A new forecast from Forrester Research credits greater online spending by Canadians, lower shipping costs and more selection for the spending increase.
To get there Vistaprint will refocus certain assets and explore acquisitions.
Online print and small business services retailer Vistaprint NV sees itself becoming a $2 billion web merchant by 2016.
To achieve that goal Vistaprint, No. 36 in the Internet Retailer Top 500 Guide, will use a combination of organic growth, targeted acquisitions and refocusing its approach to marketing, says CEO Robert Keane. “We believe we are now well positioned to capitalize on our past success in order to capture significantly more of the large market opportunity we see ahead of us,” says Keane. “To do so, we believe that now is the right time to adopt a new investment approach to support our ability to scale even faster.”
Vistaprint, which grew revenue year over year 21.9% to $817.0 million, for the fiscal 2011 year ended June 30 from $670.0 million in fiscal 2010, sees ample opportunity for growth in supplying business services online to small companies and consumers. “Over the last 15 years Vistaprint has grown to become a leading player in the very large and fragmented market for small business marketing solutions,” says Keane. “We have built significant competitive advantages via our marketing approach, proprietary technology and manufacturing expertise.”
To achieve $2 billion in sales within five years, Vistaprint needs to grow the top line by nearly 20% annually. Keane, who unveiled Vistaprint’s updated business objectives at a recent investor’s day presentation, says Vistaprint can meet and exceed a 20% annual growth rate by investing more resources in traditional media, including direct marketing and TV advertising.
Vistaprint, which increased spending on marketing and sales expenses by 13.2% to $271.8 million in fiscal 2011 from $240.2 million in the prior year, also plans to make certain acquisitions—if the company to be purchased offers unique technology that can help Vistaprint further develop is web-based business services model. “Vistaprint expects to be more proactive in assessing potential merger and acquisition targets, though it will continue to be prudent and selective,” says Keane. “The company expects to target firms with less than $100 million in annual revenue which possess technology, market presence and/or expertise in the market adjacencies identified in its strategy.”
In fiscal 2012, Vistaprint is targeting an increase in sales of 22%, which give the company projected revenue of about $997.0 million. “We began fiscal 2011 with a goal to understand our customers better and to look more deeply at our levers for future growth,” says executive vice president and chief financial officer Ernst Teunissen. “By the end of the year, we had compelling data that convinced us that we have a real opportunity to capitalize now on the current strength of our market position, balance sheet and scale advantages.”