The development status and trend of the most popul

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Interpretation of the development status and trend of self-adhesive label printing (III)

Case Perspective

at present, the traditional label industry has been in a fierce and over competitive industry. The soaring raw materials and falling product prices have reduced the profit margins of label manufacturers and relevant supply chain members such as paper film suppliers, ink suppliers, plates and plate makers. How can we get out of the current quagmire and find a new growth point for the profits of the label industry? Through the cases of four-dimensional enterprises and fenou Lantai, we hope to provide some reference for label manufacturers on how to improve the packaging functionality of labels, how to reduce costs, increase profits and future development, and explore the feasible development and related thinking of the label industry

case 1

four dimensional enterprise: attach importance to R & D and seek new profit growth points

180 mode swing angle and zero position are in the horizontal position. It is applicable to ul1005 swing angle experiment speed of 45 times/min (settable), acquiescence speed: 40 times/min. the label can be said to be a bright spot in the printing industry in recent years. It has developed rapidly, especially the self-adhesive label, which has formed a complete industrial chain in China, The position of label printing in the market is also gradually valued by people. From a global perspective, North America and Europe are the most developed regions, while Asia has the fastest growth rate, among which China is the fastest growing country

however, in China, paper labels account for almost 85% of the market share, self-adhesive labels only account for about 8%, and other labels using new technologies, new materials and new processes account for less of the market share. It can be seen from such a fact that the structure of domestic label products is unreasonable. With the development and introduction of new technologies, and according to the needs of the market, the structure of domestic label products is bound to change dramatically

now the competition is very fierce. Label printing enterprises focus on developing some new label printing technologies to capture some new profit growth opportunities, and consider improving the packaging functionality of labels, including reducing label costs and expanding enterprise scale

how do four-dimensional enterprises dig out their own sky under such a market situation? Looking for their own profit growth point

four dimensional phased development

among the numerous suppliers of label raw materials, Taiwan four dimensional enterprise is a well-known one. Founded in Taipei in 1954, Taiwan Siwei enterprise is a company with a history of nearly 50 years, specializing in the production of trademark paper

in the past 20 years, the packaging industry in the mainland has flourished. 4D realized the huge label market in the mainland and extended its tentacles to the mainland early. In 1990, Siwei entered the mainland and set up a marketing department in Shanghai. In 1992, it set up a factory in Shanghai. At present, 4D has factories in Tianjin, Shanghai, Suzhou and Shenzhen. From the overall strategic layout, Suzhou and Shanghai focus on R & D, while Shenzhen and Tianjin focus on production

Mr. Weng Lei, senior commissioner of the business department of Shanghai Siwei Enterprise Co., Ltd., said that in the domestic standard material market, Siwei was a little smaller than Ellie's label, ranking second. The standard materials produced by 4D include two categories. One is paper standard materials, including coated paper, thermal paper, aluminum foil, etc. The other is plastic film standard materials, including PVC, pet, PPE, PE, etc

the development of 4D in the Mainland shows phased characteristics: from 1992 to 1993, 4D was in the stage of sustainable development, with an average monthly sales volume of about 1million yuan. From 1994 to 1999, the company made great strides, and its business volume rose steadily. In 1999, the average monthly sales volume of 4D reached 9million yuan, which has been maintained at about 12million yuan

the growth of the four-dimensional label market stems from the four major fields

after the four-dimensional contact with Lihua and other major customers, it was found that the research on the plastic, rubber and urban exterior wall coating of the paper labels of Unilever and P & G each month needs to be further strengthened, and the purchase of signing materials reached more than 20million yuan

Siwei feels the potential explosive growth of China's label market, and its speed is amazing. According to his professional judgment, Weng Lei believes that the domestic label consumption is quite large, and it is even difficult to imagine its market demand, which is growing rapidly at a rate of at least 40% every year

the rapid development of 4D in recent years is due to the geometric growth of domestic label demand. This demand is concentrated in four areas:

first, daily chemical products, such as shower gel, shampoo, cosmetics and other industries. With the economic growth and the improvement of people's living standards, there is a great demand for such products, which has driven the development of the label industry. The application of self-adhesive labels in the daily chemical industry is mainly due to the outstanding shelf effect and humanized design

shelf effect

traditional counter sales have completely changed to shelf sales. More stores, supermarkets and convenience stores have sprung up, and consumers are directly facing a wide range of shelves. Therefore, the shelf effect is particularly prominent. According to a survey abroad, nearly 80% of consumers have random buying behavior, that is, they will not make a clear shopping list or specify brands before shopping. Therefore, whether the products can attract eyeballs with beautiful and unique outer packaging and stand out from the dazzling shelves has also become the key to whether they can finally win the favor of consumers and be put into the shopping basket. Therefore, the label has become the most important way to express the packaging of daily chemical products. The self-adhesive label can better reflect the requirements of exquisite labels than other methods

humanized design

the iron can packaging in the past was very cold and stiff. Today, the bottle body tends to be more transparent, soft and extrusion resistant. At the same time, it also gives more humanized design. All these require the use of self-adhesive labels of various materials to better combine with the bottle body and obtain a delicate and beautiful overall effect

the second is the label of motorcycle and automobile oil barrel. In recent years, there are more motorcycles and cars, and there is a relatively large amount of locomotive oil. The demand for oil barrel labels is growing

the third is electronic labels. Most of the nameplates of computers, refrigerators and air conditioners are made of pet because they need insulation. Self-adhesive labels with various appearances can be seen on many electrical appliances. These labels have a large unit area and many types, opening up space for the label market. In addition, with the rapid popularization of IT products (computers, electronic communication products), self-adhesive labels will also be widely used as the description marks of such products

fourth, drug labels. With the OTC sales of over-the-counter drugs, drug manufacturers and consumers will also pay more attention to the hygiene and aesthetics of drug packaging. Self adhesive labels have been increasingly used in drug packaging, which has promoted drug manufacturers to speed up the transformation from traditional labels to self-adhesive labels. The growth of drug labels, such as glucose, is staggering

led lighting market acceleration has brought huge business opportunities to the heat dissipation industry of supporting materials. Siwei said that with more multinational enterprises entering the Chinese market to participate in competition and the implementation of their localization procurement strategy, many products and labels will be purchased from the United States or Europe to China. Multinational enterprises will focus on China in the whole Asia Pacific region and even the world. As a result, it has brought opportunities to the domestic daily chemical self-adhesive label market. At the same time, it also has a great demonstration effect on 4D and other domestic independent brands, and has prompted the printing enterprises in the industry to improve their own quality and service level, constantly carry out technological innovation and keep up with the trend

the profit of the rational label market is meager.

the development of four dimensions in China can be seen as a microcosm of the development of China's label market. Weng Lei said that from 1996 to 1999, the development of the label industry was on the rise. From 1999 to 2002, it was at the same level. From 2002 to now, the market has changed a lot. This change is reflected in the fact that many international label manufacturers have entered China, and the domestic label market is gradually mature and rational, but the label profit is in a declining stage as a whole

take the self-adhesive label as an example. In the past two years, some manufacturers in Japan and Southeast Asia were very optimistic about China's broad market, investing and putting into production one after another. Some state-owned and private printing plants in China are also optimistic about the high profits of self-adhesive printing, and have switched to production and put into production. During 1996 and 2000, the net profit of self-adhesive label printing was usually between 18% and 22%. In 2000, the annual sales volume of a self-adhesive label printing factory was about 20million yuan, the annual net profit was about 4million yuan, and the monthly net profit was between 350000 yuan and 400000 yuan; Another self-adhesive label printing factory has an annual sales volume of about 46million yuan and an annual net profit of more than 500000 yuan; In addition, some self-adhesive label printing plants, which mainly use film materials, will make higher profits due to the higher added value of their label products

by 2001, the state had liberalized the printing policy of self-adhesive labels with foreign investment, and the market competition was becoming increasingly fierce, which triggered a price war in the self-adhesive label industry, especially in the construction industry. Even so, the profit margin of general self-adhesive label printing plants can still be maintained at 10% ~ 15%

Weng Lei said that based on his experience in the label market for more than 10 years, he believed that the profits of the label industry were concentrated in printing. Five years ago, the profit of printing enterprises was about 40%, while the profit of label industry was 20%25%. Now, the label profit is about 18%, and the profit of the printing industry has fallen sharply

in recent years, oil prices have risen, and the prices of raw materials for standard materials have risen. However, due to market competition, the prices of 4D finished products have not risen, or even gone down. Label enterprises are under pressure at both ends. Printing plants and suppliers are pressing prices, resulting in thinner and thinner profits

innovation, innovation, or innovation

although trapped by the pressure of raw material prices and the market, 4D is very optimistic about the domestic label market. At present, only Shihao beer uses self-adhesive labels, and there are so many beer brands in China. The market potential of beer self-adhesive labels alone can be seen. Weng Lei said

however, this does not mean that the label enterprises will have a better life. The fierce market competition forces the label enterprises to constantly push through the old and bring forth the new, develop new products and technologies, so as to continuously meet the market requirements for labels

due to the fierce competition, some small label enterprises, in order to seek higher profits, adopt the low-grade approach of high-end products, that is, lower prices and compete for the market by means of low cost, low quality and shoddy products. As a result, it will often lead to a vicious circle and the deterioration of disorderly competition, which will damage the interests of other enterprises in the industry and affect the healthy development of the whole industry

at present, label enterprises are concerned about the future development trend, the fierce market competition, the future market demand, and the development of new products are imperative. On the other hand, the low-end label market has been saturated, the price has been transparent, and the profit is very thin. If label enterprises want to get good development, they must develop new profit growth points, and the way out is to develop new products. There is a great demand for new products in the market. Only new products can seize the market

4D attaches importance to R & D, and takes 3.5% of the total turnover as the R & D fund every year. Considering that Shanghai radiates six provinces and one city in East China, the Yangtze River Delta economic circle is the highland of national economy and information, and the requirements for products are very high

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