The price of catalog printing services is expected to continue to decline over the next three years as demand for catalog printing services continues to shrink.
Los Angeles, CA (PRWEB) June 23, 2014
Catalog printing services have a buyer power score of 4.3 out of 5, indicating strong negotiating conditions for buyers. Buyers benefit from low specialization and low switching costs, which allow for buyers to choose suppliers based on price and level of service. However, buyer power is limited by low average market profitability and high vendor financial risk. “Sourcing from financially unstable suppliers could cost buyers the supply or capital already invested in the contract or order,” says IBISWorld procurement analyst Jesse Chiang.
Printing and distributing catalogs does not require specialized knowledge or machinery. Low specialization and minimal barriers to entry allow numerous catalog printing service suppliers to operate in the market. There are also low switching costs when buyers switch between vendors; low specialization minimizes potential risks in quality when changing suppliers. This factor limits costs associated with researching suppliers and potential learning costs. “Buyers benefit from low specialization and low switching costs because these characteristics broaden the number of viable suppliers in the market,” adds Chiang.
Vendors in the market typically operate with a low profit margin and significant risk. The largest suppliers in the market include RR Donnelley and Quad/Graphics. Suppliers have experienced declining profit margins due to rising input costs and declining demand for catalogs. Demand for catalogs has fallen because of the growing popularity of digital products. Advertisers have followed consumers to digital markets, investing less in print advertising, such as catalogs. Declining profit margins hurt buyers because suppliers with low margins are typically less flexible when offering discounts. Buyer power is also hurt by the large number of suppliers that carry significant financial risk because buyers must spend more to research suppliers, and some suppliers may pose too much risk to be viable options. For more information, visit IBISWorld’s Catalog Printing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of catalog printing services. Catalog printing involves printing black and white or color text or images in a printed book that companies may sell or distribute to end users. Companies may use catalogs to promote their brands or to list their available products and services. This report excludes other types of printing services, such as fabric printing and industrial printing, as well as printing equipment and accessories.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.