New Report Spells Doom for Dot-Coms
Staff -- Graphic Arts Online, 12/1/2000
A new report details the upheaval among printing industry dot-coms, as well as how printers and publishers are and are not using the Internet.
The second annual TrendWatch "Printers & the Internet" study outlines what's changing and how industry restructuring will affect printers, and explains why these events are taking place. Also included are discussions about what printers and dot-coms need to do about these situations.
Shakeout was predicted
"Currently, the print industry dot-coms are undergoing the shakeout we predicted last year," says Harrisville, R.I.-based TrendWatch partner Dr. Joseph Webb. "Companies are trying to figure out how to repackage and better target their messages. They are finally figuring out that it's tough to sell to printers this way, and are coming up with innovative alliances to boost sales. Watch for significant consolidation, alliances, and partnerships in the dot-com category in 2001."
The report cites the high fees many of these companies charge printers as one reason for their failure. Further, says the study, if a printer is large enough, it likely will build its own e-commerce solution instead of relying on other companies for this capability.
However, the report found that just because dot-com firms are struggling, printers and suppliers should not think that the Internet and its associated services are not worthwhile to the industry. Irrespective of the stock prices of dot-com companies, the Internet is revolutionizing the print workflow and the entire industry structure, the report states.
Cool on job tracking
For example, over two-thirds of print businesses say they receive customer jobs via e-mail, the number-one Internet service provided by these businesses. However, the report found little interest among printers and prepress shops in allowing customers to track their jobs via the Internet.
Further, being Internet savvy seems to make a big difference for print businesses. About one-third of printing firms participating in the study said their business conditions were excellent. Among those with their own Web sites, this figure rose to 39%; among those planning to purchase Internet production coordination systems, the percentage increased to 43%.
For more information, visit the TrendWatch Web site at trendwatch.com. [See also News, page 22, for coverage on the recent purchase of TrendWatch's graphic arts-related businesses by Graphic Arts Monthly publisher Cahners Business Information].
