In 2017, The Printing Industry's Net Profit Growth Was Weak. How Did The Printing Industry Break Through?

- May 26, 2018-

In 2017, the printing industry's net profit growth was weak. How did the printing industry break through?


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Affected by the slowdown in economic growth and the impact of higher production costs, as well as the acceleration of digitalization and networking, China's printing industry is facing a series of unfavorable factors. In 2017, the printing industry is still not optimistic and the total revenue and profit growth is weak. The profit rate went down. The Chinese printing industry is in urgent need of a breakthrough in transformation.


2017 Printing Industry Overview


There were 5,693 printing and recording media reproduction companies in 2017, 223 more than in 2016. The number of companies in the printing industry lost Adan, but the loss-making companies did not decrease. In the printing industry, there were 621 loss-making enterprises in 2017, an increase of 4.7% year-on-year, with a loss of 10.9% and a year-on-year decrease of 0.4%. The amount of losses further expanded. In 2017, printing industry companies lost 2.68 billion yuan, an increase of 1.1% year-on-year.


According to monitoring data, in 2017, the main business income of enterprises above designated size in the printing industry in China exceeded 800 billion yuan, which was 809 billion yuan, an increase of 6.5% year-on-year, ending the continuous decline in growth rate, and the growth rate was up from the previous year. 2 percentage points.


In 2017, the printing industry realized a total profit of 55.87 billion yuan, a year-on-year increase of 6.9%. In 2016, the total profit of the printing industry decreased by 4.5% year-on-year. Profits increased significantly in 2017, and the printing industry showed signs of recovery.


In recent years, the profitability of China's printing industry has continued to decline. In 2016, the gross margin of China's printing industry fell to 15.1%, a slight increase in 2017, an increase of 15.3%, an increase of 0.2 percentage points over the previous year.


However, the printing industry did not increase revenue, and the profit rate continued to drop. In 2012, the printing industry profit was 8.4%. In 2017, it fell below 7%, only 6.8%, 0.2% less than the previous year.


How to break through the printing industry?


In recent years, the nationwide green printing certification, limited production and production suspension, and the dispersal and relocation of printing and packaging companies in key regions, coupled with the predicament of soaring paper prices, weak markets, and increased competition, together with the upgrading of the labor force in cities Lack of workers brought about, some printers and packaging entrepreneurs lack of confidence, simply follow the trend to close their hands, closed down, some old printing and packaging companies have gradually disappeared. Are printing companies waiting for their jobs? How to break through the printing industry?


Strengthen the Comprehensive Service Ability of Printing Enterprises


Enterprises in the packaging and printing industry in China have long focused on the traditional business model of “production-transportation” of single products, and their comprehensive service capabilities have been weak. The integration of packaging is the trend of the global packaging industry in the future, and as the global manufacturing industry continues to shift to China, it also raises higher and higher requirements for packaging integration and comprehensive service capabilities of the packaging industry in China. For companies that do not yet have packaging integration and comprehensive service capabilities, they will face greater pressure for transformation. At present, existing companies have realized the expansion of business models and can provide customers with a variety of product "design-production-logistics" packaging integrated services.


Industry innovation adheres to green printing


In October 2011, the former General Administration of Press and Publication and the Ministry of Environmental Protection issued a "Announcement on the Implementation of Green Printing", and successively issued a series of green printing related standards in the printing industry, such as "Technical Requirements for Environmental Labeling Technology Products - Printing - The second part - Commercial Paper Printing, "Green Printing - General Technical Requirements and Evaluation Methods", "Green Printing - Product Qualification Criteria", etc., gradually promote green printing in the fields of ticket vouchers, food and drug packaging and other fields.


In addition, with the greening of people’s consumer psychology, green printing has become an important theme for the development of the industry. Printing technology is required to be more environmentally friendly. Consumables for packaging continue to be environmentally friendly and economical. After printed materials are discarded, they are easy to recycle, can be naturally degraded, and achieve no pollution. Pollution packaging.


Transformation packaging printing


The traditional printing industry is in a weak state. On the contrary, branch printing in the printing industry has risen. Packaging and printing services are widely used in various industries in the national economy and residents' lives, such as food and beverages, daily chemicals, electronic communications, tobacco, medicine, and clothing, and have a wide range of services. Their development is closely related to the development of downstream service areas. During the "12th Five-Year Plan" period, with the rapid development of China's food industry, pharmaceuticals, electronic information, e-commerce, logistics and other industries, China's packaging and printing industry has developed rapidly.


In addition, due to the relatively small scale of investment in the packaging and printing industry, the strong ability to absorb labor force, and the low degree of damage to the environment, it is favored by many local governments. Policy-based concessions and support have promoted the development of the industry. Enterprises in the printing industry can be transformed into packaging and printing.


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