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Integration, transformation and development
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Over the past three decades, many domestic enterprises have grown from scratch, evolving from small to large, including printing companies. However, relying solely on economic growth is no longer sufficient for long-term success. In today's competitive market environment, entrepreneurs must focus on creating value as their core development goal.
(1) The Broader Landscape of the Printing Industry
In 2012, global economic performance fell short of expectations, and the printing industry also showed signs of weakness amid an otherwise optimistic climate. Major events in the printing sector that year highlighted underlying risks and challenges. Restructuring, mergers, and bankruptcies became common, reflecting a slowdown in global economic growth.
1. Slowing Economic Growth
According to a report by the United Nations Department of Economic and Social Affairs released in December 2012, global economic growth was expected to remain sluggish in 2013, with a high risk of slipping into another recession in the following two years. China faced multiple challenges, including the lingering effects of the financial crisis, inflation, trade protectionism, and the European debt crisis. Domestic factors such as rising labor costs and reduced competitive advantages also contributed to lower business confidence and slower economic growth.
2. Integration and Transformation Are Necessary
As economic growth slows, labor costs continue to rise. In China, wage increases outpace GDP growth and those of other developed countries, placing significant pressure on businesses. With declining export demand and entering key turning points—such as the shift from rural to urban populations and the end of cheap labor—the industry must move toward high-end, value-added sectors. For traditional industries like printing, transformation is not just beneficial—it’s essential.
3. Industry Development Trends
To find a path for transformation, it's crucial to understand where the industry is heading. First, the printing industry is moving toward intensification and scale. Many companies still suffer from issues like “big but weak†or “small and scattered†operations. The “Twelfth Five-Year Plan†emphasized building national printing demonstration enterprises with international competitiveness, pushing the industry toward this goal. Second, digitalization is accelerating. Although digital printing remains a small part of the market, all companies are exploring technological innovations. Digital printing has already begun to be widely adopted in production.
(2) Microclimate in the Label Printing Industry
Label printing is a segment of packaging printing. While the broader printing industry faces slowing growth, packaging printing continues to thrive, showing unique resilience. This makes the label industry particularly promising. From 2010 to 2011, the label market grew by 20% in both output and value. However, in 2012, due to economic conditions and cautious investment, growth slowed by about 13%.
Despite overall positive trends, label printing companies face mounting pressures. Most saw flat or slightly reduced growth in 2012, while only a few experienced rapid expansion. Those growing quickly are often at the forefront of new technologies and market applications. However, many Chinese label printing companies are small, fragmented, and lack the scale needed for competitiveness. Low entry barriers, traditional management styles, and uneven technology levels hinder progress. Yet, whether they accept change or not, label printing companies must address pressing questions: How to meet zero inventory demands? How to handle personalized products? How to sustain short-term growth? And how to meet increasing traceability needs?
(3) Opportunities and Challenges in the Internet Age
Internet technology has revolutionized society, changing how we live and do business. It has reshaped economic structures and business models.
(1) Economic Shape
Marketing strategies have evolved from “mandatory advertising†to “targeted advertising,†focusing more on customer attention. Nobel laureate Herbert Simon once said, “With the development of information, what is valuable is not information, but attention.†In this environment, businesses must focus on maintaining customer attention and building long-term relationships. The key to success lies in content-driven, user-centered strategies.
(2) Business Model
E-commerce has become a central part of modern business. Companies like Vistaprint, a leader in online printing, offer convenient, low-cost solutions for small businesses and individuals. They provide everything from business cards to personalized prints and online marketing tools. Their success highlights the potential of integrating e-commerce into the printing industry. However, not all companies can replicate this model without considering their own circumstances. Cross-border thinking and flexible operations are essential.
The mobile internet is also transforming the business landscape. With smartphones and QR codes, fragmented time is now a business opportunity. QR codes, in particular, serve as a bridge between online and offline interactions. For label printing companies, leveraging these tools presents new opportunities and challenges in the digital age.
In response to these changes, companies like Founder are adapting by offering intelligent cloud-based label printing solutions. These systems go beyond traditional printing, allowing for dynamic product information, multimedia content, and real-time data sharing through QR codes. By extending services forward and backward, companies can unlock new commercial value and enhance their competitive edge.
As the industry evolves, label printing companies must embrace digital innovation, develop new business models, and build long-term strategies. By integrating technology, optimizing processes, and expanding their reach, they can strengthen their position and achieve sustainable growth.