Continuing on our exploration of digital packaging printing and the benefits it has for your brand, we delve further into it in this blog post.
We at Impress Printers pride ourselves in our high quality digital printing and packaging, fully customisable with our latest printing technology to suit your brand’s identity and needs. Our online store is a click away from completing your brand’s packaging! Our packaging products allows you to tailor your brand’s entire consumer experience.
The Digital Shift: Cost vs. Value
Brand that compete through digital technology and strategies, have seen higher rates of revenue and earnings growth than companies competing in more traditional ways. Therefore, it’s vital for label converters to realize that driven by consumer trends, the demands from brands have changed, and that brands need to act accordingly.
- Between 2018 and 2023, there is an expectation that digital label printers and flexible packaging are going to grow.
- Brands and converters both require more operational efficiency: this should not be difficult with the level of tech we have in today’s world.
- However, analogue presses are still an imperative part of the factory floor, especially with longer runs.
- Label converters should aim to create an ecosystem where digital and analogue combine to optimize every step of the label printing process.
- Therefore, not every converter will see the benefits of digital necessary. For those whose bulk of business is in long runs, it will prove an important consideration in terms of growing revenue streams in the near future.
- Many converters in business today are hesitant to transition into digital because of the perceived cost, and that new technology may be a risk for the business.
- However according to industry experts, while digital may initially be seen as expensive, in reality the profit per employee can be up to two times higher than analogue.
The Opportunity Costs
- With the introduction of digital, quality and quantity are no longer mutually exclusive.
- When weighing up the cost versus benefits, it’s often not as surface-level as comparing two numbers.
- While the less-expensive option appears to be more attractive and offer the highest return on investment, the added valuecreated by another option, such as digital, offers a higher return rate.
- For labels, digital has four differentiating assets—no plates, faster press setup, the virtual elimination of make-ready and running waste, and easy customization— allowing for:
- More cost-effective printing of short to mid runs and high SKU production
- Increased readiness and agility of the supply chain
- Incredible customization with versioning and serialization, in which every label can be a “one-off”
These provide value to a brand owner, both internally within the supply chain, and externally, for customer engagement.
Making an Investment Analysis
As we have said earlier, for many converters, making the digital investment is a significantly different strategy.
- Historically, companies invest in conventional equipment, based on paying for the asset over three to four years and running it for another ten.
- Decisions regarding digital should be made looking at the total cost of ownership over time (TCO) combined with the future opportunities the asset can bring, either in the form of new business, or increased capacity.
Ultimately, when purchasing the first digital press, it’s important for converters to consider how they envision their digital business. The more advanced the digital solution, the more opportunities may be within reach. A digital press should be versatile, not a one-trick-pony—especially in times of uncertainty. Covid-19 has shown the print industry is that applications that were once niche, can suddenly become blockbusters. A digital press should enable businesses to pivot and deliver different products, fast.
That’s why Impress Printers’ latest digital printing presses produces exceptional quality labels and packaging with creative features that meet unique customer preferences, and eye-catching special effects that contribute to delivering positive customer experiences.