There are four reasons why there are other sky printers staying outside Hong Kong.
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Operating in the north, staying in Hong Kong and building a port, there is always a reason behind every decision.
Since the 1980s, Hong Kong printers have been operating in the "front store and back factory" mode because they have expanded their markets or moved northward due to cost issues, using proximity to Hong Kong, good communication equipment, easy management and operation. The domestic printing industry, especially in the Pearl River Delta region, is booming today due to the introduction of advanced technology. The printers who ventured north to explore business opportunities were obviously indispensable.
Similarly, they missed the golden opportunity to make a big show in China, or decided to stay in Hong Kong for various reasons. Their persistence also brought different degrees of convenience to the special needs of local and overseas buyers. These printers who stay in Hong Kong to build a port can provide fast and safe services for urgent items, or can provide the most effective solution for printing printed materials that are strictly prohibited in China. The living space is absolutely no worse than that of the counterparts in the domestic market.
The printers who stayed in Hong Kong to build a port are the most clear. However, it is not necessarily understood that they only see the benefits of moving north. They operate a printing business and there is another sky outside the north.
Domestic printing prices have fallen below new lows
After all, it is still a cost issue. At that time, many printers were determined to go north, mostly because they were subject to rising cost pressures such as manpower and land. In the face of the fact that domestic prices are becoming more and more low due to the advantages of labor-intensive and abundant land, many Hong Kong manufacturers operate northward as a countermeasure to reduce operating costs. The end result is that some printers can attract a large number of orders because of the lower cost and management, and they can only grow with the flow, and blindly go to the cut-throat price-cutting market to steal customers' no return. If we say that the price cut is to attract customers, in order to increase the amount of business, the current domestic market does not count the cost, the printing wages fall below the ill-health phenomenon of the guaranteed price, is it equal to the end of the market, self-destructive? According to a recent report by the China Press and Publications News, the domestic flat sheet offset price has dropped to 8 yuan per color, and the commercial rotation has fallen below the guaranteed price of 12 yuan per color to 7 yuan per color, and the situation has become more and more A strong trend. The vicious cycle of low price is: the price of the goods, such as replacing the advanced ink with ordinary ink, replacing the new plate with the PS plate, replacing the high-quality hot melt binding with the toxic hot melt adhesive, etc., the cost is saved, but the most An important part of the quality of the prints is inevitably sacrificed together. When this situation occurs, where is the crux of the problem? Cost and price, must it be permanently linked? For printers, is it necessary to provide low-cost services, and is it necessary to cut prices indefinitely? The crux of the problem is that printers fail to understand the difference between low-cost and low-price suppliers. An industry insider who has been operating in Hong Kong for many years and has no intention of setting up a factory in the country said: "The domestic (printing industry) bid is quite fierce, and the price is getting lower and lower, which is 30 to 50% lower than that of Hong Kong." Cost, abandoning price cuts, he would rather adopt some more practical and effective solutions. "For example, selling old machines and introducing semi-automatic and fully automatic equipment will reduce productivity by 50%." It is nothing to do with competitors in the dead end of the price. Moreover, apart from the price issue, the investment cost of setting up a factory in the north alone may be a heavy economic burden for small and medium-sized manufacturers. The industry insider who did not want to show his identity continued: "In the domestic development, we need to invest a lot of money. In the current scale of our dozens of people, if we want to compete with our peers, we must at least expand the company to a thousand-person enterprise. For me, this cannot but be said to be an economic burden."
The operating environment in the Mainland is equally grim
In addition to cost, there are plausible, paradoxical market problems. There is no doubt that the competition in the Hong Kong market is fierce. Otherwise, nearly 1,000 printing factories will not be eliminated in the past. Faced with the increasingly narrow market space, it is only natural that manufacturers will look at the Chinese market with huge potential business opportunities. In fact, the printing business in Hong Kong has been very successful in the country, and it has indeed inspired many ambitions to develop business printers in the north. What is paradoxical is that if there is an infinite mainland market with business opportunities, will competition be more intense than Hong Kong? According to the latest statistics, there are currently about 100,000 printing companies in China, with a total of 3.5 million employees, and about 100,000 small printing houses and photocopying agencies. Regardless of the type of printing business that is being operated, from the point of view of numbers, it is not as difficult to break through from these 200,000 printing factories to fight for business. Referring to fierce domestic competition, Liu Wenbang, managing director of Hongya Printing Co., Ltd., who had already planned to develop business in China for two or three years ago, said that it was difficult to quantify Hong Kong and Competition in the domestic market, and then assess which place is more intense, personally believe that the competitive environment of the two places is equally severe. At present, there are many large and medium-sized printing factories in China, Hong Kong-owned, state-owned, private-owned, I believe in us The current conditions of years, experience, financial resources, and interpersonal network are not enough to compete with the domestic market.” And the facts have been that Hongya’s business has indeed expanded over the past eight years, proving that Liu Wenbang’s original The decision may not be all wrong. "It is often said that the printing industry is an urban industry. Any city with a standard of living needs to be printed. Domestic restaurants are affordable, but Hong Kong people still choose to eat locally. The distribution of the local printing market is actually the same as that of other industries. Tea sells for 10 yuan in Chai Wan and 68 yuan in Central. The price difference is common, but is there any difference between the two cups of tea? There may or may not be. Similarly, the prints are expensive and high quality. The price is low and the quality is low. It depends only on how customers choose. The market competition in Hong Kong is also very fierce. Printing companies are all operating north, but don't forget that as long as there is more than one company in a place, competition will be impossible. Avoid, whether you can break through in the market depends on your quality and strength, not just how many competitors there are, and how big the market is."
There is a positive and negative side of a coin. When you see the business of the north of the manufacturer, you may also consider the difficulties you have to face behind the scenery. Will you endure it? Doing the best, judging the situation, sometimes changing or perhaps more adaptable. In 1992, he founded Tejia Printing Co., Ltd., and the Honorary Chairman of the Association, Yu Hongjian, who still works in Hong Kong, also shared his opinion on the operation of the North. He also pointed out that setting up factories in the Mainland is actually not as easy as imagined. "In the mid-1980s, I still worked in Caritas in Hong Kong. I have often provided technical support and in-plant training to the country. I have traveled to Shanghai for several years and established the Qibao Printing Factory in the suburbs for the Shanghai Catholic Church. I received a group of technicians to provide technical training to Shanghai. Later, the Nanjing Aide Foundation also invited me to lead a technical team to Nanjing Jiangsu Aide Printing Factory to work technical training for the factory through the Hong Kong United Bible Society. With my personal experience, I feel that the domestic printing industry, which has just opened up reforms, can be said to be full of thorns and squandering. The earliest enterprises in Hong Kong's printing industry to go to domestic joint ventures should be the two factories of Jia Nian and Xuri. During the visit, I also visited a number of state-owned printing factories. It can be said that the domestic joint ventures and business models are no strangers. In fact, the companies that have contacted in the past have faced great difficulties. The Jia Nian and the Rising Sun are a clear example. Some people say that ignorance is a blessing! When you know more, the more you think about it, the lack of a courage to move forward. In the mid-1980s The Taiwan Nationalist government still has not approved Taiwan compatriots to enter the mainland. Some daring Taiwanese businessmen have secretly contacted the Chinese local government through Hong Kong to find investment opportunities for returning to China. I was the chairman of the Hong Kong Graphic Arts Society and also worked for some Taiwanese businessmen. Some investment projects. If I look at the money in the past, I am likely to have participated in some domestic investment projects, and it is likely to break into a pool of water."9
In 1 year, he left Hong Kong Caritas and was at 9
Founded Teka Printing in 2 years. "The partners of the year did not know anything about printing. From an investor's point of view, of course, they did not want to take great risks, so they did not intend to set up factories in the mainland."
Mainland refused to leave space for Hong Kong businessmen
Looking at the sights of Hong Kong and even looking into the foreign market, how much space does the printers who stay in Hong Kong and Hong Kong have? And look at China's policies and regulations on undertaking overseas prints:
(1) Where the content is ridiculously absurd, erotic and obscene, attacking our country and printing that undermines our sovereign dignity, we will refuse to print it;
(2) Foreign countries entrusting the printing of religious books, Chinese and foreign scriptures, etc., must be reported to the State Council of Religious Affairs for approval, and the printing shall be managed by secrets;
(3) The finished products and semi-finished products of foreign printed products shall be strictly managed, and the printed parts shall be completely exported, and the excess parts shall be burned and shall not be lost.
All such regulations for printed matter are inconsistent, indirectly leaving market space for printers operating in Hong Kong. A printing processor said: "The types of prints I deal with, such as religion, politics, pornography and maps, are not allowed to be completed in China, so staying in Hong Kong still has the advantage of absorbing this type of business." Mr. Te Jiayu The business route set at the time of starting a business is commercial printing, and such prints are not suitable for domestic completion. "We are mainly engaged in business-related businesses such as publicity materials, advertisements, direct mail and catalogues. The general production cycle is very short, and even some of the prints are coming today. It will be delivered tomorrow morning. At the same time, many industry friends have moved the processing plants to China. If I have a large amount of processing needs, they are very willing to provide services, so the idea of returning to the mainland to do the processing plant has also been eliminated. What's important is that I have a very good interpersonal and business network here. When I return to the mainland, I have to re-establish a network of relationships. I can't cope with my current spiritual strength. I am satisfied with the status quo and not pursue a breakthrough." One thing that is equally gratifying is: "There are still some Hong Kong and foreign customers who do not ask for the price, but only for speed and quality." Therefore, the price is really not everything. If you are afraid of the low price of domestic printing services, you intend to compete with the north. It is not known at the end that the original customers will be lost.
Domestic policy changes increase operating costs
"Domestic operating costs such as exchange rates, human resources, hydropower, transportation, raw materials, taxes, and government fees are rising, and the costs that manufacturers have to pay in response to changes in government policies are increasing." Hongya Liu Wenbang said. . An industry insider also described the Chinese government's policy of changing its policies, which often made manufacturers feel at a loss. Recently, the five ministries and commissions of the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the State Administration of Taxation, and the General Administration of Customs have issued three measures to curb trade surplus, serious pollution, and taxation and smuggling by processing traders. Notice of the Catalogue of Prohibited Commodities in the Processing Trade ("Cai Shui 2006 No. 139"), adjusting the export tax rebate rate of some export commodities, and increasing the number of raw materials prohibited from importing processing trade, such as the policy of prohibiting the import of Watt paper, It has a major impact on a large number of printers setting up factories in the Mainland. Although the impact of the policy adjustment will be mitigated, the relevant announcement will be finalized until November 22, but the decision-making body has indicated that the policy will be implemented at that time. In other words, even if Hong Kong businessmen object to it, it will be in vain. It is expected that once the regulations are implemented, it will inevitably increase the cost and operational difficulties of setting up factories and processors in the Mainland. Some insiders estimate that the measures may lead to the return of some Hong Kong companies in the future. In fact, at present, printing companies that have set up factories in China have introduced equipment and established new production lines in Hong Kong. The situation reflects the severe domestic business environment and the gap with Hong Kong has gradually narrowed. Tejia Yuhong said: "Hong Kong is a very free commercial society with few restrictions on its operations." Hongya Liu Wenbang also stated: "Hong Kong's economic system is mature and prices are relatively stable, so we intend to continue to stay in Hong Kong."
Whether it is staying in Hong Kong or Hong Kong, or looking for opportunities in the north, as a Hong Kong printing service provider, have you seriously thought about the reasons for this kind of choice?