TWGA: Graphic Arts Distribution Channel Report Released
Press release from the issuing company
NEW YORK -- January 28, 2004 -- With so much emphasis on product development, channel distribution is often an overlooked concern among marketers. Today, TrendWatch Graphic Arts released a new special report, which analyzes the distribution channels for graphic arts vendors and suppliers. According to the report, distribution channels, or the means by which vendors deliver their offerings to the end consumer, has undergone as much change as the industry it serves.
For example, the report cites several key executives at dealer organizations who report that the traditional business model of the "typical" graphic arts dealer is over. The report goes on to point out the influence of the manufacturers increasing direct involvement in the channel. Once the sole domain of independent dealer companies, manufacturers are now entering the distribution realm. Manufacturers have began buying dealers or setting up dealer arms, while paper merchants have begun selling digital imaging systems as well as graphic supplies.
The report, called "Changing Channels: Trends in the Graphic Arts Distribution Channel" is an analysis of dramatic trends and changes in the distribution channel of vendors and suppliers of printing, publishing, design and creative offerings. The report is available for online purchase at the TWGA eStore in PDF format.
"The report highlights how the various segments demonstrate different purchasing habits," notes Vince Naselli, Director, TrendWatch Graphic Arts. "Yet, what does become apparent is also the similarities. For example, for major capital investments (usually larger hardware) most graphic arts consumers feel more comfortable using a dealer. Yet the shift away from the dealer for smaller hardware and software items is apparent. For these purchases, mail and Internet order, and computer outlet stores have become the norm. This trend indicates that dealers are losing sales on these high-margin items, such as software, computers, and smaller peripherals. The consumables for larger ticket hardware (i.e. color proofers, presses) is where many dealers are still making their significant profits."
According to the Report...
-- MAIL/INTERNET ORDER PURCHASES: The top products purchased through mail order or the Internet are desktop graphics software (52%), computer suppliers (46%), Macintosh computers (39%), and add-on cards (39%). Top products purchased by printers via mail order include desktop graphics software (52%), computer suppliers (46%), Macintosh computers (39%), and add-on cards (39%);
-- SIZE MATTERS: --Large dealer organizations are making it more difficult for the smaller dealers. Yet, many dealers believe that small, independent dealers still have a place in the industry. It will be the dealers who have carved out specific niches that will be able to compete. Smaller dealers have flexibility and can be "nimble" with product lines, and can more easily and swiftly take advantage of new and developing technologies and products.
-- CREATIVE MAIL ORDER: Mail order is also the most popular sales channel among creative professionals. The top hardware and software products purchased via mail order by creative professionals are graphics software (67%), Macintosh desktop computers (44%), Web page creation software (38%), and add-on cards (27%).
This report is based on the TWGA historical database, which contains data from the last 18 months of surveys of printing, publishing, design and creative professionals conducted by TWGA. This report is also developed using interviews with distribution company executives and secondary research from the A.F. Lewis database, as well as primary research via Internet sources.
The TrendWatch Graphic Arts "Changing Channels: Trends in the Graphic Arts Distribution Channel" report is available for purchase by visiting the secure TrendWatch Graphic Arts eStore online at www.trendwatchgraphicarts.com or by phone at 866-873-6310. The price for the 98-page report is $1295. TrendWatch Graphic Arts eStore customers can download this report in PDF Acrobat format immediately after purchase.
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