The Recycler Issue 333

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GLOBAL CONTEXT, Market Data, Consumer Printing, Business
Print: Consumer spend up, business sales to come back
CONTEXT’s latest data suggests that consumer models drive print market, but distributors should prepare
for business renewal.
In May 2020, the consumer print market
dominated (inkjet MFPs continued to shine,
with sales driven by low-cost consumer
models), and business spend continued to
suffer, according to the latest data from
CONTEXT, the IT market intelligence
company. The shift towards consumer
sales has been dramatic and sudden. Now,
with lockdowns easing, distributors should
be prepared for the market to move in the
opposite direction.
According to the latest data, overall
volumes held steady year-on-year, although
results varied by country. There were marked
declines in revenue, mirroring falling
business sales. Revenues fell by 40.1% in
France and by 27.2% in the UK. Revenues
in Spain and Italy fell by 6.9% and 5.7%
respectively. The revenue split in May this
year was 58.9% business to 41.1% consumer,
compared to 73.1% business and 26.9%
consumer in May last year (there are two
more working days last year compared to
this year). CONTEXT explained that in
normal times, revenue figures favour the
business sector because of the fewer, bigger
investments that businesses make. This hit to
the business share will gradually reverse once
business demand is back, and once excess
stock has moved through to final customers.
Sales to consumer channels held steady,
and sales to business channels fell. Unit sales
to corporate resellers dropped by 39.4%
year-on-year, and sales to etailers focused on
serving businesses were down 28%. Sales to
consumer channels were up by 2.2% for retail
chains and 11.2% for consumer etailers, as
lockdown working encouraged consumers
online to refresh home equipment.
CONTEXT added that in this consumerdriven
market, inkjet MFPs did well; the
coronavirus lockdowns challenged other
categories, particularly sales of business
laser devices. The changes are likely to have
generated an excess of inventory in the
channel, and we may see promotions as more
normal activity restarts.
According to CONTEXT, although the
situation varies by country, the trends over
the last couple of months are clear: consumer
inkjet MFPs are performing well, business
spending is down, and the market has shifted
towards consumer printers. As offices begin
to reopen, distributors should be anticipating
a rebound in business sales in the second half
of the year. ■
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Issue 333
August 2020 21