Commercial printing is a process where artworks or information are printed on specific types of paper or cards only for commercial purposes. Different types of brochures, books, flyers, business cards, newsletters, magazines, catalogues, etc. are some common examples of commercial printing. However, not all types of commercial printing can be achieved with the same types of printers as they require specific additional tools such as bindings, and different types of presses. Still, offset lithography is widely used in the majority of printing operations due to its versatility and cost-effectiveness. Other than offset lithography, some other types of printing techniques include flexography, digital printing, gravure, and screen printing. Since commercial printing produces almost every type of tangible readable material, this is considered as a global industry and it has its own dynamics.
According to the global commercial printing industry statistics, the total market value is approximately $812 billion and currently, it is growing at a Compound Annual Growth Rate (CAGR) of 0.3 percent. Regions such as North America, Western Europe including some APAC countries such as China and Japan are considered high maturity markets. Both North America and Western Europe are expected to see a decline in their market value and growth due to increased digitization. Mobile technology and the easy availability of the internet are affecting the global commercial printing industry as the demand for print ads and promotional materials is declining. As a result, the future growth of the global commercial printing industry will be driven by emerging economies from parts of APAC, MEA, and LATAM.
A Guide to Starting a Business in the Commercial Printing Industry:Approximately 50 percent of the global commercial printing market is occupied by developed markets such as those in North America and Europe. As these are highly consolidated markets, there are significant opportunities in APAC, MEA, and LATAM regions where penetration of commercial printing is quite low.
Here is a comprehensive look at starting a commercial printing business.
- Understand the Global Market Trends: Entrepreneurs have to understand global market trends to determine their niche and the industries they wish to target. According to the current global market trends, commercial printing service providers are including end-to-end services in their portfolio so that they can retain their clients. Therefore, an upcoming commercial printing business has to ensure they offer services other than printing. Some of the value-added services include mailing, fulfillment, design, consulting data management, etc. Entrepreneurs should also consider personalized printing services as per the clients' demand such as packaging, wide-format printing, and digital printing. They should also study the growth drivers of the commercial printing market so that they can incorporate new strategies and evolve accordingly.
- Competitive Analysis: Entrepreneurs have to perform a thorough study of their competition and what equipment they use. The use of effective commercial printing equipment is a crucial factor in the modern business scenario as businesses can maintain efficiency in their processes and reduce overall operational costs at the same time. In addition, market research will also allow a business to know about the printing that remains in high demand in specific regions.
- Acquire Capital: Modern printing equipment such as offset printers are not cheap and setting up multiple printers and processes can be quite expensive. Other costs such as operational expenses, employee salaries, and equipment maintenance add to the requirement of plentiful startup capital. In such a scenario, the business should opt for corporate loans that are tailor-made as per the industry requirements.
- Setting up a Facility: Since commercial printing does not require the use of multiple heavy equipment except the printer itself, businesses do not have to worry about acquiring a huge space initially. In addition, setting up a commercial printing facility does not require too much manpower as well. A business only has to hire a few experts who can manage their respective departments such as printing, client handling, value-added services, and administration. Another way of setting up a commercial printing facility is to build a virtual office and start working through a website. This will eliminate the need for a separate administrative or management team.
- Marketing and Promotion: A business can initiate its marketing strategy by printing sample brochures, flyers and all the other types of printing material as per their capability and niche. It will also market their true creativity and versatility. Value-added services such as mailing and designing can be a part of a business's marketing campaign where they can promote their business by using the same services that they offer to their clients. This way, potential clients can also realize their ability and how these services can help them. In addition, the business can also target retail customers who usually have highly customized product requirements but in extremely low quantities. This may seem like an activity with low or virtually no profits at all but small sales on a daily basis can help a business generate sufficient funds and profits.
A Definitive Guide to Start a Business in the Commercial Printing Industry