1. Adoption of digital
technology in the décor
industry
Tim Phillips

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Background
• Xennia is a leading industrial digital solutions company
• World class 20 year heritage and strong IP portfolio
• Key expertise in inkjet inks and software
• Headquarters and manufacturing facility in UK
• Sales offices in China and Brazil
• Part of Royal Ten Cate group
• Innovative digital products & solutions
• Complete digital solutions for industrial manufacturing
• Advanced digital inks and software

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Embracing digital technology

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Digital inkjet printing for décor
• Digital printing adopted rapidly in ceramic tiles
• Key driver – cost saving from reduced breakages
• Digital printing being adopted rapidly for textiles
• Key driver – rapid introduction of new designs
• Other benefits of digital
• New design capabilities
• Mass customisation
• Cost-effective short runs/reduced inventory
• Which benefits are compelling for other décor markets?

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Paradigm shift in modern manufacturing
CURRENT MODEL
Remote mass production
Long distance transport
Regional distribution Mass retail
PUSH
Local manufacture on demand Online retail
PULL
NEW MODEL

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Flexible manufacturing
• Move to consumer driven flexible manufacture
• Implies manufacturing closer to consumption
• Example from apparel textiles
• Inditex manufactures >50% “nearby Spain”1
• Reversal of move to low cost territories
• Expect to see this trend impact other industries
1 Inditex, reported in Business Week

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Digital application adoption
Graphics
Ceramics (tiles)Textiles (apparel)
Laminates
Furnishing
Wallcovering
s
Textiles (interiors)
Labels

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Crossing the chasm
• What determines the rate of adoption of digital technology?
Market pull – do
benefits have
compelling value?
Economics – cost
acceptable?
investment
available?
Technology – how
well are market
needs met?
Communication –
does market
understand value of
benefits?
Adoption
rate

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Adoption in other interior decoration industries
• Digital adoption in home textiles, furnishings etc at early stage
• Market pull – benefits not as compelling?
• Economics – willingness for investment?
• Technology – ready for production?
• Communication ?

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Technology barriers

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Digital solution requirements
• Industrial digital solutions must meet the following:
• Required productivity
• Speed
• Reliability/uptime
• Required image quality
• Required print durability/fastness
• Ease of use

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Printhead technology
• Major printheads for décor applications:
• Kyocera KJ4B (production textiles, laminates)
• Epson (sampling)
• Emerging printheads from Spectra Dimatix, Ricoh, Seiko
• Other manufacturers such as Xaar (if UV applicable)
• Fulfilling market demand for
• High quality
• High productivity
• Production reliability
• Wide ink compatibility

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Ink technology
• Demanding applications for digital ink suppliers
• Highly application dependent requirements
• Key requirements
• Colour performance
• Fastness performance
• Feel or ‘handle’ (in some cases)
• Print reliability
• Compatibility with production processes
• Examples
• Dye based inks for home textiles
• High lightfastness inks for textiles and décor paper
• Inks for wall coverings, glass etc
• Xennia is developing a range of inks addressing these applications

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Software developments
• A digitally defined image gives limitless possibilities – software is
key
• Also key to providing ease of use
• Variable image generation
• Allows a truly unique product
• Integration with rest of production line
• Potential to allow complete digitally defined products (rather than just
prints)
• Workflow
• Direct to print from the internet
• Cutting supply chains
• Reduced labour costs
• Local production

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Encoder/product detect
Wetting, drying, curing Fluid control
Drive electronics, software
Substrate Printheads
Ink chemistry
Motion system
Digital décor printing requires a complete solution

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Design and benefits

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Design – a key driver
• Consumers (and their suppliers) don’t buy technology
• They buy designs!
• The end result is key – technology is a means
• Key market pull is demand for
• Image variation/randomisation
• Natural effects
• Colour gradients
• High quality/details
• Other new possibilities
• Developments in technology enable new designs
• Strong influence from consumer trends

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Adoption of digital manufacturing
• Requires a shift in design thinking
• Part of the “chasm” described previously
• Manufacturers have years of experience
• With existing technology
• Design to the strengths of that technology
• And around its weaknesses
• Attempting to reproduce existing designs holds back adoption
• Need to help educate users
• Influence via brands

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Design transformation
• Supply chain improvements have a secondary impact on consumers
• Design impact is primary
• Now a key factor in market pull for digital textiles
• Digital technology enables striking designs
• Fine detail
• Colour gradients and shading
• Early win for digital textiles in high end silk scarves
• Striking designs and low runs offset high initial costs
• Expect similar pull in other decoration markets

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Sustainability
• Growing importance for environmentally sustainable manufacturing
• Often not primary driver for adoption
• But impact is highly significant
• Example
• Textile mills extensive users of water and power
• Washing, steaming and drying
• Use of digital technology enables major reduction
• Up to 95% less water usage
• Up to 75% less power usage

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Application overview

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Decorative laminate market
• Worldwide printed décor & laminate market
• 2.6 bn m2 ($14.7 bn) in 2013
• Forecast to rise 4.4% p.a. to 3.3 bn m2 in 2018
• Value growing faster than volume
• 4.6% to $18.5 bn in 2018
• Digital small proportion at present
• 3.9% of value
• But growing at 25-50% p.a.
Source: Smithers Pira

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Furnishing laminate decoration
• Requirement for high throughput production printing
• Flexible laminates – papers and films
• Also direct printing onto wood, MDF etc
• Laminates
• Solvent or aqueous inks (aqueous preferred)
• Compatibility with existing lamination processes
• Direct printing
• UV or solvent inks
• Edge bands
• UV inks
• Requirement for colour matching
• Problem of metamerism

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Decorative furnishing market drivers
• Currently dominated by flexo and screen
• Drivers towards digital inkjet
• Move beyond commodity designs
• Experimental fashions
• Customised surfaces – logos & murals
• Customisation and short runs
• Market requirements
• Flatbed digital printing of rigid furnishings up to 1.5 x 1.0 m
• UV ink
• Continuous printing of flexible laminate films/decor paper (>2m wide)
• Solvent/aqueous ink
Source: Smithers Pira

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Wall covering market
• Overall wall coverings market forecast to reach $29bn by 2017
• Boosted by recovering construction industry
• 41% wallpapers etc versus paint
• Wallpaper expected to grow preferentially over paint
• Very small proportion in China currently
• <1% vs. 60%+ in Europe
• Digital adoption very low
• Limited to one-off customised designs
Source: Durability and Design, 2012

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Printed wall coverings
• Requirement for high throughput printing
• High quality
• Economic
• Flexible
• Paper/vinyl/non-woven substrates
• Solvent/aqueous inks
• Flexibility to print various designs/patterns
• Customised wall murals
• Wide range of designs for niche markets

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Wall covering market drivers
• Currently dominated by flexo and gravure
• Drivers towards inkjet
• Faster introduction of new designs
• Experimental fashions
• Customised printing – murals etc
• Shorter run lengths
• Market requirements
• Continuous printing of paper & vinyl wall coverings
• Solvent/aqueous ink
Source: Freedonia

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Glass decoration market
• Printed glass market $667m in 2013
• Expected to grow 10.5% p.a. to 2018
• Main glass applications
• Construction/architectural (65%)
• Automotive (25%)
• Speciality (furniture, mirror) (10%)
• Digitally printed 11.5% (rest mostly screen)
• Expected to grow >75% p.a.
Source: Smithers Pira

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Glass decoration
• Fixed array production system for high volume
• Flatbed scanning system for small batches
• Print onto:
• Glass during manufacture
• PVB film prior to lamination
• Glass after manufacture
• All need specific inks
• Ceramic ink
• PVB compatible ink
• UV inks

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Combining design & function

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Architectural glass
• Digital decoration and functionality = powerful combination
Decoration
Etch effect
Self cleaning
IR blocking

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Ceramic tiles
Natural effects
Self cleaning
Printed relief
Solar

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Sun awnings
• Digital decoration combined with digital finishing
Decoration
Self-cleaning
coating
Solar?
“Factory of the future”

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Summary

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Summary
• Printed interior decoration key digital market in next 3-5 years
• Ceramics market maturing
• Expect significant growth in
• Home textiles
• Décor laminates
• Flooring
• Wall coverings
• Glass
• Xennia is developing inks, software and solutions for these markets
• Actively seeking partners to help progress these developments

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