REASON FOR CHOOSING TOPIC
E-commerce is rapidly evolving, driven by advancements in information technology, transforming the way consumers shop compared to just 5-10 years ago This growth has made business operations more accessible and diverse, creating new opportunities for individuals and companies to adapt to changing market demands However, inventory management remains a significant challenge for businesses, often accounting for 40% to 80% of total assets, particularly in industries like apparel Poor inventory management can lead to unmet customer needs and lost revenue, while excess inventory incurs additional costs and risks of financial loss or bankruptcy To address these challenges, the Print On Demand business model has emerged, allowing companies to produce items only after an order is received, eliminating the need for large inventory investments By partnering with Print On Demand fulfillment service providers, businesses can streamline their operations, as these providers handle everything from printing to shipping, enabling seamless integration with e-commerce platforms.
The Takin Gray Group Company has experienced significant success in the US market, driven by a strong business model and a focus on personalized products that resonate with consumers Despite facing challenges in the Vietnamese market due to infrastructure issues and local consumer preferences, the company remains optimistic about the future They believe that the growth of the Print On Demand industry will enhance Vietnam's business infrastructure, paving the way for potential success in this market in the years to come.
To effectively enhance the Print On Demand industry in Vietnam, it is crucial to establish a long-term strategy that analyzes the success of this sector in the US markets By drawing valuable lessons from these insights, we can implement best practices to foster market growth Consequently, I have chosen the thesis topic: "The Development of the Print On Demand Industry Worldwide and Lessons Learned for Space Gray Group Company in Vietnam," which aims to provide actionable strategies to promote the business activities of Space Gray Group.
RESEARCH OBJECTIVES AND TASKS
This article explores both theoretical and practical aspects to extract valuable insights from Space Gray Group's experiences in the international market It aims to provide lessons that can aid in the development of companies within Vietnam's Print On Demand industry, ultimately enhancing their competitiveness in the local market.
To achieve the above goal, the thesis defines the specific tasks as follows:
- Systematize the basic logic of the Print On Demand business form.
Analyse and evaluate the current status of the Print On Demand business of Space Gray Group.
- Provide practical lessons learned based on the company's success in the Print
They are proposing solutions to promote the company developing and trading in the Print On Demand industry in the Vietnam market.
SCOPE, SUBJECTS AND MEANS OF RESEARCH
This thesis examines the Print On Demand business landscape of Space Gray Group Company from 2018 to 2021, while also presenting a strategic plan to enhance social media engagement for the years 2022 to 2023.
About space: Focusing on researching the Print On Demand business of Space Gray Group in the US market.
The Space Gray Group's Print On Demand business is currently thriving, showcasing a successful model within the industry By analyzing their achievements, we can extract valuable lessons that highlight effective strategies and practices To further enhance the company's growth and competitiveness in the Print On Demand market in Vietnam, it is essential to propose targeted solutions that capitalize on emerging trends and consumer demands.
- The object of the research is the theoretical and practical issues related to the Print On Demand business of Space Gray Group in the US market.
The theoretical significance of this research lies in its foundational analysis of the Print On Demand business model This study serves as a crucial reference for future investigations within the Print On Demand industry, offering valuable insights that will benefit both researchers and practitioners Additionally, it represents an essential resource for the Print On Demand operations of the Space Gray Group Company.
The practical significance of this analysis lies in evaluating the current state of Print On Demand business activities, which allows for the extraction of valuable lessons and the formulation of effective solutions for growth in the Print On Demand industry, particularly for Vietnamese companies.
RESEARCH METHODS
The company's open-source data includes business reports and statistics related to its Print On Demand operations in the US market Additionally, external sources such as books, newspapers, and websites provide valuable insights into E-commerce and Digital Marketing, particularly in the Print on Demand sector These resources often contain theoretical frameworks and real-world articles, but they may not directly align with specific research objectives Therefore, careful selection of citations and data processing is necessary to extract relevant information that supports the research goals.
Primary data, gathered through questionnaires and interviews, is specifically collected and processed by the researcher to support their study This type of data serves as a timely and relevant source of information, making it particularly suitable for the research topic at hand.
Microsoft Excel, part of the Microsoft Office suite, is a powerful spreadsheet program that allows users to enter data in a grid of rows and columns for calculations With its user-friendly interface and advanced features, Excel enables the creation of tabular reports and charts, making data analysis efficient and accessible.
The customer survey, designed for online users, utilizes Google Forms to create a comprehensive questionnaire This platform provides a spreadsheet view and summary of the collected data, allowing users to track participation and visualize statistics through tables and diagrams By analyzing these insights, the data collector can draw conclusions and assess the reliability and authenticity of the feedback received.
The synthesis-inductive method is a complementary approach that integrates two key processes The synthetic aspect emphasizes the presentation of facts while providing causal explanations, whereas the inductive component focuses on establishing connections between the data and overarching rules Together, these methods enhance understanding and analysis.
The deductive method is a rule-based approach that utilizes specific examples to test theories and hypotheses Its primary goal is to reach conclusions that logically follow from the provided premises, demonstrating how these reasons lead to informed decisions through clear examples.
CONTENTS OF THE GRADUATION COURSE
In addition to the introduction, conclusion, and list of references, the graduation thesis is structured into three chapters, specifically as follows:
Chapter 1: Some fundamental themes and overview of Print On Demand business.
Chapter 2 explores the current landscape of the Print On Demand business for Space Gray Group in the US market, alongside an analysis of the Print on Demand industry in Vietnam Chapter 3 offers conclusions and strategic recommendations aimed at enhancing the Print On Demand business for Space Gray Group within the Vietnamese market.
SOME BASIC THEORIES ON PRINT ON DEMAND BUSINESS ACTIVITIES
Basic concepts
1.1.1.1 The concept of e-commerce in the narrow sense
E-commerce is the process of buying, selling, and exchanging goods, services and information through computer networks, including the Internet In a narrow sense, e-commerce is simply buying and selling goods and services through electronic means and telecommunications networks Electronic means and telecommunications networks commonly used in e-commerce are telephones, televisions, fax machines, television networks, the internet, intranets, extranets, etc.; Computers and the internet are used It is most used mainly to conduct e-commerce activities because it has a high ability to automate transactions.
1.1.1.2 The concept of e-commerce in a broad sense
E-commerce encompasses more than just the buying and selling of goods and services; it has grown to include a wide range of applications and scales Various organizations, including the WTO and the AEC (Association for Electronic Commerce), play a significant role in shaping the e-commerce landscape, alongside entities like UNCTAD (United Nations Conference on Trade and Development).
E-commerce encompasses a wide range of business activities conducted through electronic means, including marketing, sales, distribution, and payment This comprehensive definition highlights that e-commerce is not solely focused on buying and selling but involves all aspects of business operations performed online The acronym MSDP represents these essential components of e-commerce.
M - Marketing (have a website, or promote trade over the internet)
S - Sales (has a website that supports transaction and contract functions)
D - Distribution (Distribution of digital products over the network)
P - Payment (Payment online or through a bank)
Thus, by using electronic means and networks in basic business activities such as marketing, sales, distribution, and payment, businesses are considered to be participating in e-commerce.
• From the perspective of state management, e-commerce includes the following fields:
S - Specific rules in each area (S)
This IMBSA model covers the areas that need to be built to develop e-commerce:
I - Infrastructure: Infrastructure “Information technology” and communication is the first requirement for e-commerce development.
In the realm of e-commerce, "data messages" encompass a variety of crucial communications exchanged over the network These include electronic contracts, offers, online inquiries, and electronic payment documents, all of which are essential for facilitating transactions and conveying important information Understanding the significance of these data messages is vital for ensuring effective and secure online interactions.
E-commerce is governed by essential regulations that encompass national and international laws, including commerce regulations set by the World Trade Organization (WTO) and intellectual property guidelines established by the World Intellectual Property Organization (WIPO).
S - Sectorial Rules/ Specific Rules: Separate rules regulating each specialised area of E-commerce, such as electronic authentication, electronic signature, and E- banking (electronic payment).
E-commerce applications and business models must be adapted and supported for development, focusing on addressing the four identified protoforms.
1.1.2 The concept of Print on Demand
Print on Demand (POD) is an innovative e-commerce model that enables sellers to offer customized products without the need for physical inventory By partnering with a POD platform, sellers can streamline the printing and finishing processes, allowing for a hassle-free dropshipping experience This model eliminates the burden of inventory management and shipping, as a third party manages these aspects Sellers only incur costs when an order is placed, making POD a cost-effective solution for entrepreneurs looking to enter the market.
Print on Demand (POD) is an e-commerce model that enables you to create and sell custom products, such as t-shirts, mugs, and tumblers, under your own brand By partnering with POD fulfillment service providers, you can easily manage your designs without the hassle of inventory or shipping These providers handle everything from printing to packaging and shipping, allowing you to focus on your brand When a customer places an order in your online store, the POD system automatically forwards the order to the fulfillment provider, streamlining the entire process.
How it works and the pros and cons of the Print on Demand business model 8
The Print on Demand (POD) model simplifies the selling process by eliminating the need for inventory management Sellers only incur costs when they receive orders, allowing them to avoid upfront investments in products With POD, all aspects of fulfillment, including printing and shipping, are handled by the supplier, streamlining operations for the seller.
Here is a simplified model of a POD order:
Selecting a relevant and profitable niche is crucial for starting an e-commerce business Utilize tools like Google Trends to assess popular niches, and explore social media platforms such as Facebook, Twitter, Instagram, Pinterest, and Reddit for valuable insights Additionally, consider analyzing e-commerce blogs for niche ideas Once you've identified a niche, focus on finding print-on-demand (POD) product ideas that align with market demands, ensuring that your offerings meet the needs of your target audience.
After identifying your product idea and niche, the next crucial step in launching a print-on-demand (POD) business is establishing your online store This involves seamlessly integrating your store with POD fulfillment platforms to streamline order processing and delivery.
Print on Demand (POD) services are seamlessly integrated with major e-commerce platforms like Amazon, Shopify, and Etsy If you operate an online store on these platforms, you can effortlessly connect it to a POD fulfillment service, allowing you to start selling customized products quickly and efficiently.
3 Product design for the store:
Starting your print-on-demand (POD) journey with a well-defined design is crucial Focusing on your selected niche allows you to create unique artwork for various products Utilizing mockups of the final items is essential, as it enables you to assess the design's compatibility and quality before moving forward to printing Once you are pleased with the designs, the products can be prepared for delivery to customers.
Your online store can reach customers worldwide, with each product ready for printing and fulfillment A print-on-demand (POD) service provider will handle all logistics, allowing you to focus on marketing and attracting traffic to your website Implementing effective marketing strategies is crucial for boosting your online store's performance and increasing order volume.
5 The POD printing service provider will complete the order for you:
POD fulfillment providers expertly manage customer service, order processing, and logistics after you place an order They should provide a real-time tracking code to keep sellers informed about order status Additionally, the data generated by e-commerce stores is invaluable, offering convenient insights that significantly aid in making informed decisions in the future.
Below is a realistic model of the POD business model when selling one shirt
Step 1: Generate an order – after you update your online store with a POD product sample (for example, a t-shirt), customers can begin to order and pay in advance ($30)
Step 2: The t-shirt order is sent to the seller's POD supplier; the seller will pay the production and printing costs for the order with the supplier (20$)
Step 3: The POD supplier produces and prints products according to the order Step 4: The POD supplier packages and sends the product directly to the buyer. The POD order ends, and the seller keeps the $10 difference as a profit.
Getting started with Print on Demand is simple and straightforward, as most platforms are designed to be user-friendly You can launch your business quickly by registering an account, setting up your profile, and uploading your products With the ability to upload designs in just minutes, there's no need to stress about technical requirements.
No worries about inventory: The Print on Demand model helps reduce the most significant concern when entering the e-commerce market, which is inventory cost.
With the print-on-demand (POD) model, products are manufactured and printed only after a customer places an order, eliminating concerns about excess inventory or stock shortages This approach significantly reduces common business risks associated with inventory management, making it an attractive option for entrepreneurs.
Streamline Fulfillment: Managing fulfillment can be a significant challenge for retailers, small businesses, and artists due to the complexities of product packaging and shipping By utilizing a Print on Demand (POD) platform, you can simplify this process, saving valuable time and effort as the platform handles the logistics of delivering products directly to customers.
The Print-on-Demand (POD) model offers a significant advantage by allowing you to focus on your strengths and passions in business By alleviating concerns about product shipping and packaging, you can dedicate more time to activities that truly matter to you, such as creating and designing, building a community, and developing effective marketing and business strategies.
Profit margins can be lower when using a print-on-demand (POD) service, as the per-unit cost is typically higher than purchasing in bulk While this may seem disadvantageous, it is a common trade-off for the convenience and flexibility that POD offers, eliminating the need for inventory management and upfront investment.
Purchasing 1,000 products at once can lead to challenges in storage and management, especially if the items are not sold quickly Additionally, working with manufacturers, particularly in printing, often incurs high costs when buying retail products on POD platforms However, opting for this approach can alleviate concerns about cumbersome processes later, making the overall expense manageable.
Utilizing print on demand (POD) platforms can enhance efficiency, but it also restricts your ability to customize the customer experience Since POD services follow a standardized fulfillment process, you lose control over product packaging and shipping methods, preventing you from adding personal touches like unique decorations or thank you cards For businesses aiming to establish a memorable brand presence across all customer interactions, the limitations of the POD model may hinder your efforts to create a lasting impression.
Factors affecting the Print on Demand industry
The rapid growth of the economy and e-commerce is significantly influencing consumer purchasing power and preferences, presenting challenges for researchers aiming to create products that align with consumer tastes.
Social culture varies significantly across countries, influenced by factors such as population demographics and shopping habits Companies must remain adaptable to diverse environments and cultural contexts, continuously evolving their strategies rather than adhering to a fixed approach.
• International environment of Print on Demand
The rapid growth of Print on Demand has transcended national borders, fostering a micro-global marketplace that connects businesses worldwide While this evolution offers significant advantages, it also presents unique challenges that companies must navigate to thrive in the competitive landscape.
• Legal policy system for Print on Demand
The legal system plays a crucial role in shaping the online business landscape, influencing various aspects such as technology, information security, online payment systems, and commercial relationships Although Print on Demand is a relatively new sector with limited specific regulations, it primarily adheres to existing E-Commerce and Marketing laws As the legal framework for E-commerce and Marketing evolves, businesses must stay compliant with these regulations to navigate the complexities of the digital marketplace effectively.
In the Print on Demand industry, robust infrastructure is crucial as it underpins the dropshipping business model Without the right production technology to guarantee product quality, businesses may face significant challenges.
Competition is a fundamental aspect of the market, and for businesses to secure a strong position within their industry, enhancing competitiveness is essential As the Print on Demand industry continues to grow rapidly, the number of competitors in this sector is rising daily To thrive, businesses must analyze their competitors' social media strategies, identify their strengths, and uncover their weaknesses This thorough understanding allows companies to refine and advance their own business practices effectively.
Understanding customers is crucial for business success, as they represent the human factor that can be challenging to grasp In today's increasingly digital society, where individuals engage online daily, businesses have greater opportunities to identify and meet customer needs and behaviors Utilizing tools like mobile phones, computers, software, and applications can significantly enhance a company's ability to connect with and understand its consumers.
1.3.2 Environmental factors inside the enterprise
Orienting the business strategy of the enterprise
As customers grow tired of conventional products and seek personalized options, Print on Demand emerges as a valuable solution This innovative approach not only enhances operational efficiency but also drives revenue growth for businesses, meeting the rising demand for unique and trendy designs.
The success of an organization, particularly in e-commerce, heavily relies on the human factor In the Print on Demand industry, having a skilled, passionate, and creative team is essential for driving business growth and effectively executing operations.
Information technology fuels business innovation through the development of advanced applications, enhanced data storage solutions, accelerated processing speeds, and broader information distribution This innovation boosts operational efficiency, adds value, enhances quality, and ultimately increases productivity for businesses.
PRINT ON DEMAND BUSINESS SITUATION OF SPACE
Overview of Space Gray Group Company
Brief introduction of Space Gray Group
Official name: Space Gray Group Company
Business Name: SPACE GRAY GROUP CO., LTD
Type of business: Limited Liability Company
Tax code: 0109534881 registered and managed by Ha Dong District Tax Department, issued on March 1, 2016
2.1.1 The process of formation and fields of operation of the Company
2.1.1.1 The process of building and development
Space Gray Group Company specializes in E-Commerce and Digital Marketing, primarily operating within the Print on Demand sector, a unique niche in the expansive E-commerce landscape As a legally recognized enterprise, Space Gray Group fulfills all statutory obligations and is accountable for its business operations The company is authorized to maintain a separate bank account and utilize an official seal as mandated by law.
Founded in early 2016, Space Gray Group has achieved stable operations over five years, consistently enhancing customer satisfaction across human resources, sales, and product quality With continuous growth in the US market, Space Gray Group stands out as the premier choice for personalized and print-on-demand printing products, thanks to its exceptional product quality and service policies.
2.1.1.2 Main business areas of the company
The company specializes in print-on-demand products, offering a diverse range that includes 3D printing items like t-shirts, hoodies, sweatshirts, mugs, and tumblers Additionally, they provide decorative products such as wall art, posters, and floor mats, along with a unique selection of custom sneakers.
2.1.1.3 Development goals of the company
Space Gray Group offers personalized products designed to deliver unique experiences that stand out in a market filled with both familiar and novel effects Committed to meeting the needs of all consumers, including the most discerning, the company prioritizes innovation and customer satisfaction.
2.1.2 Organizational structure and business results
The Company builds a functional management apparatus including the following parts:
The General Director holds the highest position within a company, tasked with developing business plans and establishing overarching strategies for various departments This role involves approving key company decisions and overseeing their implementation to ensure that the organization operates effectively and meets its overall objectives.
The Accounting Department plays a crucial role in managing financial accounting related to business operations, ensuring accurate office accounting, and maintaining comprehensive statistics and reporting It is responsible for facilitating efficient capital circulation, overseeing asset management, and processing employee salary payments, among other essential tasks.
The Human Resources Department plays a vital role in managing the company's workforce, assisting the director with organizational and administrative tasks This department is responsible for the recruitment, training, and effective allocation of human resources within the organization.
Sales Department: Having the function of the building and implementing sales plans; operating a product sales network.
Marketing Department: Building and implementing marketing strategies for websites and products to help increase sales.
R&D Department: Research, update and find new trends in the world and niches in line with the company's development goals.
Fulfillment Department: Complete customer orders and take care of customers.
Design Department: Responsible for product design.
Figure 2.1 The organisational chart of Space Gray Group Company
(Source: Space Gray Group Company) 2.1.2.2 Personnel structure
- General Director: Pham Ngoc Anh
Table 2.1 The company's human resource structure
6 Fulfillment Vũ Ngọc Phương Thảo 7
(Source: Space Gray Group Company)
2.1.2.3 Business performance and development orientation in 2022-2025 of Space Gray Group
The company's spearhead product line is the group of Print On Demand printing products; the main products are as follows:
The company’s current market focuses on developing and achieving the US market.
Company's business activities from 2018-to 2020
After over five years of successful operation, the company has established a stable presence in the market Between 2019 and 2021, the company's growth and revenue figures demonstrate a consistent upward trajectory, highlighting its strong performance and market position.
Table 2.2 The company's business results in 2019 -2021
(Source: Financial Report 2021) The above is a table of the company's business data for the last three years, from
2019 to 2021 (data in the table have been rounded).
Overview of the company's business situation in 3 years from 2019-to 2021:
Over the years, the company's revenue has increased significantly, but after the breakthrough growth from 2019 to 2020, total revenue increased by nearly 50%, and from 2020 to 2021, revenue decreased About 17%, a step backwards.
In 2019 and 2020, enterprise costs consistently ranged from 32% to 33% However, by 2021, businesses implemented lessons learned and cost optimization strategies, resulting in an overall increase in total enterprise costs, while the industry average dropped to 28%.
Although there is a setback from 2020 to 2021, the company has made significant progress; the company's financial position is at a reasonable level, costs are gradually reduced, and profits are reduced Increase.
Development orientation of the company from 2022-to 2024
In 2020, the company aims to enhance its skilled workforce by recruiting qualified and knowledgeable employees to fill critical positions Additionally, it targets an average annual revenue growth of over 30% and a profit growth of 35%.
2.1.3 Competitors and potential partners of the business
In today's digital landscape, the rapid growth of e-commerce platforms has enabled small and medium-sized businesses to thrive, offering consumers a plethora of choices while intensifying competition The Print on Demand model, despite being relatively new and established for only six years, has become highly sought after, facing challenges from a surge of new entrants and established competitors like Printful and Printify However, Space Gray Group has carved out a loyal customer base through effective marketing, high-quality products, and excellent customer service Partnering with reputable e-commerce platforms such as ShopBase, Printful, and Gooten, Space Gray Group benefits from a global network that simplifies sourcing and fulfillment These partnerships allow them to offer unique, customizable products, including jewelry, watches, shoes, and water bottles, thereby enhancing their diverse product offerings in the Print on Demand market.
Actual situation of Print on Demand activities of Spae Gray Group in the US market
2.2.1 Current status of Print on Demand industry in the US market
2.2.1.1 The development of the Print on Demand industry
The Print on Demand industry experienced a remarkable 12% growth between 2017 and 2020, thriving even as other sectors faced challenges during the pandemic This surge in popularity can be attributed to several key factors driving increased interest and demand in the market.
There is an increasing consumer demand for personalized and unique products, with 36% of shoppers expecting customization as a standard option Additionally, 48% are willing to wait longer for tailored items Print On Demand services cater to this trend by allowing for made-to-order products without minimum quantities, making it feasible to fulfill individual orders with specific designs while maintaining profitability.
The transition from traditional retail to eCommerce has accelerated significantly due to COVID-19, establishing online shopping as a lasting trend in the post-pandemic era In 2019, eCommerce accounted for 13.8% of global retail sales, and by 2021, this figure rose to 19.6%, reflecting a remarkable increase of nearly 6% within just two years.
Sustainability and the demand for eco-friendly products are other critical factors.
A 2021 survey revealed that 27% of participants experimented with new products for sustainability, while 25% invested more in sustainable fashion Print on demand has emerged as an eco-friendly alternative to fast fashion, producing items only when ordered, which significantly reduces unsold inventory and waste.
The commercial printing industry has adapted to the digital age, leading to the rise of Print on Demand (PoD) as a preferred method for eCommerce businesses With lower per-unit costs and minimal quantity requirements, PoD caters to both new and established operations This shift has spurred rapid technological advancements to meet the growing demand for diverse product categories, particularly in accessories and apparel.
The global print on demand market size was valued at USD 4.90 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 26.1% from
From 2022 to 2030, the Print on Demand market is expected to thrive due to several key factors, including rising disposable incomes, increased internet access, and a growing preference for fashion apparel and unique items The surge in e-commerce sales further propels market growth, with the COVID-19 pandemic acting as a catalyst; lockdowns led to a significant shift towards online shopping, resulting in a notable increase in demand for Print on Demand products.
2.2.1.2 Print on Demand Industry and Product Statistics
The digital printing industry started in 1993 and grew exponentially to be worth
The Print on Demand apparel industry reached $187.7 billion in 2018, experiencing a compound annual growth rate of 12% from 2017 to 2020 Custom stickers emerged as one of the most sought-after Print on Demand products in 2020, reflecting a growing interest in personalized items Personalized gifts have gained significant popularity, with 2020 marking a peak year with a 20% increase in demand Notably, 1 in 5 customers is willing to pay up to 20% more for personalized products and services, highlighting the trend of using photo-decorated items as cherished gifts.
The Print on Demand market is divided into software and service platforms, with the service segment expected to achieve the highest CAGR of 28.4% during the forecast period This growth is driven by numerous service providers offering drop shipping and comprehensive fulfilment solutions Additionally, these providers deliver marketing and branding services, including custom packaging and creative offerings like photography and graphic design, which enhance convenience and options for Print on Demand merchants and artists.
In 2021, the software segment held the largest revenue share in the Print on Demand market and is projected to maintain its leading position throughout the forecast period This growth is driven by rising technology investments from service providers, who are increasingly offering software solutions like Application Programming Interfaces (APIs) and design-making tools.
The API makes it convenient for Print on Demand merchants to integrate their online store with a Print on Demand platform.
In 2021, the integrated segment held the largest revenue share and is projected to maintain its leading position during the forecast period, with an anticipated CAGR of 23.7% This growth is driven by rising awareness and popularity of integrated software, alongside the proliferation of third-party e-commerce platforms that facilitate easy connections Additionally, the demand for integrated solutions is fueled by benefits such as flexibility, enhanced computing power, and cost efficiency.
The stand-alone segment is projected to experience the highest growth rate, with a CAGR of 26.7%, throughout the forecast period Key players in the Print on Demand industry, including Australia's Redbubble Group and the U.S.'s Zazzle Inc., operate as stand-alone platforms These platforms function as marketplaces, allowing artists and merchants to easily create and sell their designs without the need to manage technical aspects, providing convenience for sellers.
2.2.1.3 The development direction of the Print on Demand industry in the coming years
In 2021, personalization and product assortment are crucial for meeting the demands of consumers who prefer shopping from home during the pandemic The print-on-demand (POD) industry will see ongoing personalization trends, while enhanced supply chains will facilitate faster shipping, further boosting online demand Shoppers increasingly expect a continuous influx of new products and a wider variety of options in their shopping experience.
In 2021, the print-on-demand (POD) market will focus on continuous adaptation and refinement by integrating merchant suggestions for innovative products, such as natural and organic clothing, fresh designs, and face masks To keep pace with evolving customer demands, companies must strive to provide unique offerings and onboard new global suppliers.
2.2.1.4 Orientations for Print on Demand in the coming years
To effectively cater to a dynamic and expanding market, POD platforms must enhance their capabilities by incorporating order routing features that facilitate the seamless migration of orders to alternate providers This strategy will enable merchants to optimize and streamline their stores As interest in POD and drop shipping continues to rise, driven by individuals seeking opportunities to start businesses and earn income from home, companies should capitalize on this trend by improving their platforms with user-friendly e-commerce integrations.
In 2023, POD companies must focus on maximizing user success by leveraging process automation to streamline manual tasks such as product publishing and shipping Growth is expected to stem from expanding sales channels beyond traditional online stores, including platforms like Etsy, eBay, and Shopify Successful sellers will prioritize understanding their target audience before designing products, avoiding the common pitfall of creating generic designs Next year's leaders will likely capitalize on trends, target personalized markets, and offer unique products tailored to specific niches.
Actual situation of Print on Demand industry in the Vietnam market
The Print on Demand business model gained significant popularity in Vietnam from late 2013 to early 2014, although it had been introduced in earlier years This period marked the rise of awareness and growth of the Print on Demand industry, particularly in the production of class shirts and football shirts, which continue to thrive today.
The Print on Demand business model initially emerged as a spontaneous venture for independent sellers using only their laptops, lacking stability and professionalism However, after nearly a decade of growth, Print on Demand teams in Vietnam have significantly evolved, with some expanding their workforce to between 20 and 30 employees, while larger teams boast 50 to 100 members Notably, certain groups have achieved remarkable success, employing 150 to 200 individuals and experiencing substantial financial gains.
2.3.2 Potentials and Opportunities Print on Demand Vietnam
The rise of personalization is driven by shifting consumer values and the evolving mindset of Gen Z In the era of 4.0 technology, the COVID-19 pandemic has significantly accelerated this trend, leading to a remarkable transformation in Vietnam's e-commerce sector and the global market.
From 2017 to now, the years when Vietnam's economy has grown tremendously, the cross-border business community, MMO and many sellers in Vietnam have chosen
The print-on-demand model is successfully utilized in many developed countries, offering a powerful way to achieve both creative and business objectives Personalized products serve as effective tools for brand building and customer retention, as today's consumers seek to showcase their individuality and unique style through customizable items that cater to their specific needs.
Up to 22% of consumers prefer shopping at stores that provide personalized products, highlighting the growing demand for customization Furthermore, 34% of consumers feel that standard products and services no longer capture their interest To engage customers effectively, businesses must focus on creating offerings that resonate with their desires There are numerous reasons driving the demand for personalized products and services, making it essential for brands to pay attention to these preferences.
Figure 2.3.2 Reasons why consumers want personalisation
Up to 93% of respondents say they like personalised products because they make them feel special and help others know who they are.
Yes No Figure 2.3.2.1 Number of people who like personalised products
2.3.3 Business situation and consequences of Print on Demand businesses in Vietnam
Although Prints on Demand businesses have been around for nearly a decade and have achieved impressive revenue and growth, many still operate with a juvenile mindset Despite their physical expansion, the foundational business models and management skills of these companies have not evolved since their inception.
The unsustainable business model results in fluctuating sales and high morale during profitable periods, but leads to stagnation when sales decline, a characteristic inherent in the POD model reliant on Facebook's paid traffic The absence of systematic management forces the Founder to personally intervene during challenging times, creating a repetitive cycle that hinders employee adaptation to difficulties and deprives them of growth opportunities.
Despite the rise of numerous Print on Demand businesses, very few have established a competitive edge, as most companies prioritize short-term profits over long-term strategies.
CONCLUSIONS AND PROPOSES FOR BUSINESS
Forecast of development prospects and orientation of Space Gray Group with
3.1.1 Forecast of development trends in the coming time
Print on demand market size is expanding Meagre investment costs, potential and abundant profit sources are the advantages that make the POD model more ideal than ever for businesses.
The Print on Demand (POD) business model is poised for continued success in the coming years, as consumers increasingly seek unique clothing options that stand out from standard styles This shift in buyer preferences highlights the growing demand for personalized products, making POD an ideal solution to meet their needs.
A recent Deloitte study on consumer behavior revealed that 20% of consumers are willing to spend 20% more on personalized or exclusive products This trend transcends age, as individuals of all ages appreciate items tailored specifically for them Interestingly, the study also found that consumers aged 55 and older show a stronger preference for purchasing personalized products during holidays compared to those in the 16-24 age group.
3.1.2 Development orientation of the company Space Gray Group
In the Vietnamese market, many Print on Demand companies focus solely on the Make Money Online (MMO) model, prioritizing profit over all else While this approach is not inherently wrong, it often leads to a short-term mindset In contrast, Space Gray Group aims for a more sustainable and stable business strategy, seeking to differentiate itself by prioritizing long-term growth and value over immediate financial gain.
An approach that can build trust and joy not only for the Founder but also for customers, partners and employees in the company That's the way to become a
While making money through MMO is straightforward, running a business presents a more complex challenge In MMO, the primary focus is maximizing profit, with other factors being secondary Conversely, business requires balancing multiple metrics, with profit being just one of many essential criteria to consider.
To enhance customer satisfaction and encourage repeat purchases, businesses focus on continuously improving product quality.
Reduce delivery time: The company will choose suitably, quality, trusted carriers to quickly send products to customers and ensure that the rate will arrive intact Customer’s hand.
Personnel training and development play a crucial role in enhancing a company's competitive edge By prioritizing effective training programs, organizations can elevate employee skills and knowledge, leading to overall improvement in performance and productivity across the entire workforce.
Proposals to the Company
3.3.1 Proposals to the State and related organisations
The government must establish a legal framework that guarantees the accuracy, transparency, and security of information shared by businesses Consumers expect that the data provided by companies is reliable, clear, and safe from threats such as viruses or fraud.
Users, including future customers of businesses and government entities, must benefit from robust monitoring and control policies E-commerce platforms operate as extensive public online communities with minimal entry barriers, making them susceptible to hackers, scammers, and individuals with malicious intent Consequently, implementing user authentication and enhancing security measures on social networks is crucial to safeguard user information and maintain trust.
To enhance communication efficiency and safety on social networks, it is essential for the government and relevant ministries to establish policies and laws that foster trust among users These measures should align with the existing policies of each social platform, creating a cohesive framework that supports secure and effective communication.
3.3.1.2 Regarding investment and development of infrastructure
The development of information technology infrastructure remains a critical challenge for e-commerce growth, while robust telecommunications networks are essential for social media advancement A reliable connection enhances Internet access, ensuring users can navigate online platforms swiftly and securely To foster this environment, it is imperative for the government to invest in modern telecommunications infrastructure and high-quality Internet transmission lines This investment will facilitate greater participation in Internet usage, particularly on social networks, and will also lead to improvements in telecommunications fees and services for businesses and organizations.
3.3.2 Proposals for Space Gray Group Company
Proposed cost per new customer:
To enhance customer acquisition and retention, the company should prioritize organic traffic, which can lower customer acquisition costs By reallocating a portion of these savings towards improving product quality, the business can foster customer loyalty, leading to repeat purchases and ultimately reducing the cost per order.
The POD e-Commerce industry typically features higher product prices compared to traditional brands, primarily due to elevated shipping and advertising costs As a result, customers expect superior product quality, faster shipping, and excellent service, making it challenging for companies to manage returns if these expectations are not met To enhance competitiveness, businesses should consider lowering their prices below market rates, which can significantly boost conversion rates and increase production volume This strategy not only attracts more customers but also facilitates better negotiations with suppliers, ultimately allowing companies to focus on maximizing value from returning customers for increased profitability.
To enhance profitability, companies must strategically manage Base Costs by identifying key investment areas rather than attempting to excel in every aspect This involves optimizing costs while delivering maximum value to customers within their price range Additionally, fostering customer loyalty is crucial; businesses should aim to encourage repeat purchases and referrals, transforming one-time buyers into long-term patrons Reducing reliance on paid traffic can significantly boost overall profitability.
To maintain a competitive edge, the company must enhance the skills of its R&D department to consistently develop innovative, market-leading products By introducing new products, the company can establish pricing strategies that maximize profitability, ensuring that sales are successful regardless of the initial cost.
In the past year, the trend of personalization in retail has evolved significantly, moving beyond simply adding a customer's name to products Many stores now offer comprehensive personalization options, allowing customers to customize various elements such as hair, clothing, and even dog breeds, resulting in uniquely tailored products This enhanced personalization not only improves conversion rates for companies but also allows them to maintain higher profit margins However, to succeed in this competitive landscape, businesses must excel in design and creativity to continually innovate their product offerings.
Personalized features have emerged in the market for just over a year, quickly establishing themselves as a competitive advantage This rapid growth presents a lucrative opportunity for businesses to innovate and develop new functionalities, allowing them to tap into diverse market segments.
With the rise of the Internet and social media, Print on Demand has become a crucial aspect for businesses Space Gray Group Company has implemented various strategies within its operations; however, the Print on Demand model has not yet delivered the expected results This prompted me to investigate the topic further.
The global Print On Demand industry is rapidly evolving, presenting valuable insights for Space Gray Group in Vietnam This article aims to provide a comprehensive overview of social media strategies and activities for the company, while also proposing effective solutions to enhance their online presence, based on a thorough analysis of the company's current situation.
Hopefully, my analysis and recommendations will help your company promote social media activities and bring the best results.
During the preparation of my graduation thesis, I faced challenges despite the invaluable support from Mr Le Viet Hung and the dedicated assistance from the leaders and staff at Space Gray Group My limited qualifications and lack of practical experience contributed to certain shortcomings in my work.
I look forward to and sincerely accept all comments and suggestions from teachers and the company to make the graduation thesis more complete.
1 Đỗ Minh Hiếu (2021), Phương thức hoạt động của ngành Print on Demand, thị trường ngách trong gã khổng lồ.
2 Báo cáo Tài chính năm 2019-2021 của Công ty Spcae Gray Group.
3 Trần Văn Hòe, Thương mại điện tử căn bản, NXB Đại học Kinh tế Quốc dân, 2015
4 Nguyễn Thị Bình, Tầm nhìn Thương mại điện tử 2022
5 Nguyễn Văn Tuấn, Luận văn Thương mại điện tử: “Thị trường ngách trong Thương mại điện tử, liệu có đáng đầu tư?”
6 Adam Levi “Print On Demand Market Size, Share & Trends Analysis Report
7 David Sernovitz “GLOBAL PRINT MANAGEMENT.”
8 Jessica Young “US eCommerce grows 14.2% in 2021.”
9 Richard Barocci “Print On Demand Online - Print on Demand for E-
10 Lâm Nguyễn “Print on Demand in Vietnam: MMO or Business?”