Thinking about the low profit of the hottest print

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Thinking about the low profit in the printing industry

there has been a lot of talk about the topic that the printing industry has entered the "low profit era", and the views have basically reached a consensus. Various discussions related to this are also in progress, pushing the era of meager profits to a white hot stage. For example, a small earthquake caused by the rise in the price of PS version occurred in the printing industry some time ago. In fact, this amplitude is not limited to consumables. Don't you see the views of industry experts on the sharp rise in printing wages and the difficulty of enterprises to cope with, and the description of the source behind the rise in printing raw materials in many industry media headlines? This in-depth discussion makes people in the industry more worried. In the final analysis, it seems to be a manifestation of the conflict after the impact of "meager profits" on the printing industry


when the government is extremely optimistic about various indicators of the printing industry and gives it a new height of development, the practitioners of the printing industry are worried about the current "small profits" of the industry. The previous printing industry was a special industry, which was released by licensees, and lay in the hotbed of "monopoly" like the country's telecommunications in the past. When the state deregulated, the initial high profits attracted a large number of investors, and large and small printing enterprises came into being. It should be said that these early industry entrants are the pioneers of entrepreneurship, and have also greatly tasted the sweetness. As Mr. Meng Zhiwen, general manager of Beijing colorful, said, people in the industry often say with exclamation how the first two years were, full of nostalgia for the high profit era in the past and a sense of regret for the fierce competition now

is the "meager profit" that replaces high profits really as "monstrous" as we say? First of all, the reason why the word "meager profit" came into being and was discussed as a "difficulty" was precisely based on the revelation of high profits in the past. Compared with "high profits", today's "low profits" do not mean that enterprises have no profits, but the difference between high profits and low profits. No industry can ever lie in the hotbed of high profits. Low profits represent a mature and rational return

"meager profit" is relative. On the one hand, the continuous entry of new enterprises shows that it is still "profitable". The data shows that in 2005, 109 printing enterprises in Beijing closed down due to poor management, and 125 new enterprises, with a slight increase in the total number; On the other hand, some leading enterprises have positioned themselves as constantly strengthening and expanding, building new plants and investing in new equipment, from which we can see that these enterprises are not shackled by "meager profits". Secondly, the arrival of the era of low profit is actually the fate of the printing industry, because the ultimate goal of any market competition is the survival of the fittest and the balance between supply and demand. At the beginning, the high profits won by using the blind spot of the market will eventually be balanced by the increase of competitors. In contrast, third, the public opinion of "high profit" has also caused enterprises to enter blindly and expand blindly. The number of printing enterprises remains high, but the management level and professional quality are far from keeping up with the investment of equipment and technology. The quality and level are low, and the profit must not be much higher

fourth, it cannot be ignored that vicious competition also intensifies the arrival of the era of meager profits. In the interview with many industry experts, we all have a common view that unfair competition is causing great harm to the healthy development of the market. Printing enterprises are also very scratching their heads. A person in charge of the enterprise who has had personal experience told the author such a story: two door-to-door printing plants and a publishing business with work to print. In order to constantly lower the prices of both sides, the two companies "rushed back and forth" several times in the same day. The problem is that this phenomenon is not unique. Such blows and heavy losses from customers to the industry are countless, which seriously disrupted the normal order of the market

fancy differentiation

when the "windfall profits" and "monopoly" have changed to tend to ease and stabilize, and even linked to the "restructuring" of the publishing industry, it seems that it is more urgent for printing enterprises to think about how to reposition and carry out sustainable development in the competitive but actually normal market competition. Compared with the most realistic and specific consideration of how to reduce the daily staff costs and management costs of enterprises, taking the road of differentiation and taking advantage of the advantage of small competition seems to be a shortcut that many enterprises choose to avoid obstacles and directly lead to Rome, and other strange ways emerge in endlessly. But can small competition really equate with high profits

it is understood that at present, the "protagonists" in the technology differentiation strategy in the printing industry include UV printing, pure natural environmental protection inks, adhesives, high-precision 3, the technology with sharp points of attention of plastic modified regeneration technology, etc. the reason why it is called differentiation from other enterprises is not simply because it belongs to new technology, some of which have been transplanted to China for many years, The more reason is that it has not yet formed a climate and scale in China or some printing markets. Therefore, no matter whether this forbidden zone is new or old, its competitors are indeed smaller than those in the traditional market. In fact, these differentiation advantages are not regarded as the main business in most enterprises. On the contrary, as the economic source of the company, it is always the traditional printing that has been unknown for a long time. In the era of more believing in "quick success" and "effective", the traditional charm seems to need more patience to maintain. The reason for this is that the marketization of the traditional printing field has become mature, and various normative rules and regulations have been improved. In this way, the so-called differentiated printing method seems to have become a fancy spokesperson for enterprises in the publicity process, and "surface Kung Fu" seems to do more

are the pioneers who take the road of differentiation, or the warriors who dare to try to eat the first crab, really as prosperous as the propaganda on this road? Meng Zhiwen, general manager of Beijing colorful printing company, was very pertinent. He said that UV printing did not bring direct economic benefits to the company, and even was in a state of loss in the off-season of UV printing, but it created intangible value for opening the popularity of the enterprise. Just as many multimedia always adopt a tone of outlook when introducing the example of differentiation, its predictive words of "once large-scale production is achieved, how will it leap forward" can only be said to be a vision for a better future. If it is not convinced, it will inevitably lead to weaker domestic demand

differentiation seems to be a virgin land, which requires not only more patience with traditional printing, but also keen vision as guidance. In essence, not every vision is sharp and suitable for the unpredictable market. High profit also means high risk and high investment. At present, these are unknown. Of course, there are not a few explorers of successful people, and those with more courage can be patient. Yan Jiehe, former president of Pacific Group, is a typical example of shopping malls. He started with "lose more if you want to lose", and he provided a lot of valuable experience for enterprise investment

enterprise self construction

of course, the external environment is important, and the "cultivation" of keeping pace with the times is even more essential. The two main points of "cultivation": increasing sources of income and reducing expenditure + lowering your status. It is undeniable that many state-owned enterprises have lost to private enterprises in these two points. In the face of the rise in the price of various raw materials, the rise in factory land prices, the rise in rents, the rise in the overall level of staff wages, and so on, how to effectively reduce management costs, operating costs, less enterprise waste, has become a new topic faced by the managers of printing enterprises in the new era. Relatively speaking, 2 The selection of fuses and circuit breakers private enterprises have a stronger awareness and feeling of cost control - waste, wrong investment direction and unnecessary mistakes anywhere will cause the company's cost increase and investment, which is the loss of "hard-earned money". The saved funds will make the profit space relatively expanded. In this way, the "meager profit" is actually relative. Once again, I remembered what Mr. colorful Meng Zhiwen said with a smile: "buy cheap, sell expensive, and don't waste in the middle." This is easier said than done. This is to open up sources and reduce expenditure

the so-called "lowering the value" refers to that when profits gradually decline from high to low, and when there is still a range of profit space, whoever first lowers the value and first meets the needs of the market will have a better market. There have been many times that enterprises want to establish a price holding alliance in the form of organization, which has proved to be unfeasible in practice. As mentioned above, due to the different development of spring testing machines such as management methods and operation modes of various manufacturers, the size of their profit margins varies. Considering trade secrets, different profit margins and opaque profit margins, it is conceivable that it is difficult for the price alliance to travel

innovation opens up the situation

"small profits" has become a foregone conclusion. If the adjustment of investment direction and the internal rectification of enterprises are compulsory courses, then the innovation supported by this as two legs is an elective course that will be carried out sooner or later to improve the adjustment and adapt to the market. It covers technological innovation, management innovation, operation mode innovation and so on. Yachang actively cooperates with technology manufacturers such as founder of Peking University, binds itself to the latest technology, and remains ahead of other competitors. At the same time, its unique positioning of printing high-quality artworks makes it a high-quality banner in the industry; Jielong Industry's official listing on the Shanghai Stock Exchange is an important milestone in its management approach to collectivization; Shengcaihong, a calligraphy and painting simulation printed by using advanced prepress technology, has won various awards... Various successful examples show that escaping from competition can only be a dream. Facing competition directly and constantly adjusting strategies and using innovation to open up the situation is the long-term plan of sustainable development and the hard truth

commercialized public opinion

of course, the media is also inseparable. Nowadays, due to the consideration of commercial interests, many multimedia have removed the "immature" edge of the media that should criticize the current shortcomings, and replaced it with the words of praise and the echo of "accident". It is this behavior that does not live up to the title of "uncrowned king" that has a huge misleading effect on enterprises when making investment decisions. In an interview with Mr. Song Yuzhe, President of China silk screen printing association, when he talked about the association's abuse of exhibitions, he said: this can be regarded as an important economic source, but it must not be regarded as a main business. I think this simple and sincere truth also applies to this. When the differentiation road in "adolescence" is groping for growth, the media need to correct it in time. Don't blindly follow the trend and exaggerate the good side of new technology. Comprehensively let enterprises not blindly equate small competition with high profits when investing. The author recently saw in an authoritative magazine in the printing industry that based on the products of an enterprise, the title impressively wrote that special printing is equal to high profit. Such a causal relationship is somewhat arbitrary and hasty. Correct public opinion guidance is the same as the development of the industry

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