” THEY

SETUP A NEW WAY TO INNOVATE & FABRICATE BY PIONEERING NEW BUSINESS MODELS BASED ON OPEN STANDARDS, OPEN PLATFORMS AND OPEN

INTELLECTUAL PROPERTY.

IN CHINA, THEY ARE TWO WAYS OF MANUFACTURING, THE LEGAL AND THE PIRATE WAYS.

THIS PIRATE MANUFACTURING IS CALLED “SHAN ZAI”

WHICH WAS ORIGINALLY USED TO DESCRIBE A BANDIT STRONGHOLD OUTSIDE GOVERNMENT CONTROL AND TODAY REFERS TO BUSINESSES BASED ON FAKE OR

PIRATED PRODUCTS. THEIR INNOVATIVE APPROACH IS BASED ON FREQUENTLY

LAUNCHING NEW PRODUCTS THAT FIT WELL WITH THE LATEST MARKET TRENDS/CONSUMER PREFERENCES AND BY CONSISTENTLY IMPROVING THE ORIGINAL PRODUCTS. HENCE RAPID PROTOTYPING & PRODUCTION IS A KEY TO THE TESTING THE RUNNING OF THEIR IDEAS AS WELL AS

THEIR SUCCESS.



OPEN FABRICATION COMMUNITITES

30

3D HACKTIVIST

PIRATE MANU-

FACTURERS


31

2. 3D, BUZZWORD OF 2014: THE MAJOR BENEFITS OF THIS NEW PRODUCTION MODEL


NEW STREAM OF REVENUE BY LAUNCHING ITS OWN LINE OF

PRODUCTS THE CUSTOMER WILL BE ABLE, AS A BRAND, TO GENERATE

INCOME BY SELLING ITS PRODUCTION.

1 2 3

COST EFFICENCY HERE COMES THE TIME TO

REAPPROPRIATE THE WORLD OF OBJECTS. TO DESIGN, MODIFY,

MANUFACTURE, USE, REPAIR BY ONESELF, AND DO SO WITH THE HELP

OF THE COMMUNITY.

PEOPLE, BY BEING ABLE TO FIX AND GIVE A SECOND LIFE TO THEIR

PRODUCTS, WILL MAKE SAVINGS BY BECOMING THEIR OWN REPAIRER.

PRODUCT SATISFACTION PEOPLE WILL HAVE A PRODUCT THAT

PERFECTLY MATCHES THEIR DESIRES BY USING THE SHANZAI NETWORK.

INDEED DESIGNERS/PEOPLE WILL BE ABLE TO CREATE PRODUCTS WHICH MATCH THE TASTES OF SMALL-SCALE MARKETS AND USE CHINESE

MANUFACTURING TO PRODUCE THEM VERY QUICKLY.

ECOLOGICAL

ECONOMICAL

FINANCIAL

LOCAL

2. 3D, BUZZWORD OF 2014: THE BENEFITS SUM-UP

3D printing is a green technology. As fuel costs rise, printer “cartridges” will weigh less, consume less space, and be cheaper to ship than finished goods.

Open fabrication will extend the life and value of a product over time. Replacement will be done much more easily.

People will be able to generate their own streams of revenue by becoming the producer of their own brands.

The production will be more flexible, adjustable and local thereby meeting more easily & in real time the customers' needs. However it’s important to note that the Chinese industry is already world class in 3D printing (both in printer manufacturing and as service bureaus), so 3D printing is unlikely to dislodge Chinese supremacy as the world manufacturer


FROM A CUSTOMER

PERSPECTIVE

THE CONTRARIAN POINT OF VIEW

33

2. 3D, BUZZWORD OF 2014: THE CONTRARIAN POINT OF VIEW

3D PRINTING IS ONLY LISTED IN THE 9TH POSITION (OUT OF 12)

OF DISRUPTIVE TECHNOLOGIES

MC KINSEY, DISRUPTIVE TECHNOLOGIES REPORT 2013

“A 3D PRINTING BUBBLE? INFLUENTIAL INVESTOR SAYS SO”

HUFFINGTONPOST.COM, 02/14/2013

BUSINESS PERSPECTIVE

34

2. 3D, BUZZWORD OF 2014: THE CONTRARIAN POINT OF VIEW

WE HAVE BEEN TALKING ABOUT

THIS TECHNOLOGY FOR MORE THAN

30 YEARS…

THE CONTRARIAN POINT OF VIEW

PEOPLE WILL PLAY WITH IT A FEW TIMES

AND MOVE ONTO THE NEXT

3D PRINTING IS COMPLICATED, GEEKY.

PEOPLE WILL TAKE AGES BEFORE ADOPTING IT

INTELLECTUAL PROPERTY COST EDUCATION

A world ruled by patents, copyright and

trademarks could oppose 3D printing

sector which operates on an “open” format

COUNTERFEITING

The possibility of copying anything could

lead to legal issues related to patent,

copyright, and trademarks

The cost of the material, which is still very high, could slow down the adoption

3D printers remain specialized tools. They will need to

become easier to use in order to favor massive usage

2. 3D, BUZZWORD OF 2014: THE KEY OBSTACLES


FROM A CUSTOMER

PERSPECTIVE 36

2. 3D, BUZZWORD OF 2014: THE XANGE POINT OF VIEW

THE XANGE POINT OF VIEW

3 IMPACT ON BRANDS


3D IS SAID TO KILL BRANDS AS PEOPLE WOULD BE ABLE TO MANUFACTURE PRODUCTS ON THEIR OWN

- MYTH -

- REALITY-

A BRAND IS NOT ONLY MADE BY THE PRODUCT BUT ALSO BY ITS « BRAND ESSENCE » (IMAGE, VALUE, SERVICE…)

WHICH CAN’T BE 3D PRINTED

38

3. IMPACT ON BRANDS: 3D PRINTING: FRIEND OR FOE?


BECOME AN ATTRACTIVE BRAND

A NEW WAY TO ENGAGE WITH THE MILLENIALS, A TARGET WHICH IS DIFFICULT TO REACH. THIS « Y » GENERATION, THOSE WHO WERE BORN BETWEEN THE EARLY 1980S TO THE EARLY 2000S, ARE LESS LOYAL TO BRANDS. AND AS THEY ARE HIGHLY CONNECTED THEY LOOK FOR BRANDS THAT CAN CONNECT WITH THEM IN A NEW, ASTONISHING AND MORE COLLABORATIVE WAY.

BECOME AN OUTPERFORMING BRAND

A NEW WAY TO GAIN INSIGHT INTO WHAT CUSTOMERS MAY OR MAY NOT WANT, IN REAL TIME. THE BRAND MOVES FROM A TOP DOWN PERSPECTIVE (THE BRAND DOES NOT ENGAGE WITH ITS AUDIENCE) TO A HORIZONTAL PERSPECTIVE (COLLABORATION WITH THE CUSTOMER), WHERE INVOLVING THE MOST LOYAL BRAND AMBASSADORS WILL MAKE THEM MORE EAGER TO SHARE, ESPECIALLY ON SOCIAL NETWORKS.

BECOME A COST EFFECTIVE BRAND

A NEW WAY TO SWITCH FROM A LINEAR “MAKE, BREAK, DISPOSE” MODEL TO A CIRCULAR MODEL WHERE PEOPLE CAN USE & REUSE THE PRODUCT. THEREFORE MINIMISING WASTE WHICH IS IMPORTANT TO CUSTOMERS.

39

3. IMPACT ON BRANDS: 3D PRINTING: FRIEND OR FOE?

1 2 3

OPPORTUNITIES

DISNEY The entertainment company has a long commitment to 3D printing. Here are some examples of its latest experiences:

In 2012, people could test the effect of the carbon freezing scene from The Empire Strikes Back. Visitors had the chance to put their face on a 3D-printed Stormtrooper figurine.

40

3. IMPACT ON BRANDS: EXAMPLES OF BRANDS EMBRACING 3D PRINTING

CARBON FREEZE-ME

Girls become princesses by choosing one of seven different Disney Princesses. Thanks to photo cameras, 3D scanners and 3D printers they get their own figurine including the princesses' hair, skin and eye color.

D-TECH ME

“I THINK EVERY HOME WITHIN 10 YEARS – PROBABLY LESS THAN THAT –

WILL HAVE ITS OWN 3D PRINTER, JUST AS MANY HOMES NOW HAVE

A 2D OR LASER PRINTER”

ANDY BIRD CHAIRMAN OF WALT DISNEY INTERNATIONAL

COCA-COLA In 2013, the company launched their mini-sized bottles in a communication campaign in Israel. It’s in line with its ambition to create a personal relationship with its customers and to stay away from the image of a large & impersonal company.

Firstly people could make virtual replicas of themselves by using a mobile app. Then they had to take care of their virtual replicas by feeding and clothing them (on the same model as the Tamagotchi). The winners, who had taken the most care of their replicas, were inivited to Coca Cola’s headquarters to have their body scanned and were later given a 3D-printed mini versions of themselves.

41


“COCA-COLA IS MOVING FROM PROMOTING HAPPINESS TO

PROVOKING IT. TECHNOLOGY ALLOWS US TO INNOVATE IN PARTICIPATORY

STORYTELLING. WE NEED TO BE BOLD AND DISRUPTIVE”

JOE TRIPODI, COCA-COLA CHIEF MARKETING AND COMMERCIAL OFFICER

COCA-COLA MINI ME

PORSCHE In order to promote its Cayman S model the brand used 3D printing as a way to position itself among trendy and edgy people, thereby creating a major proximity between a real thing and an aspirational luxury consumer.

Porsche offered its fans the possibility to 3D print the new Cayman model. For those with a 3D printer the brand made available a file of the car so that the customers could customize and the print out their own mini car. People were asked to show off their finished product by sharing a link to their pictures or using the hashtag #3DCayman to share their creation.

42


"A DREAM CAN ONLY COME TRUE, IF YOU GIVE IT A SHAPE. WHY NOT WITH

YOUR 3D PRINTER? WE OFFER YOU THE CAYMAN’S AS 3D PRINTING DATA.

FEEL FREE TO GET CREATIVE. CREATE, PRINT AND COLORIZE YOUR PERSONAL CAYMAN S.“

PORCHE’S COMPANY WEBSITE

3D CAYMAN MODEL

HERSHEY’S Hershey’s, the US chocolate manufacturer, plans on producing a 3D printer which creates chocolate and other edible products.

The brand partnered with 3D systems to create the machine. It’s a two-way partnership: •  For Hersey’s, it’s a way to deliver its product directly to the

customer (avoiding the retailers shelves)

•  For 3D Systems, it’s a way of making 3D-printing mainstream

43


"WHETHER IT’S CREATING A WHOLE NEW FORM OF CANDY OR DEVELOPING A NEW WAY TO PRODUCE IT, WE EMBRACE

NEW TECHNOLOGIES SUCH AS 3D PRINTING AS A WAY TO KEEP MOVING OUR TIMELESS

CONFECTIONERY TREATS INTO THE FUTURE.“

WILLIAM PAPA VICE PRESIDENT AND CHIEF RESEARCH

AND DEVELOPMENT OFFICER OF HERSHEY’S

3D CHOCOLATE

21ST CENTURY MARKETING INGREDIENTS

AN HORIZONTAL APPROACH BRANDS WILL LEARN TO GIVE POWER BACK TO THEIR

CUSTOMERS & ENGAGE THEM IN THE BRAND’S LIFE

A PULL COMMUNICATION NEW TECHNOLOGIES HELP PEOPLE TO START A

CONVERSATION ABOUT THE BRAND, WITH OR WITHOUT ITS ASSENT AND GAIN VISIBILITY, NOTABLY THROUGH

SOCIAL NETWORKS

A (K)NOW GENERATION A GENERATION ALWAYS CONNECTED, LIVING & LOOKING

FOR REAL TIME ACTIONS, SEARCHING TO BECOME INVOLVED IN & MASTER THE PRODUCT.

MASS CONSUMPTION IS OVER PERSONALISATION IS HOT

44

3. IMPACT ON BRANDS: A NEED TO RETHINK MARKETING

20TH CENTURY MARKETING INGREDIENTS

A « TOP-DOWN » APPROACH BRANDS USED TO KEEP ALL THE POWER TO THEMSELVES AND LIMIT THE IMPLICATION OF

CUSTOMER IN THE BRAND’S LIFE

A PUSH COMMUNICATION TRADITIONAL COMMUNICATION SUPPORTS (E.G. TV/PRINT/RADIO) WERE NOT OPEN TO

THE DIALOGUE WITH THE AUDIENCE/CONSUMERS

A CONSUMER GENERATION

A GENERATION WITH LIMITED: -  TOOLS TO INTERACT WITH A BRAND

-  POSSIBILITIES TO ACCESS PERSONALISATION

“3D PRINTING WILL BE BIGGER THAN THE WEB” CHRIS ANDERSON FORMER EDITOR-IN-CHIEF OF WIRED

“I THINK 3D PRINTING WILL LEAD TO A GREAT DEAL OF INNOVATION BECAUSE IT PUTS

POWERFUL FABRICATION TECHNOLOGIES IN THE HANDS OF MANY PEOPLE.

BECAUSE OF THESE CHANGES IN ACCESS AND ECONOMICS WE’RE GOING TO SEE A LOT MORE PROTOTYPING, TINKERING, EXPERIMENTATION.”

ANDREW MCAFEE, RESEARCH SCIENTIST AT THE MIT

3. IMPACT ON BRANDS: A NEED TO RETHINK MARKETING

TOMORROW BRANDS WILL BECOME

“SOCIAL BRANDS”

A BRAND WILL BE AN "OPEN" ORGANIZATION, WHERE IT WILL

PRACTICE SHARING IDEAS COLLABORATION, AND "SOCIAL

LISTENING" (I.E. LISTENING TO WHAT THE CUSTOMERS SAY).

BY BECOMING USEFUL, THESE BRANDS

WILL HELP EMPOWER THEIR CUSTOMERS.

21ST CENTURY MARKETING

*Term developed by MIT’s Eric von Hippel

BRANDS WILL DEVELOP A “MOMENT MARKETING”

APPROACH

THEY WILL HAVE TO ADAPT IN REAL TIME TO THE CONTEXT AND TO THE

ENVIRONMENT NEEDS OF THE CUSTOMER.

THUS THEY WILL OFFER A PRODUCT THAT WILL PERFECTLY FIT WITH THE

CUSTOMER’S EXPECTATION.

THIS APPROACH WILL BE INFLUENCED BY “LEAD-

USER INNOVATION”*

THE AUDIENCE WILL BE ABLE TO TAKE PART IN THE DEVELOPMENT OF THE BRAND.

-> STRENGTHENING THE RELATIONSHIP

BETWEEN THE BRAND AND THE CONSUMER -> MAKING THE CONSUMER MORE LOYAL &

ENGAGED WITH THE BRAND

3. IMPACT ON BRANDS: A NEW MARKETING APPROACH

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21ST CENTURY MARKETING

EVERYTHING INTEGRATED TOMORROW 1+1=1

IMPACT ON ORGANISATION IMPACT ON CUSTOMER

Tomorrow there will be no more division between the product and marketing departments of brands, driven by the need to constantly innovate. The marketing department will become an innovation group where radical new concepts can be developed and tested on large audiences, without the traditional restrictions of product development.

As people will be part of the construction of the brand and as the brand will be nurtured by customers, there will no longer be boundaries between the two. People will make brands and brands will be people.

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DIGITAL

PHYSICAL

CUSTOMER

BRAND

CROWDSOURCING /SHARING

PRODUCING

THE CUSTOMER TAKES PART IN THE VALUE OF THE BRAND AND VICE-VERSA, THANKS TO DIGITAL

RESSOURCES

THE PRODUCTION IS FACILITATED BY AN OPEN DIGITAL MINDSET

THE PHYSICAL PRODUCT EXIST THANKS TO DIGITAL DATA WHICH DESCRIBES THE SHAPE, MATERIAL

COMPOSITION, AND FABRICATION PROCESS.

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3D PRINTING EMBODIES THE FIRST “PHYGITAL” (PHYSICAL+DIGITAL) TECHNOLOGY

BY COMBINING PHYSICAL FEATURES TO DIGITAL ONES LIKE CROWDSOURCING, SOCIAL SHARING, DIGITAL DATA.

THE FUSION OF THE TWO WORLDS (PHYSICAL/VIRTUAL) CREATES A VIRTUOUS CIRCLE

WHERE THE FEATURES OF THE TWO REACT TO EACH OTHER

4 KEY TAKE AWAYS

SUMMARY OF THE DIFFERENT POINT OF VIEW, TO HELP MAKE UP YOUR OWN MIND

B2C

• Economic: product’s extension life

• Financial: new stream of revenue

B2B

• Responsiveness: real time production

• Efficiency: cost saving thanks to

tailor made manufacturing

• Locally: the production is set up

where the demand is located

B2C / B2B

• Issues with intellectual property

• Issues with the high costs of

material

• Training and education issues

before making it mass market

B2B

• 3D printing represents a

competitive advantage for

small series ranging from 10

to 1.000 units

B2C

• The market will struggle before

it can deliver a high qualitative

product

THE CONTRARIAN

POINT OF VIEW

THE OPTIMISTIC

POINT OF VIEW

THE XANGE

POINT OF VIEW

BE READY FOR 4D 4D PRINTING WILL ALLOW US TO PRINT OBJECTS THAT RESHAPE THEMSELVES OR SELF-ASSEMBLE OVER TIME. OBJECTS WILL SELF-BUILD, REPLICATE, AND REPAIR THEMSELVES, DEPENDING ON THE ENVIRONMENT IN WHICH THEY EVOLVE.

Skylar Tibbits has developed a programmable material for self-construction which reacts only to water (now) but will certainly react to air, heat, smell or sound around you. Link : www.Youtube.Com/watch?V=0gmczfhv9v8

CASE STUDY

3D PRINTING IS ONLY THE TIP OF THE ICEBERG

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“3D PRINTING HAS THE POTENTIAL TO REVOLUTIONIZE THE WAY

WE MAKE ALMOST EVERYTHING”

FROM THE LEADER OF THE 1ST WORLDWIDE ECONOMY

BARACK OBAMA, PRESIDENT OF THE USA

“3D PRINTING NEEDS TO SOLVE ITS LAST NAGGING CHALLENGE:

A HIGH-QUALITY SURFACING PROCESS. THAN THE PACE & AMPLITUDE

OF THE 3D PRINTING REVOLUTION WILL BE MIND-BOGGLING”

FROM ONE OF THE LEADER IN 3D PRINTING

ERIC CARREEL, PRESIDENT OF SCULPTEO

FINAL WORD

ABOUT XANGE INSIGHTS

Rodolphe Menegaux [email protected]

All other topics: [email protected]

ABOUT 3D PRINTING Cyril Bertrand [email protected]

XANGE CONTACT DETAILS

3d Printing XAnge

Technology

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