China's printing industry development prospects?

September 15, 2008, the famous U.S. investment bank Lehman Brothers declared bankruptcy, opened the prelude to the financial crisis sweeping the world. If this day is regarded as the starting point of the crisis, to today, the crisis a whole year anniversary. Review of this year in the printing industry all the impact, which not only has the closure, loss and valuable growth and opportunity. I will be the past year representative of enterprises, people, events organized in front of you, so that we can harvest the most valuable experience from the crisis, clear the direction of future growth!

Enterprises:

Heidelberg: affected by the global economic crisis, Heidelberg Printing Machines AG (Heidelberg) suffered a record sales decline in the 20082009 fiscal year. "The 2008-2009 financial year was the most difficult in the company's history. The performance at drupa 2008 was a positive start, but the global economy took a downturn in the following months and weak market demand ruined everything." So says Heidel, CEO of Heidelberg. After the first quarter, the global economic crisis dragged down order revenues for the 20082009 fiscal year. Compared to the previous year's €3.649 billion, the 2008 fiscal year slipped by 20% to $2.906 billion. The decline in market demand was particularly pronounced in the second half of the fiscal year due to the deteriorating economic environment and restrictive lending policies aimed at small printing businesses.

Reader's Digest: Since last year, Reader's Digest's U.S. circulation has fallen 14% to 8.31 million from 9.68 million in the same year. Reader's Digest advertising revenue fell 7.2% to $1.21 million last year, according to the latest figures, and the magazine's revenue for its most recent fiscal year was down 1.4% year-over-year. Advertising revenue for Reader's Digest's flagship magazine fell 18.4 percent last year, and fell another 7.2 percent in the first six months of 2009. In January, Reader's Digest laid off 8% of its 3,500 employees, and in June announced that it would reduce its U.S. circulation from 8 million to 5.5 million, and cut the number of issues per year from 12 to 10, but despite this, it was unable to prevent the 87-year-old magazine from going on the road to filing for bankruptcy protection.

Quebecor World: As the world's printing giant Quebecor World, Canada, has always been one of Canada's largest printing enterprises, in the world he also played an important role. However, under the impact of the financial crisis, Quebecor World has always been a bad operating conditions finally broke out at this time, with many other well-known enterprises, at this time into bankruptcy protection has become its only option.

The Rocky Mountain News: The 150-year-old U.S. Rocky Mountain News published its final issue on February 27th. The Associated Press cited a front-page article in this commemorative issue that reported: "It is with great sadness that we say goodbye to you today. Thus ends the history of our newspaper in Denver, in Colorado, in the United States and in the world. Mike, a securities analyst at Fitch International Credit Ratings Ltd. There are many other newspapers that could be out of business by the end of 2010, and those that focus on local news and have small staffs that don't use a lot of paper will continue to exist, Simdon said. Four owners of 33 U.S. dailies have filed for Chapter 11 bankruptcy protection in the past two and a half months, and many others are about to be sold.

People:

Chen Yan, director of the China Institute of Printing Science and Technology: At present, China's printing industry inward-oriented enterprises are less affected by the financial crisis, and export-oriented enterprises are more affected. But the entire economic environment will in turn affect the printing of domestic demand. For example, migrant workers are unemployed, less money, the money bag covered more tightly. In this way, food and other basic consumption will account for a larger share of printing demand will be suppressed. And printing demand for more or less, through the price of paper can be judged, which best reflects the amount of printing. At present, paper prices have fallen seriously, paper mills are having a hard time, proving that market demand has fallen seriously. Just like the international crude oil prices fell, indicating an overall decline in the world manufacturing industry.

Publicis Groupe Chairman: When the crisis comes, the first thing you need to do is focus on your core industries, see what is most important to you, increase investment in the core industries, the second is when you find out which industries may face a crisis, you should stop investing, you need to reduce the cost of consumption, you need to tighten the belt, the main choice is to focus on the core industries. The second option is that you have to invest more in innovation. You have to invest in human resources in the future. To make a big structural reorganization during the crisis without taking into account the feelings of the employees, you will suffer in the long term. This is something that every company needs to consider. You don't take into account the feelings of your employees and you will lose what they can create for you.

Events:

The 16th Printing South China: The size of the booths at this year's show has been reduced by 10% compared to the previous edition. Another media observation, "everyone on this exhibition exists a same feeling - the exhibitors' exhibition scale, the audience's enthusiasm to participate in the slightly shrunk from the situation in previous years, the majority of exhibitors believe that the 16th Printing South China did not achieve or lack of their expected purpose! "

U.S. Media: The Newspaper Association of America (NAA) released data showing that in March 2008, print media advertising revenue fell 9.4% year-on-year to $42 billion, the largest drop since the NAA measured advertising data in 1950. 9 months later, in December 2008, newspaper advertising revenue declined unabated, falling $2 billion in the third quarter of the year.

Turkish Printing: The Turkish printing industry has suffered heavy losses due to competition from new technologies and the economic crisis. In the past year, more than 3,000 printing presses have closed in Turkey, and 70 companies have filed for extended bankruptcy. With the development of other electronic devices such as computers, cell phones and laptops, the paper market has declined, all of which has plunged the Turkish printing and publishing industry into a serious crisis. The printing industry has failed to keep up with technological developments and has become increasingly unattractive. The stagnation in demand due to the global economic turmoil has also led the printing industry into a difficult period.

Enterprises:

Longgang Printing Enterprises: Affected by the financial crisis, many enterprises are in trouble, and even responded to the crisis through pay cuts and layoffs, however, some leading printing enterprises in Longgang Town, the reporter saw a different scene, the printing presses in the workshop are running non-stop every day, and the workers are busy in different positions. In addition to Shuguang, Xinya, Fukang, Xinda and many other leading printing enterprises have seen a steady rise in business in early 2009, which not only retains a large number of skilled labor, but also provides more labor-intensive jobs for the community.

U.S. printing equipment manufacturers: Jeff Orton is the manager of a U.S. printing equipment manufacturers in Pennsylvania. Despite the contraction of global trade, Orton's company last December still received calls from Brazilian dealers. But the problem is that the local bank loan interest rates are too high for Orton's potential customers to borrow. Seeing that the business is about to go down the drain, reluctant Orton used all the connections to find former customers of the lending institutions, contact the U.S. Export-Import Bank, and finally persuaded them to provide loans for their Brazilian customers. Orton believes that even in the worsening global trade environment, there are many potential customers, but they are likely to be unable to raise funds and abandon the deal. "You can sit on the sidelines and you can be in the middle of it, especially when it comes to clients with whom you have a lot of dealings," he said.

People:

Guo Jiang, CEO of Huicong.com: Against the backdrop of the global financial crisis, which is characterized by tightening demand and financing difficulties, domestic SMEs are trying to diversify in their respective fields and constantly seeking innovative breakthroughs in order to get out of the doldrums. Guo Jiang, CEO of Huicong.com, is y touched by this, "'There is opportunity in crisis' aptly describes the situation faced by SMEs at present. Therefore, in the financial crisis, our goal is not only to stabilize the development of Huicong, but also to help SMEs find development opportunities in the crisis."

Tan Hao Hui: by the implementation of the nine from 2009 onwards and investment, taxation, imported equipment and other aspects of the favorable policies, directly benefited the printing industry. At the same time, the implementation of the "Outline of the Plan for the Reform and Development of the Pearl River Delta" will bring a positive impact on the economic, political, cultural and social development of the Pearl River Delta region, and will bring new ideas, new opportunities and new explorations for the coordinated development of the modern printing and reproduction industry in the region, and will promote technological innovation and industrial upgrading.

Tan Jun Peak: China's labeling industry is developing rapidly, the output growth rate is higher than the average development level of the world's labeling industry, there is a lot of market potential". Review 08, eight new highlights light up China's label industry: 1, 2008, China's total output value of 15.5 billion label industry. 2, RFID to expand the market, the Shanghai World Expo will also be interviewed in this way. 3, Beifang Founder inkjet digital printing press development can be. 4, some of the printing enterprises to grow faster, to achieve the expansion of the plant. 5, the electronic supervision of the official code came to prominence. 6, the rapid development of oil-on-board printing enterprises. 7. The first labeling competition was well received. 8, the establishment of the China Label Association, with more than 100 members. These new highlights are to support the development of China's labeling industry hope.

Events:

UK Printing Industry: It can be expected that those who can survive this economic crisis will be those who introduce digital printing in production, supplemented by plate offset printing, while being able to flexibly adjust the production cycle to meet the demand for the company. In addition, the establishment of a web-based ordering system is one of the crucial factors. This system takes many forms. For example, some companies on the network order system can be on business cards, small flyers or posters business with customers to talk directly; some companies rely on the system to provide targeted services to customers in order to establish a stable relationship with customers and reduce production and purchase costs; there are also some companies to use this to shorten the production process from the order to the shipment of the time required, but also for the customer to save money. Finally, the winning strategy is that the future belongs to the companies that do a good job of protecting the environment. On the other hand, the economic crisis has caused countries to shift from the international market to the local market. This shift is particularly evident in the food and clothing markets, and we expect to see the same in the future.

New business opportunities: As the economic crisis intensifies, many customers are turning over their print purchases to print managers, who are now focusing not on other value-added services, but on how to reduce costs. Mike Conveney, head of operations at AccessPlus, sees the current recession as a valuable development for print management companies. opportunity, he says: "The desire to save costs is stronger than ever, and that's exactly what print management companies do best."

Summary:

For many companies, especially small and medium-sized ones, the financial crisis is a symptom of business problems rather than a problem in itself. The financial crisis, which started in developed countries in the West, eventually swept through China and most of the countries in the world. For China's export-led economic development model, the crisis has finally made us determined to change our economic development model and gradually focus on domestic demand-based economic growth. At the same time, many domestic enterprises should actively change the development mode of relying solely on the simple processing of primary products for export, and gradually strengthen the competitiveness of the market and the ability to resist risks.

The financial crisis has given us the courage to change, and at the same time gave us a good opportunity to look around the world, in this global economic crisis there are many excellent enterprises, relying on perfect business management in the crisis came to adjust the business strategy in a timely manner, from the passive to the active so that the enterprise risk reduction to a minimum.

From this crisis we should see, for China's printing enterprises, and actively seek transformation, into the medium and high grade, increase the technological content of the product, enhance the value-added products, is undoubtedly to deal with any one of the "crisis" of the magic weapon. Contemporary competition is the competition of science and technology, is the competition of innovation, is the competition of consciousness. Before the cold front, enterprises should save for a rainy day, think of danger in times of peace, and hope that enterprises can break through the old model, and further change the concept of market demand from the start, to provide customers with quality products.