You are here : Home > KeyinPrint Report >

“2010 Digital Printing in China” Survey Report

Digital Printing has been developing over 10 years in China, and we have made "Digital Printing in China" Survey since 7 years. During this period, the pace of digital printing technology and application development has not slowed down. At drupa2008, there are totally 64 exhibitors which showed digital printing press, among them 31 exhibitors showed color digital presses, which represents an indisputable fact that digital printing technology has become the wind vane of printing technology.
Compared with digital printing industry abroad, Chinese digital printing made a large investment on purchasing equipment, most digital printing suppliers’ flagship equipments are welcomed by enterprises. At the same time, as the equipment upgrading, enterprises never stop update the original equipments. In addition, some domestic traditional printing enterprises pay more and more attention to digital printing presses.
However, the development of digital printing production is not as fast as the development of equipment installation. There is an embarrassing situation appearing on the market, some enterprises which owned high-end digital printing presses suffer from the development of the industrial application of digital printing. How to guide the potential market demand to actual industrial applications is the most important thing those enterprises concern about.
At the same time, digital printing users are becoming more and more sophisticated. They adopt a prudent policy on investment of equipment, concerned about the sub-areas, more focus on widening the field of business, through various channels to enhance their own competitiveness.

Research on Digital Press Installation
1. Samples explanation
Samples for the research on digital press installation are divided into five parts: High-end Sheet Digital Color Press, Production Digital Color Press, Monochrome Digital Press and Sheet Production Monochrome Digital Press of part suppliers (2010 new). 

2. Research result and analysis
(1) High-end Digital Color Press
 Installation Number of High-end Sheet Digital Color Press
The survey still selected three series of high-end digital color presses of three equipment suppliers. Different from the previous year, Kodak NexPress series had be fractionized, and by add NexPress SE3600 models to reach 13 models (Chart 1).

Chart 1

Should be note that the Kodak NexPress SE platform. It is the Kodak Introduced a new Color digital printing platform for the commercial printing, graphic and commercial imaging market. The original purchase of Kodak NexPress S2500, NexPress S3000 customers can upgrade to the SE platform.
This series inherited the family of NexPress excellent quality, and on this basis bring a innovation for the print color quality, color reproduction and stability. Meanwhile, Kodak SE Series digital press has a superior performance in productivity, income rate and profit growth. NexPress SE3600 is the first product based on Kodak SE platform, with offset printing quality, equipped with a Kodak INSITE Print Campaign Manager and Prinergy Process, users can better enhance productivity and increase added value. This product had installed 6 sets in a year, highly recognized by the market.
Up to July 2010, Sheet High-end Color Digital Press to achieve the total installation number of 455 sets. Increase of 101 sets on the basis of last year, the growth rate reached 29%. Year increase has a greater degree of improvement over the previous year, mainly from the HP Indigo series and the Kodak NexPress series (Chart 2).

Chart 2

High-end Sheet Digital Color Press Application Field
Currently the field of commerce printing is still the primary market of high-end color digital press, accounting for 63% over last year raised 2% higher. Meanwhile, sheet high-end digital color press in the field of publishing printing and packaging printing application is still relatively high proportion were 11% and 9%. The difference from previous year, sheet high-end digital color press in the financial, postal, telecommunications and other fields of application proportion significantly increased, from the previous year of 6% to 12%. It is not difficult to see that sheet high-end digital color press grow up gradually based on the traditional advantages (Figure 1).

Figure 1

High-end Sheet Digital Color Press Region Field
The geographical distribution of Sheet high-end digital color press shown in Figure 2, South, North and East of China have the most sets of digital color press, accounting for 31%, 27% and 26% respectively. Different from the previous year, the North increased by 6%. Meanwhile, the proportion of Central China has a greater degree of increase, from last year's 3% to 7%. The gap between the proportion of area reduced, there are more regional digital press application in China.

Figure 2

High-end Digital Color Press Installation
Difference from last year, the high-end digital color press installation capacity less in 2010, only 3 sets, and all from the HP Indigo WS4500, the field is mainly used for label printing. At the end of July 2010 year, The installation number of Xeikon8000, Xeikon6000, Xeikon5000+ are zero, but be about to sign the contract for four or five, the series will be better in the next year (Chart 3).

Chart 3

Need to mention that, United Printing Equipment & Material Corp and Xeikon announced formed a strategic partnership this year, United Printing Equipment & Material Corp in charge of sales and marketing of Xeikon label digital printing equipment in China. Xeikon 3300 is a web printing press, the printing speed up to 19.2 m/min, is one of the fastest digital color label press in the market, very suitable for mid and short runs production. The characteristics of its continuous production can help label printing enterprises to expand production capacity, increase production efficiency. Thus, the label field has become an increasingly market focus of digital printing equipment suppliers, and will be able to promote the label digital printing technology and applications development (Chart 4).

Chart 4

(2) Production Digital Color Press
 Production Digital Color Press Installation (Chart 5 )

Chart 5

Different from last year, the amount of production digital color press installation number increased by nearly 32%, reach 1305 sets (Chart 6).

Chart 6

The installation number of 2010 year is 315 sets, compared with the previous two years by 346 sets and 324 sets, which can be seen, nearly three years of increase remaining at the same level. Thus, the Chinese production digital color press installation capacity has maintained steady growth.

Production Digital Color Press Application Field
Figure 3 shows, production digital color press mainly applied in commerce printing areas, accounting for 48%, which higher over last year slightly (46% in 2009). The proportion of publishing on demand and the images output from 10% and 8% of the previous year to 11% and 9% respectively, which confirms that publishing on demand and images printing will be as the potential market of digital printing. In addition, production digital color press in the other areas application of accounting to 15%, increase 1% over the previous year, which reflects that more and more digital printing application expanding. On the other hand, document printing in 2010 was a substantial decline in the proportion from the previous year 21% to 16%.

Figure 3

Production Digital Color Press Region Field
At present, North, East and South of China is still TOP3 areas of production digital color press application, the proportion was 25%, 25% and 18%, the proportion of East China is more than others, from 20% of the previous year to 25%. In the circumstance of production color digital press installation capacity in China significant grow, the Northeast areas of a small proportion of installation capacity, only 1% (Figure 4).

Figure 4

(3) Production Monochrome Digital Press
 Continuum Production Monochrome Digital Press Installation (Chart 7)

Chart 7

Need to mention that, Nipson VP200 and VP400 upgrade to DIGIFlex and VaryPress respectively, while the data of Océ VS7000 added the installation capacity by its agents, get the installation capacity reached 156 sets, the new installation capacity of 90 sets, which has improved significantly compared with the previous year (Chart 8).

Chart 8

Sheet Production Monochrome Digital Press Installation (Chart 9)

Chart 9

3. Summing-up
In recent years, digital printing in China developed at a fast rate, digital printing application more extensive and deeper. About the production digital printing supply market, can be found digital printing technology update so fast, there have been more and more new models, to provide customers more choices. On the other hand, about the digital press function, there are more value added innovations, such as spot color, varnishing and other functional modules, enable users to expand the operation scope and provide more value added and innovation services. In addition, the competition of digital printing supply market is increasingly intense, which also makes suppliers pay more attention to their core competitiveness, not only with improvement in hardware and software technology but also improve their service levels, to the whole digital printing market development, both are good news.

Research on Digital Press Users
1. Samples explanation
“2010 Digital Printing in China” Survey is still with E-mail, fax and telephone inquiry to collect survey report.

2. Samples Enterprise
(1) Main operation
79.31% of survey companies have chosen the commercial documents and bidding documents, 74.14% of companies have chosen enterprise brochures, 70.69% of companies have chosen personal portfolio, 68.97% of companies have chosen the sample books, 62.07% of companies choose the product manual, 55.17% of companies have chosen the recipes and personalized calendars, 46.55% of the enterprises selected album, 43.10% of companies have chosen the invitations, 34.48% to choose a card certificate, 31.03% of companies have chosen the label, 27.59% of companies have chosen the bar code, 17.24% of companies chose to direct mail letters and 15.52% of companies have chosen the bill (Figure 5).

Figure 5

In this survey, the main business of enterprise as the commercial documents accounted for 26.61%, bidding documents as the main business of enterprises accounted for 21.12%, the enterprise brochures as the first accounted for 11.25%. According to this year's result, we can see that commercial documents, bidding documents and enterprise brochures are the main business. Compared with 2009, the importance of bidding documents and commercial documents has not changed, still maintained the position of top 1 and top 2, while the portfolio of enterprise brochures exceed the sample books, come into the top 3.

（2）Store Number
In this survey, enterprise with using centralized management and not open branches accounted for 31%, with 1 or 2 branches of the enterprise accounts for 36%, with 3 to 5 branches of enterprises accounted for 19%, with 6 (including 6) or more branches of the enterprises accounted for 14% (Figure 6).

Figure 6

Compared with the previous year, in this year the enterprises sample with no branches decreased by 3% to 31%, the enterprises have 6 or more (including 6) branches rose by 3%. It seems that the negative influence of financial crisis gradually disappeared, companies are stepping into the right path, a lot of enterprises began to expand. From Survey Report 2009 can be seen, the impact of financial crisis on the digital printing industry is obvious, and in 2010, with the domestic economic situation improved, the development of industry is gradually recovering.

（3）Operation Status
Turnover of 100 million RMB (inclusive) of the enterprises accounted for 22.84%, 100 ~ 1000 RMB (inclusive) of the enterprises accounted for 60.42%, more than 1000 RMB of the enterprises accounted for 16.74%, reached 60 million RMB. From survey data shows that compared with the previous year, the profits of most enterprises increase and the growth rate compared with 2009 has increased too, mainly concentrated in the 10% to 30% range. This is closely related to the domestic economic environment improvement. Of course, there are few enterprises because of their own poor management and the other reason, the profit shows a negative growth in 2010.

3. Software/Hardware Investment
(1) Digital Press Number

In this survey, the company with 2 to 3 sets and more than 9 sets of digital printing equipment accounted for the vast majority, the same results as the overall trend of the previous year.

(2) Digital Press Brand
51.72% of the enterprises have Xerox equipment, 37.93% of the enterprises have Océ's Equipment, 32.76% of the enterprises have HP Indigo equipment, 32.76% of the enterprises have Canon equipment and 22.41% of the enterprises have Konica Minolta Equipment.

As the investigation of a limited number of samples, can’t rule out a certain possibility of bias of survey results. But the general trend is still able to speak out some problems. Fuji Xerox entered into the Chinese digital printing industry in an earlier time and main business is digital printing. It’s natural that the market share rate of Fuji Xerox Equipment increasing steadily several years in China, but it is worth our attention, HP Indigo and other suppliers can’t be overlooked for their growth trends, and Océ monochrome digital press as an absolute dominance position in the Chinese market. It is the direct result that while still Fuji Xerox maintaining the market share first, but the gap with other suppliers is gradually shrinking.

(3) Soft Product Application
With the survey of software application in the enterprise, 79.31% of companies purchased software products, 27.59% of the enterprises owned indigenous research and development, 25.86% of the enterprises purchased the software and have transformed it. About the kind of the software, the most of variable data software, which accounting for 76.31%, the second is workflow software by accounted for 57.98%, the least is ERP software by accounting for 40.29% (as Figure 9). Compared with the previous year, more and more enterprises had used software, the domestic digital printing companies for software recognition is gradually strengthening, which is a good sign.

Figure 9

4. Investment Intention
(1) Digital Printing Equipment
In the survey of whether introduction digital printing equipment again, 60.27% of the enterprises said they would consider continue to invest in the digital printing equipment. There are currently more than half of companies are looking for expand the scale and sustainable development of the digital equipment. For digital printing equipment suppliers, the future market has great potential, especially in circumstances of the domestic economic environment improvement, the development prospects of the industry is bright.
As for the determinant factors of equipment purchase, found that the printing quality, substrates range as well as equipment speed, price and service quality of suppliers is still the greatest concern.
As for the brand of purchase digital printing equipment, most companies still preferred Fuji Xerox, accounting for more than half of the total number of enterprises reached 53.45%. And 41.38% of the companies have chosen the HP Indigo, 31.03% of companies have chosen the Océ, 29.31% of enterprises have chosen Canon. For digital printing equipment selection, many experts said that don’t blindly choose the large and expensive equipment, must be based on the business volume and economic strength of enterprises, to avoid selecting too high-end equipment to product enough. At the same time, due to the different advantages of different equipments, enterprises should also under consider the type of business to choose the right equipment.

(2) Software Product
Investment intention for the software in the survey results show that there are 51.73% companies said they would introduce or re-introduction of software. Software for digital printing business is very important, to master the use of the software not only improve efficiency of printing production, to maintain working order of equipment, but also help companies to develop more types of business, to improve the competitiveness of enterprises. The software suppliers should seize this opportunity to improve product quality, intensify efforts to develop and provide more suitable software for the domestic digital printing enterprises to meet actual needs of users.

5. Future Development
(1) Management and Development
In the survey of whether going to open branch, 30% of the enterprises indicated that they will open branch within one year, 23% of the enterprises hold negative attitude, and 47% of companies said they would as the case may be (Figure 11). Compared with the previous year, the company confirmed to open branch in a year increase 5%, the number as the case may be dropped by 5%, and the proportion of company not to open branch remains the same. Environment improvement of economic may lead to more companies decided to open expansion branch.

Figure 11

(2) The Difficulty
In the survey of enterprise development difficulties, the top3 of difficulty is printing insufficient, horizontal competition and talent shortage, were chosen by 51.72%, 50.00% and 46.55% of the companies. Printing insufficient is biggest challenge of the industry's development, enterprises have to keep developing new business, strengthen its core competitiveness, to survive and develop in this industry. Benign competition enables enterprises and industry to accelerate speed of development, malignant competition would cause market disruption, which need cooperate with related industry associations or institution.
The other difficulties such as the print quality instability, difficult marketing, high cost of innovation, chaotic management, shortage of funds, lack of equipment, production capacity, poor economic conditions and so on (Figure 12).Compared with last year, the overall change little. It is worth mentioning that only 1.72% of the company thought the economic environment is poor, compared with the previous annual survey had decreased. Thus, most of companies have already felt the improvement of economic environment.

Figure 12

(3) Improvement of Competition Strength
Although everyone for the digital printing industry confidence in the future, but admittedly the industry still exist many problems. Pleased to see that, regardless of the enterprise or government, industry associations and suppliers are active in efforts to jointly promote the healthy development of the industry.
The investigation of the enterprise in which aspect to improve competitiveness in 2010, there are 72.41% of companies choose to expand the business, 65.52% of the companies have chosen to improve service quality, 58.62% of the companies selected to provide a personal, differentiated services, 43.10% of companies chose the personnel training, 36.21% of enterprises chose the standardized operation, 27.59% of companies have chosen to build the network platform, 22.41% of companies have chosen the information management, 20.69% of companies have chosen to improve equipment productivity and 12.07% of companies have chosen to invest professional software (Figure 13).

Figure 13

We can see from the survey results, business innovation and development, improve service quality and delivery of personalized, differentiated services is still the core competitiveness of enterprises, which is not much different from the previous year. Besides these three factors, network printing with so many models, flexibility of operation, won the attention of many companies, this is a way of upgrade the competitiveness of enterprises. In a word, choose the most suitable type for their own situation is the real problem of enterprises should concern.

(4) Market Subdivision
In the survey of interest of enterprise market subdivision, 60.34% of the companies choose the personalized printing business, 58.62% of the companies selected printing on demand books, 53.45% of companies choose the network printing, 43.10% of companies select the graphic print, 34.48% of companies have chosen the pictures, digital proof, 32.76% of companies have chosen the image, 18.97% of companies have chosen the art reproduction, 10.34% of companies have chosen the label, 8.62% of companies have chosen the card and bills, 6.90% of the business to choose a personalized packaging.

In this year's survey, personalized printing is the most concern of future market, followed by printing on demand and network printing. Here we can see that, even though you know the digital printing more and more, many companies also have their own unique perspective, but there is a common idea: digital printing companies should make better use of the advantages of digital printing technology, like faster speed, flexibility, remote printing and variable information printing.
6. Summing-up
From this user survey data analysis, it’s not difficult to find 2010 is the development year of Chinese digital printing industry, pass through the financial crises, digital printing companies pay more attention to the opportunities of development, more actively for internal adjustments with the market demand.
In China, the digital printing industry is the developing market. With the market expansion, improving the business model of digital printing, to achieve value-added, opening up new opportunities and new profits. We can see many new digital printing equipment and services more and more focus on creating customer's business mode. Many foreign companies introduced a number of successful cases to Chinese customers. But the more important is considering the domestic market, to choose the operation mode, the structure of services, cost control or to expand the value, which to ensure the healthy development of the enterprise.