After clarifying the die-cutting and die-cutting materials, let's finally briefly talk about the overall development status and characteristics of the domestic die-cutting industry:
1. The threshold is low. The low threshold in the die-cutting industry is basically a consensus among all industry practitioners, as only one punch or die-cutting machine can open a small factory, resulting in a large number of small companies in this industry. I once encountered 7 small die-cutting factories on the first floor of a factory building in Xixiang, Shenzhen! There are tens of thousands of die-cutting factories of all sizes in the peak period of the entire Shenzhen region, and of course, Shenzhen was once the most concentrated area for die-cutting industry companies.
2. Polarization. Although the entry threshold for the die-cutting industry is very low, there has been a serious polarization in high-end precision die-cutting processing and material production. For example, in the past 20 years, some precision die-cutting processing companies have basically been controlled by a few large companies in the die-cutting industry with an annual output value of over one billion yuan, while more than 95% of other die-cutting factories have experienced severe technological assimilation, with fewer and fewer companies leaping forward! So there are not many companies in the die-cutting industry with an annual output value exceeding one billion yuan, but there are many companies with an annual output value below one million yuan!
3. The competition in the mid to low end industries is fierce and moving towards internalization. Especially in some low-end industries, such as ordinary floor mat Double-sided tape protective film, these low-end industries have begun to show an obvious tendency to roll in, and the industry profits are very low. From this, we can find a basic phenomenon: there are some relatively large companies in the die-cutting industry, most of which entered the industry ten or even early twenty years ago. At that time, the industry's profits were high, so the company's scale developed rapidly. The small die-cutting companies established in the past five years have basically developed slowly. If the same investment started to develop, the profit margin of the die-cutting industry 10 or 15 years ago was 100%, and the Gross margin today is only about 30%.
The development of the die-cutting industry is constrained by the overall economic development, especially the development of the consumer electronics industry. Die cutting processing is only an auxiliary industry for industrial materials, so its development follows the development of major industries such as consumer electronics. After nearly 15 years of rapid development, the consumer electronics industry has reached a bottleneck period in the industry, and the incremental market has been basically divided up by several large companies! So the emerging fields such as 5G, new energy, and artificial intelligence in the future are the main directions for the development of the die-cutting industry.
5. The self innovation and technological development of the die-cutting industry itself are relatively slow! In the past 20 years, although the die-cutting industry has become bigger and bigger, overall the technology in the die-cutting industry has not changed much. Today's technology is basically the same as the processing technology 15 years ago. So the die-cutting industry itself, whether considering cost reduction innovation or the production process of some die-cutting materials, needs to undergo higher development and changes. Especially in the field of die-cutting equipment, the development has stagnated, without more breakthroughs in digitalization and intelligence in 5G and artificial intelligence. In the future, more consideration should be given to the artificial intelligence of die-cutting equipment, in order to improve efficiency and reduce labor costs.
The comprehensive output value of the domestic die-cutting industry in 2021 is approximately 500 billion yuan (including all end customers' own die-cutting output value), of which 90% is concentrated in large companies and 10% is dispersed in small and medium-sized die-cutting companies. The die-cutting industry is now completely a traditional industry and is no longer an emerging industry that just separated from the printing industry 20 years ago. Therefore, in order to develop rapidly in this industry in the future, we can only innovate production technology and marketing methods. Otherwise, except for a few large companies with certain high-precision processing, the vast majority of enterprises in the entire industry will enter the industry in the next decade, Of course, the entire economic pattern for any industry is high-speed development, uniform development, low-speed development, stagnant development to reshuffle! At present, the die-cutting industry is about to enter a low-speed development stage from a uniform development period, and some segmented die-cutting industries have entered a stagnant development stage in individual fields from a low-speed development stage! Of course, after this special period, I believe that the die-cutting industry will develop faster, better, and larger in the future, especially towards a new era of high-quality development!
