In recent years, Cai Hong’s labor prices have been declining year by year, and printing companies have been affected by this. The profit rate has been declining year by year, the living environment has become increasingly severe, and what is the situation with the decline in color labor prices? What is the underlying reason? What will happen to the industry? What kind of marketing efforts have the printing companies carried out under this pressure? With these questions, we interviewed some representative companies.
Labor prices have been declining all the way Due to different geographical areas and different operating areas, the price drop times felt by various companies are not exactly the same. However, the more recognized time period began in 1997. Before 1997, the labor price of CaiHuo was still very strong. With the Asian financial crisis and the continuous fall of the domestic economy, CaiHuo's wages began a long process of falling.
The drop in the price of Caihuo’s wages can be described as a blip. More generally, it is thought that it has dropped by nearly 1 times. 40-60 yuan/color before 1997. At present, only 20 to 30 yuan/color order can be made. The decline is even more alarming in some highly competitive regions. It has been alleged that the small offset printing job price in Wuxi has dropped to 8 yuan/color order, which is almost unprofitable.
The continuous fall in color work price directly affects the profitability of printing companies, which corresponds to the decrease in the wages, and the profit rate of printing companies is also reduced by a factor of two. Companies generally reflect that compared with the lucrative profits of printing colorful prints in previous years. Now that Choi & Fung's profits are thin, the customer's offer is harsh and the business is difficult to do.
In the mixed battles where the color of live-work falls, there are state-owned enterprises that are helpless, with recklessness of private companies and small businesses, and active price cuts by powerful companies, especially foreign-funded enterprises. According to sources, a well-known foreign company in Beijing has pressed the price of color rotation to be less than RMB 10 per color. With their quality level and professional quality, the impact on the market is conceivable.
The view on the decline in color work price is also a beholder of the benevolent and the wise see wisdom. Some interviewees believe that the original price has a high rate, and the current drop in the labor price is also a natural process of returning high profits to reasonable profits. This shows that the hands of the market are functioning normally. During the interview, a person who had previously worked at a large SOE factory was not without emotion. In the 1980s, the state-owned printing companies had good equipment, large scales, and comparative advantages. Colourful livelihoods were quite profitable. Now it’s not a day. The scenery is gone.
Some respondents also pointed out that in recent years, the decline in color work price, there is a certain degree of rationality. Because the raw materials needed for printing are also falling in price in recent years. For example, as much as 50% of the raw materials, the price has undergone several downward adjustments. This to a certain extent eased the impact of the decline in Choi Live prices on the profits of printing plants, allowing them to maintain a meager profit while the prices of the printing factories were falling sharply.
However, people in the industry agreed that the current price for Choi Live is already at the bottom and there is not much room for it to fall. Once again, everyone can only lose money and earn money. However, facing the severe situation of entering the WTO, whether the price drop will stop, and only the market can make the final answer.
Reasons for the imbalance between supply and demand To explore the reasons for the continued decline in wages, the industry analysts analyzed the characteristics of the industry. The barriers to entry in the printing industry are low, and the average profit rate of the industry in previous years is high, which naturally attracts the flow of social capital to this area. From this point of view, there is a certain degree of rationality in the drop in color work price, which is a market adjustment process.
However, in the adjustment process of this market, due to a policy opportunity, the total supply of the market has been over-expanded. In early 1998, the state began to implement preferential policies for importing high-speed multi-color printing equipment, and the tax exemption rate was as high as 42.74%. For a while, orders for importers of printing equipment such as Heidelberg and Mitsubishi soared. According to preliminary estimates, in 2000 more than 400 multi-color offset presses were imported across the country. In the interview, many people invariably pointed out that the time when Choi Wah’s work price continued to fall was precisely the time when high-end imported printing presses were pouring in. The supply was enlarged in a relatively short period of time, but the demand did not immediately catch up. This was the direct cause of the round of price cuts.
To this end, it was pointed out in a sharp geology. In the course of this large-scale centralized purchase of equipment, is the government's guiding power available? Is there a phenomenon of out-of-control adjustment and waste of resources? Some people even pointed out that under the condition that the low-level printing production capacity has not been effectively controlled, the problem of excess production of advanced productive forces has begun to show its signs.
Whether or not the advanced production capacity is surplus does not depend on the growth rate of production capacity, but depends on the balance of supply and demand. The degree of fierce competition in the market intuitively shows that if demand growth is slower than supply growth, people will compete for food. The situation has dropped.
Objectively speaking, domestic printing demand has also grown rapidly in recent years. In particular, demand for packaging, printing, commercials, and commercial samples is in a period of rapid growth. Although the increase in demand lags behind the increase in print supply, this slow-growth cake has finally grown. The prospect of increased business activities after the accession to the WTO, and the huge business opportunities that have increased since the successful application of the Olympic Games have convinced people that there is unlimited potential for growth in the printing industry.
Therefore, optimistically, this centralized purchase is not an oversupply of equipment, repeated investment, but an opportunity to upgrade the industrial structure. Crucially, how can printing companies spur potential printing needs into real-time printing needs.
In fact, the most profound background and reason for the decline in color photo living prices is that China has gradually entered a market-oriented economy. In the interview, the person in charge of a Xinhua plant pointed out that the marked decline in printing prices did not start from the coloring, but started from prepress and from the color plate. The platemaking shop in the factory was the first to be affected. The pre-press plate entry barrier is lower and the market is open earlier. In this sense, today's competition in the platemaking market heralds the future of the color and live market competition.
Labor prices have been declining all the way Due to different geographical areas and different operating areas, the price drop times felt by various companies are not exactly the same. However, the more recognized time period began in 1997. Before 1997, the labor price of CaiHuo was still very strong. With the Asian financial crisis and the continuous fall of the domestic economy, CaiHuo's wages began a long process of falling.
The drop in the price of Caihuo’s wages can be described as a blip. More generally, it is thought that it has dropped by nearly 1 times. 40-60 yuan/color before 1997. At present, only 20 to 30 yuan/color order can be made. The decline is even more alarming in some highly competitive regions. It has been alleged that the small offset printing job price in Wuxi has dropped to 8 yuan/color order, which is almost unprofitable.
The continuous fall in color work price directly affects the profitability of printing companies, which corresponds to the decrease in the wages, and the profit rate of printing companies is also reduced by a factor of two. Companies generally reflect that compared with the lucrative profits of printing colorful prints in previous years. Now that Choi & Fung's profits are thin, the customer's offer is harsh and the business is difficult to do.
In the mixed battles where the color of live-work falls, there are state-owned enterprises that are helpless, with recklessness of private companies and small businesses, and active price cuts by powerful companies, especially foreign-funded enterprises. According to sources, a well-known foreign company in Beijing has pressed the price of color rotation to be less than RMB 10 per color. With their quality level and professional quality, the impact on the market is conceivable.
The view on the decline in color work price is also a beholder of the benevolent and the wise see wisdom. Some interviewees believe that the original price has a high rate, and the current drop in the labor price is also a natural process of returning high profits to reasonable profits. This shows that the hands of the market are functioning normally. During the interview, a person who had previously worked at a large SOE factory was not without emotion. In the 1980s, the state-owned printing companies had good equipment, large scales, and comparative advantages. Colourful livelihoods were quite profitable. Now it’s not a day. The scenery is gone.
Some respondents also pointed out that in recent years, the decline in color work price, there is a certain degree of rationality. Because the raw materials needed for printing are also falling in price in recent years. For example, as much as 50% of the raw materials, the price has undergone several downward adjustments. This to a certain extent eased the impact of the decline in Choi Live prices on the profits of printing plants, allowing them to maintain a meager profit while the prices of the printing factories were falling sharply.
However, people in the industry agreed that the current price for Choi Live is already at the bottom and there is not much room for it to fall. Once again, everyone can only lose money and earn money. However, facing the severe situation of entering the WTO, whether the price drop will stop, and only the market can make the final answer.
Reasons for the imbalance between supply and demand To explore the reasons for the continued decline in wages, the industry analysts analyzed the characteristics of the industry. The barriers to entry in the printing industry are low, and the average profit rate of the industry in previous years is high, which naturally attracts the flow of social capital to this area. From this point of view, there is a certain degree of rationality in the drop in color work price, which is a market adjustment process.
However, in the adjustment process of this market, due to a policy opportunity, the total supply of the market has been over-expanded. In early 1998, the state began to implement preferential policies for importing high-speed multi-color printing equipment, and the tax exemption rate was as high as 42.74%. For a while, orders for importers of printing equipment such as Heidelberg and Mitsubishi soared. According to preliminary estimates, in 2000 more than 400 multi-color offset presses were imported across the country. In the interview, many people invariably pointed out that the time when Choi Wah’s work price continued to fall was precisely the time when high-end imported printing presses were pouring in. The supply was enlarged in a relatively short period of time, but the demand did not immediately catch up. This was the direct cause of the round of price cuts.
To this end, it was pointed out in a sharp geology. In the course of this large-scale centralized purchase of equipment, is the government's guiding power available? Is there a phenomenon of out-of-control adjustment and waste of resources? Some people even pointed out that under the condition that the low-level printing production capacity has not been effectively controlled, the problem of excess production of advanced productive forces has begun to show its signs.
Whether or not the advanced production capacity is surplus does not depend on the growth rate of production capacity, but depends on the balance of supply and demand. The degree of fierce competition in the market intuitively shows that if demand growth is slower than supply growth, people will compete for food. The situation has dropped.
Objectively speaking, domestic printing demand has also grown rapidly in recent years. In particular, demand for packaging, printing, commercials, and commercial samples is in a period of rapid growth. Although the increase in demand lags behind the increase in print supply, this slow-growth cake has finally grown. The prospect of increased business activities after the accession to the WTO, and the huge business opportunities that have increased since the successful application of the Olympic Games have convinced people that there is unlimited potential for growth in the printing industry.
Therefore, optimistically, this centralized purchase is not an oversupply of equipment, repeated investment, but an opportunity to upgrade the industrial structure. Crucially, how can printing companies spur potential printing needs into real-time printing needs.
In fact, the most profound background and reason for the decline in color photo living prices is that China has gradually entered a market-oriented economy. In the interview, the person in charge of a Xinhua plant pointed out that the marked decline in printing prices did not start from the coloring, but started from prepress and from the color plate. The platemaking shop in the factory was the first to be affected. The pre-press plate entry barrier is lower and the market is open earlier. In this sense, today's competition in the platemaking market heralds the future of the color and live market competition.
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