Business - Knowledge

Canon has today announced the publication of its full 2014 Insight Report. Entitled Building your future with print, this latest independent industry survey is the fifth in the series of Insight Reports commissioned by Canon to analyse the trends and opportunities for print. Overall findings from the research show that there is a healthy demand for print as a communications medium and little sign of decline over the past two years, with 62% of print and media buyers commissioning print for their communications campaigns. However, from the perspective of the print service providers (PSPs), 80% now recognise the need to change to meet the future needs of their customers – an increase of 8% since the first Insight report in 2008.

Conducted by an independent research consultancy, the objective of this latest survey sets out to compare the views of PSPs with print and media buyers, to examine how these trends and attitudes have changed from earlier reports. By analysing feedback from the two participating groups, the results of the report provide a clearer vision and set of recommendations for PSPs to successfully drive their business forward.

The survey centred around over 550 telephone interviews with senior decision makers (275 commercial printers and CRDs, and 277 print and media buyers of differing sizes) across a wide range of sectors and from 25 countries throughout Europe, the Middle East and Africa.

According to the views of the print buyers, print still offers considerable value, possessing the unique ability to reflect quality, reach the more challenging ‘offline’ audiences and differentiate messaging from digital communication. However, with predictions of growth in digital and online media, and with 38% of buyers indicating a likely decrease in the use of print, PSPs will need to continue to work hard to promote the values of print to prevent migration to what is perceived by respondents to be more measureable and trackable ‘virtual’ alternatives.

While print buyers are broadly satisfied with their print providers – with 84% stating they meet their communications needs – there is still scope for greater customer engagement to improve business opportunities. Only 56% of print buyers feel they are made aware of new developments by their PSPs, leaving 44% acknowledging their PSP is not keeping them informed. This indicates there is still room for PSPs to improve in terms of providing proactive advice and introducing them to the latest products and technologies.

Despite some lack of education in the latest developments, awareness and use of digital print applications and services continues a strong upward trend, with short run publications, print-on-demand and web-to-print all witnessing continued growth, fuelled in part by cost and time pressures from the buyers.

Web-to-print has seen the greatest increase since the last Insight report, with a 50% growth since 2012, with almost one in three customers now using web-to-print services. Both printers and customers acknowledge the benefits of web-to-print offering greater convenience, speed and cost efficiencies and it clearly offers business opportunities for providers. However there is still a lack of awareness, with 39% of customers remaining unaware of the availability of web-to-print services.

Equally compelling is the opportunity to expand service offerings into non-print media to complement their existing print communications. Today, 68% of print buyers use multi-channel communications, a significant rise of 10% in just two years. Canon’s 2012 ‘Bigger Picture’ report also highlighted print being used in 94% of multi-channel campaigns, making it the foundation on which virtual media can then be deployed. By contrast, only 20% of all PSPs offer multi-channel campaign co-ordination, indicating a clear gap between the help that print buyers want and need in developing their multi-channel campaigns and what their PSPs currently offer.

Perhaps one of the most interesting findings from the survey is that, despite 80% of commercial printers and CRDs recognising the need to change the way they operate, the majority still lack structured planning for the future. Only 48% of commercial printers and 32% of CRDs have a formal marketing or business development plan in place – and where one exists, only half review it on a regular basis.

Commenting on the publication of Canon’s fifth Insight Report Building your future with Print, Andrew Harris, European & UK Professional Print Marketing Manager says, “This latest research has given us the opportunity to revisit trends and attitudes from some of our earlier Insight Reports, giving an invaluable picture of how the industry has developed over the past six years. More importantly, the findings provide compelling evidence that have been translated into meaningful recommendations which we hope will motivate and inspire our customers to build stronger, exceptional businesses for the future.”

“Whilst there is much to be positive about in terms of the continued value of print amongst print buyers, there are still improvements that can be made by print service providers to capture further opportunities and establish even stronger links with their customers. Not only does the Report outline a number of key recommendations for building a stronger future, it also gives an indication of the future skills that PSPs need to develop to deliver these new service offerings.”

For further information or to obtain a copy of the full 2014 Insight Report – Building your future with print, contact insight.report@cuk.canon.co.uk

Canon Europe has announced the publication of an inspirational guide for Print Service Providers (PSPs) who want to incorporate cross-media into their service offering. Developed using in-depth industry research, expert market knowledge and insight from independent Essential Business Builder Program (EBBP) consultants, this invaluable resource will help PSPs to better understand the opportunities presented by cross-media and how they can benefit from them.

Following a detailed introduction to cross-media, the guide explains, step-by-step, the journey that PSPs can take to become marketing service providers (MSPs). It also helps position professional quality print as a highly relevant and effective communication platform alongside digital channels. In addition to information and insight, the guide also provides inspiration in the form of case studies about businesses that have successfully incorporated cross-media into their service offerings, as well as showcasing examples of innovative and effective cross-media applications with measurable Marketing Return on Investment (MROI). Completing the guide is an independent overview of the leading cross-media technologies, provided by industry analyst, Infotrends.

Antony White, European & UK Product Business Developer (Solutions), Canon Europe says: “Cross-media has long been seen as the next big opportunity for printers. However, our research shows that many PSPs have struggled to grasp exactly what it is, whether it’s right for their business and how they can get started. With this guide, we’ve set out to help our customers grow their businesses by answering these very questions.

“Combining inspiration with in-depth insight and drawing on our experience of working with successful cross-media marketing service providers, the guide serves as a conversation starter between PSPs and their customers. We hope that the guide will become a helpful reference tool for those who want to further leverage the value of print and their core competencies in a multi-channel communications mix.”

XMPie, a Xerox company, has been announced as CHILI Publish’s first official North America-based partner. The worldwide agreement comes less than a month after CHILI Publish, the real time, online editor and 3D job visualisation provider, announced its expansion into North America.

The partner agreement gives the market two ways to take advantage of what may now be the most powerful, full-featured Web-to-Print offering in the marketplace:

• The OEM portion of the agreement calls for XMPie to offer the integrated uStore/CHILI Publisher product bundle as part of its solution offering.
• Both XMPie and CHILI Publish can sell the XMPie Connector to uStore and CHILI Publisher customers. The customers must purchase the companion product (i.e., you must own both XMPie PersonalEffect with uStore and CHILI Publisher), as well as the Connector, to enable the integrated workflow.

“CHILI Publisher gives our brand owner, ad agency and publishing customers precise control over critical brand compliance; while designers, pre-production and production personnel can make layout, design, and text edits – within limits set by administrators – to their hearts’ content,” says Kevin Goeminne, CHILI Publish CEO.

“The integration with XMPie’s uStore is an excellent opportunity for the numerous verticals we serve, including in-plants and retail,” Goeminne adds. CHILI Publisher, he says, is already utilised for all applications, from web development and POS/POP through to commercial print, sign and display, packaging and specialty applications such as textile and vehicle wrapping. All were especially receptive to last Autumn’s release of CHILI Publisher 4.0, where new features included folding simulation, 360° 3D views of personalised objects and consequently, Collada file import.

With many of these markets growing quickly and in parallel with increasing options for multi-media production, CHILI Publish found that its many customers employing home-grown or insufficient workflows were getting bogged down by job processing and tracking. Goeminne says they will be intrigued by the benefits of XMPie’s uStore. “They’ve got half the solution already,” he says. “XMPie has been in the market a long time, with a solid Web-to-Print product that makes us proud to be their partner. It will save our customers substantial time and frustration if they turn the workflow over to uStore.”

At the heart of the solution is the XMPie-developed Connector. The Connector integrates CHILI Publisher with the uStore, XMPie’s complete, out-of-the-box, end-to-end workflow solution for receiving, processing and producing orders received online. Built on XMPie’s patented technologies in media personalization, uStore is a highly popular solution for creating and deploying ecommerce Web-to-Print portals; it’s also the technology driving StoreFlow, Xerox’s leading, all-inclusive Web-to-Print solution.

CHILI Publisher offers over 150 editing, layout and design tools that can be used with a variety of document formats, including PDF files, XML-based documents, Collada files, and those imported from Adobe® InDesign®. CHILI Publish also provides users with the ability to view edits, folding, and even personalised objects, in 3D. Administrators can give users varying degrees of access, depending on their skills and permission level. All job sizes and formats, from single pages through multi-page documents and snippets of articles; up-to to the most complex, odd-sized, folded die cuts and packaging items, are accepted. Users can also create documents in CHILI Publisher. All of these functions are performed while users remain in the uStore environment.

XMPie uStore customers will realise a number of benefits from the integration, including shorter approval and review cycles, and tight control of branding compliance (e.g., regional- or channel-dependent creation of campaigns within brand guidelines).

“While CHILI Publish has its respectful footprint in the market, we felt that there is a way of integrating it into our architecture that will bring unique synergistic value to current and future customers of both entities,” concludes Jacob Aizikowitz, President, XMPie.

Customers interested in acquiring the combined solution must purchase CHILI Publisher, the uStore/StoreFlow, and the Connector; in order to enable the integrated workflow. The bundled product is available from XMPie and the Connector itself is available from either company.

Improvement in output and orders continued in Q2 – though not by enough to match the very positive expectations. Almost two-fifths (37%) of printers boosted output in the second quarter of 2014 according to the latest BPIF Printing Outlook survey. A further 45% held output levels steady whilst 18% experienced a drop in output. The overall improvement (the balance between ups and downs) was +19; well below the forecasted +48 but nonetheless the fifth consecutive positive quarterly report.

The forecast for output in Q3 is a slight improvement on Q2’s actual performance. 39% of respondents expect to increase output levels; 43% predict stable output and 17% expect output to decline.

In contrast to the positive company performance growth not matching high expectations; the general state of trade in the printing industry was deemed to be better than expected during Q2. The balance between those believing that market activity rose rather than fell was, at +29, a significant improvement on Q1 – and above the Q2 expectation of +23. This is now the fifth consecutive positive result and has come from 45% believing the general state of trade improved; whilst 16% reported a deterioration of trade in the industry, and 39% no change.

The forecast for the second quarter is that a majority of 54% believe that trading activity will stay the same. Of the remainder, 33% compared with 13% believe that the UK print market will improve rather than worsen.

Competitors pricing below cost continues to be the main business concern among printers by some way – 76% of respondents noted that this was one of their top three business concerns. Concern over the level of output prices has jumped to become the second ranked concern – with 30% of respondents selecting this. The under-utilisation of capital equipment has now become the third ranked concern – as selected by 29%. Further concerns continue to surround access to skilled labour, the survival of customers and energy costs.

Kathy Woodward, BPIF CEO, said: “Despite the very positive predictions from the previous quarter not fully translating into this quarters results the figures for the quarter continue to reflect positive growth for the sector.

“The major concern continues to be competitors under pricing. We are now seeing more robust business performance from those companies refusing to join in downward pricing spirals enabling them to invest and grow their market positions. It is hoped that more companies will follow suit.”

Summary of key findings:

• Improvement in output and orders continued in Q2 – though not by enough to match the very positive expectations.
• The general state of trade in the printing industry was deemed to be better than expected during Q2; the outlook for Q3 remains positive.
• Competitors pricing below cost remains the biggest concern for firms whilst concern over price levels and the utilisation of capital equipment are other significant worries.
• Majority of firms are operating at 80%+ capacity.
• Employment levels displayed a positive recruitment balance in Q2; just above expectations.
• Selling prices continued to be under significant downward pressure.
• Costs have been stable for the vast majority - paper and ink costs have decreased slightly; energy and labour have increased.
• Margins are still being squeezed and the bulk of printers are in the 3-6% profit range.
• Export demand continued to grow slightly, ahead of expectations, in Q2; prospects for Q3 are subdued.
• Capital investment plans appear to be resurging.
• The availability of bank lending facilities has continued to improve but bad debt remains an issue.
• UK demand for paper and board softened and prices have largely remained stable; inflation in some paper grades is expected soon.

Also in Printing Outlook this quarter:

• Pay Reviews – what have companies done and what do they expect to do?
• Web to Print - just how much of printing companies turnover is currently derived through Web to Print?
• How do respondents view the current position of their business?
• Pre-packs - how many companies have been directly affected by the activities of a pre-pack?
• A more in-depth look at energy costs.

Printing Outlook is available (free to BPIF members and £35 to non-members) from the BPIF website: www.britishprint.com/printingoutlook/

Ever considered buying a sign franchise? How about converting your existing sign shop into a franschised operation? LFR feature writer Caroline Jones takes a closer look at the leading sign franchise options.

Anyone who has ever decided to work for themselves will tell you that running a business is a very different thing to working for a business. You could be the best sign-maker for a hundred miles, but if you don’t have a handle on marketing, health and safety, employment law and bookkeeping, you could be setting yourself up for a fall. So if you’re thinking about setting up your own sign-making business, do you take the risk and go it alone? Or do you partner with one of the UK’s sign-making franchise networks?

“The majority of people that come into franchising are those that want to run their own businesses but don’t have the experience of doing so and they want the comfort of an organisation around them that will help them succeed,” explains Tony Marsh, sales director at Signs Express. The challenge, he adds, is finding a proven business model that you can commit to long-term and that offers all the support you need.

Sounds easy enough, but it’s not cheap. Signs Express, the UK’s largest sign-making franchise network, asks hopeful franchisees to put up at least a third of the estimated £90,000 start-up cost before they take out a loan for the rest. And even if you have £30,000 burning a hole in your pocket, franchising isn’t for everyone. Marsh cites managerial skills, commercial awareness, people skills, computer literacy and technical know-how as particularly desirable traits, but also notes that whether a business is franchised or not it is down to the individual business owner to make it a success.

US-based franchisee Clint Ehlers, who has two Fastsigns shops to his name, had no sign-making experience prior to opening his first shop in California in 2007, just before the global financial climate nose-dived. He credits the levels of support and training from the franchisor and his fellow franchisees with his success: “I have a whole network of people that I can go to and say, ‘I’m having a problem with this type of sign, what would you do?’ There’s so much knowledge there.”

Signarama’s franchisee recruiter Suzie McCafferty suggests the sign franchise model is like someone else having already made the mistakes so you don't have to. “This provides a faster run up the ladder of success,” she says. “Built with a continued desire to bring even more success to business owners, the network has developed today where successful owners share good practice and mentor other store owners – this proposition has now taken hold so strongly that it really is a family-run business even though it has spread globally through independent ownership.”

It’s arguable that franchised businesses have in general weathered the financial storms better than their independent counterparts, too. Both Marsh and McCafferty point to the British Franchise Association’s (BFA) annual report, which this year found that 92% of franchised businesses were running profitably, and are worth £13.7 billion to the UK economy. “Even during the severe recent recession the numbers stating profitability showed in the 80s,” Marsh adds. “Like any other network of businesses Signs Express have not been immune to the recession, but what we see now is a much stronger network of businesses throughout the UK and Ireland.”

Centralised procurement is another benefit franchisors are keen to promote. By bulk-buying consumables and other supplies at head office level, the franchise operators can secure significant discounts to pass on to their franchisees, which lowers prices for their customers. “And,” notes Catherine Monson, Fastsigns’ CEO, “as we increase the number of Fastsigns, we’ll have even greater buying power.”

With greater buying power also comes favourable relationships with suppliers. Ehlers explains that Fastsigns has an arrangement with HP whereby the manufacturer sends its new kit to be beta-tested in the franchise’s Texas-based R&D labs long before it goes to market. HP gets the benefit of constructive feedback from people who use its machines day in, day out, and Fastsigns franchisees get the lowdown on whether the new printer is a worthwhile investment for their needs.

One of the paradoxes of the sign-making industry is that although a large part of its business lies in producing marketing and advertising materials for other businesses, individual sign shops often aren’t so great at marketing themselves. Although having a head office with a marketing department doesn’t negate the need for a franchised sign business to promote itself, it certainly takes some of the pressure off. Ehlers describes it thus: “I have 100 employees in Dallas that every day get up and work towards things that will help me be more successful.” Something no independent sign shop could even dream of.

All the major UK sign-making franchise networks have big plans for expansion, meaning there are plenty of opportunities for new franchisees. Fastsigns currently boasts 20 locations in the UK and has plans to grow that number to 60 outlets, Monson says, while Signs Express is looking to add another 10 to 15 centres to more than 70 already operating.

McCafferty says that Signarama expects more people to look to starting their own business in the coming years. “There are specific geographical areas we are keen to develop the Signarama brand and we have a proactive franchisee recruitment strategy in place to attract the right franchise partners to local areas throughout the UK,” she explains. “Our network globally continues to grow with store revenues also growing; the UK market stands at the forefront of that anticipated growth for many years to come.”

But opening a shiny new shop isn’t the only way you can become a franchisee. Some operators offer the option to ‘convert’ your existing business to fly under the franchise’s flag. Fastsigns is keen to promote this strategy – Monson describes it a ‘great business choice’ for those sign-makers who want to reap the benefits of greater margins and administrative back-up, provided that their location doesn’t infringe on an existing franchisee’s territory.

Signs Express also announced earlier this year that it would introduce a new ‘dual branding’ opportunity, whereby it would help commercial printers and other related businesses to expand into the sign and graphics space by operating a Signs Express ‘concession’ within their existing business. It’s an interesting premise, and although the company hasn’t yet found the right candidate for a pilot location, Marsh says he would welcome informal discussions with businesses who feel it might benefit them.

So what’s the advice for those considering starting up for themselves? Monson and Ehlers suggest talking to other business owners, both independent and franchised, and weighing up the options. “Prospective franchisees need to do their research and ask sensible questions,” advises Marsh.

McCafferty sums up her advice simply: “Why take on odds that are stacked against you?” She recommends that those thinking about setting up a sign-making business take their ego out of the equation and do their due diligence. “If a franchise opportunity still doesn’t make sense to you then by all means, go it alone.”

 

Further reading:

Signs Express website - http://www.signsexpress.co.uk/

Fastsigns website - http://www.fastsigns.co.uk/

Signarama website - http://www.signarama.co.uk/

British Franchise Association - http://www.thebfa.org/

LFR recently attended a press event at 3M and got a sneak preview of the company’s new Customer Innovation Centre in Bracknell.  An impressive facility, the Innovation Centre is set to officially open in September 2014 and hosts a number of displays highlighting fascinating inventions that the company has made during the past 100 years.

Included in 3M’s wide gamut of inventions – and in no particular order – are the world's first waterproof sandpaper; masking tape; Scotch® Cellophane Tape; Scotchlite™ Reflective Sheeting for highway markings; magnetic sound recording tape; vehicle wrapping films; Post-it® Notes; Scotch-Brite® Cleaning Products; 3M respirators; components for asthma inhalers; sound muffling tape; and goodness knows what else!

Hosted by 3M’s UK-based Commercial Solutions Division team, the press day also provided a great insight into the company and its people-focused culture.  With 89,000 employees worldwide spanning 65 countries, 3M seems to be both an exciting and rewarding place to work.  However, the proof is in the pudding: in the UK, the average length of service for 3M employees is 15 years!

The 15% culture

So, what makes the company such a popular place to work?  Perhaps it could be 3M’s 15% culture?  Based on 3M’s core belief that creativity needs freedom, this programme allows employees to use 15% of their paid time to pursue their own ideas.   The 15% culture was based on the ethos that talented people should be given the time and resources to prove the worth of their ideas.  Even if those ideas don’t come to fruition, the employees will have learned something.

It has been a very successful programme.  Did you know, for example, that Post-It Notes were invented by accident?  Dr. Spencer Silver, a 3M scientist, was busily researching adhesives in the laboratory. In the process, he discovered something peculiar: an adhesive that stuck lightly to surfaces but didn’t bond tightly to them.  For years, Silver struggled to find a use for his invention.

Meanwhile, Art Fry, another 3M scientist, was frustrated. Every Wednesday night while practising with his church choir, he would use little scraps of paper to mark the hymns they were going to sing in the upcoming service. By Sunday, he’d find that they’d all fallen out of the hymnal.

He needed a bookmark that would stick to the paper without damaging the pages.  Thinking back to a seminar he’d attended on Silver’s adhesive, he had a ‘Eureka’ moment.  Partnering with Silver, they began developing a product. Once they found themselves writing messages on their new notes to communicate around the office, they realised the full potential of the idea: ‘a whole new way to communicate’.

Fry decided to make 3M corporate headquarters his proving ground and supplied the entire company with the new adhesive notes. Employees loved them and – following an extensive sampling campaign in the Boise, Idaho area – so did other people.

The notes spread ‘like a virus’, yet like many ground-breaking innovations, this was a product nobody thought they needed until they tried it.  And without 3M’s 15% culture, Post-It Notes may never have existed.

3M’s Code of Conduct

Secondly 3M has a Code of Conduct for all employees.  This is based on six key principles: be good; be honest; be fair and impartial; be loyal; be accurate; and be respectful.  These principles are highlighted on the wall in the presentation suite adjacent to the new Innovation Centre and employees are expected to adhere to them.

The Code of Conduct helps employees take a consistent, global approach to important ethics and compliance issues. 3M employees, including supervisors, managers and other leaders are responsible for knowing and following the ethical, legal and policy requirements that apply to their jobs.  In simple terms, all employees know what standards are expected of them.

This might sound a little dry, but in practice it’s not.  The Bracknell, UK-based office is a vibrant and busy place with a very positive and upbeat vibe.  The canteen at lunchtime was buzzing with conversation; the Starbucks café in the foyer was a busy hub of communication; and there is a rotating schedule of pop-up shops in the foyer area selling a wide gamut of products – from sweets to  books and jewellery – which adds to the general charm of the company.

Ethical business practices

Thirdly, 3M does not just pay lip-service to ethical business practice.  In 2014, the company was listed in the World's Most Ethical Company® by Ethisphere, a USA-based independent centre of research, best practices and thought leadership that promotes best practices in corporate ethics and compliance.   One of 143 companies named on the list, 3M was evaluated in five categories: ethics and compliance programme; reputation, leadership and innovation; governance; corporate citizenship and responsibility; and culture of ethics – and excelled in them all.

Sustainable business model

Finally, 3M has made great strides in sustainable business practices.  The company says that innovation – the art and science of applying creativity to develop practical and novel solutions – has been its hallmark for more than a century.  Innovation is part of 3M’s DNA.

3M’s sustainability vision is simple: it wants to help meet the needs of society today while respecting the ability of future generations to meet their needs.  The company is guided by three strategic principles that make sustainability implicit in everything it does: economic success; environmental stewardship; and social responsibility.

With these strategic principles as a framework, 3M is vigorously pursuing its key sustainability objectives which include managing its environmental footprint; developing solutions that address environmental and social challenges for customers and society; assuring products are safe for their intended use through their entire lifecycle; assuring the appropriate management of any 3M health and safety issues that may touch customers, neighbours, and the public; maintaining a safe and healthy workplace; satisfying customers with superior quality and value; providing a supportive, flexible work environment; supporting local needs and education in communities where 3M employees live and work; conducting business with uncompromising honesty and integrity; and providing an attractive return for investors.

Sustainability at 3M grew from a commitment to both innovation and ethical conduct. By continually increasing sustainability at the economic, social, and environmental levels, the company believes it will build a strong, vital company today, and leave a rich legacy on which future generations can build.

Innovation is the way ahead

So next time you pick up a roll of 3M vinyl, application tape or SprayMount adhesive, it’s re-assuring to think that these are quality products scientifically engineered for excellent performance.  And when you next use your 3M Air Release Tool, your 3M Squeegee Sleeve, or any other useful 3M widget or gadget, it’s nice to think that this product might just have been invented by someone like you, who understood signs and graphics, and used 3M’s 15% programme to come up with a useful tool to make the job just that little bit easier.  Who knows what they will come up with next?