Packaging / Advertising & Office

Since the reform and opening up, China's printing and packaging industry has achieved rapid development. With 2013 as the watershed, it had maintained a double-digit high-speed growth before, and then followed the macroeconomic regulation and the impact of the epidemic, the growth rate has slowed down.

Especially in recent years, the overall situation of the external macroeconomic situation, downstream market demand and customer orders has undergone qualitative changes. The industry's "involution" has become more and more serious, and it has entered a critical period of disruptive transformation and upgrading. How should printing and packaging companies do Strategic adjustment, breaking out of the low-profit circle, has become the key to determining the development and destiny of the enterprise. As for the status quo of the domestic packaging and printing industry, there are still basic business patterns such as "declining number of enterprises, low industry concentration, passive management and control, and tight funds".

1. The number and profits of printing companies show a downward trend

In 2019, there were 240,000 publishing units nationwide, an increase of 3.6% over the previous year. In 2020, the overall economic environment will decline due to the epidemic, and the import and export of the printing industry will also be affected. The number of companies has decreased. According to the survey of relevant institutions, the number of printing companies in China will roughly shrink to 235,000 in 2020, a decrease of 2% year-on-year.

In addition, the operating profit in 2019 was 77.319 billion yuan, and the total profit of China's printing industry in 2020 was 74.9 billion yuan, showing a slight decline.

2. Low industry concentration and weak industrial chain extension ability

China's printing and packaging industry is fragmented and the market concentration is low. In the paper packaging industry, the CR2 in Australia reached 90%, the CR4 in the US paper packaging industry reached 70%, and the CR10 in the Chinese paper packaging industry was less than 5%. At present, China's packaging and printing industry is still in a state of decentralized competition. The few leading companies do not occupy a significant position in the market, and small and medium packaging companies are still major players in the market.

In addition, from the perspective of service capabilities, most domestic printing and packaging companies still focus on packaging production, and their industrial chain extension service capabilities are relatively weak. Looking at the global packaging and printing market, packaging production accounts for about 73.7% of its market size, and packaging design, market research, material testing, and equipment maintenance can account for more than a quarter of the market.

3. The traditional business model is relatively passive

As a traditional industry with a long history, the printing and packaging industry has long focused on the production and manufacturing of packaging materials, with a relatively simple and traditional business model. Under normal circumstances, after receiving the order, the company starts to organize production according to the customer's needs, and the finished product can be delivered to the delivery point. In this traditional business model, the relationship between the company and downstream customers is mainly the supply and demand of packaging materials. The downstream customers manage and control the packaging supply chain and bear the costs, and the company does not take the initiative.

4. Large capital demand, few financing channels

In China's printing and packaging industry, more than 80% of the companies are small and medium-sized enterprises, and they need a lot of capital as a turnover when purchasing and selling products. As the concentration of downstream industries increases, companies are the main force in the production of supporting products for downstream customers. A certain amount of capital capability is required to cope with the regional strategic layout of downstream customers. However, the decline in the overall profits of traditional industries has resulted in relatively low investment in some financial institutions and fewer financing channels. These companies have begun to plan to establish their own supply chain finance and plan to cooperate with financial institutions.

In view of the above-mentioned development status of the printing and packaging industry, if companies want to further stand out, they need to break the old shackles, continue to improve R&D strength, production capacity and comprehensive competitiveness, flexibly apply various advantages, innovate business models and service models, and follow The orderly promotion of the improvement of the supply chain level based on its own needs can satisfy the customers' ever-increasing customization and quality requirements and lay a stronger foundation for the development of the company.

Build a supply chain management system to lean management and control of the upstream and downstream of the enterprise

When market competition becomes more fierce, supply chains become more fragile, and external environmental factors become more uncertain, production may be directly affected. For example, production problems in the factory itself, interruptions in supplier supplies, and transportation systems In the event of problems, communication and information system failures or user-side problems, the production and manufacturing links will be indirectly impacted. For this reason, maintaining a stable and reliable supply is very important for companies.

In the control of the supply chain collaboration system, it is essentially a system that controls suppliers and manufacturing, and connects the labels, portraits, and real-time dynamics of production capacity of the printing factory to the company's own system. For example, if there are one hundred manufacturing factories, the scale, production line, equipment, brand, material and management system of these one hundred factories are completely synchronized to the system, which is equivalent to drawing the hundred patch factories. And real-time synchronization of the production line status and order scheduling plan, when each production line starts up, and whether each order is in a waiting state or starts to be shipped after the order comes up, the unified digital transformation of this piece is carried out.

However, in the construction of the supply chain system, due to the complicated processes and demanding technologies involved, many traditional printing and packaging companies often cannot use their own strength to efficiently build systems that are in line with their own development. At this time, some professional skills are required. Tripartite institutions or organizations help them build a supply chain management system. Taking supply chain management as the entry point, integrating upstream and downstream resources in the industry, and improving customer stickiness, the supply chain management system realizes the digital management of the entire process of product information, online inquiry management, order management, payment management, electronic contracts, and evaluation systems to simplify The transaction path of the supply and purchase parties and the realization of transaction intelligence help companies establish a closed loop of supply chain transactions, improve the response speed of the supply chain, reduce inventory, accurately match supply and demand, and achieve supply and demand matching, which solves the pain points of printing and packaging companies.

In addition, through the supply chain management system, the scope of information collection can be expanded, and the offline transaction links of upstream and downstream enterprises in the industry can be reduced, thereby speeding up information transmission, simplifying the workflow of enterprises and upstream and downstream enterprises purchasing transactions, reducing workload, and effectively improving economic benefits , To make the entire procurement and supply process fast, accurate, open and transparent.

Optimize capital flow and improve business operations

As China’s printing and packaging companies are developing B2B business, supply chain finance has become an option they need to consider in their business models. The maturity of Internet applications has also provided these small and medium-sized textile companies with conceptual guidance and flow for supply chain financial services. The input and technology guarantee.

It is precisely based on the above various reasons that printing and packaging companies have an inevitable trend to develop supply chain financial services. At present, many large and medium-sized domestic companies have begun to build their own printing supply chain financial systems to connect upstream and downstream companies in the printing industry chain. Provide enterprises with flexible financial products and services. It uses funds as a solvent in the supply chain to increase its liquidity, from the purchase of raw materials, to the production of intermediates and finished products, and the sales network to deliver products to consumers, and to suppliers, manufacturers, distributors, and end users. Connected as a whole.

It can effectively solve the problem of operating capital, provide more loose and abundant liquidity for printing houses or suppliers; solve the problem of payment collection, and coordinate supply chain collection for suppliers in the industry chain; when there is an order but no funds start, it can be an agent Procurement to advance project funds to avoid missing large orders and production periods due to funding problems, and to reduce platform financing risks and financial enterprise loan risks.

Keep up with the development trend of customization and meet the direction of market demand

With the improvement of consumption level and the popularization of 3C electronic products such as tablets, mobile phones and smart watches, electronic information technology and Internet technology are continuously integrating with the printing and packaging industry, and upstream and downstream industries are showing more functional requirements for personalized packaging. Taking inkjet printing as an example, it faces the dual challenges of "paper-screen integration" customized printing services and personalized value-added services. Breaking through inkjet printing data involves many links such as product planning, editing, production, and printing.

Based on this, for the customized modularization of inkjet printing, companies should more reasonably configure the information system they need according to the individual needs of users, starting from solving the problems of inkjet printing automation and informatization reengineering and resource optimization configuration, through and The adaptation of the manufacturing execution system, advanced production scheduling, intelligent warehousing system, and material matching system of the printing industry chain to digitally recreate the transparent and visually managed printing production process and its management mode, forming a digital and intelligent leading printing manufacturing The model of data, printing resources reuse and value-added re-use, effectively reduce the technical difficulty and labor intensity of front-line personnel, and significantly improve labor productivity to meet the future trillion-level market scale, massive and small-batch personalized orders, and diversified technical process categories , Low-level standardized operations, high unit costs and market demand for micro-profits.

summary

Based on the government’s "14th Five-Year Plan" and the 2035 long-term goal, it is clear that in the next five years, China will actively improve the level of public cultural services, and comprehensively prosper the press and publication undertakings and other policies that promote the printing industry. By 2026, China’s printing industry market The scale is expected to reach 1.43 trillion yuan. For the majority of printing and packaging companies, they should follow the policy to seize opportunities, use advanced information technology to optimize corporate management, integrate and transform the supply chain system, continue to expand new profit margins, and promote the sound development and upgrading of the industry.