2015 Hot Print Markets Analysis: Target Verticals That Fit Your 'Sweet Spot'
Greetings/gift/partyware (+1 percent) will be most socially-expressed by American Greetings (+15 percent). Now privately held and divested of its display division, it will soon dominate both paper event goods and e-connections. Hallmark, 3-times larger in print, along with lesser long-time participants, are level in print as revenues and store-space collapse. Cards are out-priced to consumers.
On hold at No. 3 is Telecommunications ($1.483T, -1 percent; with $12.2B to print, +mobile, other wireless (+7 percent) signal new brands and cross-promotions with telecom equipment (-6 percent). In-store, transit, FSIs and direct mail will stay level.
Cable/satellite (-6 percent) could be technologically displaced by 2018 with “cord-cutting” to streaming PC2TV. Directories (-5 percent) continue in decline as the few remaining players, like Dex SuperMedia (-14 percent) and Hibu Yellowbook (0 percent), struggle to broaden their ad and search offerings to also struggling local businesses; a crowded destination complicated by Google, Yelp, Groupon—and us! Nearly half of this sector is controlled by fewer than 30 companies; there is not much room for new entry.
Two other tech sectors are downward and sideways. No. 15 Computer-ware ($811B, +Electronics ($722B, -5 percent; with $4.6B to print, +2 percent) are respectively in the cloud and on pause in print. Microsoft (+8 percent) and other software introductions are more than a year away, and ad spending will be minimal. Electronics retail FSIs and in-store graphics will remain level overall.
Shrinking in size Best Buy (-11 percent) will revamp many of its stores, perhaps sharing its space with another complementary retailer. Think Target. Radio Shack (-22 percent), once a major catalog direct mailer, may be the next of many chains to fold as online retail overtakes bricks-and-mortar.
Banking/Insurance ($4.559T, +9 percent; with $10.9B to print, -6 percent) will be in the red with print at No. 6, as Investment/Brokerage ($1.285T, +3 percent; with $4.9B to print, -6 percent) at No. 19 no longer is promoting to individual investors. Commercial banking (+5 percent) will close more branches in over-banked areas, with the only print opportunities among the regionals. Twenty or more will merge with name changes, great for screen signage and litho direct mail and inserts.
Capital One (+4 percent) will continue as the biggest VDP mailer with an investment that’s obviously working. Insurance and investment banking print will be mostly conventional static newsletters, mostly digitally-run offering circulars and some narrow web and sheetfed work. Security printing, covered later here, will offer high returns.
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at firstname.lastname@example.org