Speaking on the sidelines of Xeikon Cafe event held from 26-28 March 2019, Xeikon’s president and CEO for digital printing solutions Benoit Chatelard, tells Benjamin Daniel why Xeikon, in the digital space, is a player to reckon with
Benjamin Daniel (BD): Xeikon in the Middle East, What’s your strategy?
Benoit Chatelard (BC): As a global company, we have our presence in many regions and important markets like the Middle East and Africa. We have partners to represent us.
Our strategy for this region is to build partnerships with solution providers in four to five sub-domains in the Middle East, whether it is the Emirates, Saudi, Oman or other nations. We have a group created in these locations with a marketing team that exclusively deals with customers in this region, where we don’t operate as a direct subsidiary. We have few partners here and we intend to appoint more. With full support from us, I see our partners as a true representation of Xeikon in terms of sales and technical service support, marketing support or use of our facilities like innovation centres.
BD: It’s tricky for brand owners to migrate from conventional flexo, rotogravure and offset to digital?
BC: Every technology has its pros and cons. I think brands should not pitch unless you are sure that digital can reproduce exactly the way conventional technology would. It’s the content design that first decides if the job is a conventional one or a digital. The content sometimes does not allow the creativity and flexibility of digital because it’s designed exclusively for conventional printing. So do consider digital at the design stage.
BD: And?
BC: Conventional printing does things that digital doesn’t and digital does things conventional printing cannot. I believe in co- existence. A vast majority for decades will continue to print conventionally for a good reason but the speed and value creation of the digital is higher.
BD: In some sub-segments not in packaging, but the label segment is more amenable to adopt digital. You agree?
BC: The level of digital print in labels is now at 30% of the volume. In graphic arts, it is only 2% but for labels, 30% of the volume represents 23% of the value of the profit of the converter.
BD: Personalisation is digital’s fiefdom?
BC: Yes, if you see, the way to personalise a packaging product or a transpromo is through digital printing. It improves the customer experience. So digital makes sense because of the short runs, lead time, personalisation or a combination of the three. Colour consistency or quality are barriers no more. The large majority of the jobs can be fulfilled with digital.
BD: One last important question. The last LabelExpo Europe saw more than 35 digital players, including Xeikon, in the fray. What sets you apart?
BC: First of all, we have been in this business for a long time. In inkjet, the Tau, we have the largest install base in the world. In the dry toner segment, we are number two.
The market in labeling is split 50% in the toner, and 50% in inkjet. So 50% of the industry is split between two players, HP and Xeikon. Rest of the players are all in the inkjet segment. We represent 33% in terms of sqm of printed material using inkjet with an installed base of 200 machines.
BD: The brand owner and the converter in our region are still conventional in their adaptation. Digital’s benefits like time-to-market and cost are deciding factors too?
BC: Yes. We have a program called aXelerate, which is a business development program with levels of training. As a vendor we have the duty to inform, to train for business development and that’s’ what we do.
That said, digital has to be more reactive – export, participate, campaign and deliver business for personalisation. We need to discuss this with the media, train, inform and participate in trade shows like PRIME. Sometimes I have the impression we have to be evangelists as well.
BD: What sets you apart ?
BC: We are good at application. We don’t just sell a machine or box, we spend enormous energy with people and time in development; cooperating with the customer and talking about the application – wet glue, wrap around, self-adhesive of course, If there’s a transfer of label from any form to a one that is digital, we can do it.