The State of the Channel 2012: Does it Matter? [Global Channel Partners Summit]

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

The State of the Channel: 2012

DOES IT REALLY MATTER?


Channels are the least flexible aspect

of the marketing mix. This is an open

invitation to new competition.


In the Battle for “Place,”Convenience Wins

versus


The State of the Channel: 2020

BREAK WITH TRADITIONBEFORE SOMEONE ELSE

BREAKS IT FOR YOU


A Step Back: Why Channels?• Channels provide an advantage

not easy created internally• … fill a void in a unique way that

is proprietary and preferred• All channels exist to reduce the

total long-term cost and increase the effectiveness of a system of relationships

• (Selling direct is not always what it’s cracked up to be)


Commercial Printing’sUndeniable Trends

• Fewer and smaller print businesses– Greater distance between commercial

print establishments

• Fewer suppliers• Shrinking offset installed base,

digital base increases• “Mainstream Print” disappears


What Do TheseTrends Mean?


By 2020, per capita consumption of US commercial print

will drop by -25% or more


Fewer US Commercial Printing establishments: down 1/3 by 2020

… or worse…

-40% from 2012 to 2020


Content is Still Being Created


Ad Agency + Graphic DesignEmployment Now Exceeds That of Commercial Print


Fewer suppliers• Excuse me, sir, I came here to see the

pre-press pavilion… can you tell me where that is?

• Influence of long-established vendors is diminishing– Kodak working through bankruptcy– Heidelberg stock about €1.20 ($1.50)– Presstek 50 cents per share– Xerox shares were about $12 at end 2011,

now are about $7.50


CapEx investment rate shrinks

• CapEx decreases from 5% to 3% of sales

• Dealer opportunity:new homes for current installed base as industry consolidates


Decreases in overall demandcreate new channel opportunities• Suppliers need to cut fixed costs• Workflows must become focused

on multi-channel deployment• Printers seek new revenue sources• Content creators become new

opportunity for graphic arts dealersand reps


Commercial Printing’sSurvivors Will be

HealthierSmaller

Media IntegratedFocused on Specialties

Broadly Dispersed


Smaller markets+

More complexity=

Channel Restructuring


New Issues for theBiggest Traditional Suppliers

• Industry suppliers will restructure sales and service coverage– Shift from W-2 workers to 1099

independents and current dealers

• Independent technical and service personnel


Does Digital Media HoldOpportunities for the

Dealer/Independent Rep?


If You Believe in “Marketing Services” You Believe in this Chart


Print Workflow Transforms into Multichannel Deployment

• “BIG IRON”ERA– Single-purpose

CapEx– Buy once and

feed with consumables

• DIGITAL ERA– Multi-purpose

infrastructure– Constant CapEx

upgrades and integration


How Digital Media Changes the Print Workflow

• Printers used to enter new markets withnew equipment that would last years

• Printers will enter new markets with new software and new communications technologies that last for months


Today’s “Mainstream Print” Decreases in Volume

• Specialty production is more tactical than strategic

• More specialized equipment, niche tactics, approaches


Channel Questionsfor 2012-2020


Are dealers the“systems analysts” for marketing services /

communications logistics?


Are dealers the newCapEx sales and service

infrastructure for the industry’s former

high-flying vendors?


Can dealers bring new ranges of specialties to

printers anxious for new revenue streams?


If you want thingsto stay the same,

things will have to change

The LeopardGiuseppe Tomasi di Lampedusa


QUESTIONSThank You Very Much!

The State of the Channel 2012: Does it Matter? [Global Channel Partners Summit]

Business

Transcript of The State of the Channel 2012: Does it Matter? [Global Channel Partners Summit]