Major printers relocate to Mainland to reduce costs

But they maintain their Hong Kong offices to receive overseas orders.

Printing is a support industry for publishing and advertising, and also for various light consumer goods industries (toys, food, cosmetics etc). Most printing companies in Hong Kong are small and medium enterprises (SMEs). They produce a wide range of printing materials, including books, booklets, brochures and leaflets, paper and paperboard labels, advertising materials, commercial catalogues, calendars, postcards, and greeting cards. Some specialise in the production of higher value‑added/hi‑tech printing products, such as children’s novelty books with pop‑ups and additional objects, chequebooks, passports, bills and statements, securities and prospectuses. Creating these products requires considerable specialist skill, substantial capital investment, and confidentiality.

Major printers have relocated production to mainland China with purpose‑built plants to reduce operation costs. Such development has changed the workflow and logistics and greatly improved efficiency and output quality. However, they still maintain their offices in Hong Kong to receive overseas orders. The ability to meet high‑quality requirements has allowed Hong Kong to become a major global printing and publication centre, despite the increasing price competition from mainland printers. Rising labour costs on the mainland are encouraging greater automation and mechanisation. Automation can also reduce human errors whilst increasing efficiency, productivity, and quality.

Overseas customers are increasingly looking for faster turnaround and shorter delivery time in order to maximise returns through smaller but more frequent orders. Hong Kong printers are known for quality, quick delivery, competitive pricing, and the ability to cope with short‑notice printing jobs. Their quality is comparable to that of printing businesses in the US, Germany, and Japan, the pioneers in printing technology. Hong Kong printers are also known for their inventiveness and willingness to find solutions to production problems.

Sales channels

A large share of the export business is attributable to orders received directly from overseas countries. This also includes orders 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 their company image abroad, Hong Kong manufacturers and distributors 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. Another important international trade fair is Germany’s Drupa.

Industry trends

Many emerging trends in printing pertain to the advent of new technology or production techniques. Digital printing has gradually developed and been applied in a wide range of fields within the printing industry. Inkjet has become a preferred choice for most magazine/ book printers with the improvements of inks which are able to stick to gloss‑coated paper without the need for pre‑treatment. 3D printing has caught significant attention within the print industries and more utilisation is expected in the future. 3D printing technology will become increasingly low‑cost and support rapid prototyping processes and the manufacture of end‑use parts.

E‑commerce will continue to be an important channel for procurement in printing. The clumsy processes of specifying requirements, enquiries, checking the sample draft, amending information, confirming the order and so on, can all be done online. Besides, through the online portal, consumers can receive quotations with greater ease and speed, and products such as banners and brochures can be ordered and shipped more quickly.

Automation is another trend. This helps cut costs, improve quality and speed up the production process. For example, a printer can set up pre‑designed templates for frequent print orders such as business name cards so that they will be readily available to print on demand. The automated function of bulk uploading allows business name cards for multiple people to be ordered at the same time with a single digital file, saving time and effort, and ensuring consistency. With the rise of on‑demand printing production in smaller quantities, automation also allows printers to

In an effort to capture overseas business, large Hong Kong printing companies have established offices overseas “Many emerging trends in printing pertain to the advent of new technology or production techniques.”

Performance of Hong Kong’s Exports of Printed Matter

Domestic Exports Re-exports of Chinese Mainland Origin Total Exports

SOURCE: Hong Kong Census and Statistics Department 2019 2020 Jan-May 2021

HK$ million Growth% HK$ million Growth% HK$ million Growth% 1,374 +31.0 1,053 -23.4 473 -0.8 15,735 +0.8 12,805 -18.6 6,808 +14.9 13,254 -5.3 11,148 -15.9 5,772 +13.2 17,110 +2.7 13,858 -19.0 7,281 +13.8

make adjustments and changes quickly with guaranteed precision and productivity.

Advertising and marketing materials would remain one of the largest sectors of the printing industry, despite the rise of online advertising. Posters, flyers, brochures, and other promotional materials are now printed mainly using digital technology. Digital printing enables direct imaging – sending texts and graphics directly from the computer to the printing machine without the use of plates. This shortens production time and cost and improves speed and accuracy. It is easy to operate and is suitable for printing small quantities where flexibility, short lead time, and customisation are important. Digital printing also enables the development of personalisation in packaging.

Some printers are also offering the “total solution” service, which includes auxiliary services like design, data processing, translation and editing, and electronic publishing. A number of large printers have developed vertically, such as manufacturing or trading paper, or forming strategic partnerships with suppliers, in order to minimise the effects of paper price fluctuations and allow the company to have better control over material supplies.

Product trends: interactive design and new substrates

Traditional printed products need more interactive designs to meet the emerging demands of various market segments. Children’s books, for example, are becoming more sophisticated as children now expect to interact with them. They may 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. C&C Joint Printing, a leading printer with almost 40 years of operations in Hong Kong, incorporated augmented reality (AR) in the production of The Story of Gingerbread Man children’s book to create a more fun reading experience. The ability to print on non‑paper materials such as glass, textiles, and metal has also become more important for printing companies to enhance offerings and attract more customers.

Personalisation and sustainability

With the rising adoption of inkjet technology in commercial printing, printers can create more personalised books such as planners and notebooks. It allows personalisation in all aspects, including the cover, back and spine design, font and colour as well as the interior design and format.

As publishers pledged to be more environmentally friendly, the focus on sustainable printing practices will inevitably continue. Print facilities are using more environmentally friendly supplies such as recycled paper and synthetic paper, polyester‑based fabrics, UV ink and soy/vegetable‑based ink. The chemical‑free plate system has also been introduced. Some printers are also embracing technologies such as on‑demand printing and variable data printing as well as implementing in‑house recycling facilities in order to reduce wasteful production practices caused by overprinting.

“The focus on sustainable printing practices will inevitably continue.”

The Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA)

CEPA was concluded in June 2003 and subsequently expanded in the following years. All products made in Hong Kong, subject to CEPA’s rules of origin, enjoy duty‑free access to the mainland.

General trade measures affecting exports of printed

The US Consumer Product Safety Improvement Act of 2008 (CPSIA) requires manufacturers and importers to show that products intended for children under 12 do not contain harmful levels of lead and phthalates. This applies to art materials, crafts, books, and magazines marketed to children under 12 years old.

The EU’s Toy Safety Directive (Directive 2009/48/EC) came into effect on 20 July 2011. Any books falling under the definition of a toy must be compliant with the directive if sold on the European market.

Switzerland is the only European country that currently has legislation in place to regulate food packaging printing inks. It prohibits direct contact of printing inks with food and identifies the only substances which are allowed to use on food packaging.