Vistaprint 2012 Annual Report Download - page 17

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cultivating opportunities with strategic importance in the micro business marketplace and seek to partner with
companies that have large numbers of well established micro business or home and family customer relationships.
For example, we have developed a scalable capability to address the market of customers who choose to
order customized products and services through retail and online properties of office superstores, retailers and copy
storefronts, through strategic partnerships with third parties and we have also entered into strategic partnerships
with online and software vendors to small businesses. We believe we are positioned to develop additional
relationships in similar markets.
In addition, we create co-branded versions of our websites and web landing pages for companies in a
variety of industries, such as franchised organizations seeking brand consistency. In general, these arrangements
involve payment of a commission or revenue share to these companies for sales of our products and services
generated through these websites and web pages.
Competition
The markets for small business marketing products and services and home and family custom products,
including the printing and graphic design market, are intensely competitive, highly fragmented and geographically
dispersed, with many existing and potential competitors. We compete on the basis of breadth of product offerings,
price, convenience, quality, design content, design options and tools, customer and design services, ease of use,
and production and delivery speed. It is our intention to offer high quality design, production and marketing services
at low price points and in doing so, offer our customers an attractive value proposition. Our current competition
includes one or a combination of the following:
• traditional storefront printing and graphic design companies;
• office superstores, drug store chains, food retailers and other major retailers targeting small business and
consumer markets;
• wholesale printers;
• online printing and graphic design companies, many of which provide printed products and services similar
to ours;
• self-service desktop design and publishing using personal computer software with a laser or inkjet printer
and specialty paper;
• email marketing services companies;
• website design and hosting companies;
• suppliers of custom apparel, promotional products and customized gifts;
• online photo product companies;
• Internet firms and retailers; and
• other digital marketing such as social media, search directories, Google Places and other providers.
As we expand our geographic reach, product and service portfolio and customer base, our competition
increases. Our geographic expansion creates competition with competitors with a multi-national presence and
experienced local vendors. Recent product offerings such as websites, email marketing, apparel and photo products
have resulted in new competition as a result of us entering those markets. We encounter competition from large
retailers offering a wide breadth of products and highly focused companies concentrated on a subset of our
customers or product offerings.
Business Segment and Geographic Information
As of June 30, 2012, our reportable operating segments consist of North America, Europe and Asia Pacific.
For more segment and geographic information about our revenues, operating income and long-lived assets, see
Item 8 of Part II, “Financial Statements and Supplementary Data — Note 12 — Segment Information” and Item 7 of
Form 10-K