Analysis of Chinas Current Printing Industry and Our Strategies

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Analysis of Chinas Current Printing Industry
and Our Strategies
Shen Haixiang

• Vice Director of China Printing Technology
  Association
• Director of Digital Printing Branch of China
  Printing Technology Association
• Chairman Executive CEO of Kodak GCG Large China
  Area

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Analysis of Chinas Current Printing Industry and
Our Strategies

• 1. Analysis of Current Chinas Printing Industry
• 2. Our Strategies
• 3. Suggestions to the Cooperation and Development
  of Asian Printing Industries.

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Analysis of Chinas Current Printing Industry

• China ranks the top of the world in the growth of
  printing industry with annual growth rate of
  around 15

Total Output Value of Chinas Printing Industry
(unit 100 million)
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Analysis of Chinas Current Printing Industry

• Markets develop unequally influenced by digital
  and net media.
• Package printing is the major engine for the
  growing total output value because the digital
  and net media imposes weaker impacts.
• Traditional advertising products develop slowly
  due to the impact of the digital and net media.
• The growth rate of the publication printing
  declines rapidly, because it suffers the heaviest
  bombard from the digital and net media.

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Analysis of Chinas Current Printing Industry

• Distribution of Chinas Printing Products in 2006

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Analysis of Chinas Current Printing Industry

• The growth of the published books, magazines and
  newspapers in China also slows down due to the
  influence of digital and net media.

Growth of the published books, magazines and
newspapers between 20032005
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Analysis of Chinas Current Printing Industry

• Trends in publication printingbooks
• Chinese citizens reading rate has decreased for
  6 years in a row. In 2005, the reading rate of
  the literates dropped to 48.7,below 50.

• Changes of the reading rate

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Analysis of Chinas Current Printing Industry

• Total printed sheets of books(including books,
  textbooks and image books) are still on the rise

Growth of printed sheets for books between
20032005
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Analysis of Chinas Current Printing Industry

• Textbooks were the main contributor to the
  increase, while books and image books were in a
  downward trend.

Growth rate of total printed sheets of textbooks,
books and image books between 20032005
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Analysis of Chinas Current Printing Industry

• Trends in publications printingnewspapers
• Newspapers advertising and circulation are
  heavily attacked by net media.
• Newspaper advertising revenue rose by 6 in 2005.
  The growth rate, plummeting from the annual
  growth rate of 33 which lasted over a decade,
  was lower than that of the GDP for the first
  time.
• Average advertising revenue of newspaper groups
  decreased from 10 to 30 in 2005, some over 40.

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Analysis of Chinas Current Printing Industry

• Trends in publications printingnewspapers
• Since 1988,the growth rate of total printed
  sheets remained between 1520,but in 2005, it
  dropped to 5.79.
• In 2006,6 out of 13 companies whose produced over
  2 billion folios see negative growth in total
  print volume.

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Analysis of Chinas Current Printing Industry

• According to incomplete statistics, China has 871
  sets of digital printing machines used for the
  purpose of production.

Total871 sets
Sets of production-oriented digital printing
machines
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Analysis of Chinas Current Printing Industry

• Globally, in 2002,the total sets of color digital
  printing machines with 35 pages/minute reached
  12,000in 2004, the sets with the capacity of
  40p/m numbered 49,400,and in 2010 the number is
  expected to be 163,000.

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Analysis of Chinas Current Printing Industry

• Growth of Chinas CTP facilities

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Analysis of Chinas Current Printing Industry

• Growth of the World CTP facilities

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Analysis of Chinas Current Printing Industry

• Chinas top 100 printing companies in
  2006revenue and number

Revenue (RMB) No. of
companies
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Analysis of Chinas Current Printing Industry

• Chinas top 100 printing companies in
  2006locations

Location No. of companies
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Analysis of Chinas Current Printing Industry

• Chinas top 100 printing companies in 2006core
  businesses

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Analysis of Chinas Current Printing Industry

• Overseas investment
• Policies China permits to establish joint
  ventures and cooperation for printing business,
  and foreign solely-owned package and design
  printing companies.
• Publication printing enterprises can be set up by
  foreigners through joint ventures or cooperation
  on the condition that the Chinese partner owns
  over 51 of the total shares or enjoys dominant
  advantages.
• Until April 2007, there are 996 printing
  enterprises with overseas investment, contracted
  foreign capital being 3.2 billion. Among them
  838 companies engage in package/design printing
  and other printing businesses, comprising 85 of
  the total number of printing companies.
• From Jan. to April this year, foreign merchants
  invested in 35 printing companies,contracted
  foreign capital hitting 1.5 billion,an increase
  of 27 compared with the same period last year.

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Our Strategies

• Three Strategies
• Apply digital net technology actively
• Traditional printing companies should turn
  rapidly to new businesses, realizing two
  innovations
• Government should encourage printing enterprises
  to apply new and/or high technology and adopt new
  management styles.

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Our Strategies

• Four new markets brought by digital printing
• Personalized bill printing
• Personalized consumer products printing
• Personalized direct-mail promotion printing
• Publishing on demand

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Our Strategies

• Personalized Bill Printing
• A New market brought by increasing credit users
  and mobile phone users
• Bills with the intention of promotion can reach
  specific target audiences
• Companies like Fucus from Taiwan,Eternal Printing
  and Matsuoka from mainland China are doing this
  business successfully

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Our Strategies
Personalized Bills
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Our Strategies
Personalized Bills
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Our Strategies
Personalized Bills
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Our Strategies

• Personalized Consumer Products
• Wedding Book

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Our Strategies

• Personalized Consumer Products
• Wedding Book

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Our Strategies

• Personalized Consumer Products
• Personalized Olympic Cards

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Our Strategies

• Personalized Consumer Products
• Personalized Olympic Cards

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Our Strategies

• Personalized Direct-mail Promotion Printing
• Chinas direct-mail market rises by 20 annually.
  The personalized direct-mail market is huge.

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Our Strategies

• Personalized Direct-mail Promotion Printing
• models and colors of cars

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Our Strategies

• Personalized Direct-mail Promotion
  Printingprospectuses

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Our Strategies

• Publishing on Demandsample books

This sample book entitled I Love Learning Chinese
won the gold prize in the 2nd Digital Printing
in China competition and was on display in the
Beijing Book Expo.
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Our Strategies

• Publishing on DemandNewspapers

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Our Strategies

• Publishing on Demand
• Personalized covers

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Our Strategies

• Publishing on Demand
• -Books by bloggers

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Our Strategies

• Three ways for Chinas companies to transform
  from traditional printing to digital printing
• Traditional printing digital printing
• Apply digital printing technology to create high
  value-added markets
• Carry on outsourced businesses such as
  personalized and data-changeable printing from
  big enterprises of telecommunications, insurance
  and banking.

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Our Strategies

• Realize two innovations within printing
  industry
• Technology innovationto lay a new tech
  foundation
• Management innovationto transform the enterprise

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Our Strategies

• Tech innovationto lay a new tech foundation
• Apply techniques of CTP,digital printing,
  network, and ink sprinkling
• Build digitalized network workflow
• Create and improve digitalized assets management
  systems

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Our Strategies

• Innovation in the management modelto transform
  the enterprise
• Transform from a processing industry to a
  multimedia service industry by changing the
  traditional way of thinking.
• Create a partner relationship with customers, who
  will help create new markets
• Take an active part in the development and
  updating of the customers product

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Our Strategies

• Get support from the Government
• Suggest that governments set digital printing as
  the top priority for Chinas printing industry,
  and give substantial support.
• Suggest that governments give preferential tax
  policies to the import of high-end digital
  printing equipment and newly-established printing
  companies, and policies for new companies to be
  approved easily.

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Suggestions to the Cooperation and Development of
Asian Graphic Art Industry

• Three suggestions
• Make standards all the countries endeavor to
  make standards of digital network printing
  industry.
• Dominate the high value-added markets by entering
  US and European markets through tech and product
  innovation, and make Asia the world production
  center of printing.
• Besides FAGAT, Asian countries should conduct
  more bilateral and multi-lateral exchanges in
  various forms.