Fuji Xerox Printers, a unit of Fuji Xerox (Thailand), is tapping into the office paper market in a bid to create a new revenue stream and capitalise on fast-growing digital commercial printing demand.
Digital commercial printers are used to produce product manuals and direct mail quickly and in large volumes. The global office equipment market is unlikely to see a fully fledged recovery in demand.
The value of the office paper market in Thailand grew by 15% to 10 billion baht last year. In comparison, the country's laser printer market grew only 5% and the overall printer sector saw zero growth in 2013.
"We want to compete directly with copy paper brands Double A and Siam Cement Group's Idea, offering 10% lower prices," said Rangsan Naratchariyangkul, the Thailand manager for Fuji Xerox Printers.
Mr Rangsan said demand for A4-sized paper remained strong thanks to growing digital on-demand printing, as consumer demand shifts from offset printing paper, which costs more.
He cited a forecast by Pira research firm that A4 paper demand would reach 850 billion sheets worth US$85 billion by 2015, up from 800 billion sheets worth $82 billion in 2014.
Fuji Xerox appointed TKS Technologies Co as authorised distributor for its two premium paper models.
Mr Rangsan said the local paper market is likely to grow by only 5% this year due to the prolonged political unrest, which already delayed several government bidding projects.
Group revenue is expected to post single-digit growth this fiscal year ending on March 31, compared to double-digit growth the previous fiscal year.
Mr Rangsan said the paper business will contribute at least 5% of sales revenue this year, with 60% from ink cartridges and 35% from printers.
The banking sector, SET-listed companies and state agencies will keep paper demand strong, said Siriwan Sukanjanasiri, managing director of TKS Technologies, with expected sales of Fuji Xerox paper reaching 100 million baht this year through its stationery distribution networks and modern trades such as Officemate.