THE DEVELOPMENT OF PRINT ON DEMAND INDUSTRY IN THE WORLD AND LESSONS LEARNED FOR SPACE GRAY GROUP COMPANY IN VIETNAM

..

THUONG MAI UNIVERSIY
INTERNATIONAL TRAINING INSTITUTE
~~~~~o0o~~~~~

INTERNSHIP REPORT
TOPIC: THE DEVELOPMENT OF PRINT ON DEMAND
INDUSTRY IN THE WORLD AND LESSONS LEARNED FOR
SPACE GRAY GROUP COMPANY IN VIETNAM

MAJORS: E-COMMERCE AND DIGITAL MARKETING
Supervisors:
Name MBA. Le Viet Hung

Students practice:
Name: NGUYEN Minh Duc
Class: CN16-ECO1
Student Code: 19K610020

Hanoi, 2022
1


ACKNOWLEDGEMENT
First of all, I would like to thank my instructors MBA. Le Viet Hung
enthusiastically guided, helped and imparted knowledge so that I could complete this
graduation thesis.
We would like to thank the School Board of the University of Commerce, the
teachers and professors of the University of Toulon, the faculty leadership, and all the
E-commerce and Digital Marketing teachers for their teaching. Andreae conditions for

them to study, acquire knowledge and have access to reality at enterprises to research
and experienceresearchreby knowing how to apply theory in practice at
enterpriseCurrentent industry.
At the same time, I would like to thank the brothers and sisters in Space Gray
Group Co. Ltd, especially my colleagues, the company's Marketing Department have
created favourable conditions for me to study, work, research, and exchange proper
practical knowledge during my research and completion. Study.
Thank you sincerely!
Hanoi, June 1, 2022
Student
Nguyen Minh Duc

TABLE OF CONTENTS

2


3


INTRODUCTION
1. REASON FOR CHOOSING TOPIC
E-commerce is growing and booming with the outstanding development of
information technology. The purchase of goods has changed a lot compared to 5-10
years ago and will not stop having new products in the future. It is also because of the
outstanding growth of e-commerce and the robust infrastructure development that
makes doing business more accessible and diversified. This development has brought
more business opportunities for individuals and opened up new business directions for
businesses to decompaniesher and adapt accordingly. mMarketand customer needs.
For businesses, inventory management is always a problem that causes many

difficulties when it comes to it. According to research, for businesses, inventory
accounts for at least 40% of the total value of assets of the business; in some cases, this
number increases to 80% for garment companies. Therefore, inventory management is
essential for companies; it will be harmful to businesses if they are not doing well.
When management is weak, it will cause not respond to customer needs, thus leading
to a loss of revenue. On the other hand, too much inventory in the warehouse will cost
businesses the cost of the system's management, storage, and operation. It
mmaycacathe com the company may suffer heavy losses or even go bankrupt. Today,
the sr easthehee world has opened up a new type of business to solve this dilemma.
That is the Print On Demand business; for business, products only start to be produced
after an order is placed, so you will not need to pay any fees. Until is it
successfulcreatedced, delivered is no need to buy and store inventory in large
quantitiesBusinesses don't need to worry about shipping or handling inventory with
Print On Demand party; a Print On Demand Fulfillment service provider will take
everytakesg from printing to packaging and shipping Print On Demand Fulfillment
service providers to allow businesses to connect to e-commerce sites through their
platform. Whenever a customer places an order for a product in your online store, the
system will automatically send that order to the printing and fulfilment service
provider to complete the order.
This business model has been growing strongly in major markets worldwide,
such as the US market. Takin Gray Group Company has focused on doing business in
the US market and has since achieved much success in the international market. The
4


company's revenue is always stable and receives much love from consumers because it
can personalise products, making them thpersonaliseisfied. However, for the
Vietnamese market, things are not so easy; due to the difficulties in infrastructure
along with the habits and needs of the Vietnamese people, the company has not been
able to conquer the market. Domestic. However, believing that the development of the

Print On Demand industry will make the infrastructure in Vietnam more and more
developed for business, the company has confidence that it will be successful in the
Vietnamese market one day. Far in the future.
For the above reasons, it is essential to develop a long-term plan to study the
success of the Print On Demand industry in the US markets from which to draw
lessons learned to apply the best methods to help develop the market. Dev—creating
trading Print On Demand industry in Vietnam. Therefore, I decided to choose the
topic: "The development of Print On Demand industry in the world and lessons
learned for Space Gray Group company in Vietnam" as the thesis topic withtheo gives
tons and solutions. To promote the Tosiness activities of Space Gray Group Company.
2. RESEARCH OBJECTIVES AND TASKS
The topic studies theoretical and practical issues to draw useful valuable from
Space Gray Group in the international market to provide lessons learned to help
develop companies in Vietnam’s Print On Demand industry. Vietnam market.
To achieve the above goal, the thesis defines the specific tasks as follows:
- Systematize the basic logic of the Print On Demand business form.
Analyse and evaluate the current status of the Print On Demand business of
Space Gray Group.
- Provide practical lessons learned based on the company's success in the Print
On Demand industry.
They are proposing solutions to promote the company developing and trading in
the Print On Demand industry in the Vietnam market.

5


3. SCOPE, SUBJECTS AND MEANS OF RESEARCH
Research scope
- Time: The thesis focuses on studying the Print On Demand business situation of
Space Gray Group Company from 2018 to 2021 and proposes a plan to promote social

media activities within the next two years room 2022-to 2023).
About space: Focusing on researching the Print On Demand business of Space
Gray Group in the US market.
About content:
o O, Analyze and evaluate the current status of the Print On Demand business of Space

Gray Group.
o O, Provide practical lessons learned based on the company's success in the Print On

Demand industry.
o o Proposing solutions to promote the company to develop and trade Print On Demand

industry in Vietnam market.

6


Research subjects
- The object of the research is the theoretical and practical issues related to the
Print On Demand business of Space Gray Group in the US market.
Research significance
- Theoretical significance: Provides basic reasoning about Print On Demand
business. The completed research will contribute a valuable reference to other studies
on the Print On Demand industry, an important research document for the Print On
Demand business of the Space Gray Group Company.
Practical significance: From analysing and assessing the current state of Print On
Demand business activities to draw out lessons learned and solutions to develop and
do business in the Print On Demand industry. Vietnamese school for the company.
4. RESEARCH METHODS
4.1 Data collection methods

- Secondary data collection method
Sources inside the company: The company’s open-source data is business reports
and statistics about the company's Print On Demand business status in the US market.
Sources of documents outside the company: Documents on E-commerce and
Digital Marketing in general and Print on Demand, in particular, are mainly collected
through books, newspapers and fear, ch websites, statistical data from organisations,
and the website of the E-commerce Association. The data from books, newspapers,
and the internet... are often articles associated with reality or textbooks with
witrelativelyirly extensive theoretical basis on the research problem. However, this
data is often not close to the research goal of the topic, often having to select citations
and good ideas or through data processing to get data applicable to the research.
- Primary data collection method
Primary data was collected through questionnaires and interviews. Primary data
is not available, collected and processed by the researcher to serve his research.
Therefore, preliminary data provides information in a timely, promptly source of
material and is suitable for the research topic.
4.2 Data processing method
- Quantitative methods
Using Microsoft Excel software (Microsoft Office Excel) is a spreadsheet
7


program in the Microsoft Office suite of Microsoft software. Microsoft Excel includes
many cells made up of rows and columns, used for entering data and formulating
calculations. In addition, Microsoft Excel has many advanced features and a userfriendly interface. And it can generate tabular reports, char and ts.
As for the customer survey, because it is aimed at online customers, the survey
form is built by building a questionnaire/survey on Google Forms. From the feedback,
Google Forms will allow a spreadsheet view of the collected data or a summary view,
which will enable seeing how many people have filled out the forms, statistics tables
and data diagrams. Based on these statistics, the collector can make assumptions and

verify the data's reliability and authenticity.
- Qualitative method
Using the synthesis-inductive method: the two mewaysomplement each other.
The synthetic approach focuses on presenting facts and explaining them causally.
Then, induction establishes the relationship between the data and rule.
The deductive method: is a rule-based method that gives specific examples useful
for testing theories and hypotheses. This method aims to arrive at a coconcludeon must
necessarily follow the given reasons. These reasons lead to conclusions
andecisionsstrated through specific examples.
5. CONTENTS OF THE GRADUATION COURSE
In addition to the introduction, conclusion, and list of references, ... the
graduation thesis is structured into three chapters, specifically as follows:
Chapter 1: Some fundamental themes and overview of Print On Demand
business.
Chapter 2: The reality of the Print On Demand business of Space Gray Group in
the US market and the business situation of the Print on Demand industry in Vietnam
Chapter 3: Conclusions and recommendations to develop Print On Demand
business in Vietnam market for Space Gray Group.

CHAPTER 1:
8


SOME BASIC THEORIES ON PRINT ON DEMAND BUSINESS
ACTIVITIES
1.1 Basic concepts
1.1.1

Concepts of e-commerce
1.1.1.1 The concept of e-commerce in the narrow sense

E-commerce is the process of buying, selling, and exchanging goods, services
and information through computer networks, including the Internet. In a narrow sense,
e-commerce is simply buying and selling goods and services through electronic means
and telecommunications networks. Electronic means and telecommunications
networks commonly used in e-commerce are telephones, televisions, fax machines,
television networks, the internet, intranets, extranets, etc.; Computers and the internet
are used. It is most used mainly to conduct e-commerce activities because it has a high
ability to automate transactions.
1.1.1.2 The concept of e-commerce in a broad sense
In a broad sense, e-commerce does not just stop purchasing and selling goods
and services, but it also expands in scale and application fields. Currently, there many
organorganisationsconcept of e-commerce, such as WTO, AEC - Association for
Electronic Commerce, besides there are some other organisations such as UNCTAD
(United NNationsConference on Trade and Development):
• From a business perspective, e-commerce includes business activities
horizontally: “E-commerce is the performance of all business activities including
marketing, sales, distribution and payment. through electronic means”. This concept
refers to the whole business activity, not just limited to buying and selling alone; all
business activities are carried out through electronic means. This concept is
abbreviated by four letters MSDP, in which:
M - Marketing (have a website, or promote trade over the internet)
S - Sales (has a website that supports transaction and contract functions)
D - Distribution (Distribution of digital products over the network)
P - Payment (Payment online or through a bank)
Thus, by using electronic means and networks in basic business activities such as
marketing, sales, distribution, and payment, businesses are considered to be
participating in e-commerce.
9

• From the perspective of state management, e-commerce includes the following
fields:
I - Infrastructure for e-commerce development (I)
M - Message (M)
B - Basic Rules (B)
S - Specific rules in each area (S)
A - Applications (A)
This IMBSA model covers the areas that need to be built to develop e-commerce:
I - Infrastructure: Infrastructure “Information technology” and communication is
the first requirement for e-commerce development.
M - Message: Issues related to "data messages". Key messages are all types of
information conveyed over the network in e-commerce. For example, electronic
contracts, offers, online inquiries, and electronic payment documents ... are all
considered messages, more precise, sell "data messages".
B - Basic Rules: Basic rules governing general e-commerce: are the laws
governing e-commerce-related fields in a country or region and internationally, such as
regulations on commerce. WTO, intellectual property regulations of the World
Intellectual Property Organization WIPO.
S - Sectorial Rules/ Specific Rules: Separate rules regulating each specialised
area of E-commerce, such as electronic authentication, electronic signature, and Ebanking (electronic payment).
A - Applications: It is understood that e-commerce applications, or e-commerce
business models need to be adjusted, as well as invested and encouraged to develop,
based on having solved four protoforms above topic.
1.1.2

The concept of Print on Demand
Print on Demand , or POD, is a relatively new and obscure field, an e-commerce
model that allows you to sell customised products printed only after placing an order.
With a POD, you won't store any physical inventory. Instead, you sign up with a POD
platform that takes care of the printing and finishing process for you. POD is a

dropshipping model in which the seller does not have to deal with inventory
management and shipping. A third party handles all components, and the seller does

10


not incur the cost of storing the goods as they are not charged for the goods until an
order is placed.
Print on Demand is a form of e-commerce business in which you will work with
custom printing service providers and white label products to customise products
according to your needs. Own designs, then sell them under your brand—products you
can design and customise like t-shirts, mugs, tumblers, etc. In the POD industry, you
don't have to deal with shipping and inventory management. A third party will handle
everything from printing to packaging and shipping – the POD Fulfillment service
provider. POD Fulfillment service providers allow you to connect e-commerce sites
through their platform. Whenever a customer places an order for a product in your
online store, the system will automatically send that order to the printing and
fulfilment service provider to complete the order for you.

1.2

How it works and the pros and cons of the Print on Demand business

model

1.2.1

How it works
The Print on Demand operating model is also relatively simple; the seller does

not need to worry about product inventory; you do not need to pay or buy many
products, but only pay when you have them. Order. With POD design Print on
Demand , everything after the sale, from printing to shipping, is managed by your
supplier.
Here is a simplified model of a POD order:
1. Choose a niche and a product:
Choosing a relevant and profitable niche is the most critical challenge before
embarking on an e-commerce business journey. Google Trends is a handy tool that can
quickly help evaluate and select the most popular and relevant niche. Social media
platforms like Facebook, Twitter, Instagram, Pinterest, and Reddit are also excellent
sources of information. Alternatively, you can also pick a good niche on your ecommerce blogs to crawl. After choosing a place, it is equally essential to find POD
product ideas to sell. There will be a lot of choices, but you need to make sure that you
stick to the market needs and that the products are suitable for the market you're
entering.
11


2. Store setup:
Once you have a product idea and a niche, the second step of running a POD
business is setting up stores. It is necessary to integrate an existing online store with
POD fulfilment platforms.
Print on Demand service units have been integrated with giant e-commerce
platforms and marketplaces such as Amazon, Shopify, Etsy, etc. If you already have an
existing online store on these platforms, it will be possible to easily integrate it with
the POD fulfilment platform and be able to start selling from there.
3. Product design for the store:
Having your design at the start of your POD journey is always essential. You can
rely on your chosen niche to design “artwork” for different products. Most mockups of
the finished products will be displayed; this mockup feature helps to check the
compatibility of the design and the development before proceeding to the printing

process. Once satisfied with the plans, the items will be ready to be delivered to the
customer.
4. Selling products:
Your online store will be accessible to every corner of the world, and every
product is ready to be printed and fulfilled. The POD fulfilment service provider will
perform all subsequent processes. So the only thing you need to do is start marketing
your product and drive traffic to your product website to generate more orders.
Preparing a few tips for marketing and driving traffic more effectively is essential to
help your online store perform better!
5. The POD printing service provider will complete the order for you:
At this point, POD fulfilment providers will handle their expertise like Customer
Service, Orders, and Logistics once you place your order. With them. A real-time
tracking code for order status should be provided and communicated to the seller.
The data of the e-commerce stores are invaluable as they are convenient
experiences that are highly beneficial for later decisions.

Below is a realistic model of the POD business model when selling one shirt

12


Step 1: Generate an order – after you update your online store with a POD
product sample (for example, a t-shirt), customers can begin to order and pay in
advance ($30)
Step 2: The t-shirt order is sent to the seller's POD supplier; the seller will pay
the production and printing costs for the order with the supplier (20$)
Step 3: The POD supplier produces and prints products according to the order
Step 4: The POD supplier packages and sends the product directly to the buyer.
The POD order ends, and the seller keeps the $10 difference as a profit.
1.2.2 Pros and cons

1.2.2.1 Advantages
Easy to get started: Most of today's Print on Demand platforms are user-friendly
and easy to use. So you can quickly start and operate a business by registering an
account, creating a profile on the platform and uploading products. You upload designs
in minutes, and don't worry about technical requirements.
No worries about inventory: The Print on Demand model helps reduce the most
significant concern when entering the e-commerce market, which is inventory cost.
13


Since the product will only be manufactured and printed after the customer orders it,
you will not need to worry about not being able to push or incur costly inventory. In
short, the common risks in the business process, such as inventory or out of stock, will
not exist when choosing the POD model.
Reduce Fulfillment: Another headache for retail is fulfilment. The product
packaging and shipping process involves many stages and is difficult for you to fully
manage, especially for retailers, small businesses or artists. The POD platform will
take care of this whole aspect, so you will save time and effort when you don't have to
directly find a way to get the product to the end customer.
Freedom to do business according to your best friend's strengths: All the
advantages mentioned above contribute to creating the most significant advantage of
the POD model; that is, you will have more time to focus on things you want to do,
want to invest in your business. For example, instead of worrying about product
shipping and packaging, you can spend that time on other things that are your
strengths, such as creating, designing, Community building, marketing and business
strategy creation.
1.2.2.2 Disadvantages
Profit margin is not high: When you work with a POD service provider, the cost
for the product will be higher than the price when buying in bulk, which means your
profit will be reduced. This is highly understandable, but instead of having to import

1000 products at once to get low prices and then have to find a way to store or have a
headache if not pushing all the goods, the extra work of bringing that product to work
with the factory In the case of printing, having to bear a high price when buying retail
products on POD platforms so that they do not have to worry about other cumbersome
steps later, this cost is not high.
Limits the ability to increase customer experience: While not having to
participate in the fulfilment process gives you a lot of advantages, it also limits your
control over how products are packaged and the form of transportation. POD platforms
will have a fixed fulfilment process, making it impossible for you to surprise your
customers when they receive your products. For example, if you want to add a unique
decoration to the product packaging of a loyal customer or include a thank you card in
the package, you will not be able to do that when applying the POD model. If you are
14


trying to build a strong brand that can make an impression on all customer
touchpoints, then Print on demand is not the right choice.
Limited data: If you are a seller who needs statistical data from the market to
make business decisions, then POD is not the right path for you. Large e-commerce
platforms will often have a lot of data on the frequency, rate, rating and quantity of
product statistics, from which you can analyse to make the right choice of products to
sell, In your store. However, for POD platforms, it is difficult to give such detailed
statistics, so it will be difficult for you to make predictions about products that sell out
or dominate the market.
The product lacks variety: The range of products you can sell with a POD model
is often limited to a service provider's capabilities. For example, suppose the POD
service provider you choose can only support you in producing fashion products such
as clothes and bags. In that case, you obviously will not be able to order other
accessories such as Phone cases or laptop cases can be there. This means that you will
be "sticky" with your initial decision and find it challenging to expand your business in

the later stages. This factor won't be an issue if you sell certain types of popular
products like t-shirts or porcelain mugs. However, POD will not suit retailers who
want to differentiate themselves or select products in a niche market. For example, if
you’re going to differentiate products that are not so common, like window guards,
finding a POD platform that meets this product will be challenging. Or, if you want to
sell unique fashion items made from special materials, you will have a hard time
finding a POD service provider that can accommodate you.
1.3 Factors affecting the Print on Demand industry
1.3.1 External environmental factors
1.3.1.1 Micro factors
• Economic environment
The development of the economy and the strong growth of e-commerce will
directly affect consumers' purchasing ability and tendencies. That makes it challenging
to research to develop suitable products for consumers’ tastes.
• Socio-cultural environment
Social culture in each country always has vast differences. Depending on the
needs and groups of countries with young or old, or medium populations, each
15


country's conditions and shopping habits are different. The company always has to be
ready to adapt to different environments and nations and always have to change
without being tied to a specific pattern.
• International environment of Print on Demand
With the increasingly strong development of Print on Demand, the boundaries of
countries and the international distance have been gradually erased; this development
goes beyond one country and quickly spreads across the world. Micro global. It creates
advantages and creates difficulties, and challenges for businesses to solve.
• Legal policy system for Print on Demand
The legal system has a significant influence on the online business activities of

enterprises; it not only affects technology, information security, online payment
system, commercial relations, etc. trade but also interacts with global information
systems. Because it is still a tiny branch and relatively new, there is almost no separate
legal system for Print on Demand, but it will mainly use the law for E-Commerce and
Marketing. The legal environment for E-commerce and Marketing is continuously
supplemented and perfected, making it necessary for businesses to comply with the
laws of the law.
• Infrastructure - technology
In Print on Demand, infrastructure is a significant factor in developing this
industry; it acts as the backbone of the business model because it is mainly based on
the dropshipping model. If there is no appropriate production technology to ensure
product quality, it will cause many difficulties for businesses.
1.3.1.2 Industry environmental factors
•

Competitors
Competition is an inevitable element of the market. For businesses to have a
good position in the industry, they need to improve their competitiveness. Competitors
are businesses doing business in the same product group and the same market. In
recent times, the development in the Print on Demand industry has become more and
more powerful and attracted a lot of attention. Therefore, the number of competitors of
enterprises is increasing day by day. Therefore, businesses should carefully study the
way of competitors’ social media, learn about their strengths and detect their
weaknesses. From there, they perfected and further developed their business activities.
16


•

Client

Customers are the human factor, so it is the most difficult to grasp for businesses
and particularly businesses. A company that understands its customers' needs, wants,
and behaviours (or consumers) is more likely to succeed. In a society where the
internet is being used more and more, almost every day, every person's activities, it
seems to be easier for businesses to understand and capture the needs of customers. .
And devices such as mobile phones, computers, software and applications are practical
tools to help businesses.
1.3.2 Environmental factors inside the enterprise

•

Orienting the business strategy of the enterprise
When traditional products with familiar and trendy designs make customers feel
bored, causing customers' personalisation needs to increase, this is the time when Print
on Demand is like a fruit. Gold egg. Business development in this direction will
improve operational efficiency and increase revenue for the business.

•

Human Resources
The human factor is of great importance in determining the success or failure of
an organisation, especially in the fields with e-commerce applications in business
activities. To effectively carry out activities in the Print on Demand business,
businesses need a team of employees with professional skills, passion, and creativity to
develop the company further.

•

Information technology infrastructure
Information technology drives innovation in business. Creation manifests in

more innovative applications, improved data storage, faster processing, and wider
distribution of information. Innovation makes businesses more efficient. And
innovation adds value, improves quality and increases productivity.

CHAPTER 2:
PRINT ON DEMAND BUSINESS SITUATION OF SPACE GRAY
17


GROUP COMPANY IN THE US MARKET AND PRINT ON DEMAND
INDUSTRY BUSINESS SITUATION IN VIETNAM

2.1

Overview of Space Gray Group Company
Brief introduction of Space Gray Group
Official name: Space Gray Group Company
Business Name: SPACE GRAY GROUP CO., LTD
Type of business: Limited Liability Company
Tax code: 0109534881 registered and managed by Ha Dong District Tax

Department, issued on March 1, 2016
2.1.1 The process of formation and fields of operation of the Company
2.1.1.1 The process of building and development
Space Gray Group Company is an enterprise operating in E-Commerce and
Digital Marketing. The main business line focuses on the Print on Demand industry, a
niche market in the large E-commerce market. Space Gray Group has legal status, has
the rights and obligations as prescribed by law, is responsible for all business
activities, is allowed to open a separate account at the bank and uses the seal according
to the prescribed form.

Space Gray Group was established in early 2016; after more than five years of
operation, the company has come into stable operation. Customer satisfaction is not
stopping from human resources to sales or product quality; customer satisfaction is not
stopping. Increase. After continuous development in the US market, Space Gray Group
is always the perfect choice from product quality to the service policy for personalised
and print on demand printing products.
2.1.1.2 Main business areas of the company
The company's key product lines are Print on demand printing product groups
such as 3D printing products: t-shirts, hoodies, sweatshirts, mugs, tumblers,... Or
decorative products such as wall paintings. , posters, floor mats,... Even a group of
custom sneaker products.
2.1.1.3 Development goals of the company
To bring experiences to consumers, Space Gray Group's personalised products
will satisfy consumers when the market is full of familiar and unknown effects. What
18


stands out. With the principle of bringing new and unique experiences to customers,
the company is committed to satisfying anyone, even the most demanding customers.
2.1.2 Organizational structure and business results
2.1.2.1 Organizational structure
The Company builds a functional management apparatus including the following
parts:
•

General Director: the person with the highest position in the company, responsible for
making business plans, setting general strategies for departments, approving company
decisions and supervising the implementation of that decisions so that the company
can operate according to the project and achieve the overall goals of the organisation.

•

Accounting Department: Has the function of financial accounting for business
activities and office accounting, statistics, reporting and organisation of good capital
circulation, asset management, and salary payment for employees. And other jobs.

•

Human Resources Department: Has the function of managing human resources in the
company, supporting the director in organisational and administrative work; has the
process of recruiting, training and arranging human resources in the company.

•

Sales Department: Having the function of the building and implementing sales plans;
operating a product sales network.

•

Marketing Department: Building and implementing marketing strategies for websites
and products to help increase sales.

•

R&D Department: Research, update and find new trends in the world and niches in
line with the company's development goals.

•

Fulfillment Department: Complete customer orders and take care of customers.

•

Design Department: Responsible for product design.

19


Accounting Department

Human Resources Department
Marketing Department
General Director

Sales Department
R&D Department
Design Department

Fulfillment Department

Figure 2.1. The organisational chart of Space Gray Group Company
(Source: Space Gray Group Company)
2.1.2.2 Personnel structure
- General Director: Pham Ngoc Anh
Table 2.1. The company's human resource structure
Department

Manager

Member

1

Accountant

Nguyễn Mạnh Cường

2

2

Personnel

Nguyễn Hải Phượng

3

3

Business

Nguyễn Hải Long

4

4

Marketing

Nguyễn Văn Linh

6

5

R&D

Ngơ Hồi An

4

6

Fulfillment

Vũ Ngọc Phương Thảo

7

7

Designer

Phạm Thị Hậu
15
(Source: Space Gray Group Company)

2.1.2.3 Business performance and development orientation in 2022-2025 of
Space Gray Group
20

•

The company's products
The company's spearhead product line is the group of Print On Demand printing
products; the main products are as follows:
- T-Shirt
- Hoodie
- Sweatshirt
- Posters
- Mug
- Tumbler
- Quil
- Blanket
- Custom Sneakers

•

The company's primary market
The company’s current market focuses on developing and achieving the US
market.

•

Company's business activities from 2018-to 2020
With more than five years of operation, the company has been in stable
operation, gradually asserting its position in the market. From 2019 to 2021, the
company's growth and revenue are shown in the table below:
Table 2.2. The company's business results in 2019 -2021

(Unit: USD)
Targets

2019

2020

2021

1. Total revenue

625.366

1.200.121

1.000.050

2. Total cost

195.376

389.623

295.000

3. Profit before tax

429.990

810.498

705.050

4. Corporate income tax

125.074

240.024

200.010

5. Profit after tax

304.916

570.474

495.040

(Source: Financial Report 2021)
The above is a table of the company's business data for the last three years, from
2019 to 2021 (data in the table have been rounded).
Overview of the company's business situation in 3 years from 2019-to 2021:
21


Over the years, the company's revenue has increased significantly, but after the
breakthrough growth from 2019 to 2020, total revenue increased by nearly 50%, and
from 2020 to 2021, revenue decreased. About 17%, a step backwards.
In terms of costs, in 2019 and 2020, the cost of enterprises is always at 32% to

33%; however, by 2021, due to lessons learned and cost optimisation from previous
years, the total cost of enterprises will be increased. The industry is only 28%.
Although there is a setback from 2020 to 2021, the company has made
significant progress; the company's financial position is at a reasonable level, costs are
gradually reduced, and profits are reduced. Increase.
•

Development orientation of the company from 2022-to 2024
In the immediate future, in 2020, the company will continue to recruit qualified
and knowledgeable employees to fill the missing positions to strengthen the company's
skilled human resources. Besides, it strives for average revenue growth of over 30%
per year and profit growth of 35% per year.
2.1.3 Competitors and potential partners of the business
In the current digital technology boom, e-commerce platforms develop strongly
so that small and medium-sized businesses grow up quickly, creating many choices for
consumers. Further and at the same time contribute to the competition becoming much
more intense. Although this is a new business line and the company has been operating
for six years, Print on Demand is like a golden egg that many other businesses covet,
so it has to compete with new companies that pop up continuously along with other
companies. With another Print on Demand, businesses become extremely difficult.
Typically, Machine, Printful, Printify, etc. are all specific brands and have a significant
foothold in this market. However, thanks to effective marketing campaigns, good
product quality, and good customer care service, Space Gray Group has received a
certain amount of love from customers and has a large customer base. Buy often.
The current main partners of Space Gray Group are ShopBase, Printful, and
Gooten because these are all reputable e-commerce sites with many offices around the
world, convenient for finding sources of goods anywhere. These sites now support
full-service processing, from printing and packaging to shipping. Sellers only need to
create the design; they will produce it and ship it to the customer. These e-commerce
sites also provide an international supplier network that allows you to offer unique,

22


customisable products that you cannot find elsewhere, such as jewellery, watches, and
watches. , shoes or water bottle. With a diverse and unique product portfolio, these ecommerce sites can help businesses and customers print everything on demand.
2.2 Actual situation of Print on Demand activities of Spae Gray Group in the
US market
2.2.1 Current status of Print on Demand industry in the US market
2.2.1.1 The development of the Print on Demand industry
The Print on Demand industry grew by 12% from 2017 to 2020. While other
sectors stumbled during the pandemic, Print on Demand was getting record-high
interest. Several factors have contributed to that.
First, there’s a growing demand for personalised and one-of-a-kind products.
Many consumers (36%) are expecting some form of personalisation by default and
would even be ready to wait longer for customised products (48%). Since Print On
Demand products are made to order with no minimum, even an order of a single
product with a specific design can be fulfilled. This opens the door to satisfying a
demand for personalisation while still profitable.
Another factor is the shift from traditional retail to eCommerce. COVID-19
forced us to adopt new habits, and online shopping is here to stay even in the postpandemic world. In 2019, the eCommerce share of global retail sales amounted to
13.8%. In 2021, the claim was already up to 19.6%. That’s an increase of almost 6% in
just two years.
Sustainability and the demand for eco-friendly products are other critical factors.
In a 2021 survey, 27% of respondents said that, in the last 12 months, they tried out a
new product for sustainability reasons, and 25% spent more money on sustainable
fashion. Print on demand has become the sustainable alternative to fast fashion
products made only once ordered, meaning fewer items go unsold and waste.
As communication and printing technology have gone digital, the commercial
printing industry has become “too small” to matter. However, that has also coincided
with continuous evolution and the development of new business models. With a lower

per-unit cost and small to no-minimum quantity batches, PoD is quickly becoming the
method of choice for both emerging and established eCommerce operations. With

23


rising demand, technology has advanced rapidly to accommodate new product
categories, primarily across accessories and forms of apparel.
The global print on demand market size was valued at USD 4.90 billion in 2021
and is expected to expand at a compound annual growth rate (CAGR) of 26.1% from
2022 to 2030. Factors such as rising disposable income, increasing internet penetration
and smartphone adoption, and inclination toward fashion apparel and unique products
fuel the demand for Print on Demand . The growing e-commerce sales are also fueling
the growth of the market. The COVD-19 pandemic had a positive impact on the
market. As the lockdown restrictions were imposed, people shifted to online shopping,
and Print on Demand products witnessed growth.
2.2.1.2 Print on Demand Industry and Product Statistics
The digital printing industry started in 1993 and grew exponentially to be worth
$187.7 billion in 2018, just 25 years later. From 2017 to 2020, the Print on Demand
apparel industry grew at a compound annual growth rate of 12%. Custom stickers were
among the most searched for Print on Demand items in 2020, with interest growing.
Personalised gifts have become more popular year after year, with 2020 signalling the
highest good (an increase of about 20%). 1 out of 5 customers is willing to pay up to
20% extra for personalised products and services. Individual customers widely use
products decorated with photographs as personalised gifts.
The Print on Demand market has been segmented into software and service in
terms of platform. The service segment is anticipated to register the highest CAGR of
28.4% over the forecast period. This can be attributed to many service providers
offering drop shipping and end-to-end fulfilment services. The service providers also
provide other services such as marketing & branding services like custom packaging

and creative services like photography and graphic design. These services offer
convenience and options to Print on Demand merchants and artists.
The software segment accounted for the largest revenue share in 2021 and is
expected to retain its dominance throughout the forecast period. The growth of the
software segment can be attributed to the increase in technology investments by
service providers in the Print on Demand market. Service providers offer software
solutions such as Application Programming interfaces (API) and design-making tools.

24


The API makes it convenient for Print on Demand merchants to integrate their online
store with a Print on Demand platform.
The integrated segment accounted for the largest revenue share in 2021 and is
expected to retain its dominance throughout the forecast period. It is expected to grow
at a CAGR of 23.7% throughout the forecast period. This can be attributed to the
increased awareness and popularity of integrated software. The presence of many
third-party e-commerce platforms and ease of connecting are driving factors for the
segment’s growth. Benefits such as flexibility, enhanced computing power, and costefficiency also demand integrated solutions.
The stand-alone segment is expected to grow at the highest CAGR of 26.7% and
maintain its position over the forecast period. Prominent Print on Demand players
such as Australia-based Redbubble Group and U.S.-based Zazzle Inc. are stand-alone
platforms. The stand-alone platform is like a marketplace where the artist or merchants
can create designs and put them for sale on the forum. It makes it convenient for the
sellers as they don’t have to look into technical details.
2.2.1.3 The development direction of the Print on Demand industry in the
coming years
Personalisation And Product Assortment Remain Important. Consumers who
wish to stay in and shop from the safety of their homes during the pandemic will likely
be no less demanding in 2021. Personalisation trends in the POD industry will

continue, and fast shipping possible, thanks to more adaptable supply chains, will
continue to drive online demand. I've seen that shoppers expect a steady stream of new
products and a more comprehensive range of goods in terms of product assortment.
2021 will be a year of constant adaptation and refinement. POD platforms should
incorporate merchant suggestions for new products; examples include natural and
organic clothing, new designs, and face masks. As part of the ongoing evolution of the
POD market, companies should constantly work to offer unique items and onboard
new global providers to meet changing customer needs.
2.2.1.4 Orientations for Print on Demand in the coming years
A more adaptable platform is necessary to serve a dynamic, growing market, so
POD platforms should build new capabilities, including order routing features that
migrate new and existing orders to alternate providers as needed, as part of an overall
25