Parallel Imports Challenge Vendors of OEM Products in MEA

The revenue of the Middle East and Africa (MEA) consumables market increased 7.2% for the second half of 2013 (2H2013), with the unit sales up 0.6%. The growth of the market was mainly driven by an ongoing shift from inkjet devices to laser technology and from monochrome to color.

According the IDC, the volume of the inkjet consumables segment decreased 2.1% year-on-year (YOY), with the market value down 3.9% for 2H2013. All key markets in the MEA region suffered declines, except the UAE. Due to the boost of smartphones and tablets and the demand for home printing, the installed base of inkjet devices in the consumer segment is dropping down. The increasing shift to laser devices caused the decrease in the enterprise segment.

Regarding the laser segment, IDC reported the value of the toner consumable market increased 11.2% YOY, with shipments up 4.5%. The growing installed base of MFPs, particularly color devices, has driven growth across the region.

As was revealed, the MEA market is not impacted by compatible and counterfeit consumables when it is compared with other regions. However, IDC suggests that the channel community in MEA should pay attention to the parallel imports. These consumables are original products, but they are imported through unofficial channels and cheaper than the same products, which are sold through official distribution channels. IDC said that this challenge will continue to become stronger in the current growing market.

Ashwin Venkatchari, Senior Program Manager for imaging, printing, and document solutions at IDC Middle East, Africa, and Turkey, noted, “The MEA consumables market offers attractive revenue opportunities for OEM vendors. Compatibles primarily maintain market share in the entry-level segment and therefore do not pose a serious threat to OEM vendors in the region (with the exception of Turkey). The OEM vendors have also done a commendable job in combating the scourge of counterfeit products. However, the most serious threat to growth in the MEA region is posed by parallel imports. As such, OEM vendors must come up with consistent and sustainable strategies to address this issue if they are to fully capitalize on the growth opportunities that this region has to offer.”