“As proud as we are of Xerox’s turnaround, we’re even more proud of the transformation at Xerox,” says Mulcahy.
“From black-and-white printing to colour, from multiple copies of one document to personalised prints for many, from paper everywhere to smart digital documents, Xerox is at the forefront of burgeoning growth opportunities. We’re customer-focused and competitively advantaged. We’re winning in the marketplace, and we’re adding value for our stakeholders,” she says.
During the conference, Xerox highlighted competitive advantages to expand its share of the document market through three major planks: colour, the New Business of Printing™, and document services.
The colour printing market for businesses of any size is estimated to be worth US$21bn and growing. Xerox says it is leading the industry’s transition to colour from black and white with the broadest portfolio of colour systems. The company has brought to market 19 colour products in the last two years, including its line of WorkCentre colour multifunction systems, Phaser solid ink printers, DocuColor digital presses and its flagship Xerox iGen3 digital production press.
Through the third quarter of this year, Xerox’s colour revenue has grown 14 per cent, and colour now represents 34 per cent of the company’s total revenue. Nearly half of Xerox’s equipment sales now come from colour products, with color equipment sales up 11 per cent this year.
“The benefit of colour for Xerox is in the pages, which generate more revenue and profit than black-and-white pages. We expect more than 30 billion colour pages to be printed on Xerox systems this year alone. The value from colour pages generates a strong annuity stream that boosts our results,” says Mulcahy. About 75 per cent of Xerox’s total revenue comes from post-sale and financing revenue, primarily the annuity from supplies and services.
Colour pages are up 39 per cent through the third quarter of this year and now represent nine percent of Xerox’s total pages, more than double from two years ago. As Xerox broadens its distribution through more indirect channels like resellers and agents, the company is expanding its offerings for small and medium-size businesses, a market opportunity scoped at US$44bn.
About two-thirds of the company’s equipment sales come from products launched in the past two years. Xerox has launched 15 products this year and expects to more than double its number of product announcements next year.
Xerox says the market opportunity for digital production printing is about US$25bn. Customisation is creating new opportunities for direct marketing that are generating response rates more than double that of static documents. “One-to-one communication cuts through the clutter and is only created through high-quality digital printing,” says Mulcahy. “Xerox is clearly advantaged through our digital presses and associated workflow and variable-information software.”
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