Thermal printers: POS accessories production stable amid challenges

The POS accessories industry in China is hoping to benefit from steady growth in the POS terminals sector and the acquired advantage of low-priced products amid the economic slowdown. It also helps that the segment is still at the nascent stage so competition does not pose an additional challenge.

Makers, in fact, are confident of stable output throughout 2009, with some even projecting a slight increase. Thermal printers, bar-code scanners and keyboards, the three major categories, will account for 35, 30 and 10 percent of turnout, respectively.

The rest consists of displays, kits and cash drawers, the manufacture of which has been left to suppliers with core competence in LCD panels and plastic injection molding due to cost and profit considerations.

China’s 100 makers of thermal printers, bar-code scanners and keyboards include trading companies and agents. The last type are local distributors of foreign brands.

The majority of exporters are based in Beijing and the provinces of Zhejiang and Guangdong, specifically the cities of Hangzhou and Guangzhou. Others are in Shanghai.

China companies offering thermal printers emphasize high price-performance points to keep their hold on markets that have grown cost-sensitive due to the financial crunch while expanding to developing areas.

This year, the main export destinations are Asia, South America and Africa as demand in developed economies has been decreasing. With this strategy, suppliers are positive about sustaining or even exceeding overseas shipments at precrisis level, which was 30 percent of production for the majority.

China’s exports of thermal printers are mainly OEM-driven, with many companies thriving entirely on this setup. Although upscale designs are available, units shipped abroad are mostly low-end and midrange, a trend that is expected to continue throughout 2009.

A similar distribution applies to production, with the low-end and midrange lines each accounting for 45 percent of the total. Most suppliers can manufacture between 5,000 and 10,000 units, with output reaching about 60 percent of capacity.

To appeal to diverse buyers, the compatibility feature is emphasized. Beijing Spirit Technology Development Co. Ltd has more than 30 models to suit various language-based requirements. A range of printing speed levels is also available.

In addition, companies are expanding their selections. Guangzhou Zonerich Computer Equipments Co. Ltd, for example, has launched a portable printer with a built-in Bluetooth module.

Beijing Spirit offers a model suitable for kitchen use. Easy-to-clean, the product’s housing is resistant to water, oil and dust. Its control panel has moisture, corrosion and mildew protection.

Other companies are planning to release handheld printers this year.

Mainstream units from China employ the direct printing method and ESC/POS emulation. They have 150mm/s printing speed and 8 dots/mm resolution. The maximum paper width is 80mm.

Suppliers use thermal printing modules from local providers for the low end, and turn to Epson, Fujitsu and Rohm for their midrange and upscale lines. The component accounts for nearly 30 percent of outlay, and hot printing headers, PCBs and plastic shells the rest. Costs have been on the decline, and are expected to push prices down by 5 to 8 percent this year.

Widely deployed in supermarkets, malls, restaurants and clubs, laser bar-code scanners now dominate this category in China, edging out CCD counterparts as makers gain confidence in the midlevel technology.

The older line, however, continues to thrive, catering to simple applications such as in libraries and small retail stores. Suppliers are optimistic that adoption in new markets will peak in the next three years and boost demand for entry-level CCD models before shifting to laser units.

Most bar-code scanners from China use single-line scanning, while freestanding models are omnidirectional. 1D scanning is adopted in both CCD and laser units.

Some companies, however, have started developing 2D products, which can read squares, dots, hexagons and other geometric patterns in images. Equator Ltd is planning to launch a similar model in 2H09. The technology is forecast to gain wide adoption in the near term.

Makers have also started releasing high-end wireless units, initially for domestic distribution. The venture, admittedly still behind foreign competition, is in preparation for the line’s future direction.

At present, development efforts are geared toward product improvements, specifically scanning speed and width. External design is on the agenda as well, with emphasis on ergonomics as most laser scanners adopt handheld form factors. Equator said a trendy appearance is popular with its buyers from the US and Europe.

Laser bar-code scanner component costs are projected to decrease slightly in 2009. Together with rising demand, this can result in a price reduction of as much as 8 percent. Laser engine boards with built-in decoders, oscillators and receivers make up 60 percent of outlay.

China’s total production of bar-code scanners is estimated to reach 1 million units this year, with nearly 60 percent exported.

Laser scanners are sent to the US, Europe and Southeast Asia, and CCD models to the Middle East, Africa, South America and Asia.

Despite the recent economic challenges, the manufacture of POS keyboards in China has remained stable. This is attributed to the line’s industrial base, which unlike other product sectors, is free from recession-driven fluctuation in consumer spending. Exports also represent a minority share at 30 percent of total output.

The range consists of traditional and encryption units. The former represents 65 percent of turnout and is strong in Africa, the Middle East and some countries in Asia. Suppliers of this type come from the computer input device segment, leveraging their expertise in computer keyboards to produce industrial versions. VSO Technology (Dongguan) Co. Ltd is one.

Encryption keyboards are considered upscale because application is mostly in financial institutions. On this basis, additional certification from PCI, Visa and CE is a requirement. Only a few companies provide this product type, one of which is the SZZT Electronics Group.

This article "Thermal printers: POS accessories production stable amid challenges" is originally posted in Global Sources.

Beijing Spirit Technology Development Co. Ltd
ComPOS Tech Co., Ltd.
Equator Limited
Guangzhou Zonerich Computer Equipments Co.,Ltd.
Vso Technology(Dongguan)Co.,Ltd