Japanese Printing Industries · Printing companies are using W2P service to handle their small qty jobs. ... Offset Presses ・Sheet-fed Press： ... No of Web Presses (publication

Japan Federation of Printing IndustriesJapan Federation of Printing Industries

Japanese Printing Industriescurrent status of Japanese printing industries

June 6, 2014

Japan Federation of Printing Industries

General Mgr, International Relations

Kunio Ishibashi

Japan Federation of Printing IndustriesJapan Federation of Printing Industries

Japanese Printing Industry Key Figures & Trend

Printing Industry Status

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Japanese Printing Industry Trend & GDP

company employee shipment GDP

Key Figures 2011

Company 26,145

Employment 311,383

Shipment Yen 5,709B($57.09B)

GDP

employment

shipment

company

Comparing with year 2000, GDP has increased to 107% in 2011 but figures for

printing industry all went down.(company 65%, employment 73% ,shipment 70%)


Commercial Printing

33%

Publication Printing

26%

Packaging19%

Forms & Data Print

13%

Building & Decorative4%

Security Printing1%

Others4%

Status of major business segments

- Commercial Printing is the largest

business segment which can be

affected by advertisement budget.

- Publication has been facing with impact

of internet and mobile.

- Package printing has been increasing in

volume in spite of shrinkage in most of

other printing segments.

- Business Forms has been decreasing but

increase of data print services for

statement, invoice, direct mail etc. had

helped the growth of this market. However data print

service is finally started to saturate.

Market Segments



Company Size Distribution

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

company employee shipment

Numbers of company, employee & shipment by company size

500 or more

200-499

100-199

50-99

20-49

10-19 people

4-9 people

3 or less

Business Segments

pack

company sales($M) print indst elect other

1 Toppan 15,104 58 25 17

2 Dai Nippon 15,072 47 34 15

3 Toppan Forms 2,270 79 21

4 Kyodo 970 78 20 2

5 Nissya 801 23 45 32

6 Tosyo 597 100

7 Kousaido 389 54 46

8 Kyoritsu 353 100

9 Takeda 328 64 36

10 Asahi 297 93 7

98.6% of companies are SME with below 100 employees and 45.8% are below 3.

41.4% of shipment is from 1.4% of companies with more than 100 people.

10 Major Printing Companies

Diversified Business Segments


Yen100=$1.00


Export & Import of Printing

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2006 2007 2008 2009 2010 2011

Val

ue

(B

Ye

n)

Year

Export & Import

Import$964M

Export$378M

Printing is very domestic oriented business in Japan.

Export of 2011 is 37.8B Yen($378M) and Import is 96.4B Yen($964M) which

are 0.6% and 1.5% of entire Japanese printing industry volume.



Publishing Market

0

500

1000

1500

2000

2500

Am

ou

nt

(Bill

ion

Ye

n)

Year

2006 2007 2008 2009 2010 2011

book 933 903 888 849 821 820

magazine 1220 1183 1130 1086 1054 984

total 2153 2085 2018 1936 1875 1804

Book & Magazine Shipment

$8.2 B

$9.84B

$18.04B

Total

Magazine

Book

Books and magazines are showing continued decline. Book are a bit more

stable than magazines.


Advertisement Market

MediaAdvertisement expense（$M) Comparison Comparison

2006 2007 2008 2009 2010 2011 2012 2013 2013/2012 2013/2006

Total Advertisement expense

69399 70191 66926 59222 58427 57096 58913 59762 101.4% 86.1%

4 Major Media 36668 35699 32995 28282 27749 27016 27796 27825 100.1% 75.9%Newspaper 9986 9462 8276 6739 6396 5990 6242 6170 98.8% 61.8%Magazines 4777 4585 4078 3034 2733 2542 2551 2499 98.0% 52.3%Radio 1744 1671 1549 1370 1299 1247 1246 1243 99.8% 71.3%TV 20161 19981 19092 17139 17321 17237 17757 17913 100.9% 88.8%

Satellite TV 544 603 676 709 784 891 1013 1110 109.6% 204.0%Internet 4826 6003 6983 7069 7747 8062 8680 9381 108.1% 194.4%Promotion Media 27361 27886 26272 23162 22147 21127 21424 21446 100.1% 78.4%

Outdoor Ad 3946 4041 3709 3218 3095 2885 2995 3071 102.5% 77.8%Transportation 2539 2591 2495 2045 1922 1900 1975 2004 101.5% 78.9%Newspaper Insert 6662 6549 6156 5444 5279 5061 5165 5103 98.8% 76.6%DM 4314 4537 4427 4198 4075 3910 3960 3893 98.3% 90.2%Freepaper 3357 3684 3545 2881 2640 2550 2367 2289 96.7% 68.2%POP 1845 1886 1852 1837 1840 1832 1842 1953 106.0% 105.9%Tel Directory 1154 1014 892 764 662 583 514 453 88.1% 39.3%Exhibition etc 3456 3584 3196 2775 2634 2406 2606 2680 102.8% 77.5%

Yen100=$1.00


Recent Trends (1): Increase of W2P Online Printer

• Market Size & Trends

Current estimate is approx 50B Yen($500M)

Some estimate the market to grow to 200B – 300B Yen （$2B-3B) in future.

Customer of Online Printer is not always consumer or end users. Printing

companies are using W2P service to handle their small qty jobs.

Several Online Printers are now becoming dominant players and it is getting

harder to establish market position for new entrants.

• Effect of Online Printer

Price pressure for existing business.

Online Printers are actively implementing standardized color management

scheme like Japan Color(similar to Fogra in Europe) in order to reduce

tedious color proofing.

Delivery time can be longer if it cost less. (In past, people always request for

quick delivery.)

specification delivery 100cps 1K cps 10K cps

A4 1page 4C front & back 9 days $39.6 $58.2 $274.2

A4 8 pages 4C saddle stitch 10 days $249.9 $393.3 $1,156.2


Recent Trends (2): Digital Press

• Still Small % of Print Market

Though digital print market is growing, forecast for 2014 is 294 Billion Yen

($2.94B) which is still relatively small % of entire print market.(approx. 5-6%)

• Data Print Service is dominant usage

More than 70% of digital print jobs

are “data print service” related which

include statements for banks/telco,

DM, and educational excise book.

Book is still in limited usage.

Printing($M) 71420 69040 63210 61760 57090

% of Digital 3.6% 4.0% 4.4% 4.2% 4.7%

2007 2008 2009 2010 2011 2012 2013 2014

Digital 2542 2742 2791 2596 2681 2818 2900 2935

Data Print 1890 2005 2030 1865 1971 2100

0

500

1000

1500

2000

2500

3000

3500

Digital Printing Shipment Value

Digital Data Print


Recent Trends (2): Digital Press

・JFPI has conducted survey on Digital press usage

-When digital exceeds analog?

within 3yrs 2%,

3-5yrs 21%,

5-10yrs 54%,

10-15yrs 7%,

15-20yrs 16%

Color67%

B/W30%

N/A3%

Ratio of Color vs B/W

Toner63%

Inkjet34%

N/A3%

Type of Digital Press

5days or more50%

3-4days36%

1-2 days14%

Weekly Usage

Profitable49%

Break even33%

Negative18%

Profitability


Recent Trends (3): Offset Presses

・Sheet-fed Press：Increased use of new UV technologies (Hybrid UV, LED UV etc.)

- lower energy consumption

- advantage of not requiring powder

- capable to achieve quick delivery

- can reduce space for work-in-progress

- easier color management

・Web Press:

- Overcapacity for web press

finally stated to stabilize

- Trend is toward compact and

automated press

- 85% is 4/4, followed by 6.5% 1/1,

3.3% 2/2, 2.5% 5/5

- Sheeting unit is equipped with

36% of presses, perforating unit

is equipped with 12% of presses 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

No of press 1469 1396 1267 1298 1315 1327 1362 1402 1361 1289 1218 1168 1103 1100

0

200

400

600

800

1000

1200

1400

1600

No of Web Presses(publication and commercial printing)


Recent Trends(4) : Promotion of Recycle Oriented Printing・Promotion of Recycle Oriented Printing

Recovered paper occupied 62% of raw material for paper in 2008. Usage of recovered

paper had already reached 93% for cardboard paper but for printing paper, it was only 38%

and it need to be improved. In order to increase usage of recovered paper for printing

paper, printed matter to be more optimized for recycling.

・ What is Recycle Oriented Printing

Recycle Oriented Printing is one which does not contain

adverse material for recycling. We have established rank A to

D in level of recycling adaptability.

Rank A: One which can be recycled to printing paper

Rank B: One which can be recycled to cardboard paper

Rank C: Not suitable for recycling

Rank D: Hinder recycling even with small volume

・How Recycle Oriented Printing is promoted

JFPI is working with Paper Recycling Promotion Center(NPO established by paper mills)

to establish Rank assessment criteria and testing methods as well as certification of

Recycle Compliant Printing Materials. This certification has been applied to EVA hot-melt

adhesives, UV inks, labels, and PUR hot-melt glues.

・This Recycle Oriented Printing is a guide line and there is no specific registration or

application required for printing company. They are responsible for issuing Material

Confirmation Notes to clients which indicate what material are used in the printing.

Website for Recycle Compliant

Printing Material DB


Recent Trends (5): Top 10 Result

Net Sales Operating Income

Break Down

Company $M Yr-on-yrrate(%)

$M Yr-on-yrrate(%)

Print Packageetc

Electronics

Others

1 Toppan 15320 2.0 357.0 11.3 59% 18% 23% 0%

2 Dai Nippon 14486 0.1 501.0 40.0 48% 37% 12% 4%

3Toppan

Forms2614 7.2 123.0 3.2 79% 0% 0% 21%

4 Nissya 1109 24.0 19.4 - 16% 24% 60% 0%

5 Kyodo 945 0.3 21.0 15.8 77% 21% 0% 2%

6 Tosho 559 -2.3 2.3 -54.2 100% 0% 0% 0%

7 Kyoritsu 416 16.9 19.2 2.1 100% 0% 0% 0%

8 Kousaido 371 -4.7 40.0 -6.4 60% 0% 0% 40%

9 Takeda 362 7.7 5.8 11.6 61% 0% 0% 39%

10 Asahi 319 1.8 23.0 2.5 0% 93% 0% 7%

End of March 2014 result Yen100=1.00

Japan Federation of Printing IndustriesPrinting Industry Status

Thank you very much for your attention.If you have any question, please feel free to get in touch with me.

[email protected]

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Japanese Printing Industries · Printing companies are using W2P service to handle their small qty jobs. ... Offset Presses ・Sheet-fed Press： ... No of Web Presses (publication