Printing and finishing – an evolving industry
The advent of digital technology has undoubtedly been one of the most significant changes to occur in the printing and finishing industry in many years. In this blog, Kemtek’s Business Development Executive, Wendy McLoughlin, share her thoughts on the changes that have already occurred – and what we can look forward to in the coming years.
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A relatively small but growing segment
The impact of digital technology has been profound, yet it still only accounts for a small part of the entire industry. However, with year-on-year double digit growth being consistently recorded, it’s clear that digital is increasing in importance.
The new normal ushered in by the COVID-19 pandemic has only accelerated this growth, as brands look to attract and retain increasingly fickle consumers amidst profound changes in end-user behaviour. The pandemic has accelerated trends which are here to stay.
Overall, the print industry has remained stable in terms of total value; most of the growth we are seeing has been driven by digital innovations in labels and flexible packaging, with HP Indigo customers growing at six times the rate of the overall market. Commercial customers are still facing many challenges, and we are partnering with them on their journey back to their pre-Covid status.
In fact, we have seen that any commercial customer who does not have digital capabilities and is not able to adapt and deliver on-demand printing is now running a real risk of remaining trapped in a space where margins are really low and making a profit will become increasingly difficult. Just as the labels and packaging sector has done, the commercial sector will have to adapt and diversify.
Offset printing still has a role
Digital printing offers radical solutions and possibilities, but it does still have its limitations. In certain areas – particularly long-run printing jobs with no variations – digital cannot (yet) match the price points that offset printers can attain.
This means that the two technologies are likely to exist side-by-side for the foreseeable future, with digital becoming the go-to solution for shorter run jobs and on-demand printing, especially those involving branding and packaging. Indeed, packaging has emerged as the most competitive area – and this of course is one arena in which digital excels.
The potential of digital
Digital printing offers brands the opportunity to align with contemporary trends in consumer purchasing behaviour and to engage with people on a deeper level. Through functionalities like mass customisation and bridging the gap between tangible and online experiences, digital printing can transform packaging into genuine “wow moments” for consumers. These interactions also enable the capture of consumer data which can be used by brands for additional customisation and targeted marketing campaigns.
Using digital printing presses also enables advanced anti-counterfeiting and diversion solutions and security features way beyond anything possible in an offset environment. With no requirement for plates or chemicals, digital can be authentically positioned as a more sustainable approach to printing, in addition to its faster turnaround times and premium products. This enables print shops to obtain higher margins for value-added services.
Correcting myths around digital printing
One barrier to entry into digital printing is the perceived high cost of digital printing presses. Set against this is the fact that HP digital presses have much longer service life than is generally believed. Digital printing offers new market opportunities for printers to compete in. Digital printing will set you apart from your competitors, allowing you to have better product offerings and higher margins. In addition, with HP Financial Services we can offer creative financial solutions with very competitive rates, technology refreshment options and ramp up structures to suit all individual business needs.
Finishing solutions that complement digital print
The preferred option in most cases is near-line embellishment solutions such as spot varnishing and variable foiling from Kemtek principal Scodix – a cost-effective method for giving a premium look and feel to end user products whilst obtaining better margins. With packaging solutions including flexible pouches, Kemtek offers a number of solutions from companies like Brotech and Duplo.
Digital reaches a tipping point
Very recent advances from HP Indigo now means that HP Indigo can now compete on speed, as well as quality and versatility. HP Indigo devices deliver speed with unmatched quality, in both label and commercial print spaces. #HPIndigo100K.
Contact Us!
For more details, contact Sanjay Maharajh, Head of Sales: +27 84 631 0000 E: san@kemtek.co.za
