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HP Print 2.0 in China: Looks Promising, But
Challenges Ahead
July 16, 2008
Hewlett-Packard (HP) announced its "Print
2.0" strategy in New York on May 2007, and in Shanghai on April 2008, HP
introduced the strategy in China. HP is in a unique position to introduce
and execute this strategy, given its leadership in imaging and printing,
while at the same time to make a transition (or expansion) from products to
services.
CCID Consulting believes there are
positive factors in China that will facilitate the Print 2.0 strategy:
- Chinese users are moving from simple,
basic printing towards demanding a more solutions and services approach.
- China's networking and Internet
development has enabled users to share information, store data, and work
collaboratively more. The printer itself is separating from the user, and
real-time print sharing is becoming more popular.
- China's digital image market and its
content has grown dramatically, thereby creating an environment for more
print sharing and services.
However, in the immediate future, there
are challenges that the Print 2.0 strategy must consider in its execution:
- The fastest growing printer markets in
China are small and medium enterprises (SMEs) and the consumer. These
sectors tend to be more fragmented, with less formal needs for print
sharing and services. Most users in these sectors use printers as a single
product. The challenge will be to configure a fragmented, and growing,
user-base into one that fits the Print 2.0 concept.
- There must be organizational change and
thinking, both for image and print vendors themselves, and their channel
partners in China. For channel partners, sales is the most visible on the
product itself, and demand for value-added print services appear less
tangible, if not a threat to certain channel partners.
In the long run, CCID Consulting remains
optimistic towards Print 2.0. With more vendor participation, Print 2.0 will
have substantial development, and it will become an inevitable strategy for
most vendors.
For more information
Please
contact us for these and
other China-related data, information and products.
Unless otherwise specified,
all information provided is sourced from CCID Consulting.
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