Epson To Bring Business To The Middle East, Africa, says CEO

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According to the CEO of printing company Seiko Epson (6724.T), the Middle East and Africa are showing growth potential as demand decreases in Japan and other developed nations. While the COVID-19 pandemic provided a boost in sales due to the increase in remote work, Epson faces long-term stagnation in mature markets as populations decline and digitalisation grows. In fiscal 2022, the Middle East, Turkey, and Africa were growth highlights. Following on from the success it had in India with a specialised subsidiary, the company set up a new base in Dubai in August to directly manage strategy in the region.


Epson’s operating profit decreased almost 70% in the three months through September, and the company had to lower its full-year forecast to 80 billion yen ($535 million) from earlier guidance of 100 billion yen. However, the CEO expects conditions to improve in the second half as inventory costs abate and peaking out of inflation stokes consumer demand. 


To achieve more growth in developed markets, Epson plans to shift its portfolio towards commercial and industrial customers looking to reduce waste. For example, the company’s PaperLab machines break down used office paper to make blank sheets. Although these machines are still more expensive to use than standard printers and new paper, the company is working to bring down the operating cost. The CEO says that they place particular emphasis on the environment and would like to expand the use of products that can contribute to it, although it may take some time.


In an interview after the company posted quarterly results on Friday, Yasunori Ogawa said, “Our products are not yet widely distributed in the Middle East, and there is tremendous potential there.”

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