Roland DGA Corporation oversees North and South American sales, marketing, and distribution for its parent company Roland DG Corporation headquartered in Hamamatsu, Japan. Having joined the Council in February 2022, Roland DGA is a relatively new member of MAPLE Business Council.
Since 1995, Roland DGA has operated a Canadian regional office, initially with two employees, and now employing five staffers who are responsible for sales and distribution to approximately 50 resellers throughout Canada.
We recently spoke with Roland DGA’s Canada Sales Manager, Don Ross, about the state of the Canadian sign and graphics market, current cross-border supply chain and fulfillment challenges, and the strategies Roland DGA uses to satisfy Canadian customers and identify new market opportunities.
How would you generally describe the relationship of your Canadian regional office with Roland DGA Corporation in the US, and your Japan-based parent company, Roland DG?
We are responsible for overseeing Canadian sales as well as for providing support for our network of resellers throughout Canada. Product demonstrations and sample printing are conducted in our Barrie, Ontario office, which is about an hour north of Toronto. Marketing activities, customer service and tech support are shared responsibilities between our US headquarters and our regional office. From our office in Canada, we participate in trade shows and dealer open house events as the opportunities present themselves, to maximize interest in our products and cultivate sales opportunities.
We have a very strong working relationship with both our U.S.-based headquarters and our parent company Roland DG in Japan. Roland DGA, the Americas headquarters, is our main conduit for almost all dealings, and Japan keeps Roland DGA and all the other Roland DG business units worldwide abreast of any new product or financial developments that arise.
Ordinarily, I would make annual visits to the Roland DG headquarters, however that activity has been curtailed over the past few years, primarily due to the pandemic. Zoom and Teams meetings have been beneficial in maintaining some semblance of personal contact throughout our global organization. The three-hour time difference between EST and PST can be easily navigated, however the 14-hour time difference to Japan has made such virtual meetings somewhat more difficult.
What are the core markets for Roland DGA and how do you go about identifying and capitalizing on new market opportunities?
We address a multitude of markets in the sign and graphics industry, apart from our dental business which is a different conversation by itself. As far as sign and graphics industries are concerned, our digital inkjet printers and printer/cutters are used by businesses that focus on signage, advertising, packaging, promotional products, apparel, manufacturing, sports, education, labels, vehicle graphics, and many other applications. Our customers range from small one-person and “mom and pop” operations to some of the largest global enterprises. Roland DGA’s market penetration is very similar throughout North America.
When it comes to identifying and developing new markets for our products, the approach we take differs from most of our competitors. Many manufacturers take a product-centric approach to generate new business. That often means they rely upon price and margin reductions to compete. Instead, we like to provide a “total solution” and approach prospective customers with the goal of developing a partnership rather than simply making a sale. Our goal is to create long-lasting relationships with our customers built on trust and provide them with world-class service and support every step of the way to ensure their success. Developing such partnerships may require putting in extra time and effort, but the long-term payback almost always substantiates the initiative.
What is the current state of the sign and graphics market in Canada and what type of Roland DG devices are the top-selling products in your region?
After experiencing surprisingly brisk sales throughout the COVID period, business is rather soft at present due to some macro-economic headwinds. Canadians typically become cautious when downward economic trends present themselves. That said, in general, Canadian customers are early adopters, embracing new technologies very quickly following their introduction into the marketplace. This typically provides a preview for the rest of our Americas territory, to further inform our sales and marketing efforts.
There are some new market segments Roland DGA has been targeting that are currently booming. One such segment is the SOHO (“small office, home office”) space.
Since the start of the pandemic, more and more people are either working from home or have the desire to do so. This trend has created opportunities for Roland DGA and our line of affordable desktop devices, such as the VersaSTUDIO BN-20 series printer/cutters, VersaSTUDIO BT-12 direct-to-garment printer, and VersaUV LEF Series benchtop UV printers. Each of these devices is essentially a “business in a box,” making it easy for those with limited space and resources to start up a lucrative home-based online business. A minimal investment makes it possible for people to change what may have previously been a fun hobby or sideline into a profitable occupation.
From a custom watch manufacturer in Montreal, to a lady in Winnipeg who has developed a business printing custom guitar picks, to a Vancouver-based business decorating jewelry with fingerprint impressions, we are frequently amazed by the inventiveness of Roland DGA end users.
As far as our top-selling product is concerned, it is hands down our VG3-540, a 54” mild-solvent print-and-cut device that prints stunningly colorful, detailed, and durable indoor and outdoor graphics. This printer/cutter combination caters to a wealth of applications and was a valuable asset to many during the Covid crisis.
Graphics were needed in quick response to inform consumers about mask requirements, floor spacing, take-out only options, etc. The usual pre-COVID demand for concert, film industry, and tradeshow graphics, was replaced by the demand for health and safety signs, banners, floor decals, and stickers.
As business is gradually returning to a more normal state, orders for hockey stick graphics and new arena rink boards demonstrate a “welcome back” to regular demand print operations experienced prior to the pandemic.
What was Roland DGA’s total Canadian sales revenue for 2021? Do you anticipate increased sales revenue for 2022? What about looking forward to 2023…what kind of year are you expecting from a sales standpoint?
Roland DGA’s sales revenue in Canada for 2021 was $11.2 million USD – $9.5 million for our digital imaging products plus $1.7 million in dental product sales. It looks like we will show marginal gains this year, and we expect to see a reasonable increase in sales for 2023 as well.
We are anticipating additional products directed towards the SOHO sector, which will help us expand our presence in this market. There are new customers out there for our current products also – we just need to find them.
We recently hired a new sales manager who will be concentrating exclusively on these home-based businesses. She is already having success in building a support community for these types of customers. We thought we were aware of all the relevant industry trade shows in North America: who would have known that there is an Anime Impulse Show at the Orange County Fairgrounds that attracts more than 10,000 attendees!
What are some of the challenges Roland DGA encounters in fulfilling Canadian customer orders through the North American headquarters, Roland DGA, based in California? Are there any cross-border requirements or obstacles you have had to overcome?
Freight costs have escalated over this past year, which has of course led to an increase in the cost of landed goods. For some reason, due diligence has been deteriorating with respect to ensuring that Commercial Invoice paperwork accompanies all shipments. This is a local issue, no doubt, but one that’s noticeably apparent and causing delays.
Supply chain problems have affected businesses all over the world, and based on reseller feedback, it has been estimated that we’ve lost about 15 percent of our overall Canadian sales due to these issues. Roland DGA’s parent company in Japan has been working feverishly to mitigate the problem, however the reality is that component shortages still hamper business.
How is the current jump in inflation impacting business for Roland DGA in Canada? What about supply chain issues?
Inflation is affecting everyone to one degree or another. Like people all over the world, Canadians are feeling the impact at the gas pump, grocery store, and when it comes time to pay the rent or mortgage.
Every month, we circulate a Canadian MSRP Price List reflecting currency, shipping costs, and other important business metrics. We have had to increase these MSRP values twice in recent months. Unfortunately, in a few cases, supply chain issues have led to some of our multi-line dealers promoting competitive brands.
The forecast for supply chain improvements is positive for 2023, however, so we are hoping these positive changes will materialize.
What about customer service/support throughout Canada; how are you able to supply Canadian customers with the kind of world-class service that Roland DGA is known for?
Our Canadian team is very responsive to calls from our dealer network as well as end users, answering calls from 8:00 a.m. to 8:00 p.m. EST on a typical weekly basis. Our Canadian dealers especially find that we are just as readily available, if not more so, than our U.S. counterparts. We do, however, seek assistance from the U.S. from time to time if we are unable to solve certain cases with our own resources – primarily online issues, which can be difficult and time-consuming to navigate. Our cross-border collaboration results in a seamless and timely response to most of our clients’ support needs.
For more information on Roland DGA Corporation, please visit www.rolanddga.com.
