Why printed décor is a smart pivot for print shops

On 13th October, I will participate in a FuturePrint Virtual Summit panel session focused on printed décor. It is a subject about which I am deeply passionate, as I view it as a largely untapped diversification opportunity for printers across the European region, particularly during these turbulent economic times.

The pandemic has already taken its toll on our sector. According to the most recent BFIP Outlook study, 74% of printers in the UK were negatively impacted by a decline in output in Q2. A BVDM study revealed a third of German printing companies were expecting a 50% decline in Q2 turnover compared to the same quarter in 2019.

A second wave of COVID-19 is now spreading across Europe. Governments are preparing their citizens for a retightening of the lockdown measures that were temporarily relaxed over the summer. Once again, the sectors that generate so much printing demand - retail and leisure, meetings and events – will be hit hardest.

It is against this backdrop that printing companies in the region are starting to diversify their services and enter new markets. While social signage, face masks and PPE represent the most immediate and obvious opportunities, it is the interior décor category that perhaps has the most potential in the medium term.

Attractive economics

The printed interior décor market is in double-digit growth and forecast to reach $7.8bn by 2023. Its applications range from floor and wall coverings to window blinds and lampshades. Its customers include homeowners, architects, interior designers and building operators across the residential, commercial and public sectors.

The underlying economics of printed interior décor are attractive. Suppliers in Europe are currently selling customised wallpaper for between £15 and £20 at the entry level and £50 and £80 per square metre on the higher end. At the luxury end of the market, there are 3m x 2.8m rolls of wallpaper on sale for over £1,000. Even factoring in the increased running costs, these prices represent big margins.

Interior décor has also shown promising resilience in the face of COVID-19 relative to other categories. According to the Financial Times, the French furniture industry rebounded so strongly after lockdown that sales were up 20% on 2019 by the end of July. Similarly, the UK reported a 42% rise in homeware sales in May.

Emerging technology

Despite widely held beliefs to the contrary, technology need not be a barrier to entry. It is possible for PSPs to repurpose their existing equipment and workflows to manufacture a limited range of interior décor. Most multi-purpose wide format printers are compatible with a broad enough range of substrates, however not all comply with the sector’s stringent health and safety regulations.

However, there is also a compelling case for investing in one of the purpose-built interior décor printers that have emerged in the last 12 months. These machines – such as Roland’s EJ-640 DECO - produce fast-drying, odourless, washable, and scratch and scuff resistant end products with no outgassing. Compared to their power-hungry latex equivalents, these machines are more ecological and cheaper to run.

Partner ecosystem

Some print shops recognise that they are equipped with the right skills, experience and workflows to successfully diversify into interior decor, but are held back by the notion that the sector is an impenetrable ‘walled garden’. Printing face masks and social signage can be done using an existing supply chain; interior décor requires a new one.

In practice, this process is nowhere near as daunting as it sounds. The two missing ‘nodes’ in the average PSP’s network are designers and e-tailers. For designers, a trusted, reliable printing partner at a competitive price point is a critical component of their overall sales bundle. E-tailers that are busy creating demand in the front office need a back-office supplier that can fulfil it. In short, there are plenty of deals to be made.

The last week has served as a stark reminder that we’re still firmly in the grip of the COVID-19 pandemic. Diversification is vital if Europe’s print shops are going to weather the storm. There are certainly easier options on the table than printed interior décor, but the pace of growth and innovation in the sector arguably makes it the smartest bet.