Integration, transformation and development

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With the rapid economic growth over the past three decades, many domestic enterprises, including printing companies, have evolved from small startups to large-scale operations. However, relying solely on economic expansion is no longer sufficient for long-term success. In today’s competitive market environment, entrepreneurs must focus on creating value as the core of their development strategy. (1) The Macro Environment of the Printing Industry In 2012, global economic performance fell short of expectations, and the printing industry showed signs of weakness despite a generally optimistic outlook. Major events in the sector highlighted underlying risks and challenges. Restructuring, mergers, and bankruptcies became common, reflecting the slowdown in global economic growth. 1. Economic Growth Slows Down According to a report by the United Nations Department of Economic and Social Affairs released in December 2012, world economic growth was expected to remain weak in 2013, with a high risk of 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. These factors contributed to a decline in business confidence and slower economic growth. 2. Integration and Transformation Are Urgent As economic growth slows, rising labor costs are putting pressure on businesses. Labor costs in China have increased faster than GDP growth, making it harder for traditional industries to survive. 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 is forced into a period of integration and transformation. For the printing industry, which is traditionally rooted in low-cost labor, innovation and modernization are essential. 3. Direction of Industry Development To find a path forward, the printing industry is moving toward greater scale and efficiency. Many companies still face issues like “big but not strong” or “small and scattered.” The “Twelfth Five-Year Plan” emphasized building national printing demonstration enterprises and fostering globally competitive firms. Additionally, digitalization is accelerating. While digital printing still represents a small portion of the market, it is increasingly being adopted by companies seeking innovation. Many examples show that digital printing is becoming more industrialized and practical. (2) Microclimate in the Label Printing Industry Label printing is a subset of packaging printing. Despite the overall slowdown in the broader printing industry, packaging continues to grow rapidly, offering a unique opportunity. The label industry has experienced significant growth due to its specialized craftsmanship. From 2010 to 2011, the label market grew by 20% in output and value. However, in 2012, the market slowed due to economic pressures and cautious investment, with a decline of about 13%. While the overall trend remains positive, label printing companies face increasing competition and operational challenges. Most companies saw flat or slightly reduced growth in 2012, while only a few achieved rapid expansion. Those that succeeded were often early adopters of new technologies and innovative market strategies. China's label printing industry started late, with most companies being small and fragmented. Only a handful of enterprises generate over 50 million yuan in revenue. This is partly due to the low entry barriers, outdated corporate mindsets, and uneven technological development. Regardless of willingness to change, label printing companies must address pressing issues such as zero inventory demands, personalized product requirements, and increasing traceability needs. (3) Opportunities and Challenges in the Internet Age The internet has revolutionized society, transforming economic structures and business models. One of the most significant changes is the shift from mass advertising to attention-driven marketing. Nobel laureate Herbert Simon once said, “In an information-rich world, the wealth of information means a poverty of attention.” Businesses now focus on capturing and maintaining customer attention, using content-driven strategies to build brand loyalty and create marketing opportunities. E-commerce has become central to modern business models. Platforms like Vistaprint offer convenient, cost-effective printing and marketing services, expanding beyond traditional products to include online design tools, email marketing, and web solutions. Vistaprint operates in 130 countries, processing over 60,000 orders daily, demonstrating the power of digital integration. The rise of mobile internet has also created new opportunities. Fragmented time, such as commuting or waiting, is now turned into business potential. QR codes, with their ability to connect online and offline experiences, are becoming a key tool for businesses. For label printing companies, leveraging these tools can open up new avenues for growth and customer engagement. In response to these changes, companies like Founder are evolving to provide intelligent cloud-based label printing solutions. These systems go beyond traditional printing, enabling real-time data access, traceability, and interactive brand engagement through QR codes. By integrating software and hardware, Founder helps label printers unlock new value and expand their service offerings. Looking ahead, the future of the label printing industry lies in embracing technology, adapting to changing market demands, and redefining business models. Companies that innovate, integrate resources, and extend their industrial chains will be well-positioned to thrive in this dynamic environment. *This content is excerpted from the 6th issue of "Printing Technology" published by Keyin Media in 2013. For more insights, visit the journal channel.*

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