The OEM’s subsidiary is aiming to create a new revenue stream in the “fast-growing” commercial printing market.
Bangkok Post reported that Fuji Xerox Printers, a unit of Fuji Xerox Thailand, is aiming to “create a new revenue stream” by investing in the office paper market in the country, as it believes that it can “capitalise” on the quickly-growing digital commercial printing sector there.
The sector, largely consisting of producing manuals and direct mail marketing, grew by 15 percent to 10 billion baht ($308 million/€224 million) in 2013, whilst in comparison Thailand’s laser printer market only grew by five percent, with the overall printing industry seeing no growth over the entire year. A demand for A4 paper has remained strong there, and the OEM believes that the sector is one in which it should operate.
Research firm Pira in turn forecasted that A4 demand will reach 850 billion sheets worth $85 billion (€61.8 billion) by 2015, an increase from 800 billion sheets worth $82 billion (€59.6 billion) this year. The Thai market is expected to grow by only five percent in 2014 due to political unrest in the nation, but the OEM believes that the paper business will contribute at least five percent towards its 2014 sales revenues already.
Rangsan Naratchariyangkul, Manager at Fuji Xerox Printers, stated: “We want to compete directly with copy paper brands [including] Double A and Siam Cement Group’s Idea, offering 10 percent lower prices.” He noted that cartridges and printers create 60 percent and 35 percent of sales revenue in Thailand for the OEM at this time, with paper expected to increase this in a few years.