A New Round of Shuffling will arrive in Printing Industry (II)

(NPES international Printing E-Commerce Network 2008-12-26) Upperstream industry will be slump in next year, companies together to break through it
"In the current situation, the impact of financial crisis on our group is not much, but regarding the upperstream industry of cultural industry chain, as well as projections in 2009, we feel that there are many potential problems." Related responsible person of market department of Shenzhen Artron Color Printing Company said to reporter of "Chinese Press and Publication", the 2008 financial crisis is not particularly significant to Artron and this type of company whose service is printing business, just the business growth of Shanghai auction market lowered. According to his analysis, with the financial crisis, more or less, people’s enthusiasm to investment of luxury, art will be reduced. Accordingly, art auction market activities will be reduced, leading to orders will are affected at the end of this year. Similarly, as for other printing service enterprises, there will be a similar phenomenon: the upperstream will be relatively weak and less market activities, which will directly bring about fall in orders of printing enterprises in 2009 as a whole.
“Particularly in overseas markets business, a lot of people are screaming 'wolf is coming', I do not agree." The official said, although foreign-related business of domestic printing enterprises will decline in the near future affected by the impact on the international market situation, but in the long run, national government will provide a number of positive policies for overseas business in 2009, as a powerful support for the competitiveness of overseas business of mainland printing enterprises. For example, on October 21, the Ministry of Finance and the State Administration of Taxation issued "Notice on raising the Export Tax Refund Rate of Parts of Goods”, since November 1, 2008, appropriately increase part of export tax rebate rate of labor-intensive and high technology content, high added value products. Among them, export tax rebate rate of some publications, paper-made stationery will be raised to 13% and 11%, increased from 2 to 6 percentage points, effectively reduced the operating pressure of export enterprises. As for printing enterprises in Shenzhen where the major business is export-oriented business, it is also a major favorable policy for printing enterprises in Pearl River Delta Area.
On the other hand, faced with the financial crisis, the international market will demand more for supply of Chinese printing industry. The former chairman of Macmillan Education Publishing Group Chris·Patterson said not long ago, in fact, West Publishing House chose to print books in Asian printing factory in the last economic crisis, there are a number of books of Macmillan were printed in Asia. At present, production and logistics costs of Chinese mainland and Hong Kong are very low, Malaysia's shipping cost is low, and India production costs is also low, but the logistics did not well enough, relatively speaking, China's printing industry has a impulsive force on the international market.
"The financial crisis has affected all walks of life, only varying levels of influence." A few days ago, Wan Jie, the chairman of Artron Enterprise (Group) Co., Ltd accepted the an interview with reporters of "Chinese Press and Publication", who said that the financial crisis slowed the development pace of enterprises, and that is the real problem before us, we will deal with it in a rational manner. To that end, enterprises will strengthen management and resist to the financial crisis through faster pace of development in 2009. He cited an example, if there is no financial crisis, Artron may reach 30% growth, and now only reach 10%. "Some people say that the financial crisis has no impact on us, which actually losses caused by the impact have made up."

Favorable policy Help to reverse, strengthen skills to meet reshuffle
The data of National Development and Reform Commission survey show that there were 67,000 small and medium enterprises have closed down only in the first half of 2008, the printing industry as a labor-intensive industry and mostly are small and medium enterprises in the printing industry, although in a negative environment, the stability of the cultural industry and national policy adjustment, which can maintain a steady momentum. And some people in the industry are optimistic about it, they believe that although the economic crisis is a test for China's printing industry, but it also contains an unlimited opportunity.
"The current financial crisis will not have a significantly impact on the printing market," Zhang Sitong, who is in Technology Development Department of Beiren Group, believe that printing enterprises will usher the "Spring" of 2009 with favorable policy and skills. Zhang Sitong, the former customer relationship manager in Beiren Group, deepened into production line all year and have a deeper understanding of the printing industry. He told reporters that "I recently visited several well-known printing enterprises in Beijing, printing production task is still fully engaged ", such as business volume of three imported eight-color rotary printing press in one printing enterprise in Beijing was about 60% to 70 %; more than 20 printing press in another printing enterprise in November are all in operation, and the business show an upward tendency.
The current publication market condition make a lot of people optimistic about the prospects of next year. Beijing Publication Group achieve sales volume of 244 million in October, up 12%; Beijing Books Building’s sales value of November was twice as in October, financial, securities, business management and other types of books marked increase in sales. In the face of the arrival of financial crisis, more and more people chose to study; book printing market demand does not decline. After Spring Festival, it will come into spring textbook printing period, which will be sufficient to alleviate the difficulties of enterprises at that time.
In addition, government has taken an active policy to encourage domestic demand in the face ofthe international financial crisis, and actively support small and medium enterprises, and the printing industry is dominated by small and medium enterprises, it should be the more beneficial industry. For example, deposits and loans reserve fund was lowered in succession, which provides convenience for small and medium-sized printing enterprises to loan. Moreover, the current decline in the price of paper caused by the financial crisis, while paper is the most important materials in the printing industry. As a result, "In theory, in addition to packaging and overseas business, the impact of the financial crisis on domestic book printing will not be large."
Of course, there are internal problems in the face of financial crisis, if not handled properly, it will be affected. Zhang Sitong said that most of China's printing enterprises are basically unified management, corporate profits come from processing fees, large enterprises have certain ability to fight the impact, but small printing enterprises are difficult to withstand the impact. As a result, the financial crisis will bring a wave of a reshuffle in the printing industry; large-size printing enterprises in many areas should not stand still, it is necessary to seize the opportunity to "rig the ship."
On the other hand, printing enterprises not to undergo investment analysis, expert demonstration in investment, this also is a fatal weakness. For example, due to the paper price hike in the first half of 2008, most of the printing factories hoarded paper, which led to the soaring price of paper all the way; with the impact of international financial crisis, the packaging business, the reduction of overseas orders, paper prices come down quickly, which "lock-in" survival and development funds of most of printing enterprises.
In the face of the adverse effects caused by financial crisis, printing enterprises must adopt a positive adjustment strategy; first of all, they should enhance skills. Printing industrial enterprises should also “arrange rationally" and optimize the structure of the equipments, maintain equipment, train workers, do well in the development of new products. Especially for small enterprises with a single product, we should develop from the unified operation to diversified operation. As for enterprises those lack of circulating fund, Zhang Sitong believes that printing enterprises with the real economy should make clear investment, and not blindly follow the virtual economy "to gamble the future," At present, these enterprises should transfer costs of market promotion in product R & D, and build up strength to stage a comeback. (Author: Liu Shichang)