Big Money in Small Batches

When does a new technology make real money? A key question, no doubt. A ground-breaking research in this field was the book "The Innovator's Dilemma" (Clayton M. Christensen, 1997). Two essential parts of disruptive technologies, that may change a market, have to do with dramatically different cost structure, and with converting non-users to users.

Highcon's technology influences the cost structure of small batches in conversion production lines. The smaller the job, the larger is the influence. However, the existing conversion market does not support truly small batches (dubbed micro-batches), for example 200 sheets, 50 sheets etc.

Point is made here that there is a need for small batches, which the market is unable to satisfy. This is of course highly theoretical, as the market is off-limits to current technologies. But will it be possible to open this market for non-users with Highcon? Most probably yes, with small batches of unique boxes to serve store brands, small manufacturers (for example the 800,000 store-fronts in ETSY), or even families looking for unique packaging for Christmas gifts. With digital printing, and with e-commerce infrastructure to reduce transaction costs, a whole new market, with much less sensitivity to unit price, may open up.

This goes well with the emergence (one may say re-emergence) of small-scale manufacturing, as described in the Economist article mentioned before. Each of these micro-manufacturers may look for folding carton boxes for products.