Japanese electronics company, Seiko Epson, has turned its sights to the Middle East and Africa regions due to diminishing demand of its products in Japan, and other developed nations, its Chief Executive, Yasunori Ogawa says.
The company, which happens to be among the world’s largest manufacturers of printers, enjoyed a surge in sales during the COVID-19 pandemic due to remote work increasing the demand for personal printers. However, Seiko Epson anticipates prolonged stagnation in mature markets as declining populations and the digitalization trend persist.
Ogawa has emphasized the vast untapped potential for their products in the Middle East, especially since 2022 saw notable growth in the Middle East, Turkey, and Africa. Building on the success of a specialized subsidiary in India, Seiko Epson has established a foothold in Dubai in August to directly oversee its strategy in the region.
In its quarterly results announced on Friday 27th October, the company reported a nearly 70% decline in operating profit for the three months through September. Consequently, Seiko Epson revised its full-year profit forecast from 100 billion yen to 80 billion yen ($535 million).
Ogawa remains optimistic, however, saying he expects conditions to improve in the second half of the year as inventory costs decrease and as inflation reaches its peak, potentially boosting consumer demand.
To drive further growth in developed markets, Seiko Epson is planning to reorient its product portfolio more towards commercial and industrial customers focusing on waste reduction. In line with this, Ogawa stated, “We place particular emphasis on the environment and would like to expand the use of products that can contribute to that, though it may take some time.”
The company’s PaperLab machines are designed to recycle used office paper into blank sheets. Although these machines are currently larger and costlier to use compared to standard printers and new paper, Seiko Epson is actively working to lower the operating costs, emphasizing their commitment to environmental sustainability.