Electronics Production | July 29, 2009
Printer OEMs to lose out to third-party remanufacturers?
Printer OEMs could lose more than $13 billion in the next 12 months as procurement managers and other supply buyers increasingly turn to remanufactured supplies to help them cut costs during the downturn, according to Gartner.
“Because printer supplies produce a higher margin than the product itself, this trend is leading to lower profits for printer OEMs,” said Ken Weilerstein, research vice president at Gartner. “In addition, there is potential for damage to the printer OEMs' brand because of poor quality and counterfeits. However, OEMs are well-placed to take advantage of the challenges facing the remanufacturers, and the marketing team must play a key part in this. OEMs already have the advantage of understanding the market, their competitors, and buyers' preferences.” Gartner has identified three steps that marketing staffs can use to help their company win back market shares from supply remanufacturers in emerging markets and stop the remanufacturers from denting aftermarket profits. Step 1. Design a Marketing Campaign That Begins With Education — During the downturn, organizations, procurement managers, and print supply buyers are extremely cost-conscious. OEM marketers should create a campaign to educate buyers and users. It will explain why buyers should continue to choose its products, and why these products cost more than those of the remanufacturers. To succeed, the campaign must draw on corporate branding, marketing communications, line of business marketing, partner marketing and field marketing teams, as well as senior management. Step 2. Execute the Campaign Aggressively — In the minds of some buyers, remanufactured supplies are both less expensive and more environmentally friendly. Original supplies also have substantial cost savings and environmental benefits, and OEMS must present their side of the story effectively. Beyond branding, OEMs have inherent strengths in yields, reliability and image quality — the same areas where remanufacturers continually struggle to catch up. Step 3. Utilize PR and Legal Successes Judiciously — Some OEMs work hard to protect their patents and copyrights against remanufacturers, but then fail to explain their legal actions in a way that customers can understand and appreciate. Even a favorable verdict can damage the image of vendors that come across as bullies. Public relations teams should address the OEM’s efforts proactively and explain the context fairly. “Remanufacturers will continue to make inroads into the print supply aftermarket if an OEM competes purely on cost,” said Vishal Tripathi, principal analyst at Gartner. “Therefore, marketing campaigns need to focus on end-user education, highlighting aspects such as environmental friendliness and the importance of third-party certification for yield quality. These OEMs should back this with aggressive marketing that shows strengths while highlighting the quality challenges faced by remanufacturers.” “Don't be afraid to play on concerns about counterfeit products and poor print yields,” said Laura McLellan, research vice president at Gartner. “Marketing against lower-cost competitors is never easy or inexpensive, but following these steps can remind corporate supply buyers why they should choose OEM-produced print supplies.”
Lynn Electronics acquires West Coast cable assembly company Pennsylvania-based Lynn Electronics, a manufacturer of fibre optic and copper cable assemblies, has completed its acquisition of Coast 2 Coast, LLC (C2C), an Anaheim, California cable assembly manufacturer.
Fictiv and Jabil team up for agile 3D printing collaboration The collaboration aims to accelerate and de-risks product development in the move from prototyping and low volume production to large scale global fulfilment.
TT expands with new industrial electronics manufacturing facility The UK-based electronics manufacturing specialist is expanding the footprint of its Global Manufacturing Solutions division by opening operations in Kuantan, Malaysia.
GE Appliances invests $62 million at its Louisville facility The manufacturer is gearing up to build high-end refrigerators and expand capacity at its manufacturing facility in Louisville, Kentucky., creating 260 new jobs.
Eaton buys new facility – merges busway operations from multiple sites Power management company Eaton has purchased a new facility in Hodges, South Carolina, establishing a new home for Eaton’s busway product line currently spanning three facilities across Greenwood County.
AIM adds new facility in Brazil AIM Solder has opened a new wholly-owned facility in Manaus, Brazil. This new stocking facility, which represents the only legitimate source of AIM products in Brazil, enables the company to support a growing Brazilian market.
PFOA now in REACh and POP regulation On 4 July, PFOA - perfluorooctanoic acid, its salts and precursor compounds - was included in the POP (Persistent Organic Pollutants) Regulation (EU) 2019/1021 and at the same time also came into force in the REACh Regulation (Annex XVII, entry 68).
Manz AG receives further Battery order Manz AG is expanding its successful partnership with an international battery manufacturers in the Energy Storage segment with a further major order in the mid double-digit million euro range.
Advantech and Interlatin to set up JV in Mexico Industrial IoT specialist, Advantech, says it is establishing a joint venture subsidiary in Mexico with its channel partner Interlatin.
Mercedes-Benz takes equity stake in Farasis Mercedes-Benz is taking another important step on its journey towards CO₂--neutral mobility. The Stuttgart-based car manufacturer has launched a strategic partnership with Chinese battery cell manufacturer Farasis Energy (Ganzhou) Co., Ltd., including taking an equity stake.
A new EMS provider sees the light of day EMS providers DataED and Bestronics merge to launch a new player – Emerald EMS.
Tektronix joins the fight agains COVID-19 Tektronix has shifted its focus from supporting vehicle manufacturing to assisting with ventilator production.
ABB completes divestment of Power Grids to Hitachi ABB has reached a significant milestone in the company’s transformation towards a decentralized global technology company, with the completion of the divestment of 80.1% of its Power Grids business to Hitachi.
Germany amps up domestic battery production with massive state subsidies The German government is investing more than EUR 1.5 billion in battery cell research and production.
Internal promotions and executive retirements at Kimball EMS provider, Kimball Electronics, has made two new internal promotions aimed at contributing to the company accelerating its strategic growth plans.
Kyocera & TMDU team up for research on vitals measurement headset Kyocera Corporation and Tokyo Medical and Dental University (TMDU) have teamed up on a joint research project to develop a wireless headset that can remotely monitor high accuracy patient biometrics, such as blood oxygen saturation (SpO2).
German battery manufacturer receives funding for cell production facility VARTA AG receives public funding of EUR 300 million for battery cell production facility.
Scanfil to streamline its factory network The EMS provider is planning to combine the production of its Hamburg factory with its other factories in Germany and Poland
Kitron awarded new order within measurement technology Kitron has been awarded new business for measurement technology. The award covers a period of five years, and the expected annual value is between EUR 3.5-5 million.
NORBIT ASA awarded aquaculture contract Norwegian technology manufacturer, NORBIT, has been awarded a new contract from an existing customer within the aquaculture market.
Saki strengthens its Asian operations The AOI specialist is expanding its global sales organisation with new Asia sales department, and appointing Katsuhiro Eddie Ichiyama as Senior General Manager for the Asian region
Scanfil to sell its plant in Hangzhou, China The board of directors of the Finnish EMS prover has decided to sell the entire share capital of its subsidiary located in Hangzhou, China, for a total of EUR 18.4 million to Hangzhou Cabinet Technology Co., Ltd.
Staying put during the COVID-19 pandemic TPCA (Taiwan Printed Circuit Association) announced the production and sales data for Q1 2020; the output value of Taiwan cross-strait PCB industry totalled NT$136.9 billion (approx. US$4.541 billion) in Q1/2020.
North American PCB industry sales up 1.0% in May Total North American PCB shipments in May 2020 were up 1.0 percent compared to the same month last year. Compared to the preceding month, May shipments fell 3.0 percent.Load more news