Strategy Creo, the provider of prepress solutions and systems, is now focusing on direct sales.
Earlier this year, Israel Sandler, Corporate Vicepresident and Managing Director of Creo EMEA (Europe, Middle East, Africa), provided information about the company's new strategy and specific changes in Switzerland. Creo has begun implementing a new sales strategy in Switzerland. The manufacturer of hardware, software, systems and consumables for digital print preparation is thus intensifying its activities. The existing direct sales force, headed by Stefan Steinle, Sales Manager Switzerland and Austria, is to be increased and additional specialist reseller partners are to be introduced soon. In Ivo Kaufmann, Creo has also been able to recruit an employee who has been well-known in the Swiss graphic arts industry for many years and has a great deal of experience in the sale of capital goods.
The long-standing cooperation with the Burgdorf and Krauchthal-based company Typon Imaging (Typon) will change significantly. Typon sells films and papers for the graphic arts industry worldwide, as well as medical X-ray films and, in Switzerland, digital system solutions for prepress - in this case, so far mainly products from the manufacturer Creo. Since January 2005, the company has taken a new path and moved closer to Creo competitor Agfa-Gevaert, Dübendorf. It remains to be seen whether this brought Creo onto the scene or was the impetus for the direct sales now initiated by Typon; in any case, Creo has increasingly been selling its products and solutions directly in Switzerland since January.
The industrialization of the printing industry is inevitable and requires modern workflows, said Israel Sandler. Creo has adapted to this and put together appropriate bundles. The company combines equipment, consumables, software, financing and service into packages to better serve its customers.
In addition to various software products (Prinergy = prepress workflow; Synapse family with the tools Synapse Link [bidirectional communication interface between MIS/ERP systems and the prepress workflow], Synapse Prepare [automatic generation of production-optimized PDF files], Synapse UpFront [production planning for print jobs], Synapse Director [database-supported production management for brisque workflow systems]), the core business includes computer-to-plate imagesetters. Creo also offers products such as Staccato (frequency-modulated fine screen) and PrintLink (interface for transferring data for automatic ink zone presetting at press control consoles). Since the drupa trade show, which took place last May in Düsseldorf, Creo has also been involved in the field of cylinder engraving. Even though such engraving systems will hardly find any customers in Switzerland, Sandler sees potential for China, for example, as very long runs are printed there, making them suitable for gravure printing.
But like the graphic arts industry, Creo has also been through turbulent times and has been struggling financially. However, the turnaround has been achieved, Sandler clarified. After losses in 2002, slight profits were reported again in the last two years.
Saturation in CtP imagesettersSandler soberly noted that plate imaging with CtP systems was already in decline in the USA. Probably in wise anticipation of this development, Creo entered the imaging media market in mid-September 2003 and has since been offering thermal printing plates under its own label. Creo has since attracted attention by acquiring or partnering with companies that manufacture printing plates. Currently, the company has plate production capacity of about 18 million square meters/year. By 2008, this capacity is expected to more than quadruple to 80 million. Creo is thus gradually building up another mainstay that will have a positive impact on sales and earnings in the future.
In the meantime, the Canadian company has introduced or has in its range five types of printing plates for different areas of application. In addition to thermal plates, they have since also been offering consumables for proofing systems.
Creo wants to benefit from the ongoing boom in "digital plates".
(= plates for CtP imaging) will benefit. The company expects annual growth of 4 percent. The strategy, it says, is to sell directly and thus eliminate the middleman. This could prove to be a difficult undertaking. Apparently, Creo is aware of this and is trying to sell consumables through both intermediaries and direct sales. The customer should be able to choose which model suits him better, Sandler justified this route.
In the past fiscal year, Creo generated sales of around $77 million with consumables. This turnover is expected to double in the future. But at present, not enough plates can be supplied. Now, capacities at the American plant in West
Virginia increased. Sandler's projected 50 percent increase in CtP plates appears realistic, given the relatively small volumes currently being produced.
Will Creo be taken over by Kodak?Shortly before the editorial deadline, it became known that Eastman Kodak (Kodak) is apparently interested in taking over the Canadian printing technology expert Creo. Both companies are said to be in corresponding negotiations. The information comes from the New York Times, which refers to circles close to the company. Kodak recently acquired a 50 percent stake in the joint venture KPG from Sun Chemical. (jf)
Israel Sandler, Corporate Vicepresident and Managing Director of Creo EMEA.
Creo is expanding its plate business and recently expanded its portfolio of digital imaging media.
Jürgen Franck