Development Trend of Self-adhesive Market in China

China's self-adhesive market has been in a state of rapid development for nearly 10 years, and its market capacity has continuously increased. According to the information we have obtained, the annual growth rate of the sticker market has reached 15%-20%, which is much higher than the 7%-9% growth rate of China's annual national growth rate. However, the average per capita consumption of adhesives in China is still less than 1 square meter per year, and there is still much room for growth compared with the per capita consumption of 15-18 square meters per year in Europe and the United States. At present, there are more than 20 brands in the sticker market, and materials of small scale and garbled materials that have flowed in from foreign countries have not yet been counted. However, as the entire industry is still in a state of development, the entire industry is still in a virtuous cycle. Each market participation is sharing the results of market growth, and the non-entrants are constantly looking for opportunities to enter. This article will focus on analyzing the new characteristics of the Chinese adhesive market.

Continued growth

Despite the rapid development in recent years, the adhesive market will continue to grow in the next three to five years. We first examine the largest market segments that use adhesive products:

1, daily chemical industry

The daily chemical industry is the largest market for the use of self-adhesive products, and its development has been extremely rapid in recent years. Self-adhesive materials have been gradually accepted by the Chinese market due to its flexible production, flexible label printing requirements, and designer's needs. At present, the domestic mainstream cosmetic brands have basically changed to self-adhesive materials. Its main development line extends from foreign-funded enterprises to private enterprises first, and due to the inherent flexibility of private enterprises, it has been widely adopted in recent years. We can see a lot of new demand from this market change from wire mesh to label use. In addition, the daily chemical industry itself increases with the number of digits as the living standard of the residents increases, and the self-adhesive industry will naturally benefit from this increase.

2. Pharmaceutical industry

The SARS incident has caused explosive demand in the pharmaceutical industry. Although it is an accidental phenomenon, the pharmaceutical industry itself is also in a period of rapid development. In particular, in the proprietary Chinese medicine industry where many stickers are used, the national packaging requirements for the pharmaceutical industry are getting higher and higher, the packaging of brush and paste will be replaced by more adhesives, and the sales of high-speed automatic labeling machines will increase. It also speeds up the application of stickers in this industry.

3, supermarkets and logistics industry

China’s retail industry is also developing at an extraordinary rate. Foreign retail giants and local private enterprises are all bigger and stronger as the future direction of development. Supermarket fresh foods have always been because of their speed of circulation and profitability. There is a lot of room for development in the field of thermal labels.

The logistics industry is an emerging industry. Barcodes are used for production management and logistics management. Labels are the most basic equipment. When more companies experience the benefits of bar code management, they also bring unlimited business opportunities to the adhesive industry.

4, electronic appliance industry

The annual growth rate of China's electronics industry exceeds 20%. Due to the high requirements of electronic product labels and the diversity of product applications, it has been a huge space for the adhesive industry to grow tremendously. And when you open a computer, you will find that from the keyboard, mouse, hard drive to the transformer, it is full of stickers, stickers with warnings and branding, but also can be extended to more applications .

The main market for consumer labels is constantly growing. If we include many other innovative products such as beverage sealing labels, labels, anti-counterfeiting labels, and labels for lubricants and other products, the market for self-adhesive labels will have There is a huge amount of space and there is a breakdown in the market that penetrates into every aspect of people’s lives. All in all, in the era of consumption, with the increase in the average per capita income level in China, the continuous application of innovation and growth in the sticker market will be an important trend in the future.

Global procurement

As more multinational corporations enter the Chinese market to participate in the competition and their localized implementation of globalization strategies, many products and labels will be transferred from the original US or European procurement to China to purchase, and multinational corporations will be deployed across the Asia-Pacific region. Dosages and even global usage negotiate with domestic printing companies. This requires the printing company's self-adhesive material suppliers to raise the level from various positions such as products, services, and technical support, or they cannot directly participate in international competition.

The globalization of procurement also brings international service standards and quality standards, which has prompted current industry printing companies to make efforts in technological innovation and product innovation. It is not a world-class product that cannot compete in the Chinese market. This concept applies not only to domestic companies, but also to foreign-funded printing companies that want to enter the Chinese market.

However, we can also see the rapid development of domestic enterprises. We have done a lot of work in adopting the world's most advanced flexographic printing technology, increasing the degree of mechanization, and increasing the technical content of products. We have also fully utilized China’s cost advantages to place orders from many Asia Pacific countries. All stay in China.

Full range of competition

The self-adhesive industry is still in its own growth, and both are happy. However, with some growth relying on the company, the overall market structure will evolve from the current free competition to the following layout:

1. High-end products companies will effectively penetrate into the market of mid-range products in order to increase market share and growth due to effective penetration in various market segments, which will put a lot of pressure on companies currently producing mid-range products. At the same time, after the low-end products companies have a certain amount of sales, in order to meet the pursuit of profits, they will also find space in the mid-range product market. As a result, the current companies producing mid-range products are forced to enter the oppression situation both up and down, and their repositioning is an urgent matter.

Stronger Hengqiang is the law that the market is invariable. From the current trend analysis, the final outcome of the next three to five years will be market leaders occupying 50% of the market share. Market followers and subordinates will occupy 20% respectively. With a market share of 10%, the top three companies form a 5:2:1 relationship. Other market shares are divided by the remaining players, and the overall number of market participants will be effectively controlled by the market, thus changing the current relative Disordered state.

2. In addition to changes in the structure of the adhesive market, full-scale competition is also reflected in service competition. The establishment of pre-sale services can effectively transform the customer's order information into production; in line with the improvement of the network, especially the distribution system in economically developed regions and highly competitive regions, it will directly affect which supplier the printing company orders go to; Value-added items are constantly being introduced, such as: increasing the length of the rolls, reducing the number of joints, etc. These are all continuous extensions of services. In fact, with the homogeneity of products, services will easily become decisive factors. Increasing service levels will require cost and rich management experience, which will be continuously reflected in the future competition.

3, speed competition will be mentioned in a very important position. The collection of market information, on-demand production and supply capabilities, and the speed with which new products are developed are key factors in the future speed competition. The company's response speed is itself a reflection of the company's overall strength, and customers are more willing to look at the dry glue supply. Businesses can meet their fleeting business opportunities faster. Information penetration is mutual, forming a rapid response mechanism will effectively use information and reduce its distortion. All in all, the above market structure and corporate characteristics will soon be seen in our sticker market.

Brand era

The brand-oriented era will appear in the future of the adhesive market. Homogenized products make it impossible for end users to distinguish between different suppliers, and brands will be their best procurement guidelines. Some important changes will appear in the future market:
1. The quality of practitioners in the self-adhesive industry will continue to increase and appear in a professional image. The sales engineer will be a good expression for the self-adhesive sales staff in the future. They must not only handle the customer's business arrangements, but also have the ability to solve the customer's printing problems. Now they have more professional product knowledge and professionally assist customers in solving problems. The actual profile that appears in the arrangement of the product design production process. Only professional companies can cultivate professional talents. Good brands will bring more promises to customers.

2. Many new marketing ideas will be applied to the adhesive industry. Relationship marketing, rewarding loyalty customers' strategies, and database marketing will gradually enter the application stage.

With the increasingly fierce competition in the adhesives market, those companies that are developing in the adhesive market, trying to create more core values, and improve their business will have a good reputation in the eyes of their customers. The value of their brands is thus reflected. come out.

Source of information: pack.cn