HCP India Market Records Fourth Consecutive Quarter of Yearly Growth

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India HCP market posted highest year on year growth of 23.1% in 2018Q2 since 2011, with quarterly shipments of approx. 0.88 million units, as per latest IDC (International Data Corporation) Asia Pacific Quarterly Hardcopy Peripherals Tracker, CY2018Q2. IDC believes that this growth can be partially attributed to the fact that 2017Q2 was heavily impacted by the then-upcoming GST implementation.

Inkjet shipments grew by 30.6% year on year with a contribution of 48.1% to overall India HCP market. Growth in inkjet printer shipments was led by Ink tank printers which also recorded quarter on quarter growth of 4.6%. Laser printers including copiers also saw a year on year growth of 19.6% with a contribution of 47.4percent to overall market.

“Except for 2017Q2, which was largely affected by the impact of GST implementation, 2018Q2 has been the best quarter so far for ink tank printers with shipments accounting for 68% of total Inkjet printers compared to 52% a year ago. Promotional activities by the top players targeted at both the end users and distributors has translated into increased ink tank shipment,” says Bani Johri , Market Analyst, IPDS, IDC India.

“In Laser HCP (Printer-based), Shipment for SFP printers overtook MFP printers primarily due to increased availability of top selling models which were facing supply issues till about last year. Laser HCP (Copier-based) also registered strong year on year growth of 24.8% owing to government’s crackdown on reconditioned copier market coupled with increased refresh and fresh purchase from government and enterprises,” adds Johri.

Top 3 Brand Highlights:

HP Inc. (Excluding Samsung) maintained its leadership in HCP with a market share of 40.3% and a 5.3% year on year growth. Launch of new ink tank models during the quarter and increased promotional activities by becoming team sponsors at India’s flagship annual cricketing event Indian Premier League coupled with improved customer service helped drive the growth. In the inkjet segment HP remained at 2nd position share of 32.4%. HP Inc increased its Laser HCP (Printer-based) shipment by 14.5% over 2017Q2 owing to strong SMB demand and government deals. While there was marginal growth around laser HCP (copier based), HP jumped ahead of likes of Kyocera DS, Konica Minolta and Sharp in 2018Q2 and was 2nd in overall copier market with market share of 12.8%. This is in line with HP’s focus on creating a strong foothold in the laser copier-based market.

Epson remained at 2nd position in the overall HCP market by clocking 73.9% year on year growth partly due to relatively low shipments in 2017Q2. It continued its leadership in inkjet segment by retaining its leadership with a unit share of 47.7% and an 80.7% year on year growth, primarily due to Epson’s low shipment volume in 2017Q2 which in turn was as a result of their decision to reduce channel inventory to prepare for GST launch.

Canon recorded year on year growth of 15.8% and maintained its 3rd position in the HCP market. Laser copier segment helped Canon in clocking a year on year growth of 45.4%. In the copier segment It maintained leadership with 37.7% unit market share. Low shipment from competing vendors coupled with Canon’s increased focus on entry-level copier machines through aggressive promotions helped them maintain their dominance in copier market. In the Inkjet market, Canon saw a strong year on year growth of 27.8% as a result of their increased promotional activities around ink tank models.

IDC India Market Outlook:

“Market is expected to continue the quarter on quarter high double-digit growth momentum in 2018Q3 but year on year growth momentum may suffer as shipments in 2017Q3 were heavily influenced by GST implementation resulting in unprecedented demand and record shipments. Inktank printers will continue gaining traction and vendors will look to aggressively push ink tank printers through marketing, channel schemes and end-user promotions during the festive season. Government’s continuous efforts on clampdown of reconditioned copier market should also translate into strong demand for original laser copiers,” says Nishant Bansal, research manager, IPDS, IDC India.

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