Mitchell Leiman joined Cimpress more than a year ago to lead the company’s global development. PrintAction spoke with Leiman, Vice President of Strategy and Corporate Development, to better understand Cimpress’ new operating structure and its powerful printing platform.
Why did Cimpress decentralize and how did this affect last year’s operating loss?
ML: The decentralization and reorganization was a really a no-brainer for us. We saw the benefits of these changes to allow us to be even more entrepreneurial, innovative, customer-focused, agile. Even though in the short term it impacted financial results we felt it was so much better for the company and our customers in the long run.
Another big factor that drove the reported loss, a bigger factor than restructuring, was our investments. We had historically high levels of investment in the business and that’s been a multi-year trend, because of the huge opportunities we see in the markets where we play... That was a big part of what led to the reported loss in our fiscal year 17.
Why was the acquisition of National Pen an important investment?
ML: National Pen [acquired for approximately US$218 million in December 2016] relates to our desire to accelerate efforts in promotional products. For many years, we have started selling more and more promotional products and it is a great opportunity for the mass customization concept to really take hold in how we approach the business, both from selling and manufacturing... But most of our investments are organic, essentially investing in the current operations.
Where has Cimpress made most of its organic investments recently?
ML: We continue to of ourselves as a technology company, whether it is on the frontend of our business, the selling, the Website, the experience of the customer in designing on the Website, whether it is in Vistaprint or some of our other brands… a lot of technology is facilitating the manufacturing of our goods. Windsor is really the crown jewel of our manufacturing and there is a tremendous amount of technology investment related to production and more recently software that drives our business... to specific machinery and automation. Technology is a big part of our investment.
We continue to invest in new business models and [infrastructure] in countries like Brazil, India, China and Japan, so this is another area of organic investment. We have investments in what we call Vistaprint Corporate, working with larger customers and helping them to set up dedicated Websites that have their own branding and templates preconfigured. And maybe the last area is in new products. The breadth of products that we are trying to play in is ever expanding. Our strength is the mass customization capabilities both in selling and helping customers design, as well as making transactions.
How is technology investment enhancing Cimpress’ customer experience?
ML: One example is, if you upload a picture, we are getting better and better at instantaneously telling you that maybe the picture isn’t of good enough quality. Or better yet, we will automatically just fix it for you and you may not even know it as a consumer... we want to have technology to make the customer experience that much better, as well as improve the efficiency of how we are able to do things.
Why is Cimpress still a unique company in the printing world after 20-plus years?
ML: The way we think about competition is not necessarily [with regard to] another big player like Cimpress. It is the thousands of smaller companies that are very focused on a particular customer segment or geography... There are a lot of great companies and certainly many have tried to integrate – and a lot with great successes – some of the things we do well. A concept like ganging, for example, was very innovative when we were first doing it and now it is more common practice. [Print] is a very competitive space and they push us hard.
What keeps us successful and unique is the decentralization that has allowed us to stay small as we get big. The benefit is that we are somewhat able to emulate those smaller companies in a way where we try to keep our businesses manageable and focused… On the other hand, we are able to leverage our scale and do business in a way that is really hard to replicate for all sorts of reasons.
One example is our mass customization platform and that really allows our businesses to have distinct identities to work very seamlessly together... There are ways when it is very advantageous for us to still operate as a single entity. Even if we are trying to fight off being too big of a fish now, we are a school of fish that swims together.