In recent years, printing e-commerce is in the era of fierce competition in the Warring States Period; manufacturers have been evolving from birth to death, and even the original printing e-commerce has been in the back seat. So, as a whole, or as a new business model, does printing e-commerce exist in its essential basis for survival and development? What is this basis?

When discussing this issue, one of the most stringent social conditions should be given, that is, after sufficient market competition, the price of printed matter is both transparent and lowest. For the sake of calculation, we first assume that the price of printing products received by printing e-commerce is the same as that of offline printing companies.

If the same printed matter is accepted by the printing e-commerce first-hand, the cost and profit of the printing e-commerce must be subtracted from the price of the printed matter. Then the price paid to the printing company that accepts the printed matter is less than when the printing company directly accepts it. How can the printing company make up for the reduced price and also generate profits? Only on the basis of the current level, further reduce costs.

Everyone in the printing industry knows that reducing the variable cost of producing printed matter has very limited space, and I will not discuss it in depth here. At present, some printing e-commerce companies have set up a printing material procurement platform for printing companies that have joined in, and seeking discount prices in large batches is one of the effective ways to reduce the variable cost of printed materials.

I think that finding ways to reduce the unit allocation of fixed costs for printed matter may be a broader and feasible way. The specific logic is as follows.

Fixed cost of printing products per unit during the period = total cost of the printing company during the period / number of printed products during the period. Under the premise that the resource allocation of the Indian company is unchanged, generally the fixed total cost, which is the value of the numerator in the formula, is also basically unchanged. If you want to reduce the allocation value of unit prints, you need to produce more prints, that is, increase the value of the denominator in the formula. There are two ways to increase the denominator value. One is that different printing companies take the road of specialization in printing products that are good at their respective categories, and it is only possible to use standardized operations to improve efficiency and produce more than in the past. For example, Shengtong Printing Co., Ltd., concentrating the same kind of printed matter with the same specifications on a production line or a branch to produce, is a precedent worthy of serious study by printing companies, especially printing companies that cooperate with printing e-commerce. The second is that the number of printed matter that printing e-commerce companies can provide to cooperatively joined printing companies is more than the number of printing companies that they have undertaken in the past.

Based on the above discussion, I believe that in the future, printing companies that have joined cooperation with printing e-commerce must abandon the all-product model of doing everything and take the road of product specialization, so that it is possible to co-exist with printing e-commerce and even suppliers. ,Develop together.

Kunshan Printing