Despite the slowdown in the consumer segment, a recovery in the India Hardcopy Peripherals (HCP) market was seen in 2014 Q1. The growth was primarily driven by the Government’s procurement and supported by the Medium and Large Enterprises in India. According to the International Data Corporation (IDC), HCP market in India grew1.5% sequentially in 2014Q1 and reached 801, 000 units in terms of shipments. This was largely driven by the Government’s buying in the Laser segment, which recorded a significant sequential growth of 12.8%. But on the other hand, Inkjet segment performed weakly due to low consumer demand across all price band segments, resulting in a marginal growth of 1.5%.
Mohammed Riyaz Ahmed, Market Analyst at IDC India, says, “Excluding the Government business, the demand of Laser printer is slowing among the Medium and Large Enterprises due to the combination of national and state elections where Enterprises decided to hold their purchase till the new Government is in.However, overall business from this segment was stable due to the financial year-end purchase, where corporate would like to use up their remaining budgets. All these factors collectively led to the growth of the Laser market.”
“All the leading vendors had a bit of inventory issues earlier. But later in the second half of the quarter,a lot of new campaigns and marketing activities were seen in the Inkjet HCP* market. As a result, a recovery is expected in the next quarter with vendors targeting back to school season,” Says MohitRaizada, Senior Market Analyst, IDC India.