Industry Features

Printing is a supporting industry to publishing, advertising and various light consumer goods industries (toys, food, cosmetics etc). It is a leading manufacturing industry in Hong Kong. Most of them are small and medium enterprises (SMEs) in Hong Kong. The industry has undergone a decline since the mid-90’s, owing both to a relocation of activities to mainland China and to the expansion of the Internet and the consequent drop in newspaper and magazine sales.

Printers in Hong Kong produce a wide range of printing materials, including books, booklets, brochures and leaflets, and paper and paperboard labels, advertising materials, commercial catalogues, calendars, postcards and greeting cards. Some specialise in the production of higher value-added / high tech printing products, such as children's novelty books with pop-ups and additional objects, cheque books, passports, bills and statements, securities and prospectuses etc. that require considerable skills, substantial capital investment and confidentiality.

Overseas customers are increasingly looking for faster turnaround and shorter delivery time in order to maximise return through smaller but more frequent orders. Hong Kong printers are known for quality, quick delivery, competitive pricing and ability to cope with short-notice printing jobs. The quality is comparable to that of the US, Germany and Japan, the pioneers in printing technology. The ability to meet high quality requirements has allowed Hong Kong to become a top printing and publication centre in the world, despite the increasing price competition from mainland printers.

Hong Kong's excellent telecommunication networks are great assets of the industry. In effect, publishers in Hong Kong can quickly access information from various parts of the world, an advantage of vital importance to time-sensitive publications. With proximity to the mainland market and a high degree of freedom of the press, Hong Kong has attracted many international publishers/news agencies (esp. media firms) to set up regional centres here. The Financial Times (Asia Edition), The Economist, The International Herald Tribute, The Asian Wall Street Journal, USA Today International-Asia, Nikkei and Far Eastern Economic Review are all printed in Hong Kong and some are shipped into China for distribution. Locally, there are some 50 newspapers and over 700 magazines and other periodicals in Hong Kong.

Printing is an industry with constantly updating technology. The ability to catch up with new production techniques is thus crucial. Hong Kong printers are equipped with advanced models of lasersetters, electronic colour scanners, electronic page-composing systems, digital printers, automatic finishing systems and one to five-colour printing machines. Many Hong Kong companies are equipped with lamination machines, die-cutting, paper-cutting, shrink-wrapping, folding, hot-stamping and binding machines, etc. to keep the production process in-house to ensure a quality product. Some have also introduced computer-to-plate (CTP) systems, as well as equipment for security printing.

Performance of Hong Kong's Exports of Printed Matter ^

^Since offshore trade has not been captured by ordinary trade figures, these numbers do not necessarily reflect the export business managed by Hong Kong companies.
* Insignificant

Sales Channels

An estimated 60-70% of the export business is attributable to orders received directly from overseas countries. Within this, about a quarter of them come from major international publishers in Hong Kong. Export orders are mainly handled by larger printers or dealers, who have established business relationships with overseas customers. In an effort to capture overseas business, large Hong Kong printing companies have established offices overseas.

In order to expand business networks, explore market opportunities, and promote company image abroad, Hong Kong manufacturers and distributors may participate in trade fairs and study missions organised by the Hong Kong Trade Development Council (HKTDC), such as the Hong Kong International Printing and Packaging Fair. TDC also organises from time to time study or match-making missions for Hong Kong manufacturers to visit specific markets for exploring business potential and establishing new business relations. Other important fairs include Drupa, IPEX, All in Print, Graph Expo and Print 01 etc.

Industry Trends

Many trends in printing pertain to the advent of new technology or production techniques. Filmless printing, such as computer-to-plate (CTP), is becoming mature. With CTP technology, images can be transmitted onto a zinc plate directly without the process of colour management and making colour separation films. This development can shorten the prepress production time and produce more defined images.

Digital printing enables direct imaging - texts and graphics going directly from the computer to the printing machine without the use of plates. This shortens production time and cost, and improves speed, accuracy and print quality. It is easy to operate and suitable for printing small quantities with flexibility, short lead time and customisation (e.g. advertisements and personalised direct mailing, tickets).

Some printers are also offering the “total solution”, including auxiliary services like design, data-processing, translation and editing and electronic publishing etc. Some large printers have developed vertically, such as manufacturing or trading paper, or forming strategic partnerships with suppliers, in order to reduce the effects from paper price fluctuations and allow the company to have better control of material supplies. In other cases, certain work processes, such as colour separation, which used to be subcontracted out, now tend to be internalised. This is made possible by new equipment, which incorporate and automate more prepress or finishing functions e.g. cold foil finishing, die-cutting, coating etc. This would not only help printers achieve scale economies, but also have better control on quality and streamline production processes. Leading printers are pursuing the ISO 9002 accreditation.

Social-economic developments have great bearings on the industry. As the home printer becomes common, the printing industry is striving for sophisticated printing e.g. four colour printing with complex format and in large quantities, metallic colors, foil stamping or fluorescent colors etc. Furthermore, the increasing popularity of CD-ROMs or electronic publications may undermine the prospects of traditional printed publications.

To reduce operation costs, local printers (mostly larger sized) have shifted a major share of their operations to China. However, they maintain their Hong Kong offices to receive overseas orders. They are also increasingly making use of high tech to cut costs e.g. overseas buyers could place orders from abroad through broadband connections, given they are confident with Hong Kong printers’ reputation and wanted to maintain their long standing business connections. The clumsy processes of specifying requirements, enquiries, checking the sample draft, amending information, confirming order etc. could all be finished online. Also, production processes are being automated with computer systems. Printers are increasingly making use of information technology to manage production processes.

CEPA Provisions

The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) was concluded in June 2003 and subsequently expanded in 2004-06. All products made in Hong Kong, subject to CEPA's rules of origin, enjoy duty-free access to the Chinese mainland. Detailed information is available from the following hyperlink:
http://www.tid.gov.hk/english/cepa/tradegoods/files/mainland_2009.pdf

Product Trends

Children books are becoming more sophisticated as children do not only read books, but they may also listen and talk to them, use them to build models or solve puzzles, or even play with soft toys that are housed inside the book.

The rising trend of distance learning, where teachers and students are geographically separated, will rely on electronic devices as well as printed matter for information exchanges. Demand for printed matter related to educational purpose is expected to increase.

Traditional printed products are required to have innovative designs to meet the needs of various market segments. For example, everyday items such as calendar can take different forms from desktop models to large 3D wall calendars. Higher printing quality is required, thus 5-colour/7-colour presses are being introduced. There are also innovations in ink e.g. a printing scent with various flavours has been introduced.

Holography is a method of recording and reproducing the complete image of a three-dimensional object. This method has only been used for certain purposes, such as the use on credit cards. But technology improvement has made mass production of holograms possible, and they are being used on various forms of packaging, including labels. Separately, changes in the operation of the distribution sector have also resulted in an increasing demand for bar code printing.

As emphasis on packaging increased, users of packaging require better quality materials e.g. highly embellished folding boxes, tamper proof and safety features, pressure sensitive self adhesive labels with no label look, media and heat resistence and deep freeze products etc.

As publishers pledged to be more environmentally friendly, printshops are pushed to use more environmentally friendly supplies e.g. recycled paper and synthetic paper (which may affect printing quality and needs adjustment on printers’ part), UV ink and ink based on beans (which would reduce the use of chemical solvents in cleansing). The chemical-free plate system is introduced, which does not require the use of chemicals.

More products could now be printed in printing machines. Fabric printing (on polyester and silk, for example) for making fabric posters has been introduced. Commercial wallpapers could now be printed. Plastic products like desk pads, mouse pads are also printed.