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Southeast Asia, Another Battlefield Of The Chinese Label Legion?

Aug 16, 2018 Leave a message

Southeast Asia, another battlefield of the Chinese Label Legion?

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Southeast Asia is adjacent to China. As one of the most dynamic and potential regions in the world for economic development, it has the advantage of geography and has become a must for domestic label suppliers and international tycoons to deploy overseas markets.


market Overview


There are 11 countries in Southeast Asia, namely Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Indonesia, Brunei, the Philippines and East Timor. With a population of more than 600 million, it accounts for nearly 10% of the global population and is one of the regions with a high population density in the world. In 2017, the GDP of the 11 countries in the region totaled 2.72 trillion US dollars, and the per capita GDP was 4,214 US dollars. Among them, Thailand has a GDP of 437.807 billion US dollars, ranking second in Southeast Asia; the number one is Indonesia, its GDP in 2017 exceeded the trillion dollar mark, to 10109.04 billion US dollars.


During the Labelexpo Southeast Asia exhibition held in Thailand in May this year, Brenton Barrent, General Manager of Asia Pacific, Colorful Group (MCC) introduced the future development of politics, economy and label industry in Southeast Asia. He pointed out that by 2025, the average annual growth rate of ASEAN countries will be 4.6%, and the compound annual growth rate of commodities and labor services will exceed 5.6%. At the same time, the growth of the population has also continued to include the working-age population in Southeast Asia. The strong growth prospects in Southeast Asia have made it the most active region for technology applications, foreign investment and digital innovation in the world, attracting a large number of foreign companies. In the last two years alone, leading manufacturers in the label industry, such as Nilpeter, MPS, E+L, etc., have set up new offices and demonstration centers in Thailand; and processor giants such as Silk (CCL) and Colorful Group ( MCC) and Skanem have already established several advanced factories in Thailand.

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Brenton Barrent, General Manager of Asia Pacific, Colorful Group (MCC), introduces the future development of politics, economy and label industry in Southeast Asia


Brenton Barrent, General Manager of Asia Pacific, Colorful Group (MCC), introduces the future development of politics, economy and label industry in Southeast Asia


Southeast Asia label market


Mr. Brenton Barrent quoted AWA (Alexander Watson Associates), Avery Dennison and other international statistics and said that in Southeast Asia, the average annual growth rate of the self-adhesive industry will be about 6.2%, and will be 840 million square meters. The proportion of rice and 45% leads all decorative technologies, followed by shrink sleeve labels and wet glue labels. The total decoration market in Southeast Asia is about 1.87 billion square meters. Despite this, the annual per capita consumption of self-adhesive labels in the region is only 1.5 square meters, with 12-18 square meters of per capita consumption per capita in developed countries in Europe and America, 15-16 square meters in the United States and Scandinavia in the Nordic countries. The gap between 17 and 18 square meters in the Via Peninsula is huge, and the future development of the self-adhesive label printing market and self-adhesive materials in Southeast Asia is very great.


As far as the end market is concerned, Mr. Brenton Barrent believes that all existing sectors in Southeast Asia have growth opportunities. In 2017, the Southeast Asian retail market reached an overall size of 150 billion US dollars. Among them, food packaging is still the largest market, close to 55.6 billion US dollars, with a market share of about 35%; although e-commerce packaging is only 8.2 billion US dollars, but the fastest growth rate, the average annual growth rate is 23%; It is 9.5% for beer, 8.7% for personal care, 8.6% for home care products, and 7.9% for pharmaceutical products. It is worth mentioning that e-commerce, personal care and medicine are the areas with the highest penetration rate of self-adhesive labels. Mr. Barrent pointed out that consumers in Southeast Asia have a strong sense of health, and the demand for pure natural and natural products runs through all terminal sectors.


He believes that there will be more growth opportunities in the following areas in Southeast Asia: shrink sleeve labeling, product tracking and tracking, brand protection and product anti-counterfeiting, labeling, flexible packaging, augmented reality, e-commerce and data development, and around Products and services developed by the Internet.


In Southeast Asia, the challenges faced by processors are also close to those of other regions, such as price pressures, shortened orders from delivery to delivery, short orders, reduced print lengths, sustainable development pressures, rising raw material prices and skilled operations. Technicians, etc.


Finally, he quoted Smithers Information Inc., the global label printing market (including all decorative technologies) totaled $34.5 billion in 2016 and is expected to grow to $44.8 billion in 2021, meaning that in five years, the entire market will Will grow by 10 billion US dollars. At present, the consumption of labels in Asia has accounted for more than 40% of the total global consumption, and the scale continues to expand. It is self-evident where the future market is.

Southeast Asia, another battlefield of the Chinese Label Legion?

Chinese Legion


From the perspective of the first Southeast Asia International Label Printing Exhibition, mainstream suppliers at home and abroad have participated in different degrees. For example, traditional printing equipment suppliers Mai Andi, Nilpeter, Omit, Bobst, Gallus; digital equipment suppliers HP indigo, Xeikon, Domino, Epson and Konica Minolta, Durst and Dilli, etc. They are exhibiting directly or with agents, and most of them carry equipment to the show. From the effect of on-site display, the Southeast Asia International Label Printing Exhibition has more European and American equipment on display at the Asian International Label Printing Exhibition held in Shanghai last year, and it is also more international. This is closely related to the development level of the local manufacturing industry. Unlike the well-known national enterprises in China's label industry, the processing equipment and processing materials in the region are heavily dependent on imports, and the fast-growing economic and demographic dividends have also prompted Southeast Asia. It has become one of the hot markets pursued by international printing equipment manufacturers and material processors.


In recent years, Chinese companies have produced a number of outstanding enterprises in various fields such as printing equipment and self-adhesive materials. Their professionalization level and product technology content have risen several steps. From the perspective of printing machine manufacturing, Chinese companies react very quickly to market changes. Most of the core components of the machine, such as servo drives and control software, come from high-end manufacturers and software companies, equipment stability, combined process and automation. The degree is high, and the price advantage is obvious compared with the European and American manufacturing. More and more Chinese label printer manufacturers go abroad. More than 50 domestic companies participated in this year's Southeast Asia International Label Printing Exhibition, accounting for about one-third of the total exhibition area. It is the largest source of exhibitors in the exhibition. Enterprises such as Suigang, Wanjie, Zhongte, Yuantie, Liguan, Botai and Ruibang all displayed equipment at the exhibition.

Zhejiang Qiangang exhibited a popular model - ZJR-330 unit type (sleeve) flexo printing machine. The machine has a maximum printing speed of 200m/min and a maximum printing width of 330mm. It can be used for 4-12 color custom color combination. Spring Xu, the sales manager of Suigang International, said: "We have installed a number of embossing machines and offset presses in Southeast Asia. Similar to China, there are also a large number of short and medium orders in Southeast Asia. In the past, local processors used embossing machines and offset printing. Machines to process these jobs. But we also see many companies turning to flexo technology.” Zhejiang Shigang has ZJR-330 flexo press users in the Philippines and Bangladesh.

Zhejiang Yugang ZJR-330 unit type (sleeve) flexo printing machine

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Zhejiang Zhongte Machinery Technology Co., Ltd. exhibited ZTJ-330 intermittent letterpress printing machine and Super-320 intermittent offset printing machine. After the exhibition, the two equipments will be settled in Thailand. “We have noticed that there is a great demand for the two technologies of embossing and offset printing in the Southeast Asian market.” Zhou Xiaoyan, the sales manager of Zhongte International, said in detail, “We met with a group of high quality Thai, Indonesian and Vietnamese customers during the exhibition. The Southeast Asia International Label Printing Exhibition is the best choice for us to create a brand in the region."


Hebei Wanjie Exhibition will showcase the latest PS version of the intermittent offset press. Hu Yongjie, general manager of Wanjie Technology Co., said that the equipment has been ordered on site. After the exhibition, Wanjie received multiple equipment orders.


Guangzhou Pu Lisi Technology Co., Ltd. exhibited the EAIM-330ST full servo automatic inspection machine. Liu Wei, deputy general manager of the company, said that only seven orders were signed at the exhibition site, three of which were sold to India, two to Thailand, and two to Vietnam.

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LISIM EAIM-330ST full servo automatic inspection machine


Liguan and its agent Press system exhibited two equipments: TOP-330Twins round-press high-speed self-adhesive die-cutting machine (intermittent die-cutting), the machine supports boarding cards, bottom embossing; Kiss-330 flat pressure The flat die cutting machine has a top speed of 120 m/min and a minimum frame of 1.5 mm.

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力冠TOP-330Twins round pressure high speed self-adhesive die cutting machine


Press system sold the first force crown equipment to Thai processor Simat Label. Press system executive director Benjamart Fagg said: "The show was very successful, during which we established contacts with many new customers from Thailand, China, Europe, India, Japan, Indonesia and Taiwan."


Liaoning Dazu Guanhua Printing Technology Co., Ltd. exhibited two laser die-cutting equipment through its Sansin International Holdings Group (SanSin) in Southeast Asia. Sanxin International Holdings Group has five independent subsidiaries, one branch and one supply management center in Southeast Asia. The main agent is printing and packaging products from mainland China, and has a strong sales and customer service network in the Southeast Asian market.


Through the exhibition, Botai sold one FS330 and DCF330 postpress equipment to Thailand and Malaysia respectively. Li Xin, Managing Director of Botai, said: “The Southeast Asian market is developing very well. Many printing companies are very concerned about digital printing, flexo printing and embossing technology. The labor costs here are increasing, and label printing companies are also beginning to purchase more automation. Processing equipment. We have noticed that the markets in Singapore, Malaysia and Thailand are continuing to grow."

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Botai booth


Lingyunguang Technology Group exhibited the latest LabelRoll-H series label offline printing quality inspection equipment. “We are very optimistic about the growth potential of the Southeast market. At present, our customers in Southeast Asia are located in South Korea, Malaysia, Vietnam and the Philippines. Nearly 20 sets of inspection systems have been installed in Thailand.” Li Gang, head of printing international business of Lingyun Group, said "The first Southeast Asia International Label Printing Exhibition was very successful. During the three-day exhibition, two customers from Thailand and Malaysia signed a contract on site to order our inspection system."


Shenzhen Ruibang Precision Machinery Co., Ltd. exhibited 330mm wide bronzing and die-cutting equipment with a maximum operating speed of 80m/min. Zou Qiumian of Ruibang Company said that the company has received a large number of orders at the exhibition site, and customers are very concerned about its high-speed die-cutting equipment.


Beijing Langshuo Digital Technology Co., Ltd. is a ribbon manufacturer. Although it is the first time to participate in the series exhibition of Labelexpo, the general manager Zhang Tao sincerely said that the Labelexpo series exhibition is very professional. The Southeast Asia International Label Printing Exhibition is the first time. It is organized and small, but the leading companies in the domestic and international carbon belt industry are involved, which shows the influence of the organizers in the world.


Deng Jiajun, Sales Director of Shanghai Jinda Plastics Co., Ltd. said that since Shanghai Jinda first participated in the first Asian International Label Printing Exhibition held in Shanghai in 2003, it has had a close relationship with Labelexpo. Subsequently, Jinda went abroad to participate in successive exhibitions held in Brussels, Chicago and New Delhi, and gradually realized the strategic layout of globalization. Shanghai Jinda has been involved in the Southeast Asian market for many years. Deng Jiajun believes that Southeast Asia, Eastern Europe and South America will be the high growth areas of Jinda's future business.


Although compared with the exhibition area of more than 20,000 square meters of the Asian International Label Printing Exhibition, the scale of the first Southeast Asian International Label Printing Exhibition is not well-recognized, and the number of 7 934 professional visitors is relatively large compared to the domestic 20,000-odd audience. However, after communicating with industry colleagues, the author generally believes that although there are various pressures in Southeast Asia, there are many market opportunities, especially in Southeast Asia, which is much better than domestic label printing manufacturers.


It is reported that some domestic printing companies and suppliers with a spirit of hard work are preparing to enter the Southeast Asian market and start investing in Thailand or Vietnam. With the cautious attitude, work efficiency and dauntless market development progress of Chinese companies, it is believed that the Southeast Asian market will become another important battlefield for the Chinese Label Legion.


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