The challenges and composition of printing industry

Nowadays, the shortage of talents in the printing industry, especially those who systematically master the engineering design of integrated printing services, modern IT technology, and practical experience in enterprise management, constitutes a talent barrier to enter the industry.

(3) Scale barrier

The scale effect of printing industry is more significant, which constitutes a higher scale barrier. In the face of small batch, customization, personalization and other customer needs, only enterprises of a certain scale can achieve long-term sustainable development. At the same time, printing enterprises need to achieve a certain scale in the customer channels, only after ensuring a considerable degree of customer sources and obtaining a large number of orders, to have the prerequisite for the implementation of plate printing, and on this basis through the plate printing process to reduce product costs. In terms of scale cost, the production line construction of the printing industry requires a larger scale of fixed asset investment, if the product production scale is small, it will lead to a higher unit product cost, unable to compete with mature enterprises in the market. In addition, some enterprise customers in order to reduce supplier management costs and express logistics procurement costs, tend to choose a complete category of suppliers, comprehensive service ability is strong, and establish long-term stable business cooperation with them. Therefore, enterprises with a certain scale in the industry have a competitive advantage in product types and production costs, forming a scale barrier in the printing industry.

(4) Financial barriers

The printing industry is an asset-heavy industry, and the initial investment requires large-scale fixed asset investment. In particular, the quality stability and production efficiency of high-grade paper printing products require more advanced production lines, some production equipment is imported equipment, and large-scale fixed assets require higher financial strength of enterprises. When enterprises in the industry provide customers with various specifications and categories of products, they need to purchase corresponding raw materials for production, which also causes greater pressure on enterprise funds.

In addition, with the development of the industry, the upgrading of production equipment of printing enterprises, the expansion of production capacity, product research and development, online channel promotion, offline store expansion, etc., require continuous capital investment, but also need to continue to invest in product design, store operation, brand publicity, platform and information system maintenance. Therefore, the establishment and development of printing enterprises require large initial capital investment and sustained later capital investment, which has high requirements for the financial strength of enterprises, so capital is an important barrier to enter the printing industry.

(5) Barriers to integrated service capability

The product and service process of the printing industry includes the understanding of the needs before printing, material design, material selection, sample trial printing, printing process selection, safety production, quality control, and post-printing processing, warehousing logistics, after-sales, etc., so the printing industry involves more business links, and puts forward higher requirements for the integrated service ability of printing enterprises. If an enterprise does not have the ability to integrate the above business processes and cannot provide customers with integrated services, it may be unable to meet customers' requirements for product quality and delivery timeliness, thus losing its competitiveness.

For printing e-commerce directly facing individual consumers or small and medium-sized enterprises, the above integrated service capability is particularly important, because the individual needs of individual consumers or small and medium-sized enterprises have diversified, small batch, cost sensitive characteristics, if you do not have the ability, you can not meet their downstream needs.

(6) Brand barriers

Printing enterprises with high brand recognition and customer stickiness have invested a lot of capital and manpower in product quality, design, distribution, etc., and have a strong endorsement effect on the quality and value of products and services. At the same time, brand building requires long-term investment of enterprises, and new entrants will face greater resource and time costs, which will restrict their market competitiveness. Therefore, the printing enterprises that can form brand effect will have a competitive advantage. The positive impact of brand effect is particularly significant for printing enterprises that are oriented to micro, small and medium-sized enterprises and individual consumers. Because the quality of customized products and services for small, medium and micro enterprises and individual consumers is still uneven, the time cost of consumer screening is increased. Therefore, under the same circumstances, consumers generally choose goods with a better brand. Therefore, the brand effect is an important barrier for printing enterprises to become bigger and stronger.