Is it a spoiler or a disruptor

2014-03-24 00:32

In the public eye, the paper company is quite ambiguous, although most of the information from this industry is associated with pollution; similarly, people's attention to the entire paper industry is not high, although the industry is closely linked to the national economy and people's livelihood. However, there is a phenomenon worthy of attention: the entire paper industry has been highly market-oriented, private enterprises to become the main force in this industry; a regional economic strength pattern, often also written on this piece of paper. Therefore, paper and wood processing industry to become Guangxi's 9th 100 billion yuan industry news may be some kind of note.

As in the case of steel, cement, paper companies have actually encountered the industry's ceiling, experiencing the growing pains of the industry as a whole, is to continue to take the road of expansion on the scale, or to start a truly innovative transformation? Some industry experts told reporters that the road to innovation in traditional industries is very difficult, not to mention the paper companies not only environmental pressures, overcapacity issues, but also product homogenization behind the fierce battle.

However, it is in such a pessimistic atmosphere spreading haze day, when the reporter came to Weifang Shandong Century Sunshine Paper Group, the paper factory appeared in a scene of printing presses is quite surprised. Wang Dongxing, chairman of the board of directors, said: "From now on we are service providers, this is the sunshine concept packaging solutions!"

The reporter noted that two large "pre-printing machine" from Germany, one has been installed and is ready to test the machine, the second is being installed and debugging, June can be put into production. For this investment of 500 million yuan "pre-printing center", Wang Dongxing is to promote the heart of a dead soldier. The reason is very simple, because in the back of this carton printing project, from paper to pre-printing, from pre-printing to packaging production of the entire link is opened, while the birth of a new paper packaging business model.

So, from "sell paper" to "sell services" is not considered a traditional industry transformation? Paper mill appeared "printing and packaging" production line will not trigger a revolution in the industry?

The days of selling paper are hard

"The homogenization of paper is very serious." The current state of the paper industry needs no elaboration, Wang Dongxing told reporters.

"Going to expand production capacity must be looking for death, can no longer do to kill the enemy a thousand self-inflicted losses of eight hundred stupid things. Now the only way is to turn, adjust, create, the enterprise should be transformed, the structure should be adjusted, technology should be innovative." Wang Dongxing obviously doesn't think this is a fashionable slogan, he wants to extend the industrial chain on the existing product structure. "It's not an ordinary extension, it's a revolutionary innovation with technical content and in business model."

Wang Dongxing graduated from college has been working in paper mills, starting from the workshop workers, to do the Chenming Group's deputy general manager, left Chenming did not take away a product; their own independent enterprise, presided over the research and development of the production of high-grade coated white kraft paper, fill the gaps in the country, and become "China's first paper to the world! "

This is the first time that the company has been able to develop a new product.

"If only in terms of size, Century Sunshine is not big. But we have our own differentiated products, and to be honest the enterprise is precisely with such products, will survive in the fierce market competition, and become the white coated kraft paper leader." In the face of today's market position, Wang Dongxing but not excited, the reason is: from the creation of the enterprise, has been in the development of differentiation Century Sunshine, ultimately could not withstand the inertia of the decline in profits suppression. Simply put, the enterprise's gross margin space is getting smaller and smaller.

Despite the enterprise has the first product patents in the country, the largest production in the country, coated white kraft paper for corrugated boxes, and for Tsingtao Beer, unified instant noodles, Wahaha and other fast-moving products leading enterprises widely used, however, is such a fist product, the end of the company's IPO with the same unique product, and ultimately it is difficult to make money.

"Start-up yarn tube paper project in short supply, very lucrative, a ton of paper to earn 1,000 yuan, it is really profitable." Wang Dongxing said, "There is a product I have more than 20 patents, those years the days are particularly good, the most expensive sold to 5800 yuan a ton, and now sells 3800 yuan per ton, some manufacturers 3100 yuan also sell. What do you mean by overcapacity? This is."

Avoid coated paper, newsprint, white cardboard and other competitive bulk mainstream paper, the enterprise product is located in high-grade packaging carton paper. Has been the implementation of the differentiation strategy of the century sunshine, in any case did not expect, how to differentiate, but also can not get rid of the plight of imitation by other enterprises, Wang Dongxing can only product innovation to deal with.

Wang Dongxing is very emotional: "create a variety of very difficult, we ate a few years ago on the innovation of the meal, and now imitation and followers have followed. What is the core competitiveness, is the opponent is difficult to imitate the ability to easily imitate to go, there is no core competitiveness."

The reporter noted that not only wrapping paper, the entire paper, printing and packaging industry is in fact facing the same existential threats and challenges. Among them, overcapacity, digestive channels are limited *** sex; behind the appearance of serious homogenization, that is, all competitors have the same process and equipment, production of the same products, compete for the same customers and raw materials. The only difference is the marketing approach, the killer app is price.

There is only one result: thinner and thinner profits, losses, bankruptcy and closure.

Even if the industry's big companies, the price war is more conventional weapons, the scale is big, but also a supplier of the paper industry chain.

"Do the supplier's day is too passive, so what is the meaning of the price war? No longer innovative is a dead end." Wang Dongxing said. Since 2006, he has traveled from the United States to Germany to find a different path of development in the industry.

Suppliers have had enough of the hard times, and he wants to lead Century Sun to find a new way to survive.

There is no secret inside the carton

Running through thousands of customers at home and abroad, and even squatting in front of people's homes. Wang Dongxing's goal is clear: in the process of turning packaging paper into boxes, where exactly are the profits hidden?

In Germany, he got the answer: in the whole chain from paper to packaging, printing is the most profitable, the secret of profit is not actually inside the carton, but outside the printing. The source of profit can be seen, how to realize but still with the status quo of the industry is not linked.

The reason is very simple, the current status of the carton industry and the upstream of the paper with the same disease. First of all, the industry has a large number of enterprises, but the enterprise scale is small and quite decentralized. The industry has 40,000 enterprises, the largest enterprise annual sales revenue of 2 billion yuan, less than a medium-sized paper mills; secondly, is the industry's technical level and low production efficiency, backward technology, standards are not uniform, the waste of resources is prominent; the key is that the carton production enterprises are subject to both the customer and subject to paper mills, the economic benefits of the back of the pressure, the survival of its difficult to imagine, almost every day we can hear Almost every day we can hear the news of the closure of the carton factory.

At the same time, a number of large fast-moving consumer goods companies are not satisfied, due to production bases throughout the country, coupled with the small radius of supply of cartons, carton enterprises generally small, supply capacity, quality, standards are difficult to ensure that the user's needs, not to mention the provision of product diversification, personalization of the demand. So some big fast-moving goods enterprises to be tired to deal with dozens or even hundreds of carton suppliers across the country, which has become a common headache for fast-moving goods enterprises.

Accordingly, Wang Dongxing believes that the reason why carton manufacturers also did not make money, the key is its technology, model and strength does not have the advantage of not being able to form the ability to serve large customers. As a paper mill, Century Sunshine precisely has the advantage of raw materials, capital, coupled with advanced pre-printing equipment and technology from abroad, all he needs is to create a business model to open up the entire industrial chain, through the integration of paper, packaging two industry advantages of the resources, is a subversive, new carton packaging business model, the so-called innovation can be based on this start.

To be a subversive

After several years of investigation, repeated demonstration, paper mills appeared in the printing production line, in a number of committed to continue to the scale of the industry seems to be a little out of the ordinary. Because, as only a production of paper that is invested billions and billions of dollars in paper mills, carton mills this small industry is not in the eyes of the beholder. However, Wang Dongxing is a small cardboard box to do more than five years of market research, he was determined in this "small industry" up and down the big effort.

The reason why this innovative project is called "New Concept Packaging", he is to subvert the traditional model, giving carton production a new concept. First of all, he set up a global "New Concept Packaging Design Center" in Shanghai to provide value-added services such as functional design and decoration design at the front end of carton production; and then he introduced innovative equipment and technology as well as resource integration in the form of industry chain alliance to form a brand new carton production model. His description of the business model is: "creative design" as the leader, "pre-printing and technological innovation" as the basis, "process integration and reengineering" as the means, "collaborative alliance" as the means, and "creative design" as the leader, "pre-printing and technological innovation" as the basis, "process integration and reengineering" as the means, and "collaborative alliance" as the means. "Collaborative alliance" as a guarantee, for the final customer to provide from "paper, creative design, printing, packaging, logistics, one-stop printing and packaging solutions". Thus, to realize from the simple packaging paper manufacturer to provide cartons of the overall solution of the strategic transformation of the service provider.

"Yes, we want to start the real transformation. We don't want to be a spoiler in the price war in the paper industry, we want to be a disruptor in the paper packaging industry." Wang Dongxing in leading the reporter to visit the "pre-printing machine", has been full of printing, packaging industry professional vocabulary. And he has been emphasizing is that the new century sunshine concept packaging business model will bring changes to the industry and the benefits to end users.

And Guo Yongxin, deputy director of the China Light Industry Information Center, said to this reporter: "Concept Packaging Solutions" is a systematic project, is an innovative concept in the paper, printing and packaging industry chain, which can be said to be the first to open the field of national precedent. Accordingly, Shandong Century Sunshine Paper Group will realize the strategic transformation from a simple wrapping paper manufacturer to provide carton overall solution service provider.

Wang Changhai, deputy general manager of the company, said the project is scheduled to be completed within three years. After being put into operation, it can realize annual sales revenue of 5 billion yuan. At present, the headquarters responsible for the implementation and operation of the conceptual solutions - Shanghai Rainbow Concept Packaging Co., Ltd. was established in Shanghai in October last year, the company set up packaging creative design centers, marketing centers, financial centers, and is located in Weifang, Shandong Province, pre-printing centers, is responsible for coordinating the services of the 30 shareholding across the country's cardboard factory, and through modern logistics of pre-printed products and cardboard boxes. The company is responsible for coordinating the services of 30 participating carton factories across the country and distributing the pre-printed products and cartons through modern logistics.

"This innovative model has a ****-win design considerations, we can not just for their own, we not only want to create value for customers, reduce costs, but also to participate in the cooperation of the carton factory to increase revenues, to realize the three **** win, so that the whole industry has become a ****-win ecological chain, which is the root of my confidence in the project. "