30 April 2020: The print industry channel has made it clear that more support is needed from vendors if the channel is to weather the Covid-19 storm. The second edition of Quocirca’s study into the impact that Covid-19 is having on the print sector found that 61% of channel businesses would now like financial support from vendors – up from 39% who said this two weeks ago.
It is not just financial support that partners need. Demand for personalised guidance from vendors has risen to 27% from 9% in the first survey.
Respondents to the survey were clear in their views on the need for vendors to act, with one participant saying that suppliers need to recognise what is going on at the coal face.
Louella Fernandes, Director, Quocirca said: “It is clear that, as time is passing, the scale of the pandemic’s effect on business is intensifying. We are seeing positive signs that channel partners are prepared to adapt their strategies and innovate to try to mitigate the effects of the situation, but also that they need help from vendors to do this.”
Catalyst for major change
Quocirca’s second snapshot survey tracking the print industry’s response to the pandemic found that two thirds (66%) of respondents say they will need to change their operating model going forward, up from 57% who had reached this conclusion two weeks ago.
Respondents recognise that enforced changes to working practices are likely to drive permanent change in the market. One respondent noted: “Print is no longer relevant to businesses. The crisis has accelerated the exit from hybrid document process to digital workflows.”
However, it seems the sector’s ingenuity is still going strong, as 58% now plan to introduce new products and services to market to meet anticipated post-pandemic demand (up from 47%). Similarly, 77% see opportunities to drive innovation within their business.
Asked which areas they plan to launch new products and services in, the most popular area was support for remote/homeworking printing, followed by cloud print security services.
Long term disruption anticipated
Asked about the future outlook, OEMs are the most bullish, with 50% expecting to be back to normal within six months. ISVs and channel partners are less optimistic, with 37% of ISVs expecting it to take more than 12 months to get back to normal. However, OEMs have the greatest number of respondents stating that they do not expect there to be a ‘business as usual’ after the crisis is over (11%).
Louella Fernandes comments: “OEMs have known for a long time that change is coming, even if the catalyst has been unexpected. They are perhaps therefore better positioned to transition to a new normal and certainly most have the immediate financial resources to be insulated to some degree.
“Channel partners and ISVs are more exposed, and this is why they are looking to suppliers for assistance. We have seen some vendors detailing support plans, but channel partners will be looking for more to lend their support before the worst is past.”
Quocirca’s second Covid-19 business impact survey is now available to purchase at https://quocirca.com/covid19-market-insight/ where a free executive summary and infographic is also available.
The third phase of the survey is now live here: https://www.surveymonkey.co.uk/r/QuocircaCovid19survey3
The second Quocirca Covid-19 business impact snapshot survey was conducted online between 8th April and 23rd April 2020.
Quocirca received 114 completed responses, 26% from OEMs, 54% from channel organisations and 18% from ISVs. The rest of the respondents fell into the ‘Other’ category. For the purposes of this report, where splits have been reported, they are focussed on OEMs, Channel partners and ISVs. Overall, 72% of respondents were from organisations with fewer than 1,000 employees (65% in the first survey). 52% of respondents were from European organisations (against 44%), 16% from the US (27%) and 32% from other regions (29%).
Quocirca is a global market insight and research firm providing strategic market analysis and intelligence to print industry business and technology leaders. Quocirca specialises in analysing the convergence of print and digital technologies in the future workplace.
Since 2006, Quocirca has played an influential role in advising clients on major shifts in the market. Our consulting and research is at the forefront of the rapidly evolving print services and solutions market, trusted by clients who are seeking new strategies to address disruptive technologies.
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