One of the most compelling advantages of digital printing technology is its ability to respond swiftly to sudden shifts in consumer preferences or unexpected disruptions in the supply chain. The Covid-19 pandemic served as a stark reminder of the importance of adaptability. Digital printing empowers companies to swiftly adjust their printing technology to align with evolving market needs, ensuring that their products remain relevant and appealing.
In an era of evolving consumer demands and dynamic market landscapes, companies are trying to find innovative solutions that offer flexibility, agility, and cost-effectiveness. The emergence of digital printing technology has paved the way for businesses to transform their approach to digital solutions, offering a host of benefits that can no longer be ignored.
Jimit Mittal, president of Jetsci Global, says, “Digital printing allows for cost-effective and efficient production of multiple SKUs, as the process does not require costly setup fees for each design or version. The most versatile aspect of digital printing is value-added services such as variable data printing and customized printing, which can increase customer engagement and loyalty. Digital printing provides companies agility, cost savings, and value-added services, making it an attractive option and a business necessity.”
To effectively get into digital printing, the cost level is determined by the minimum order value rather than the minimum order quantity, which is a crucial factor in conventional printing. It is essential to consider the minimum order value, gross profit margin, Opex, and Capex of the project. By doing so, businesses can make informed decisions regarding their investments and ensure profitability in the long run, he says.
“Unlike conventional printing, digital label printing has a lower minimum order value, which can be as low as Rs 5,000, making it a feasible option for small to medium-run orders. Additionally, the gross profit margin for digital labels for small to medium runs is higher, ranging from 100-500%. The cost also depends on the Opex and Capex of the project,” Mittal adds.
Shift towards digital
Businesses must understand that like any technology, the adoption of digital printing technology has its initial set of challenges and teething issues. “Even conventional printing had its problems in the early stages of adoption. If printers and converters understand their business requirements, such as the volume needed and the market segment they wish to serve, and conduct the necessary research, they will find digital technology can enhance their current business processes and better serve market needs,” he says.
While the market for digital printing technology may seem highly competitive, new entrants can differentiate themselves and stand out in the marketplace by understanding how to do so. Despite potential pitfalls, digital printing technology is highly useful and beneficial, offering faster turnaround times, lower minimum order values, and the ability to print small runs of customized products, Mittal says.
“Additionally, digital printing technology enables businesses to meet the increasing demand for sustainability and reduce their carbon footprint. With proper planning, investment, and understanding of the market and its challenges, businesses can successfully navigate initial teething problems and leverage digital printing technology to grow and thrive in the competitive marketplace.”
Apart from its immediate advantages, digital printing technology aligns with the growing demand for sustainability. Reduced waste, shorter production cycles, and the ability to print on-demand contribute to a smaller carbon footprint. This aligns perfectly with the increasing awareness of environmental responsibility and can be a crucial selling point for companies seeking to appeal to eco-conscious consumers.