China's original toner cartridge market was downward in the first quarter due to the epidemic backlash. According to the Chinese Quarterly Print Consumables Market Tracker researched by IDC, shipments of 2.437 million original laser printer toner cartridges in China in the first quarter of 2022 fell by 2.0% year-on-year, 17.3% sequentially in the first quarter of 2021. In particular, due to the epidemic closure and control, certain manufacturers with central dispatch warehouses in and around Shanghai could not supply, resulting in a shortage of supply and lower product shipments. As of the end of this month, the closure, which extended for nearly two months, will be a record low for many original consumables manufacturers in terms of shipments in the next quarter. At the same time, the epidemic's impact has been a considerable challenge in dampening demand.
Manufacturers face challenges in supply chain repair as the epidemic sealing situation becomes critical. For international mainstream printer brands, the supply chain between manufacturers and channels has been broken due to the closure of several cities in China this year due to the epidemic, especially Shanghai, which has been closed for nearly two months since the end of March. At the same time, the home office of enterprises and institutions also caused a sharp drop in demand for commercial printing consumables, ultimately leading to both supply and demand being struck. Although online offices and online teaching will bring some demand for print output and better sales prospects for low-end laser machines, the consumer market is not the primary target market for laser consumables. The current macroeconomic situation is not optimistic, and sales in the second quarter will be sluggish. Therefore, how to quickly develop solutions to unwind the backlog inventory under the influence of the epidemic sealing control, adjust the sales strategy and sales targets of the core channels, and resume the production and flow of all parts of the supply chain at the fastest speed will be the key to break the situation.
The print output market downturn under the epidemic will be an ongoing process, and vendors must remain patient. We have also observed that the recovery of the commercial output market is facing great uncertainty. While the outbreak in Shanghai is showing an upward trend, the situation in Beijing is not optimistic. The attack has caused irregular, periodic epidemics in many parts of the country, bringing production and logistics to a halt and putting many small and medium-sized enterprises under severe operational pressure, with a clear downward trend in purchasing demand. This will be the "new normal" for manufacturers throughout 2022, with supply and demand declining and the market dropping until the year's second half. Therefore, manufacturers need to be more patient in dealing with the negative impact of the epidemic, actively develop online channels and customer resources, rationalize print output opportunities in the home office sector, use diversified media to expand the size of their product user base, and strengthen the care and incentives of core channels to boost their confidence in dealing with the epidemic.
To sum up, HUO Yuanguang, senior analyst of IDC China Peripheral Products and Solutions, believes that it is crucial for essential that original manufacturers take advantage of the situation to reorganize and integrate production, supply chain, channels, and sales under the control of the epidemic, and to adjust marketing strategies moderately and flexibly so that the ability to cope with various risks in extraordinary times can be enhanced. The core competitive advantage of original consumables brands can be maintained.
Post time: Jul-18-2022