National elections in the Philippines were considered a growth accelerator for multi-function peripherals due to increased printing activities for campaign-related paraphernalia. In the last national elections in 2010, IDC reported that the 2010 Q1 printer shipments reached over 218,000 units, an 8% growth YoY. But, elections no longer serve as a growth driver for the printer market as this year 2016Q1 shipments closed at almost 187,000 units only, which is 3.2% lower versus the previous year.
"Moreover, the printer market in 2016Q1 was also heavily weighed down by lower consumer spending for peripherals as a post-holiday effect, lack of substantial promotions, major government as well as the enterprise deals for most vendors. Additionally, the consumables market has been declining in performance of third-party vendors in spite of growing OEM inks and toners shipments due to intense price competition, quality issues, and lack of major promotions among third party players," says Nicolo Santos, Market analyst for Imaging, Printing, and Document Solutions (IPDS), IDC Philippines.
Elections are No Longer a Growth Accelerator for Printing
"The hardcopy peripherals market did not achieve major gains from the election season possibly due to increased usage of multimedia platforms such as social media and TV ads instead of print materials, which was a common practice in previous polls," Nicolo Santos adds.
IDC believes that the shift to multi-media ads on television and social media has changed the landscape of Philippine elections. Candidates and netizens alike leveraged on social media to take advantage of its accessibility and worldwide reach. There were approximately 35 million election-related tweets posted on the Twitter since the start of the year, over 4 million of which were posted on election day itself.
Market Will Bounce Back in Succeeding Quarters
Despite the slowdown during the first three months of the year, IDC forecast that the HCP and consumables market in the Philippines will bounce back in the coming quarters, helping it achieve growth by the end of the year.
"Toward the end of 2016, the total HCP market is expected to grow by almost 5%. Growth will mainly be driven by increased government spending in line with the new administration," Nicolo Santos added. Purchasing of new machines is expected to increase toward the second half of the year.
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