Recently, EFI recently received an interesting call from I.T.
Strategies—one of the consulting firms we work with in our strategic
market planning. They said they needed to make a revision to their
prediction forecast related to industry growth rates for soft signage.
Usually
a call like this is unwelcome news; it typically happens when
researchers are too enthusiastic about a market opportunity and, after
reviewing more data they have to revise their forecast downwards.
And
while I.T. Strategies did admit that their initial forecast was off,
they were taking the unusual step of revising their forecast upwards.
Looking back at their data, the analyst group determined that the
market was growing at least four points higher than they initially
predicted, with the segment enjoying double-digit growth.
Appeal of Soft Signage
One
might wonder why the segment would demonstrate that type of growth.
Well our company’s own experiences using soft signage is a perfect
example of why brands are increasingly interested in moving from
conventional signage to soft signage. At EFI, we participate in more
than 100 trade shows per year, or roughly two per week. Historically, we
would create single-use vinyl banners for each show and dispose of them
at the end of the event. Those conventional signs were expensive to
ship and easily damaged.
Now, however, having switched to soft
signage, we have about 10 banners that we can reuse throughout the year.
While the per-piece cost is higher, overall we experience tremendous
savings, printing only one-tenth the number of banners. At the end of
the event, you can fold that banner up and place it in a FedEx envelope
and get it on its way to the next event. Have you ever tried to ship a
10-foot banner tube? It’s expensive, and you often can’t ship it
overnight. These days, if we don’t have major branding changes, we can
even use the same soft signage beyond the one-year mark!
The other
aspect is ease of installation. If you sew a silicon edge into the
graphic, it fits neatly into a frame; and it’s really hard to mess up.
It doesn’t take special skills or expertise to install it. Going beyond
trade shows, think a about retail stores – they like to frequently
change in-store signage to reflect new items, sales, or other messaging
of the moment. With silicon-edged soft signage, anyone in the store can
quickly, easily and accurately change out the signage. No need to bring
in specialized labor to get it done.
These are a few of the
reasons that well-known brands are increasingly turning to soft signage.
But even more compelling, they like the way it looks. It offers a much
higher-end look and feel and is still a measure of differentiation – it
simply looks better than conventional signage.
Shop Perspective on Textile Printing
From
the producer’s perspective, soft signage has many benefits as well.
First and foremost, not everyone is doing it. In fact, our data reflects
that only one in nine signage establishments offer soft signage. That
means there is still a significant opportunity for market
differentiation—and better margins for signage producers. From a sales
perspective, it also gives the sales person something new to talk about,
and often gains them an entrée into accounts where someone else has
been firmly established.
One EFI customer in Portland, Oregon, was
quite interested in getting into soft signage. This was around the time
EFI acquired Italian textile printer maker Reggiani Macchine, and the
customer did not have the amount of business that would justify a
high-volume EFI Reggiani textile printer investment at the time. Space
was also a consideration for this customer as well
But
developments—such as the EFI VUTEk FabriVU series, which offers the same
high-end imaging technology as Reggiani printers, but is designed for
more moderate production volumes—are making soft signage more attractive
to this customer and others. On top of that, yet another new
technology—fabric printers featuring in-line sublimation
capabilities—changes the equation for businesses that also face
investment and space constraints for installing a calender machine or
heat press. For our very entrepreneurial customer in Portland, the EFI
VUTEk FabriVU 340 model was the key that allowed him to jump into the
market with both feet.
There’s another perk that this and other
soft signage companies have experienced: Once they acquire a new
customer for soft signage, that customer is also more likely to send
other signage work to them as well. One particular customer told us, “If
it weren’t for soft signage, our business definitely would be down. We
are able to offer something new and unique. And we are growing, both due
to the new revenue source—soft signage—and the fact that those soft
signage customers are sending us conventional UV banner work as well.”
Practical Considerations
While
offline sublimation with a calender unit is a preferred workflow
industry-wide, not everyone can afford the investment or have the
physical space to accommodate both the printer and the calendaring
machine. Printers with an integrated sublimation unit make it easier
from an investment and space perspective to enter this lucrative market.
Once the volume grows and it makes sense to add an offline calender
unit, the in-line sublimation on the printer can be turned off to
accommodate that higher-volume workflow.
An offline calendaring
workflow with heat transfer paper is preferred, especially when the shop
offers a wide range of fabric types. If you have eight, 10 or 12
different fabric types, the time required to change between fabrics is
time not spent printing. Many producers and their customers also prefer
the feel or hand of the fabric with heat transfer sublimation, since
direct-to-fabric digital textiles are usually coated and can feel and
look different.
Furthermore, with heat transfer paper, you can
print continuously, and there is less fabric waste. In addition,
calender machines are much better suited for use with stretchy fabrics.
The cost of the heat transfer paper is nominal, especially when you
consider that you don’t need to put as much ink down when using this
process.