Global Printing Summit Forum November 13 th, 2011 Shanghai, China The Japanese Printing Industry s Challenges - Recovery from the Earthquake Disaster- - Green Practices- -Creation of a New Market- Satoshi Saruwatari Chairman of the Japan Federation of Printing Industries (JFPI)
1. Recovery from the Earthquake Disaster
1-1. Damages of Earthquake and Tsunami Damage situation of the Great East Japan Earthquake Dead and missing: approximately 20,000 Damage estimated by the government stands at 16 trillion 25 trillion yen Fully or partially destroyed constructions total over 270,000 Sendai Direct damage to printing companies Fully destroyed: 30 Partially destroyed: 10 Tokyo Distance between Tokyo and Sendai: approx. 350 km Damage to printing-related industries Some of major paper manufacturing factories were struck by the earthquake. Procurement of some raw materials became difficult for ink manufacturers.
1-2. Initial Recovery Faster-than-expected initial recovery - Fuel such as gasoline: Gradually stabilized 2 to 3 weeks after the earthquake. - Supply of paper and ink: Secured a reasonable volume except for some products after one month - Restoration of equipment such as printing machines: Promptly recovered with the cooperation of equipment manufacturers. Many were restored in March. Handling of new problems - electricity shortage Companies that use electricity at over 500 KW were legally asked to reduce consumption by 15%. - Change operating days to Saturdays and Sundays when electricity load is small - Operate early morning and at night in order to reduce peak electricity use during the day - Reduce electricity consumption in preparatory work for production and peripheral equipment - Energy saving for air-conditioning equipment and lighting, etc.
1-3. Special Thanks We have received warm support for this unprecedented disaster from various countries. We would like to take this opportunity to express our appreciation.
2. Green Practices
2-1. Progress in Japanese environmental issues - 1950s: Significant, rapid economic growth In particular, air and water environments, etc., deteriorated, mainly in industrial and urban areas. - 1960s: Concerns about serious environmental pollution and the impact on physical wellbeing rose. Developed into a pollution issue Pollution Control - 1967 Basic Act for Environmental Pollution Control enacted, 1971: Environment Agency established - Post 1980: With the effect of national regulations, pollution problems improved, to a point. On the other hand, addressing global-scale environmental issues such as global warming became necessary. - 1992: The United Nations Conference on the Environment and Development was held. (Earth Summit) - 1993: Basic Environment Law enacted - 1997: COP3 (the Kyoto conference): the Kyoto Protocol adopted Environmental Protection 7
2-2. Printing Related Environmental Laws Basic Environmental Law Emission Control Pollution Control Waster Recycle Global warming Prevention Chemical Control Environmental Information/Education Air Pollution Control Law The Basic Law for Establishing recycling-based Society Ozone Layer Protection Law Environmental Consideration Promotion Act Water Pollution Prevention Law Waste Disposal and Public Cleaning Law Energy Conservation Law Environmental Education Promotion Act Sewerage Law Law for promoting effective use of resources Act on Promotion of Global Warming Countermeasures Noise Regulation Container and Package Recycling Act CFC Recovery and Destruction Law Vibration regulation Law on promoting green purchasing PRTR(Pollutant Release and Transfer Register) Act Odor Regulation Act on Special Measures to Dioxins Pollution Control Organization Law Other Control Law Law Concerning Special Measures against PCB waste 8
2-3. Setting up the Green Practices standard 1.Natural symbiosis society (Environment preservation: reduction of environmental pollutants) 3. Recycling-oriented society (material recycling) 3-1. Use of sustainable resources 3-2. Long-term use 3-3. Reuse 3-4. Recycle 3-5. Ease of disposal The JFPI Green Practices standard 2. Low-carbon society (Prevention of global warming: energy saving) 4. Sustained improvement of efforts The JFPI Green Practices standard is adopted as referential material for the basis of the Act on Promoting Green Purchasing. 9
2-4. Environmental efforts by the JFPI Prevention of global warming (Promotion of energy saving) Excellent Environment Factory Award Green Practices Standard (Voluntary efforts) GP certification Scheme VOC handling Compliance with environment-related laws Recycling promotion 10
2-5. Green Practices standard and GP certified system Offset Printing Types of JFPI Green Practice Standard Seal Printing Gravure Printing Screen Printing Procured Material Structures of JFPI Green Practice Standard Production Process Management System Green Printing Factory Certification Scheme Certify a factory which conforms Green Practice Standard. Green Printing Product Certification Scheme A scheme which approves use of GP mark to the product which conforms Green Practice Standard.
2-6. Environmental labels and practical examples Environmental labels listed on the website of the Ministry of the Environment Examples of GP mark, recycle mark GP mark Recycle mark 12
. 3. Creation of a New Market
3-1. 7.4-trillion-yen market in 2020 Other Software service Special printing Package Business Forms Security printing Commercial printing Publishing Unit: million Yen 14
3-2. Market environment over printing (1) - Oversupply Excessive capital investment, decrease in print media, continuing price competition - Progress of digitalization Dissemination of internet, smart terminal (tablet, etc.) and social media Upgrading of digital printing equipment, integration of cloud and printing technology - Printing commoditization In-house printing, competition of surrounding industries - Mega competition Media competition, vertical competition (prepress and post press), international competition - Change in lifestyle Budget-mindedness, energy-saving-mindedness after the earthquake disaster, dwindling birthrate and an aging population, economic recession 15
3 3. Market environment over printing (2) - New business opportunity Solution opportunity with abundant industries, efforts in new industry needs Highly functional material, packaging material, electronic components based on printing technology - Efforts in digital business Digital media, digital promotion business Area, segment-type media business, digital convenience, B to C business - Outsourcing business Expansion of in-house business, expansion of planning or proposing-style business opportunities Personal information-related, system operation, document server center, specialized service - Integration and restructuring Alliance (vertical and horizontal), chain operation, branding - Environment, safety, security Rediscovery of paper usability, electricity saving, paper container, security technology - Global expansion Overseas market entry, alliance with foreign corporations, international procurement 16
3-4. The Direction of printing industry Sustain an 8-trillion-yen industry, while developing a 600-billion-yen new market and business by 2020 1. Expansion of business opportunities: Approaches to various new market opportunities 2. Redefinition of the printing industry: Shifting from homogeneous competition to heterogeneous competition 3. Cross media: Aggressive response to digital media 4. Diversification through printing technology: Highly functional materials, electronics, retail and packaging materials 5. Closer relationships with clients: Business progresses from subcontracting to partnership 6. Acquisition and development of human resources: Improvement of industrial image and aggressive alliance 7. Improvement of profitability: Collaboration among companies and institutionalization Enhanced corporate-management capabilities and strengthened industrial power 17
3-5. The Printing Industry s Vision 2020 Design support Component Solutions & Outsourcing Printed electronics electronics IC CARD RFID Security printing Secure Systems Secure Tools BF Mailing Services Data Print CRM Service Data Center Digitalization Operation service University/ Bookstore Support Contents Distribution ebook Store Photo book Advanced Functional Material Housing Material DB Material Sales Eco Friendly Sheet Design Support Industrial Material System Sales Housing Material Intelligent Package/label Advanced Package material Filling Outsourcing Package Eco Friendly Material Archive Services Commercial Print Digital Signage Publishing Cross media CTS DTP Advanced Function/ Environmental Features CG Design Multi channel solution Marketing Services epublishing Cloud based Print Services Design Services System/DB Web-to-Print Document Center Corporate Print Center Consumer Oriented Print Service Digital Convenience Store Business Model Innovation
3-6. The Printing Industry s Vision 2020 - This is a chart of the printing industry s Vision 2020 that we envision. Core businesses in which the printing industry has been engaged are in the center. However, times have changed, and with only these businesses in the center, the whole industry will deteriorate and be unable to respond to printing requests from a changing society. - We consider the printing industry s evolution in 4 directions. The first is evolution by digitalization. The business concept itself changes. The second is advanced function and environmental features. We respond to society s needs with technology innovation. The third is the entry to solutions and outsourcing. The fourth is the advanced business model. This is pursued and linked up with the other 3 evolutions. With these 4 evolutions, we believe that the scope of business up to now will expand sequentially, and it is possible to reform the business condition. And we hope to secure our position as the 8-trillion-yen industry we have established so far. - The printing industry has overcome many technical and social changes in its history. The challenges I spoke of today are also part of such changes. Moreover, these changes are not only for Japan but will also have an impact all over the world. These are not easy challenges. The printing industries in each country should try to cooperate in areas where we can work together, and it is necessary to stand up to these changes. 19
3-7. Our Mission for the Future - Our printing industry has had a historic mission since Gutenberg, to fulfill a role to provide an information distribution base. We are facing with a great tide of new information-communication technologies such as digitalization and networking. It is a time to re-evaluate true value of printing and its extension of business fields. We will challenge and open the way to the future of the printing industry and we will re-define the meaning of printing By sending this message to you all, I would like to conclude my presentation. Thank you for your attention. Satoshi Saruwatari Chairman of the Japan Federation of Printing Industries (JFPI) 20