After chocolates and toys, 3D Systems Inc. (DDD) recently on Apr 14, 2014 partnered with Staples Inc. (SPLS), an office products superstore, to provide 3D services in two Staples stores in New York and Los Angeles. The initial offering of the 3D printing in these stores will more in the form of a test run to understand the need of customers for a local 3D printing service. Following the news, the share price surged 2.3%
The test run of 3D printing will allow customers and small business set ups to create personalized products using the 3D printing hardware. This apart, consumers can also bring in their own ready-to print 3D files to get them printed in these centers. These new 3D printing experience centers will allow consumers in general to learn more about 3D printing through display areas where they can not only use design software but also see 3D printers in action.
Both the proposed stores where the 3D printer centers are expected to be established will feature a 3DMe(R) Photobooth to capture customers' facial images to create personalized 3D products such as figurines. Not only this, consumers can also print personalized smart phone cases. To enable consumers to have this thrilling 3D printing experience, 3D Systems will deploy an expert from the company along with a trained Copy & Print associate from Staples. These personalized 3D products will then be directly delivered at the consumer’s office or home.
3D Systems is a leading provider of 3D printing centric design-to-manufacturing solutions including 3D printers, print materials and cloud-sourced, on-demand custom parts for professionals and consumers alike, in materials including plastics, metals, ceramics and edibles. Its comprehensive range of 3D printers are the industry's benchmark for production-grade manufacturing in the aerospace and automotive sectors, patient-specific medical devices and a variety of consumer, electronic and fashion accessories.
3D Systems’ approach to expand its business through its strategic growth initiative has been quite impressive. The company has been in the process of entering into partnerships with leading companies, such as Hershey’s (HSY), Hasbro (HAS), Intel Corp. (INTC) and Sindoh to extend its 3D printing capabilities to various industries. This apart, 3D Systems has been aggressively pursuing acquisitions since Aug 2013 to augment its capacity, competence and geographic reach.
3D Systems currently carries a Zacks Rank #4 (Sell).
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