Ricoh has commissioned Smithers Pira to create a series of whitepapers. These look at opporunities for Print Service Providers to open new worlds in a number of key market segments.
Whitepapers available now:
Ricoh has commissioned Smithers Pira to create a series of whitepapers. These look at opporunities for Print Service Providers to open new worlds in a number of key market segments.
Whitepapers available now:
It’s exciting times for the publishing market. It is clear to me, from the Interquest Digital Book Forum held on Tuesday 28th in London that, when we look at the publishing market we see it is poised at the beginning of a new world of opportunities.
Over the last five years we have seen that digital book printing has become mainstream.
Publishers have been taking advantage of the digital printing to go beyond simple print on demand. They are using sophisticated virtual stock strategies and ASR (Automated Stock Replenishment) not only to reduce their inventories (and therefore their risk) but also to revive their backlist catalogues. So it’s no surprise that, according to Interquest, 89% of print volumes in Europe are now short runs.
In fact according to one publisher at the event, “Print on demand is the hidden saviour of the small publisher.”
Print on demand is the hidden saviour of the small publisher
We are finding that publishers are now looking to use the benefits of digital printing for as much of their catalogue as possible. This means that they want higher quality for colour books – especially Scientific Journals, Children’s books and trade books. However they also want the costs as close to offset printing as possible – i.e. Inkjet costs.
This requires a level of print quality significantly better than the majority of inkjet systems installed in the marketplace.
That’s why Ricoh’s ProVC60000 colour inkjet platform has been capturing publishers’ attention. It offers superb quality colour inkjet which now make it possible to print high quality books and journals, even on offset coated stocks. Elsevier’s Johan Van Slooten states the detail and the sharpness of the inkjet samples were better, adding: “Digital printing can result in better quality than litho.”
Digital printing can result in better quality than litho.
Publishers see how Amazon.com has effectively set customer expectations with fast turnaround, 24 hour delivery and rapid response.
And this is what publishers are increasingly looking for.
The larger publishers really want to achieve this worldwide – that’s why there was so much interest in local printing and in particular the distribute and print model.
All in all we think this represents a significant challenge for book manufacturers. It’s no longer just about substituting offset with digital, but it’s really about how to re-invent production to take advantage of new industry 4.0 technologies and processes.
Every book printer we talk to confirms that, in this new world of short SLAs, shortening print runs and flexible business models, then automation is essential if they are to continue to be profitable.
That’s why we have launched our new Digital Book Printing Solution. Built on Open Standards such as XML, PDF and JDF, it works with many digital print technologies. It is designed to help book manufacturers produce short run books profitably and cost-effectively. Using Ricoh’s longstanding heritage in financial markets the solution can batch print jobs to make printing more efficient and track and trace work so book printers and publishers alike know exactly where each job is.
Our rapidly growing presence in the European book printing marketplace is supported by our headline grabbing technologies. They include superb quality colour inkjet which now makes it possible to print high quality books and journals -even on offset coated stocks. Our high performance heavyweight digital toner solution is not only ideal for book covers but also for ultra-short run books.
Print production capabilities, combined with quality and seamless job delivery, enable PSPs to redefine their business approach to more effectively address a broader range of markets.
Who said print was in decline? According to Interquest US commercial print volumes have been increasing every year for the past five years.
In our view there is a new mood of optimism in the publishing market. Digital print technologies have enabled publishers to reduce their risks and takes out wastage .
Now it’s time for the next phase. To explore new business models – and open new worlds in publishing.
After 11 frenetic days of meeting with our customers, listening to their needs and challenges and showcasing how our range of products, solutions and services support our clients’ needs, I want to take a moment to reflect on our drupa 2016 adventure.
Our theme for this year’s drupa, ‘Open New Worlds’ was developed to focus on the opportunities and challenges that our customers see in their sphere. What we wanted to let our visitors know was that no matter their size, sector or ambitions we can help them build from their strengths, creating more opportunities for them to grow and evolve. Welcomed in our theatre, customers, press and industry analysts enjoyed hosted tours to experience this first hand.
On the product side, we presented the latest versions of our cut sheet printers including the Ricoh Pro™ C7100 series and the Ricoh Pro™ C9100 series. In the continuous feed sector we put the spotlight on our newly enhanced Ricoh Pro™ VC60000 high speed inkjet platform. Live demonstrations of these in the Commercial Print, Direct Marketing, Publishing and Corporate zones, and in our lean manufacturing Smart Factory, highlighted the innovative applications, quality output and the broad range of services our presses offer.
Many of our clients agreed and signed on stand deals. Among the sales we celebrated were a Pro C7100 for Cicero, and Nationwide Print who chose MarcomCentral to support production on its new Pro C7100. Cicero also ordered a Pro C9110 as did Magneet Communicatiecentrum, Ecograf, Datum, Deltor, Impremta and CFH Documail – to name but a few of our clients trusting our technology to support their growth.
We were also very excited to celebrate the sales of our Pro VC60000. EDC was our first customer in Eastern Europe, while Adare ordered two lines and CFI opted to add a second. This latest addition to our portfolio is gathering market momentum, as our clients learn and embrace how its combination of productivity and high quality can help them be more cost effective and profitable.
We had a very busy industrial print zone, where we showcased the powerful opportunities offered by additive manufacturing, industrial inkjet printheads, direct to shape coding and marking as well as branding product decoration.
To add to that, we announced our entry into the vibrant signage market, by adding EFI VUTEk flatbed printers to our portfolio. The decision builds on the success of our large format portfolio of print production solutions.
There was a lot of discussion surrounding the overall theme of drupa 2016. Connectivity was a topic that ran through the show like a red thread, for all solutions and in every sector. Many of our visitors were looking for software and services that will enable them to connect and integrate different workflow streams and production environments.
In our Studio, many visitors discovered the capabilities of our TotalFlow portfolio including TotalFlow Cloud Suite, and learned how they could improve productivity, add value and open up new opportunities.
Finally, it’s important to remember that an event like drupa is only as good as the people who make it happen. It’s been a real pleasure for us all working with colleagues to make drupa such a powerful event. We couldn’t have made it the success it was without all the hard work that people put in. Ricoh really is a company that is driven by passion and dedication, and where imagine.change is not just a brand, but an expression of the talent and commitment of our team.
In this zone we want to show you how Ricoh’s solutions can help Open up New Worlds for you in publishing and book printing.
Here are just some of the great print samples you will be able to see in the Publishing zone.
Ricoh’s digital book printing workflow solutions allow Book Manufacturers to adapt their processes for the new world of short run, fast turnaround books and journal printing.
Publishers face many challenges in a rapidly evolving marketplace, but Ricoh’s new Pro VC 60000 means that long lead times on new publications need not be one of them
How things have changed. Only a few years ago people were predicting the death of the book as, e-books achieved exponential sales growth.
But two significant developments have demonstrated that the print book market remains alive and well.
Several weeks ago British high street bookseller Waterstones decided to stop selling Kindles due to “virtually no sales”, perhaps marking a watershed in the evolution of e-books. More recently, Amazon announced that it was opening a physical book store in Seattle.
So what is going on in the market—and what next for books?
Since the introduction of Amazon’s Kindle device, e-books have seen meteoric growth. They now account for nearly 25% of book sales in the US, and nearly 15% in the UK. However, many people that we talk to within the publishing industry believe that e-book sales have reached a plateau, especially in the US and UK. Indeed, the latest data from Nielsen shows that physical books sales actually increased, by 2% year on year.
This coincided with a decrease in e-book sales for the first time ever in the US.
But this does not necessarily mean that people have fallen out of love with e-books—rather, it indicates a wider pattern.
First, the e-book market is maturing.
The “land-grab” days are over, when e-book makers, content providers and publishers cut prices to drive market share. There has been consolidation among e-book providers.
Recent e-book price rises implemented by Amazon have made e-books less attractive as an alternative to print. “Large book publishers—including Hachette, HarperCollins and Simon & Schuster—recently won, after a hard-fought battle, the ability to set their own prices for e-books. But now, as prices for many e-books have risen, the industry is seeing a slump in sales,” reports Nova Safo, a broadcast journalist for Marketplace.
Last but not least, printed books have proven to have an enduring appeal. Whereas there has been a wholesale shift from print to electronic in some segments—especially academic journals and novels—in other segments, demand for print remains strong, with year-on-year growth in Adult Non-Fiction (+5%), Adult Fiction (+3%), Juvenile Non-Fiction (+11%, all data from Nielsen). Perhaps this should not be such a great surprise. Electronic delivery has revolutionised the journals market and expanded the reach of scientific and medical publishing. However, there is strong demand for printed children’s books.
So the bigger picture has been that, while demand for individual books has been declining, the dynamics of the market have been changing. There has been an explosion in the number of new titles published. In fact, according to European Book Publishing statistics, in the EMEA markets, more than 500,000 new titles are now published every year.
At the same time, Amazon has set the bar high for customer service. Increasingly consumers are expecting fast delivery—of around 24 hours for a paperback, or 48 hours for hardback.
This creates a whole new business model. Publishers increasingly need to plan their business around high availability of a very large range of titles, and low stock levels to reduce their risk. Nowadays, a major publisher will typically have 80,000 plus titles available via Print on Demand.
In a way this is the same as delivering e-books: consumers can access a large catalogue and can order what they want, when they want it.
This is exactly what major academic and scientific publisher Elsevier has been doing with its journals, which are literally printed to order in very small quantities using a highly efficient supply chain.
Key to this are the latest developments in digital print technology. The first wave of colour inkjet devices used by book manufacturers has helped to change the market by providing a compelling business case for short runs, produced quickly. This has already revolutionised the academic book market and some areas of mono trade books.
Now, with the launch of new colour inkjet devices such as the Ricoh Pro VC 60000, it is now feasible to print colour trade books in the same way. At our recent publishers event, held in Boulder, Colorado, we demonstrated that the Pro VC can now deliver a quality that can actually be better than offset. This opens up many new opportunities for publishers to take advantage of the compelling business case for short-run (and long-run) colour inkjet printing for books and journals that were either printed offset—or indeed, not even printed at all.
These are exciting times for publishing and book manufacturing. The whole business model is changing.
For publishers this not only reduces their risk, but also opens up significant opportunities to extract more value from their content. Now it is viable to produce even high-quality, colour trade books in very small quantities—and in short lead times too. This potentially means that books can be launched to the market quicker and be kept in print indefinitely.
To find out more about Ricoh’s solutions for publishing, visit www.ricoh-europe.com/publishing
This article originally appeared in the FutureBook 2015 Conference Programme.
User groups … I’ve done a few in the last 30 years.
Big ones and small ones, graphic arts ones and other ones, national and international ones.
So I was pleased to organise Ricoh Europe’s first Commercial Print Council.Which took place in the Ricoh offices in Staines on Thames (near Heathrow) UK, last month, when 15 clients gathered, representing eight companies from six countries.
Not only was there close interaction with Ricoh on the technical product level, but there were also three external speakers, each with their own specific topics.
Ralf Schlözer from Infotrends, the analyst company, looked into his famous crystal ball to give insights into opportunities for digital print in the commercial print market.
Print technologies are becoming more diversified: but not all technologies will be in reach for every printer.
His conclusions were:
Enrique Parilla from digital publishing company Lantia gave a privileged view on how he established his company as a publisher-printer-software developer, handling the publishing business in a completely different way from how traditional publishing companies do.
That’s very much the story of today’s graphic arts: printing companies are not in the business of selling print, they’re in the business of selling impactful and meaningful communication!
He used the following interesting analogy: in 19th century America, companies selling ice for refrigeration were big business. But … they didn’t realise in which business they were in. They thought they were in the business of selling ice … when it was actually refrigeration they were selling. So when the electrical refrigerator was invented, it wiped away the ice business. That’s very much the story of today’s graphic arts: printing companies are not in the business of selling print, they’re in the business of selling impactful and meaningful communication! In trade book publishing for instance, publishers are not selling books but stories!
Next time you drink your G&T on the rocks, do ask yourself: ‘in which business you really are’?
Ulbe Jelluma works for Frysk, a B2B advertising agency, specialising in serving international clients (in the graphics, industrial, financial, pharmaceutical, telecom and automotive industries). He started with an attention grabbing statement: ‘Beauty is in the eye of the beholder … And it may be necessary from time to time to give a stupid or misinformed beholder a black eye!’
…agencies today consider print as an application in the total communication mix
Ulbe explained how agencies today consider print as an application in the total communication mix. He highlighted some new print applications all driven by the generation of emotions in using print. He also showed some examples of ‘different devices, same content’ or how the advertising industry is using an omnichannel approach to push its message.
Another example was of ‘existing content, different application’ with books that are printed in Brazil for the public transport authorities, serving as a ticket and a planner at the same time as being a reading book. Or what to think about a plasticised newspaper that can act as an umbrella, in a country such as Ecuador ‘where it rains a lot’?
All creative examples of how print is being used in many new and different ways.
So Ricoh Europe’s first Commercial Print Customer Council featured a series of diverse speakers with a broad spectrum of experiences, insights and predictions to share. For me, though, there was a common thread.
It was the sheer resilience of print as many different players in different markets explore its unique characteristics to keep it as relevant now as ever.
It is very clear to see how publishing is changing in the world today; first music publishers, then newspaper publishers and now magazine and book publishers are finding that their markets are changing beyond recognition. These changes are a double-edged sword. On the one hand it represents a significant opportunity but on the other we will see traditional volumes decline and the traditional manufacturing model become increasingly inappropriate.
Traditional manufacturing equipment is no longer adaptable enough for this changing market. I doubt that a 30,000 books per hour binding line like the Muller Martini Corona I installed into a major UK Book Manufacturer some 10 years ago will ever be needed again in most markets.
Why? Well, the needs of the modern book publisher are changing and as suppliers we need to adapt.
Historically trade book print runs were 2000 – 3000 copies and these were bulk packed and supplied to the publishers warehouse. Publishers had millions of pounds held in inventory within in their warehouse. Volumes and margins were sufficient to have time to manufacture and store on a quarterly cycle. Today, with financial pressures on publishers and the ebook pushing down price, the market is much less predictable. Having lots of inventory and the risk of holding unsold stock is becoming unattractive to today’s publishers.
Even using traditional equipment regular orders of 500 copies is not uncommon but the trend for lower quantities and more frequent order cycles is obvious. So where is the trend going and what are publishers really looking for in the longer term ?
Trade Mono books have been the fastest to change, because they are relatively cheap, they are much less predictable in terms of sales and within the UK there is still a large proportion produced in the UK. Colour books however, are still mostly produced in the Far East or countries with a low cost base.
Let’s deal with mono trade books first, We have seen a significant investment in digital mono trade books in the UK with Clays, CPI and many others like Ashford and TJ International investing in inkjet production. This investment means that the mono trade book market is largely manufactured on a retail “on demand” basis.
I believe that once the mono trade book supply chain is established it will not be long before the colour trade book market will follow similar lines.
The reason for this belief is as follows:
Publishers need to react to the market place, sales are less predictable and it is becoming more and more difficult to be sure which titles will be successful and which ones will not. A publisher once said to me “ I have 5000 titles – I know 30% will be big sellers, I just don’t know which 30% that will be”
We also know it takes 3 days to get a book into a publisher’s warehouse and process it. It then takes 3 days to get it out again. 6 days is too long in today’s publishing world – Publishers need to be able to look at the retail and internet sales that occur in the prior week and order or replenish for the following week – it is that simple.
That means that ultimately we will need to produce orders of 200-500 on a 3-day turnaround as a minimum, even with traditional equipment. Looking forward, there will continue to be pressure to offer increased availability in order to service publishers at the level that they require which will mean that digital colour production will be a requirement. (In my experience Litho simply can not do that).
The switched on printers are taking that principle one stage further. If a printer is delivering an order in 3 days – why not bypass the publishers’ distribution system and warehouse altogether and deliver direct to store? Not as single jobs, but as a mixed batch of titles based on that stores sales the prior week?
If this is possible, with minimum impact on unit cost, this would be the publishers’ “Holy Grail” In some quarters I think that this is happening already. I believe that this is why Penguin/ Harper Collins moved all their trade titles from a two-supplier agreement (St Ives, Clays and CPI) to a single supplier agreement (Clays). The fewer suppliers means better manufacturing and distribution efficiency.
This means that printers will need to print orders of 5- 500 on a weekly or daily order cycle, but these orders will be in significant annual volumes; because the trade market consumes many millions of books per year.
This requires that digital book manufacturing needs to, and is, gearing up to this challenge.
Once inkjet can achieve acceptable colour for the publishers there is no reason why a trade book printer could not migrate to colour and fulfil the majority of titles to the trade market. This represents a significant opportunity for them as colour books have higher value and is a market that they previously did not serve.
Digital inkjet colour is here and many book printers are building their expertise in this area and offering publishers an opportunity to repatriate colour book production from China to the UK and Europe.
This raises some challenges however:
This seems like a lot of investment, a lot of effort and a significant risk for all involved? But the benefits are equally high – just look at how Clays has secured a 100% supply deal with Penguin/Random House. This means that the print service provider becomes a much more significant partner to the publisher. Once the supply chain is integrated and the savings have been made for the publisher, the printer becomes a logistics partner, a strategic partner , supplier that is involved with circulation, distribution and is ultimately responsible for making the publisher competitive in a very difficult market.
If I am right about colour inkjet it will meant that a significant amount of colour book production will be repatriated to the local market from the Far East and other regions meaning that a traditional trade book printer can grow significantly- After all there aren’t many traditional colour book printers left in the UK or Europe.
This supply chain model will enable publishers to publish more titles with less up front risk, it will open up local and self publishing opportunities for retail stores and make the book very competitive against other electronic publishing technologies.
Other opportunities will be to open up the deep back catalogue so that publishers can sweat their assets and printers can produce one off products and potentially deliver direct to consumer. As the supply chain and speed to market increases we could see new products like personalised books, especially for children, to become an every day way of adding value to what was once a commodity product as well as book stores offering more time sensitive products like magazines and newspapers.
As publishing the supply chain changes we will see more products produced locally in order to fulfil the time sensitive needs of the publisher.
Print Research International Ltd
This article was commissioned by Ricoh to bring you independent opinions from industry experts. We hope you find our guest speaker’s views interesting and stimulating. We would appreciate your feedback.