Business - Knowledge

Patrick Martell, CEO of St Ives Group and the new President of Ipex 2014, looks at print and the important role it will continue to play in the world of marketing in an omni-channel environment:

“The world of print has been through turbulent times over the last few years as a result of changes in demand. Volumes are down, there has been downward pressure on prices, and whilst we have seen businesses closing excess capacity remains. We have experience of this at St Ives and have closed print businesses and consolidated others to ensure longer term competitiveness. Some people are even asking the question: Is there a future for print?

On the flip side, there are lots of innovations in the world of print at the moment. For example there is a great deal of excitement about 3D printing and augmented reality, some of which is capturing consumer and media attention and bringing some positive PR into the sector. As difficult as it is to contemplate investment in new opportunities during these difficult times, it may well prove to be the right time.

Consumer Marketing

We don’t have to look very far to see that the world is changing. Consumers are much more ‘digital’ than has ever been the case before. For instance, our own research at St Ives  shows that in Gen Y (18 to 30 year olds), 78% use social networks every week and 56% say that they could not live without Facebook.

The impact of this change is that this age group are the first truly digital generation. They are connecting with each other and the rest of the world in a way that we have never seen before, and they expect information to be always available and relevant. When it comes to sales and marketing, these new consumer groups need to be convinced and have access to information. Being influenced is no longer a one-directional process by the seller. 

These new consumers listen to each other and are very open to peer influence. For example, we found that 76% said they would be influenced by friends and colleagues when choosing a credit card; 43% said they would be influenced by social media.

The challenge is that brands can no longer dictate the agenda and, as with any group of individuals, there is no silver bullet; you need to properly understand them and engage with them on their terms.

And this is just Gen Y, the next generation, Gen Z, are even more technically savvy, more plugged in and more sceptical of what they see as the big brand consumer world.

Omni-channel

More than 60% of consumers who interact with brands do so through multiple channels, which means that marketers have to be consistent, but channel-relevant, with brand and shopping experiences. This diversity demands that marketers map specific consumers’ purchase journeys, integrate marketing teams from different channels, and harmonise data repositories to deliver a superior and consistent experience, online and offline.

If you really want to see how the world is changing, go shopping with someone in their mid-20s and watch how the experience is very different from the linear purchasing we are used to, either in-store or on-line. Everything is mobile driven; the whole experience is done with phone in hand and is interactive. Research and price comparison, and offer checking, is done on the hoof, there is always an element of finding the best deal, and getting any purchase ratified by friends, and sometimes not friends. Shops like Burberry, H&M and Diesel are starting to provide free wi-fi and mirrors linked to the internet to allow photographs to be shared online before purchase.

Purchases are often made online for products seen in store, which are then delivered home, this is not just price driven but because it is more convenient. Some brands, such as McVities, Heinz, Cadbury and Budweiser are offering on-pack engagement via mobile using tools such as Blippar.  And these are not just offers; often they are competitions or games.

While these innovations are exciting and leading to a convergence of channels, towards an omni-channel presence for retail brands, it is still not that personal. The next step is to use preferences to tailor content for individuals and provide a more personal experience both in-store and online.

The Future of Print

So what role is there for print in this technology driven age? Often, marketers treat marketing as a series of individual channels rather than composing those channels into a unified whole that guides customers from discovery to purchase and beyond. As customers’ behaviours have evolved, the line between traditional and digital channels has become meaningless: both old and new channels feature heavily at every stage of the customer life cycle.

The future of marketing is one in which all media are considered at the right time, and printed media are a key part of this mix. There have been many studies that show that combining media, including printed media, creates a much more effective communication vehicle than just one media on its own. For example, direct mail combined with online and donations through text message has created a huge impact in the charity sector.

Going back briefly to Gen Y, according to some recent research from Royal Mail and fast.MAP, they are the generation most likely to open and read a direct mail communication. So, while they don’t get much mail, they engage with it when they do, but it needs to be relevant, personal and exciting to drive the customer to engage through other channels. This generation is often lost in direct mail campaigns, but the influence of mail, coupled with other media can be very effective.

In-store printed Point of Sale (POS) needs to be coupled with digital engagement via mobile phones and possibly digital displays to provide a personalised in-store experience. We see this as evolved QR codes, embedded in the product linked to personal customer information that provides something unique; an offer, competition or maybe something fun. The key is that the printed material and the data combined create an interactive experience. 

In the world of outdoor media, there will clearly be a migration towards cheaper digital display in the future. However, the idea of huge digital displays everywhere that display personal offers for each consumer, still seems unlikely. What is more likely outdoor is printed display with embedded content to be released, again via mobile. Coupled with areas such as augmented reality, this will create a new dimension in the advertising world.

For magazines and newspapers, the model is changing and will continue to change; printed copies will continue to decline but will not disappear completely. However, by buying the physical copy, the customer will get access to the digital version for free. It therefore comes back to choice – what the consumer wants, where they want it. Convenience will ultimately result in higher consumption.  Advertising needs to span both, on the page but also online, joined up and personal. The question for advertisers is how to lift what is on the page to make it relevant to the individual.

We also believe that books will evolve in a similar way, with the digital e-book and physical paperback becoming a package, where both are bought at the same time. Content in the physical book can then come alive in the e-book when connected on-line. As much as the world becomes digital, there will always be the need and the desire for the physical as well.

Summary

As a very large print group, we have seen our market change over the last few years. The economic crisis was the catalyst for action. We planned ahead and changed the way we worked, we embraced data and digital and will continue to do so. But, that doesn’t mean we don’t value print. Quite the opposite; it still sits as a key part of what we offer and will for the foreseeable future.

There is a future for print but not as a standalone product, rather as part of the mix of ways a brand can deliver content to an individual. We believe print is, and will continue to be, a hugely impactful medium to carry content and marketing messages, and the challenge is to ensure its relevance and efficient delivery.”

About Patrick Martell: Patrick started at St Ives as an apprentice in 1980 before he took on a number of managerial roles at Clays, the St Ives Group book printing business before taking over as Managing Director in 2000. During his time as MD, the business grew through a combination of factors including the negotiation of an exclusive agreement with Harper Collins, the success of the Harry Potter books and the diversification into distribution including the building of a dedicated distribution warehouse. 
As a consequence, Pat moved centrally to St Ives Group and took on the management of other divisions including operations in Germany and Holland as well as the Magazine Division. He was appointed the main board in 2003 and took over as CEO in 2009.
Under Patrick’s stewardship, St Ives have successfully undertaken a major strategic shift in migrating from a print only business to a major Marketing and Publishing Services Group, a success reflected in the increasing value and share price of the Group. 
Patrick is very proud to be appointed as President for IPEX 2014 and will be working closely with the advisory board to ensure the extensive and unique content programme reflects the print industry’s latest issues and trends.

Roland DG has added an ‘Introduction to Digital Print’ to its Roland Academy courses. The new one day course, which starts in October, will be run at the Roland Academy at Walsall College and in Roland’s Creative Centre at its Clevedon HQ.

Joe Wigzell, Academy and Creative Centre Manager for Roland DG, comments, “The wide format market is changing rapidly as more and more companies and entrepreneurs see the value in investing in wide format and the flexibility and diversity it gives to their product portfolio. Our new Introduction to Digital Print course is a great complement to our existing range of courses. This is an entry level course, which aims to provide newcomers to wide format digital print and Roland’s technology with a comprehensive overview of the market they are entering as well as technical assistance and tuition on Roland’s equipment and software, so they can quickly maximise opportunities, profitability and the return on their investment.”

Attendees will also have the chance to have some practical ‘hands-on’ time with Roland’s machines through the course of the day; creating, producing and finishing three different products/outputs, with the chance to ask questions and gain valuable tips along the way from Roland’s experienced tutors.

Joe Wigzell continues, “It can be a daunting task learning how to use new hardware and software when you are unfamiliar with both the machine and the opportunities the industry presents. So, the chance to learn this alongside others who are in the same situation and have similar questions will help the learning process and adoption of best practice, ensuring the user gets the most out of their wide format investment from the start. Using precision machines like Roland’s wide format range to the best of their ability can only improve business performance and this course will provide beginners and start-ups with the tools to do exactly that.”

The ‘Introduction to Digital Print’ course is provided free as part of the introductory training package for those who purchase a VersaCAMM, VersaART or SOLJET wide format machine and at a discounted price for VersaSTUDIO BN-20 users.

For more information, course times and dates, please contact Joe Wigzell on 0845 230 90 60, visit the Introduction to Digital Print pages on the Roland DG website www.rolanddg.co.uk/introduction or email joe.wigzell@rolanddg.co.uk. 

The latest in LFR’s ‘Spotlight on...’ series focuses on Quality Print Services (QPS) and its wide format solutions.

Quality Print Services Ltd has been doing what it says on the tin for 16 years: providing top-quality inks, technical support services, plus media, printers and software, direct to the wide-format printing community.

Led by Managing Director Chris Bailey, Lancashire-based QPS has a loyal client base nationwide, attracted and retained by its professional approach to delivering a wide variety of services.

Among QPS's offerings is Nazdar's extensive and cost-effective range of high-quality alternative UV-curable, water-based and solvent printing inks. The key to achieving this quality is to match inks to specific makes and models of wide-format printers, meaning that customers need only give their printer details and application requirements to the QPS team to be assured of receiving matching Nazdar ink.

Wide-format formulations have been developed for compatibility with brands including Roland, HP, Mutoh, Océ, Mimaki and Epson, and grand-format solvent and UV formulations are stocked for most printers currently on the market.

Developing precisely correlated inks removes the need to flush printers or throw away leftover ink when switching from OEM products. This has helped QPS's clients change over to lower-priced Nazdar inks without downtime or waste, according to Chris Bailey.

"Our inks from Nazdar are designed to pick up from where OEM inks leave off," he says. "They are carefully colour-matched and of the same, or better, standard, so the only change the customer sees is a smaller bill at the end of the month.

"The majority are also made in the UK, so you can be sure of getting top quality while supporting our national industry." 

Among QPS's customers is Chelmsford-based signage supplier Signtec, which recently said it has saved 'buckets of cash' by switching to Nazdar inks for its Agfa Anapurna. A QPS engineer handled the switchover without downtime: "The Agfa machine was up and running on Nazdar inks with no delay or interruption to our printed output," says Peter French, Projects Manager at Signtec.

In addition to supplying the Nazdar range, QPS offers a cartridge recovery and recycling service to its ink customers. By integrating used ink cartridge collections into existing delivery and service routes, QPS can help print providers improve their environmental credentials and boost applications for ISO 14001 certification.

QPS is also supplier for the HydroColor RE-640HC: a wide-format inkjet printer that uses Nazdar HydroColor water-based ink, Epson DX7 printheads and minimal energy, offering an environmentally friendlier alternative to latex, solvent and UV systems for outdoor applications. The inks are VOC-free, creating output suitable for environments where emission-free products are needed, for instance wallpaper and exhibition graphics.

Further to this green-focused line-up is BioMedia, Ilford's biodegradable and recyclable media available in film, rigid board and laminate compatible with a range of Nazdar inks including HydroColor. Winner of an SGIA Product of the Year award in 2011, BioMedia features a unique enzyme that accelerates breakdown in anaerobic landfill conditions while also meeting all recyclability criteria.

QPS also highlights its position as a distributor of DGEN direct-to-textile printers, again offering an option to print businesses hoping to reduce their carbon footprint: soft signage is strong and durable, but lightweight and packed easily for optimum space efficiency during transportation.

Neolt UV printers and finishing equipment, a range of new and used wide-format printers from a variety of brands, ColorGate and Wasatch RIP software – plus technical support – make up QPS's portfolio.

"We're really a one-stop shop for the sector," says Chris Bailey. "We're able to help print businesses achieve higher margins through quality alternative inks, meet growing demand for environmentally friendlier output, maintain their existing equipment using more traditional substrates and ink, upgrade to the newest end-to-end systems and offer applications such as textiles."

For more information on QPS, please visit www.qualityprintservices.com

This year's FESPA in London saw leading manufacturer of products for graphics finishing and display Drytac Europe formally shake on its new exclusive distribution deal, handing the reins for all UK and Ireland sales over to Antalis. The new supplier wasted no time; a week following the official announcement Antalis commenced delivery of Drytac's signage products around the country.

Despite the size of the new range hitting Antalis warehouse shelves – around 50 products each offered in three to six different widths – the transition has been very smooth, according to Mick Crook, Product Manager for Sign and Display at Antalis. "We now welcome the last of the new credit accounts on board, which once in place we will be very active in promoting the full Drytac range and Antalis product offering."

The Antalis sales team has also found a host of new opportunities to showcase Drytac's innovations to its existing customer base. "As part of a complete offering, we now have a full range of paper, packaging solutions and sign and display products for professionals, at every price point," says Crook.

Moreover, Drytac customers can benefit from the full range of Antalis' other product streams – including digital printing, packaging and office supplies – and receive all their regular consumables directly from the same supplier. So now, Drytac signage products like the new formulations of ViziPrint, WindowTac and Protac materials can be purchased and delivered alongside foamboard, ink-jet consumables, packaging products and office paper stock.

Combining deliveries has reduced Drytac's environmental footprint. Its products, all manufactured in the UK, now arrive at Antalis' Coalville headquarters ahead of shipping to regional branches from which they are added to Antalis' existing delivery routes. This cuts out the higher number of shorter trips formerly undertaken by Drytac to its customers. Antalis, an ISO 14001-accredited company and Carbon Trust Standard holder, also works continuously to improve its ecological impact.

The transition has allowed Drytac to concentrate on R&D. "There are numerous products to add to the mix," says Crook. "We know our markets, so Antalis is able to work with Drytac on developing new products we know there's call for, in particular the printable adhesive materials that Drytac specialises in."

Hayden Kelley, Managing Director of Drytac Europe, also emphasises this point. "With Antalis taking on the full distributorship of Drytac products, we can concentrate resources on making the best products we can. We are ploughing capital into developing new products to help our customers in the sign and display market achieve the best possible margins."

Kelley, who secured the Antalis partnership in his first year at the helm of Drytac Europe, says he has seen 'nothing but positive things' come out of the deal, from mitigating the use of transportation resources to become a greener company, to a achieving a greater international stature.

"A company the size and scale of Antalis has raised our profile internationally," explains Kelley. "We are now actively evaluating our distribution footprint by talking to fairly large organisations on an international scale."

While the results of these conversations are yet to be confirmed, it suggests Drytac has big plans for becoming a major 'Made in Britain' export success story. Recently launched and expanded ranges are likely to be just a hint of future innovations from Drytac Europe.

For more information on Drytac, please visit www.drytac.co.uk

For more information on Antalis, please visit www.antalis.co.uk

As key indicators show an upturn in the country’s economic prospects, businesses must be ready to take advantage. Evette Orams, Managing Director of Hilton-Baird Financial Solutions, discusses how printing companies could do just that with the aid of the most suitable funding facility.

"At long last, the steady flow of bad news stories about our economy is gradually being replaced by more positive trends and figures. Highlighted effectively in the most recent economic growth statistics, which suggest that the British economy expanded by 0.6 per cent between April and June this year, trading conditions are finally beginning to improve and wider business confidence is growing.

Although these only represent green shoots at this stage and much work needs to be done before we can proclaim a blossoming recovery is well underway, businesses of all shapes and sizes should be able to take heart and look on the bright side once more.

The printing industry, which has been vastly affected by the economic downturn, would appear to have already embraced this improving picture. This is demonstrated by new research, which has found that almost one in five of the UK’s printing and packaging companies believe the current state of the economic climate is benefiting their company. As new business has picked up, 61 per cent expect similar, stable orders over the next three months.

Mind the gap

The economic downturn has been characterised by businesses facing a vast array of cash flow related problems – many of which have stemmed from reduced demand for their goods and services. Even when orders have been received, getting paid for the relevant goods or services has then commonly been difficult, as businesses have had to seize every opportunity to preserve their own cash flows. Late payment has been a key feature, particularly amongst SMEs, with 17 per cent of those surveyed suggesting it’s their biggest worry at present. A further 16 per cent said bad debts were theirs.

While these concerns look set to continue for some time yet, businesses are urged to be vigilant about the widening cash flow gap between the provision of goods and services and getting paid. This will become more important once orders pick up, as paying suppliers whilst trading on credit terms will increasingly become more of a juggling act.

However, another interesting statistic from the survey is that more than 80 per cent of respondents said they had no plans to raise additional finance in the next 12 months, despite the benefits this can bring. This could arguably be, at least in part, due to the fact 16 per cent of the same sample were declined additional bank funding in the last six months, an unsurprising figure given the well-publicised declines in lending to small businesses of late.

Looking ahead

It is important to note that other avenues exist which deliver focused support that compares more favourably than traditional lending. Invoice finance, for instance, targets this cash flow gap by releasing up to 90 per cent of an invoice’s value within 24 hours of its issue, providing the means to fund day-to-day operations, bringing with it a peace of mind. Additionally, the boosted cash position can be utilised to take advantage of early settlement discounts with suppliers and focus on business strategy and growth. However the research also indicated that two out of three printing and packaging businesses had never heard of invoice finance, which encompasses the likes of factoring and invoice discounting.

Invoice finance has been well utilised by printing companies over the years as the industry is well suited to its facilities, which can also incorporate funding against other assets such as equipment, plant and machinery. Further, it remains widely available.

According to the latest official figures from the Asset Based Finance Association, the amount of funding that was advanced to its members’ clients during Q1 2013 increased by six per cent on an annual basis to £16.3 billion as client numbers rose by two per cent to more than 43,000.

This is evidently setting clients up for growth, as total clients’ sales increased by nine per cent over the same period. Arguably the biggest reason for this is that invoice finance grows in line with a business; the more invoices it raises, the more funding it can access, which is why more companies are ditching traditional funding products such as loans and overdrafts in favour of this solution.

So as economic conditions improve and cash flow pressures evolve, don’t just wonder which funding solution could help. Ask yourself this: What could my business achieve with the aid of the right facility?"

About Evette Orams: Evette Orams is Managing Director of Hilton-Baird Financial Solutions, which is part of the Hilton-Baird Group of companies. As an independent commercial finance broker, Hilton-Baird’s aim is to clearly identify their clients’ business requirements and introduce them to relevant providers.

Hilton-Baird Financial Solutions was voted Asset Based Finance Broker of the Year 2009 & 2010 at the Business Moneyfacts Awards and UK Asset Based Finance Broker of the Year 2012 at the ACQ Global Awards, demonstrating its reputation and the trust its clients place in its service.  The business’ affiliations to the leading financial industrial bodies, the Asset Based Finance Association (ABFA), the Finance and Leasing Association (FLA) and the National Association of Commercial Finance Brokers (NACFB), ensures it maintains the highest level of standards for its clients.

Find out more about how invoice finance can help your business at www.hiltonbaird.co.uk/FS.

For more information, please contact:
Evette Orams
Managing Director, Hilton-Baird Financial Solutions
Tel: 0800 9774833
Email: LFR@hiltonbaird.co.uk
www.hiltonbaird.co.uk/FS

Activity within the UK print trade was more buoyant than expected during the second quarter of 2013, according to the latest BPIF Printing Outlook report. The July survey showed that whilst a majority of 53% of companies reported no change in demand levels; more than a quarter (28%) said that the volume of domestic orders had improved. This outweighed a figure of 19% that suffered deterioration and also exceeded expectations from last quarter.

It was the first time that the actual performance of printers was ahead of forecast for over two years and coincided with signs that the general UK economy improved further during the period. The overall balance between ups and downs also moved into positive territory for the first time in five quarters and, at +9, it was the highest reading since Q4 2010.

The overall quarterly improvement has given rise to increased optimism regarding demand during the third quarter. Again, most firms do not expect any change to order levels but those anticipating a pick-up in the market are not inconsiderable, at 31% of survey respondents.

Confidence in the general state of trade in the industry has also improved beyond last quarter’s downbeat expectations. Over a quarter, or 27%, believed that the general state of the market had improved in the three-month period. Whilst this was the highest reading for nine quarters it is tempered by the fact that a similar amount of firms, at 24%, reported deterioration. The overall small positive result suggests a gradual return in confidence rather than complete belief that trade is firmly on the up.

‘Competitors pricing below cost' remains the issue most frequently chosen by companies as one of their top three business concerns. This concern was selected by 80% of respondents in July and remains significantly greater than any other concern. 'Under utilisation of capital equipment' has become the second ranked concern, selected by 34% of respondents. ‘Late payment by customers’ is now the third ranked concern, 24% of respondents selected it.

While the majority of printers saw no change in numbers employed, more of the remainder cut jobs than took on new staff. The changes, a response to a weak start to 2013, were made at a time when trading conditions were actually on the up and came as something of a surprise given the recent trend and an earlier forecast of static employment levels. Signs of positivity in the market suggest that the overall shedding of staff during Q2 will prove to be a blip.

Despite little overall change in terms of paper & board and a marginal increase for ink, there was marked movement in terms of energy and labour costs. Over a quarter of firms reported paying more for energy in Q2. This continued a long term upward trend with overall increases having been recorded in each of the past 11 quarters. Further energy price inflation is forecast for the current period. Upward movements in the average cost of labour reflected the outcome of annual pay review negotiations. Many companies still follow the traditional April review period. Q3 is expected to see a more stable labour cost environment.

Investment intentions place particular emphasis on product/process innovation, training and plant & machinery. A significant 92% of survey respondents expect to spend either more or the same on the former as they seek to boost sales. Likewise, 91% see the benefits of training with more or similar expenditure allotted over the coming year. A total of 87% is allocating funding for plant & machinery with the level of investment expected to run along the same lines as before with those spending more and less balancing each other out.

The raising of efficiency is the prime focus of capital expenditure with it ranked in either first or second place by 71% of respondents. The ability to offer a new product or service is also a major reason for investment with 46% rating it within the top two factors. Replacement of machinery was important for 37% and capacity expansion for 23%.

Kathy Woodward, BPIF CEO, reports “Printing companies, and the wider industry, is working incredibly hard and creatively to develop the future for the printing industry.  It’s welcomed to see a slight improvement in demand and confidence - not just in the printing industry but in the general UK economy. Driving efficiency is crucial; it’s the primary investment focus for almost three-quarters of respondents to the latest Printing Outlook survey which shows that there is continued investment in kit, training and product and process improvement in our industry."

Summary of key findings:

1. Print demand rose above expectation in Q2 2013 with renewed optimism for third quarter.
2. Confidence starting to rebuild.
3. Capacity better utilised and some lengthening in lead times.
4. Surprise fall in employment levels.
5. Falling output prices still affecting many.
6. Energy and labour costs rise but other costs generally stable including paper and board despite earlier fears of hikes.
7. Margins narrow on balance but number of firms affected on the decline.
8. Export trade slows but prospects appear brighter.
9. Capital expenditure plans remain key for most printers.