According to IDC's numbers for 2005, Epson's share of the total printer market was lower by five percentage points than the previous year and currently holds the number two position at 34 percent. Hewlett-Packard Co.'s share, meanwhile, rose by three percentage points and holds the top spot at 37 percent.
Canon Inc. remains at number three with a 20 percent share of the market.
Epson Philippines Corp. president Hideto Nakamura makes a speech during his introductory briefing with the local IT press.
Hideto Nakamura, Epson Philippines' new president who assumed position at the start of the company's fiscal year last April, said that
Epson will focus more on the corporate segment of the local market. Nakamura said the company will focus more on the corporate market in its current fiscal year.
Aside from dot-matrix and the inkjet printers, which account for the bulk of the Japanese company's revenues in the Philippines, Epson is also looking to generate more revenues from products geared towards business users, such as LCD projectors and wide-format printers, and those that cater to niche markets such as point-of-sale (POS) printers for retail users and passbook printers for banks.
For the previous fiscal year ending March, Epson Philippines grew its total revenues by about 8 percent to P1.6 billion (US$30.8 million), said Jino Alvarez, assistant general manager for sales and marketing, in a briefing Monday announcing the company's new president.
Dot matrix printers, a market perennially dominated by Epson, accounted for almost half of Philippine revenues, followed by ink jet printers and projectors. The company also reported steady growth in its consumables business or ink cartridges even with a surge in the popularity of ink refilling stations.
'We have made our consumables a lot more visible in the market since last year. We found out that users have a tendency to go for alternative products if they don't see original cartridges available,' Alvarez said.
Striking a balance
Echoing Nakamura's speech, Alvarez said the company now wants to become more user-focused, rather than product-oriented, in approaching the market, while creating a balance between its corporate and consumer business.
Epson is traditionally stronger in the consumer segment, though Alvarez said the company's revenues for fiscal year 2005 showed little difference between both market segments.
The company is targeting to increase its revenues for fiscal year 2006 to P1.7 billion. Alvarez, however, expects sales in the first quarter of its current fiscal year to be 'not as good' as the previous year.
'April, May and June are traditionally lean months. It's been hard to hit our target since it's the opening of a new school year and spending is prioritized elsewhere,' said Alvarez, noting that Epson's sales usually start peaking in the middle of the second and third quarter.
IDC predicts the total printer marker this year to shrink by more than 12 percent from 524,000 units in 2005.
'We'd like to focus more on revenues and profitability not market share. Even if our share drops by a few percentage points, our focus is on total value for costumers,' Alvarez said.
Since last year, HP has been aggressive in marketing its consumer products, including its printer line. Its marketing blitz includes trade-in schemes and bundling its printers with other devices such as PCs and digital cameras.
Alvarez himself acknowledged that HP has been aggressive in becoming more competitive in terms of price points but maintains Epson's customer-focused stance.
For his part, Nakamura said Epson will analyze the local consumer market to see how the company can address growth opportunities.