Colourgen has predicted consolidation in the large-format digital printer market.
"There has to be consolidation in the next two years," said managing director Jeff Biggs. "There are too many manufacturers with only a finite demand."
Acquisitions and joint ventures will reduce the 15 main manufacturers of hardware and hundreds of media producers, according to Biggs. Despite that, the firm doesn't believe there will ever be one manufacturer with a comprehensive offering.
"This is where we come in," he said. Colourgen is expanding its product range and reseller channels to address the broader large-format market beyond its core print for pay clients.
The firm is responding to Hewlett-Packard's aggressive blanket marketing with a more strategic approach.
It will focus on developing packages for specific applications combining hardware, software, consumables and support.
Colourgen is targeting corporates and retailers that make graphics in-house by adding Epson printers to its Encad products.
It is close to signing a deal with one retailer for 20 printers to produce all its POS materials.
Colourgen has cut 500 from the price of Epson's large format printers.
Story by Barney Cox
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The cap ex involved was too big a risk for us at the time so we let it go.
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