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As the cost of self-adhesive materials increases, how do label printing companies "accept the trick"? Listen to the voice of label printing companies!

Affected by subjective and objective factors and a variety of emergencies, the current printing and packaging market as a whole is full of uncertainty, competition pressure and survival risk increase, and label printing companies also feel the same. In order to allow colleagues in the industry to gain timely insight into the market, find the right direction, and adjust the layout, the label technology WeChat official account grandly launched the "Label Talk" column, which aims to invite representatives of upstream and downstream companies in the label industry chain to express their views on a hot topic or emergency in the industry , Through the exchange of ideas, collision sparks, precipitation experience, and jointly grasp the pulse of development, all colleagues in the industry are welcome to participate actively.


-Label Technology Editorial Department


After the Spring Festival, the raw material price increase letter was overwhelming, and the coming force was fierce, causing panic in the market. The increase in the price of raw materials directly leads to the increase in production costs of enterprises, and the pressure to survive increases sharply. In this column, we are talking about: "The cost of self-adhesive materials has increased, how should label printing companies "accept"?" This is a hot topic after the Spring Festival. I believe everyone feels more or less about it. . In this article, let us listen to the opinions of the representatives of the 4 label printing companies on this topic and their responses.


Lu Guoqing, Deputy General Manager, Printing Branch, Yantai Shenma Packaging Co., Ltd.


After experiencing the severe impact of the epidemic in 2020, the market in 2021 has high hopes. However, with the recent surge in raw material prices, the cost increase has once again compressed the profit margins of label printing companies. In addition, the intensified external market competition has made the performance sprint of label printing companies increasingly difficult.


After the Spring Festival, the price of self-adhesive materials used by our company has increased between 3% and 5%, which is still within the acceptable range for the time being. However, due to the increase in the price of raw materials from our suppliers upstream suppliers, the prices of our suppliers have increased again. Rising, some suppliers have issued new price increase letters, which may also have a new round of price increases.


The price of raw materials such as self-adhesive, bronzing foil, plate material, etc. has risen, and labor costs have become the norm. This has led to a continuous decline in corporate profits, which in turn affects our companys new technology investment approval and employee benefits. In response to this impact, our company will take corresponding measures from both short-term and long-term aspects.


  Short-term measures:


1. Prepare inventory according to quarterly orders, and use multiple orders to save part of the cost;


2. The group company unified the bidding price comparison, and then stabilized the purchase price;


3. Based on the growth of raw and auxiliary materials last year and the beginning of the year, communicate with customers in a timely manner, negotiate and adjust product sales prices, and maintain low-profit operations.


  Long-term measures:


Apply new materials and functional processes to the development of new products, and increase the sales price of products by further enhancing the added value of products.


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