Interview with Andy Yusuf (HP Indigo Country Manager For Indonesia)
“We are at the level of print quality and the price of the quadrant is above the toner level. HP Indigo is closer to inkjet”
On the sidelines of the 2nd day of the HP Indigo Asia VIP event last time ago, Editor in-Chief of Print Graphic Media, Andrey Damar had the opportunity to interview Indigo’s country manager for Indonesia, Andy Yusuf.
Here we summarize the excerpts of the interview:
There are several complaints from HP Indigo customers in Indonesia regarding HP Insurance (HPI) which is considered too expensive. What is your opinion?
Andy Yusuf: Initially, HP Indigo sold spare parts as usual to their customers. But over time, because HP Indigo engine components are very complex, we come up with a new solution. That is HP Insurance. Actually, this is based on customer input too. Inspired by car insurance. For example, your HP Indigo machine’s laser head is damaged, where the price of the part is almost 50% of the price of the machine, it can be a big problem for the customer. Well, if someone says the insurance is expensive, return to the print volume from the customer itself. If the print volume is high enough, it won’t be too problematic. When talking about expensive or inexpensive problems, it depends on the business model that will be run.
Actually, where is the HP Indigo market target?
Andy: If you want to produce non-premium prints by using Indigo HP, it is indeed not economical. Basically, the Indigo HP is just a tool (Business tool). For example, if we are going to work on high quality printing, where we will definitely need color matching, pantone compatibility, if we need a machine with high durability, can print on various substrates, and can accommodate short-run printing, then you can search the market who can fulfill it all. HP Indigo is the right solution.
“This is actual, many conventional printers experience ‘suffering’ to still have to work on short-run printing and it actually loses because the up time is low, not to mention the set-up time which takes a lot of time, even conventional printing rejects it reaches 30%. If we have the right digital press, these obstacles can be removed. So, not to replace conventional printing machines.”
As you said earlier, non-premium printing on HP Indigo is not economical. Many conventional players say the high operational costs of HP Indigo. What is your opinion?
Andy: When speaking in apple to apple, the cost of printing with a digital press machine is definitely more expensive, but if we talk in terms of benefits, it cannot be assessed by cost alone. The next day, I had a visit to a printing press in Thailand, namely Thai Prasaat. They produce shrink flexible packaging for fruits. Usually they print it with rotogravure printing machines. The issue is that if fruit is not sent at the right time it will rot and it will have no value for their customers. Because of this situation, they use HP Indigo to anticipate short-run order requirements and fast make ready. So, the value is not just the cost, but how the speed meets the packaging needs. There are also customers who need customized export packaging, then there is also a need for variable print prints where the use of language on the packaging can vary by country.
How do you respond to rumors that arise, such as there is a rumor that HP Indigo has no sales lately?
Andy: The rumors of not having sales were completely wrong. We are still selling and still growing. Even when talking about print volume there is continued growth over time. We also continue to expand to new customers. This year there is also a deal with several large scale industry players. Currently the HP Indigo has installed 120 units in Indonesia.
The relationship between HP and Samafitro is still good. Nothing has changed. We recognize that conditions in the market today are indeed challenging. The landscape changed from 2013 to the present.
We used to be quite strong in quick print (commercial printing / retail / printshop-red), around 90% now with the existence of many types of HP Indigo and the increasingly limited market conditions in the commercial sector, HP Indigo moves to other segments, such as industrial labels and packaging, photography, and hangtag tool (garment). We are currently working more on promotions to the brand owner, because we have stepped forward by thinking about end-users or customers from Indigo HP owners. So, the point is how to grow our customers.
Where is the position of HP Indigo at which level? Because there are assumptions in the market regarding the toner machine head to head with HP Indigo?
Andy: We are at the level of print quality and the price is above the toner level. HP Indigo is closer to inkjet. But for some reason, the issue arises perhaps because the biggest toner level market is in the quick print sector. Incidentally, our install base is also a lot of quick print. If you see, quick print big customers in Indonesia, such as Subur, Primagraphia, XGraphic, Bintang Sempurna, or Dasa Prima use our products. So that’s why toner levels might feel head to head with us, even though we never thought that way. HP Indigo segment is broad, besides the general commercial printer (GCP), there are packaging, photography, publishing labels, even the brand owner uses our machines, such as the HM Sampoerna cigarette company.
Even in Korea, there have been many printers that have transformed from quick print to web to product. Not only web to print, where the Web concept to print in our opinion is rather old-fashioned. Web to product, something that is innovative, because it can develop new products continuously, so that in Korea, their e-commerce sector is more developed.
Our strong pantone colors make us accepted by label players, folding carton and flexible packaging world. ■