Study will focus on impact of newly-made compatibles (NMCs) for inkjet and laser cartridges in the North American and European markets.
InfoTrends is to conduct a study looking at the impact of NMCs in terms of market share and how they have affected the inkjet and laser cartridge industry in North America and Europe; distinguishing between all NMCs as a broad term and clones – a subset of NMCs.
Noting that there are some “interesting differences” in the penetration of NMCs in North America and Europe – namely that Europe sees more of them than North America – InfoTrends said that the study will be conducted “because resellers are the route to market for clones” and so “there is a strong need to understand what the channels believe or do not believe about clones, their awareness across various risk factors in clones and what education is required in the channel to potentially reduce the negative impact of clones on the channels themselves and the industry”.
InfoTrends added that this need particularly applies to the internet channels, but that the research will also take into account traditional channels.
According to InfoTrends, awareness of NMCs varies by channel, with large wholesalers, large chain retailers and large contract stationers believed to be “very aware” of the potential risks associated with NMCs, thus they are “minor participants” in the sale of such products. However, it added that “the exception is for NMCs where the understanding is that patent issues, if they even exist, are small and easily circumvented and where remanufactured cartridges don’t exist or are in very short supply”.
OEMs and remanufacturers in both regions name price, quality, reliability, and variable IP infringement issues as the biggest differences between remanufactured products and NMCs; with neither group being happy about needing to compete against a product that is 20 percent of the OEM price and that may also be infringing patents.
John Shane, Director of InfoTrends’ Communications Supplies Consulting Service, commented on the need to raise awareness and take action against clones: “More action needs to taken to make the internet specialists who do sell suspect products realise that there are risks. While difficult, OEMs could work together to target some high-profile offenders. Combined efforts could be a more effective deterrent than each OEM acting on its own.”