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Labels for Africa THE MIGRATION TO DIGITAL WWW.LABELSFORAFRICA.CO.ZA 0860LABELS
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The Market How big is the label market? How big is the digital label market? What are the expected growth trends moving forward?
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HOW BIG IS THE LABEL MARKET? North America *USD Total label market$12.2bilion Digital label market$1.037billion % of market that is digital8.5% Number of label converters2,000 Number of digital presses918 South Africa (2% of the USA)**Rand Total label marketR3.057billion Digital label marketR260million % of market that is digital8.5% Number of label converters200+ Number of digital presses25 ** Based on SA GDP compared to US * Source: TLMI North American Digital Label Study 2015
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MARKET TRENDS Press sales in the USA Press Sales (USA)* For the first time in 2014, Digital press sales, out paced conventional press sales Anticipated that conventional press sales will decrease at 7% per year, while digital press sales will increase at 12.5% per year (by 2020, 3 in 4 press sales to be digital). * Source: TLMI North American Digital Label Study 2015
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The Technologies Commercial Press Xeikon HP Screen Desktop Press Edge 850 Primera Anytron
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THE BIG BOYS A comparison Electrophotography Webwidth between 330 and 500 wide Print speed between 19m/min & 30m/minute VC determined on substrate/tonner/parts/coverage Capital investment between R6m and R9m InkJet Webwidth between 330 and 340 wide Print speed between 15m/min & 60m/minute VC determined by substrate and click charge Capital investment between R9m and R18m InkJet Webwidth 330 wide Print speed between 30m/minute VC determined by substrate/ink/parts/coverage Capital investment R9m
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The Extra Costs Involved Commercial press Finishing unit (R1,5m) Machine operator (R0.5m) Graphic design team (R180k) Building conditioning (R0.5m) Insurance (R50k) IT costs (R25k) Electricity (R50k) Learning Curve (R?k) Revenue break even point……. R450k per MONTH!!
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The LFA Offering What is Labels for Africa? What benefits do I get from being part of Labels for Africa? How much will it cost me? What does this mean for my digital future?
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What is Labels for Africa? Exclusive access to two Xeikon digital presses, coupled with GM finishing units Infrastructure to support the press in place (machine operators/graphic design team etc.) Management team with expert knowledge in digital
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What are the benefits? Central Marketing (online/radio/magazine etc.), with forwarding of leads from your area 20% discount on Spec purchases 50% on Spec graphic design feesUse of Xeikon press technologyPersonalised support through franchise co-ordinator Free access to state of the art job tracker with which to manage open orders Partner in getting you to digital (build your business into digital)
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How much will it cost me? R100,000(Ex Vat) Annual Joining fee 8% of Spec purchases Monthly Management fee
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My Digital Future The migration to digital Sign-up with LFA Build customer base to desired level (R450kpm) LFA to advise on press along the way Time to go digital Deal structuring (Incl DTI Claims) Benefit from lower input costs (centralised buying)
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Financial planning (flexing model)
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