Oh Brother!

Few people would associate computers with sewing machines. Yet it was just such humble beginnings that provided a springboard for Brother, the manufacturer now best known for its laser and inkjet printers. Its product range includes thermal labelling machines, laser faxes, printers and multifunction products, as well as inkjet fax machines and multifunction centres.

 

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Brother still makes sewing machines – highly sophisticated computerised models – thus preserving the historical thread that gave birth a century ago to what is now one of the most successful manufacturers of hi-tech equipment for offices and the home. The link between sewing machines and the garment industry might tempt some to think of the firm’s rise from obscurity as a ‘rags-to-riches’ story. Indeed, there are elements of a fairy tale to the story of how two Japanese brothers struggled to move their family business into the international marketplace. The turning point in their quest for a European presence came half a century ago when, in 1958, they chose Ireland as their launch-pad into Europe. The firm made its first mark in the world of print in 1961, when it produced its first typewriter.

These days, Brother is also the printer world’s most rapidly growing manufacturer, based on a comparison of units shipped in the first half of 2006 against units shipped in 2005’s first half. The figures (see table) include colour and mono laser and inkjet printers, as well as copiers and MFDs, or multi-functional devices (incorporating printer, scanner, photocopier and sometimes faxing capabilities, too). Last year’s 42% acceleration in units shipped worldwide during the first half saw Brother far outstrip its rivals in terms of growth. By comparison, global leaders HP and Canon respectively each grew the number of units shipped by 6%. To put the contest in perspective, however, Brother has come from far behind and its share of the global market is only 6% compared to HP’s 41% and Canon’s 16.5%.

Printer, copier and MFP unit shipments for first half 2006

Source: Gartner

This year, European sales of colour laser multifunction devices are projected to grow 90%, and it was with this potential bonanza in mind that Brother last year launched an aggressive retail promotion campaign that saw its sales growth really take off. The tempo of its sales effort was perhaps the most visible sign that Brother was limbering up to muscle in on the European marketplace. Another shift in gear was marked by the company’s decision to power its printers with its own colour engine, marking a departure from its previous reliance on the technology of other manufacturers.

Speaking to Irish Computer during the manufacturer’s first-ever pan-European press conference in Spain, Sean Sheehan, Brother Ireland’s MD, said the firm was ploughing significant investment into colour laser and inkjet printing. The firm is boosting its R&D budget by 46% and, in addition, has earmarked EUR * 600 million for a campaign aimed at wresting a bigger share of the market from its rivals.

“The main focus of our drive will be the European SME market, plus the home, corporate, industrial and professional sectors,” said Sheehan. And Ireland, where Brother has a strong channel presence, will provide a key component in what the manufacturer hopes will be another period of vigorous growth. Sheehan believes that “Brother has the largest dealer network of any manufacturer in Ireland.”

At the forefront of the sales push are the first laser printers to include Brother’s own colour engine, the HL-4040CN and HL-4050CDN models. The arrival of this new hardware comes at a time when colour lasers make up 15% of the print market. Sheehan said Brother expects the new range, due for launch in Ireland later this year, to win the firm 10% of colour laser printer and MFD sales in Western Europe. Overall, the company is forecasting €4 billion in sales, with about a quarter of that figure being generated in Europe.

All the new machines will come network-ready. An obvious “must-have” for office equipment, this feature comes at a time when home networks are becoming quite common. Add to this the competitive pricing, and it is clear that Brother takes the home and SoHo market seriously. In line with this trend, the new machines are notable for their compactness and sleek design. Whether the new machines can match or better their competitors’ printing speed remains to be seen; in the past, the touted specs of some models failed to live up to the brochures’ promises.

Advances in colour printing technology have recently grabbed the lion’s share of computer press headlines, but mono printers remain an important segment for Brother, and recent models have also seen marked improvements in the speed and output quality of the firm’s mono laser printers. Just as important, Sheehan pointed out, have been a lowering of prices and a raising of reliability, thus reducing maintenance overheads.

Brother’s sales drive is as impressive as its new hardware, but the firm has a lot of ground to make up, and not even the most optimistic of its executives believes it will ever have the printer market totally sewn up. Still, considering the firm’s humble beginnings, it has done well – and certainly looks set to make an indelible impression on the marketplace again this year.