Vistaprint 2015 Annual Report Download - page 10

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2
someone’s own friends and family. Before mass customization, producing a high quality custom product required a
high per-order setup cost, so it simply was not economical to produce a customized product in low quantities.
Our Focus Areas
Cimpress’ focus on mass customization lies at the intersection of three overlapping areas:
• Empowering People to Make an Impression (what we are passionate about) - Cimpress empowers
people to make an impression through individually meaningful physical products. In other words, we make it
easy and affordable for our customers to convey, in tangible and enduring media, the thoughts, design
aesthetics, messages and/or sentiments that are important to them, their customers, their organization or
their loved ones.
• Computer Integrated Manufacturing (where we can be the best in the world) - Computer integrated
manufacturing (CIM) harnesses the power of software and IT networks to automate the flow of information,
allowing individual processes to exchange information with each other, to schedule activities, to initiate
actions, and to route and control all aspects of our manufacturing process. Throughout our history, a
differentiating capability of Cimpress has been our ability to develop software systems to integrate every
step of the value chain, from browser-based design creation and ordering through to shipment. This greatly
reduces the marginal cost of processing information related to each individual, customized order. Low-
volume custom products traditionally have a very high per-unit cost of production because, in the absence
of computer integration, there are significant fixed costs related to conveying information that is required to
process each order.
• Large Scale in Small Quantities (what drives our economic engine) - The third aspect of the Cimpress
focus on mass customization is an understanding of how we generate economic value. Mass customization
enables the production of small quantities, but large scale is the most important driver of competitive
advantage in the Cimpress business model. When we have increased the volume of orders that we process
and produce we have seen material improvement to quality, product selection, speed and cost. In fiscal
2015, we processed over 46 million unique ordered items, and during peak production weeks we produced
well over 1 million orders per week.
Market and Industry Background
Large traditional markets undergoing disruptive innovation
There is a wide diversity of product applications to which mass customization applies, including marketing
materials, soft goods and apparel, signage and displays, promotional products, packaging and labels, photo
products, invitations and announcements, and gifts and keepsakes. High quality, customized products in these
categories are valued by many different types of customers around the world, including:
• Businesses (micro, small, medium and large)