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State Street Releases New E-commerce, Workflow Study

Press release from the issuing company

Despite all the attention given to the dot-com vendors in the trade press and at all of the major trade conventions, these companies remain relatively unknown. Overall awareness levels are quite low. Less than half of printers interviewed are aware of any one company, with most vendors known by less than one-third of printers interviewed. While this industry is not much more than a year old, mergers, acquisitions, and continually changing business focus plague this volatile market. Printers are confused not only about the players, but what it is they have to offer, the pricing structure, and how they differ from the competition. The early adopters have made their move. The majority are open to the 'idea' of e-commerce, but have taken a wait-and-see approach. Many dot-com vendors are marketing to the very large print buyers, which, if successful, will pressure a majority (77%) of printers to participate. However, print buyers/creators highly value their relationships with trusted print providers and may not make a move into e-commerce until pushed by their printer. Printers who choose a pro-active approach can drive the acceptance and use of web-based tools. On the supply chain side, printers do and will buy over the Internet. Dealers and equipment vendors are still preferred, but they need to develop an Internet strategy and be aggressive to fend off web-based distributors. This could also be an opportunity for equipment and supplies manufacturers to sell direct. About one-quarter of printers surveyed would feel comfortable with new e-commerce companies who really understand what it takes to provide on-line commerce. Dot-com companies need to do a better job of educating printers about the advantages offered. As bandwidth becomes less expensive and more readily available, more printers will be 'connected' and are likely to be more open to e-commerce opportunities. However, it is unclear how many will work with existing e-commerce vendors and tools and how many will opt to develop a proprietary solution. For more information about Expanding the Digital Path: E-Commerce in the Printing Industry, contact State Street Consultants at 617-482-1234 or at [email protected].

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