Sticker shock
While the growth of the label market in India has been extraordinary, the country’s economic stability is relatively recent – as is its entrance into the market. As a result, some converters and other customers have had a hard time adjusting to the price of more sophisticated equipment.
“Education of the market is one of the largest challenges we face as an OEM selling into India,” says Russell of Mark Andy. “While the market has been quick in its adoption of flexo, there is still a significant focus for Indian converters placed on initial cost of equipment, versus the total cost of ownership over the product life cycle. Mark Andy has built its 65-year reputation on producing a durable, flexible, innovative products in the US. The core knowledge and experience that resides in our US manufacturing allows us to produce the best quality equipment at the most economical price. While local manufacturers may present an alternative at a reduced price, it could come at a higher cost over the life of the equipment.”
Roth, of Rotocontrol, says that her company has experienced the same cost resistance, though as the industry has grown and become more competitive, converters have seen the value in higher-priced equipment. “The market has traditionally been very price-sensitive but we are seeing that in India, as in other territories, the converter’s need to deliver improved quality and more capability to their own customers is increasing,” she says. “Converters who can differentiate themselves and deliver this can generate a healthy ROI even on larger capital investments.”
According to Sahni, of Weldon Celloplast, a major difference between the Indian label market and the label markets in other, more established economies is diversity. “Being concentrated in ‘A’ grade cities and metros, the Indian printers cater to a very diverse client base. A single printer may be supplying everything from plain labels to product labels,” he says. “This is in contrast to label printers in mature economies who are getting more and more specialized, depending on the type of clientele that they have. The label printing companies need to accept the challenges of diverse demands coming from some very focused customers. Specializing in niche areas is a major challenge for printing companies.”
From Internet
21 April, 2012
