China2007

Analysis of China’s Current Printing Industry and Our Strategies: 

Analysis of China’s Current Printing Industry and Our Strategies 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 Shen Haixiang

Analysis of China’s Current Printing Industry and Our Strategies: 

Analysis of China’s Current Printing Industry and Our Strategies 1. Analysis of Current China’s Printing Industry 2. Our Strategies 3. Suggestions to the Cooperation and Development of Asian Printing Industries.

Analysis of China’s Current Printing Industry: 

Analysis of China’s 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 China’s Printing Industry (unit: 100 million)

Analysis of China’s Current Printing Industry: 

Analysis of China’s 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.

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry Distribution of China’s Printing Products in 2006

Analysis of China’s Current Printing Industry: 

Analysis of China’s 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 2003~2005

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry Changes of the reading rate Trends in publication printing—books 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%.

Analysis of China’s Current Printing Industry: 

Analysis of China’s 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 2003~2005

Analysis of China’s Current Printing Industry: 

Analysis of China’s 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 2003~2005

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry Trends in publications printing—newspapers 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%.

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry Trends in publications printing—newspapers Since 1988，the growth rate of total printed sheets remained between 15%~20%，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.

Analysis of China’s Current Printing Industry: 

According to incomplete statistics, China has 871 sets of digital printing machines used for the purpose of production. Total：871 sets Analysis of China’s Current Printing Industry Sets of production-oriented digital printing machines

Analysis of China’s Current Printing Industry: 

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

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry Growth of China’s CTP facilities

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry Growth of the World CTP facilities

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry China’s top 100 printing companies in 2006:revenue and number Revenue (RMB) No. of companies

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry China’s top 100 printing companies in 2006:locations Location No. of companies

Analysis of China’s Current Printing Industry: 

Analysis of China’s Current Printing Industry China’s top 100 printing companies in 2006:core businesses

Analysis of China’s Current Printing Industry: 

Analysis of China’s 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.

Our Strategies: 

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.

Our Strategies: 

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

Our Strategies: 

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

Our Strategies: 

Our Strategies Personalized Bills

Our Strategies: 

Our Strategies Personalized Bills

Our Strategies: 

Our Strategies Personalized Bills

Our Strategies: 

Our Strategies Personalized Consumer Products: Wedding Book

Our Strategies: 

Our Strategies Personalized Consumer Products: Wedding Book

Our Strategies: 

Our Strategies Personalized Consumer Products: Personalized Olympic Cards

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Our Strategies Personalized Consumer Products: Personalized Olympic Cards

Our Strategies: 

Our Strategies Personalized Direct-mail Promotion Printing China’s direct-mail market rises by 20% annually. The personalized direct-mail market is huge.

Our Strategies: 

Our Strategies

Our Strategies: 

Our Strategies Personalized Direct-mail Promotion Printing—prospectuses

Slide33: 

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. Our Strategies Publishing on Demand—sample books

Slide34: 

Our Strategies Publishing on Demand—Newspapers

Slide35: 

Publishing on Demand— Personalized covers Our Strategies

Our Strategies: 

Our Strategies Publishing on Demand -Books by bloggers

Our Strategies: 

Our Strategies Three ways for China’s 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.

Slide38: 

Our Strategies Realize two “innovations” within printing industry Technology innovation—to lay a new tech foundation Management innovation—to transform the enterprise

Our Strategies: 

Our Strategies Tech innovation—to 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

Our Strategies: 

Our Strategies Innovation in the management model—to 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 customer’s product

Our Strategies: 

Our Strategies Get support from the Government Suggest that governments set digital printing as the top priority for China’s 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.

Suggestions to the Cooperation and Development of Asian Graphic Art Industry: 

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.