In any industry sector you will find that a huge infrastructure develops around a core industry. In Toulouse in France, home to the European Airbus, there are many businesses employing several thousand workers that are all in some way supporting this core aerospace industry. It is the same story with many other industries and regions and the same can be said for the imaging industry and Zhuhai.
Within a two hour commute from central Zhuhai you will find several major OEMs and about five hundred companies all involved in the imaging industry in some way. Some of theses companies are very small, such as import agents and cartridge brokers consisting of one or two people. However, you will also find very large factories employing thousands of people. Such factories employ over forty thousand people, who range from production workers to logistics experts, scientists, engineers, IP lawyers and production engineers to name but a few of the skills and professions you will find in Zhuhai. With so much knowledge and expertise in one place, it is no surprise that Zhuhai has established itself as a centre of excellence for the imaging industry.
The remanufacturing industry is changing all the time and as price pressures grow, many remanufacturers around the world are turning to China-based companies for their outsourcing needs. Zhuhai is the first stop for most remanufacturers when they come to China looking to develop business. Current production estimates for the Zhuhai region suggest that about eight million toner and twenty million inkjet cartridges were remanufactured here last year and the capacity is growing. Estimates for production in 2007/2008 already predict a growth of eleven percent and this is rising. Depending on who you speak with, the production capacity in Zhuhai could double or perhaps triple over the next five to ten years.
This growth is primarily focused on meeting the needs of international customers, but more and more the growth is also essential to meet the needs of the Chinese domestic market. This, like the Chinese economy, is growing rapidly and some companies are seeing their domestic sales double year on year at the moment.
But how does an industry grow so rapidly? Well if you have ever been involved in politics in any Western Country you will know that it can take years to get permission to buy land, build a factory, recruit staff and make your first sale. In Zhuhai the government takes a more proactive approach and there are “turnkey” factories readily available to absorb the expansion. Through various industry groups and associations they have forged strong links with the government. This enables issues to be identified and resolved at the earliest opportunity to the benefit of all concerned.
Import restrictions on empties, new mould products and counterfeiting are all serious issues that impact on the remanufacturing industry. New mould cartridges look nice, but quite often perform poorly or not at all. Meanwhile counterfeits are just that – counterfeits - and they usually don’t work at all. When (not if) these products fail they drive the consumer back to the OEM and away from remanufactured products. The authorities in Zhuhai recognise this and are taking positive action. But taking action is not just about enforcement, it is also about education, quality and standards – all of which are being tackled. To this end, the government recently announced the opening of a national testing laboratory for office products that will be based in Zhuhai.
Having such a large concentration of expertise and capacity in one location provides a very strong platform for a dynamic aftermarket sector for imaging consumables. The stronger the aftermarket sector is, the more competitive the OEMs have to remain. With a strong aftermarket Zhuhai is more than able to cope with the growth in both the international and Chinese domestic markets.
In Zhuhai you will find the remanufacturing industry growing day by day, with some factories more akin to the Aerospace and pharmaceutical industries. Equally you will find more traditional remanufacturing operations. But what really makes Zhuhai work becomes apparent when you get off the ferry from Hong Kong - it is easy to get to, it is easy to meet everyone and everyone wants to help.
As the partnership between industry and government continues to grow, the issues of counterfeiting and respect for intellectual property are being addressed and confidence in the products is growing to reflect the true value of Zhuhai.
As the “Capital of Printer Consumables” it is hard not to do business in Zhuhai.
Perceptions about the capital of printer consumables
It is widely acknowledged that in just over 10 years the aftermarket in Zhuhai has formed an integrated industrial chain and been driven by leading enterprises to grow up dramatically and technologically. Within the printing supplies industry it has become a city which is second to none globally in respect of both scale and influence. Enterprises in the region benefit from the industry’s huge scale, complete industrial chain, large concentration of talent and abundance of logistic and HR sources amongst other benefits.
Since becoming well established as the world’s “capital of printer consumables”, Zhuhai has rapidly drawn attention and comments from all circles. However, perceptions about the city’s consumables industry vary widely.
Zhuhai’s strengths
Many key industry personnel are happy to highlight Zhuhai’s strengths. Some of these opinions are set out below –
Manufacturers:
“Zhuhai is the capital of printer consumables where all large-scale enterprises in this industry are located. As an industrial centre, Zhuhai has a high-efficiency infrastructure and is highly cost effective.” Mr. Colin Lewis, COO, AFEX.
“Zhuhai’s aftermarket industry is characterised by complete facilities and configuration. Relying on industrial advantages in talent, scale and technology, it is leading development trends and directions for the aftermarket across the world.” Mr. Scott Zang, Marketing Director, Ninestar.
Government:
“Many leading enterprises, but also the national quality inspection centre, patent database, Remax Asia Pacific exhibition and Recycler magazine are located in Zhuhai. They lay software and hardware foundations for industrial development in Zhuhai. Presently, Zhuhai municipality is accelerating the construction of a capital of printer consumables.” Mr. Niu Jing, Director General, Economic and Trade Bureau of Zhuhai Municipality.
Lawyer:
“The aftermarket industry in Zhuhai presents two benefits legally. Firstly, some enterprises have OEM patent-related experiences which can be used as guidelines for industrial development. Secondly, there are some foreign patent agencies approved by the State IPR (intellectual property rights) Bureau, such as INNOPAT Intellectual Property co., Ltd. who are able to solve patent affairs for these enterprises. Furthermore, INNOPAT has analysed and studied domestic and foreign patents in depth for almost 10 years.” Helen Duan, lawyer, INNOPAT Intellectual Property co., Ltd. Zhuhai’s weaknesses
In spite of Zhuhai’s abovementioned strengths, as a newly established capital of printer consumables it shows some defects and weaknesses that need to be addressed. What standards?
There are up to 300 aftermarket enterprises in Zhuhai, which operate various different industrial chains to manufacture products. Nevertheless, these enterprises are puzzled as to why no standard system has been implemented uniformly throughout the industry, meaning that different technical quality standards exist concurrently.
“Governments, the association and enterprises need to take advantage of the existing industrial foundations and strengths in Zhuhai, to accelerate progress with national standards and drive this industry to participate in global competition on an equal footing. In this fashion we will jointly build up a ‘capital of printer consumables’ that is true to its name.” Mr. Zhang Xiping, Chairman, Zhuhai Printer Consumables Industry Association.
“At the current development stage, the most difficult issue is the absence of industrial standards and technological standards.” Mr. Cao Guozhu, GM, Zhuhai Benma Printmax Imaging Co., Ltd.
Government support
Because the printing supplies aftermarket is a relatively new industry, governments are still planning relevant supporting policies.
“At present, governmental policies are tight. According to Notification No.17, empty consumables are classed as ‘junk’ and as such, importing them is forbidden. As a result, some remanufacturers do not have a source for these ‘junk’ consumables. In contrast, other countries have no such tight policies. Hence, industrial investments may flow towards foreign countries and commercial production is unlikely realised in China.” Mr. Gong Binliang, Secretary General, Consumables Special Committee under China Computer Industry Association.
“National recycling policies, particularly in respect of toner/laser cartridges, are very tight and strict. It is very difficult for the enterprises to operate, due to indistinct definitions.” Mr. Zhang Zhiming, GM, Zhuhai Mingjia Electronic Technology Co., Ltd.
IPR (Intellectual Property Rights)
In recent years, many enterprises have encountered a string of IPR-related legal issues while this industry has been developing vigorously. In the last two years in particular, various patent lawsuits have happened one after another because OEMs have implemented stricter patent policies. In addition, trademark infringement disputes have increased steadily and the customs authority has taken some measures to control the export of infringing products. By means of these measures, the OEMs have tried to obstruct consumables export from China.
Some independent brands such as Print-rite, Ninestar and Gree Magneto-Electric etc. have appeared in the industry in Zhuhai. Despite the presence of these well-known trademarks in the aftermarket, lawyer Helen Duan thought more small- and medium-sized enterprises just handle term processing, instead of creating independent brands.
Other weaknesses
“Presently, exhibitions and their facilities in Zhuhai need further improvement. Perfect exhibition facilities could promote international professional exhibition development, like the Remax exhibition.” Mr. Lin Dan, Journalist, Yang Cheng Evening Newspaper.
Zhuhai – the future
When looking at future development, most enterprises agreed that improvements must depend on themselves, not on governments. However, government support would allow for still further progress. The following are a selection of thoughts and opinions held within the industry –
“Each enterprise must respect IPR and create innovation independently; meanwhile, from a consumer’s point of view, they should put emphasis on product quality, safety and environmental protection.” Print-rite.
“All governments must pay attention to cut-throat competition among enterprises. All enterprises and governments should play the right roles in the aftermarket industry development and view themselves as players who need to improve their quality continuously. In addition, judges need to keep up with trends as rules and regulations are improved constantly.” Mr. Cao, GM, Benma Printmax.
“Remanufacturing and reuse are an international environmental protection industry and should be supported by all governments. This should be defined legally. In terms of governmental purchases, we should learn from developed countries and encourage governments to purchase reusable green consumables; thus saving taxpayers’ money and making governments more cost efficient.” Mr. Scott Zang, Ninestar.
“Aftermarket industry promotion should be combined with promotion of a certain lifestyle in order to establish all-round brand promotion.” Mr. Li Yuan, journalist, PRC – People’s Broadcasting Station.
“The National Quality Supervision and Inspection Centre of Printer and OA Consumables is under construction and has taken relevant standard drafts into account in its future plans.” Mr. Wang Lei, Director, National Quality Supervision and Inspection Centre of Printer and OA Consumables.
“The Xiangzhou district government supports expansion and upgrading of the existing aftermarket industry in Zhuhai. Furthermore the government will introduce upstream and downstream businesses related to the industry in order to perfect its industrial chain, actively implement relevant preferential policies and provide supporting facilities.” Mr. Chen Guangjun, Standing Deputy Director, Xiangzhou District.
“Besides our financial support for IPR and R&D, innovation, product upgrades in key manufacturers, relevant authorities such as quality supervision bureau and customs etc. we also provide full and high-efficiency services as possible, including product quality certification, brand creation, import/export and so on. In addition, the Zhuhai municipal government is drafting this industry’s development planning scheme and relevant preferential policies. Depending on correct planning guidelines and preferential policies, the government will continue, as always, to support this industry’s development in Zhuhai City to make the capital of printer consumables known well.” Mr. Niu, Director General, Economy and Trade Bureau of Zhuhai Municipality.
“We depend on innovation to build up a capital of printer consumables for the world…Zhuhai has a good compatible foundation and commercial scale. The yields of key products are in a leading position in terms of production capacity and patent projects are also in leading position throughout the country. In June 2007, the Remax Asia-Pacific exhibition was held in Zhuhai. This further proved the region’s powerful position in the compatible field. The government has paid attention to this industry development. It has called for and encouraged independent innovation and brand name development. The government will coordinate all departments to provide this industry with healthy development conditions in Zhuhai. I believe this compatible industry will become one of key brand-name industries in Zhuhai.” Mr. Chen Honghui, Deputy Mayor of Zhuhai City.
Other suggestions
Perhaps one of the key issues to consider is how the aftermarket industry can break through IPR bottleneck. Lawyer Helen Duan suggested setting up an aftermarket-related international IPR union. She said: “OEMs’ parent patents can derive many sub-patents in the world. Solutions to patent cases are similar throughout the world; therefore this issue needs resources dedicated to it globally.” An aftermarket-related IPR union in Zhuhai would be a useful first step.
It is also generally acknowledged that the Zhuhai Printing Consumables Industry Association will need to become an active platform, undertaking communication and organisational tasks, encouraging the government’s functional departments to get to know this industry well and ensuring the implementation of governmental policies. Moreover, it should actively promote beneficial activities throughout this industry, call for self-discipline and standardise the industrial market to avoid cut-throat competition and price wars whilst also participating effectively in global competition.
Introducing some local manufacturers in Zhuhai… Finished products
Print-Rite
A flagship factory under the Print-Rite Group. With almost 20 years’ experience in R&D and manufacturing in the aftermarket industry, it has recently become one of the biggest aftermarket manufacturers in the world. In addition, the company has vice chairman membership of the China Computer Industry Association, chairman membership in the aftermarket committee and is a company supporting the GD Aftermarket Engineering Technology R&D Centre.
The company occupies 170,000 square metres of floor space. It possesses more than 2,000 staff, including more than 600 middle- and senior-rank engineers and technicians. Relying on R&D and production resource management based on PDM and SAP, it provides customers with products at optimal CPR (cost performance ratio). Furthermore, it controls product safety and environmental protection in accordance with QC080000 standards. Its products include tapes, ink cartridges, laser cartridges, laser parts, toner, ink and so on.
Ninestar Image Co., Ltd.
A solely foreign-owned company specialising in printing aftermarket development. Since it was founded in June 2000, it has developed into a production base with more than 1,400 staff and occupying 100,000 square metres of floor space. The company has also set up subsidiaries and offices in the USA, Germany and the UK.
During its development process the company has created the “G&G” brand, which encompasses more than 1,000 models involving all kinds of consumables suitable for various series’ of printers. These products are exported to the Asia-Europe region and America, making Ninestar one of the largest aftermarket suppliers.
Afex International (HK) Co., Ltd
Since it was founded in 2002, this company has committed itself to remanufactured cartridges and set up production bases in both Zhuhai and Shenzhen. The company occupies 200,000 square feet of floor space and possesses 850 staff. At present, its production capacity is 120,000 pieces a year and annual output is 90,000 pieces. Its products are sold mostly in the USA, Europe and the Asia-Pacific region. The company has always paid attention to its social responsibilities, for instance environmental protection.
Zhuhai Gree Magneto-electric Co., Ltd.
Zhuhai Gree is currently a state-owned manufacturer which was established in 1986. The company is also known by its brand name – MMC. It first started in the production of floppy diskettes. In 1997, when the diskettes market shrank, Gree began production of inkjet cartridges. With 10 years of development, Gree’s 800 staff can produce around two million ink cartridges per month and 60,000 toner cartridges. They also have branch offices in California, USA and Hamburg, Germany. They have even set up their own remanufacturing facilities in Germany to produce and supply remanufactured ink cartridges to their customers in Europe.
Zhuhai Un-Tern Imaging Products Co., Ltd
Since the company was founded in 2003, it has cooperated with Haerbin Industrial Group and China Aerospace Technology Import/Export (Zhuhai) Co. to manufacture integrative ink cartridges. There are more than 40 varieties of products made in dust-free workshops using an ultra clean DI water system; thus their stability exceeds 98%. These products are exported to the Middle East (Egypt, Iran and United Arab Emirates), USA, Japan, Vietnam and Indonesia.
Zhuhai Mingjia Electronics Co., Ltd
A comprehensive enterprise integrating production, Hi-Technology and R&D. It has a powerful production capacity for printing consumables and precision mould development. Since it was founded in 2002, it has insisted in such operation ideologies as “making the best products for society and providing the best service for customers”.
The company has three product test labs, one R&D lab and one technical team with more than 100 dedicated persons. In addition, the company has a marketing team consisting of 50 people who are responsible for accurate communication with customers to ensure their 100% satisfaction and a high-quality service.
New Regent (Zhuhai) Printer Supplies Co., Ltd
Founded in May 2001, this is a foreign-invested enterprise, which occupies 19,000 square metres of floor space and whose staff currently numbers 750. It has introduced advanced technology and production equipment from the USA. In addition, it purchases used toner/laser cartridges from the USA market and processes them (including disassembling, washing, assembling, testing and packing) before reselling them to USA market.
Production Equipment
Zhuhai Yeedar Printing Consumables Equipment Company
A supplier and technical service provider specialising in R&D and the manufacture of production equipment and cartridge equipment, including tapes, toner and laser cartridges. Its products are marketed throughout the country, but also exported to more than 60 countries in regions such as Europe, America, Asia and the Middle East. In August 2007, it expanded its production capacity to reach 1,700 sets per year; presently the annual output is about 1,400 sets. At present, it is one of biggest printing consumables manufacturers in the Asia-Pacific region. Moreover, it took the lead in passing ISO9001:2000 system certification in this field.
Rollers
Zhuhai Smartek Tech Co., Ltd
Founded in April 2006, the company specialises in the R&D and manufacture of PCRs (primary charge rollers）and MRs (magnetic rollers) used in HP and Canon toner/laser cartridges. In addition, it provides complete optimal solutions for these cartridges and recommends high-quality OPCs and chips for customers. Rollers are sold throughout the country, but also exported to Europe, America, South America, the Middle East and other Asian regions.
Zhuhai Benma Printmax Imaging Co., Ltd.
As a privately-owned hi-tech enterprise, this company has committed itself to the R&D of spare parts used in laser printers since it was founded in May 2002. It is specialises in MRs (magnetic rollers) and PCRs (primary charge rollers), which reach annual production capacities of six million and 1.2 million respectively. Thanks to their complete varieties, sound compatibility and stable quality; these products have a stable share within the markets in Europe, Africa, Southeast Asia and the Middle East.
One of earliest ink manufacturers in China. Through over 10 years of development, it has accumulated abundant experiences in the R&D and manufacture of ink. In addition, it took the lead in introducing a SAP management system.
The workshops occupy 10,000 square metres. This includes an ink R&D centre and testing centre which are large scale and equipped with most advanced equipment, including more than 300 sets of equipment used for testing desk printers and more than 50 sets of large spray-drawing machines.
Besides ink used in desktop, large width and textile fields, it also provides customers with a full solution. It has made many products under trademarks authorised by some famous overseas clients. These products are sold in Europe, America, Southeast Asia and other countries and regions.
Zhuhai Meilvda Printer Consumables Co., Ltd.
Founded in 2005, this is a subsidiary belonging to the USA’s I.E.D. International Co., Ltd. It specialises in ink used in desktop and large width inkjet printers and has 5000t annual production capacity. “I.E.D Meilvda” and “Myshinning” brands are compatible with Epson, Canon, HP, Lexmark, and Brother Dye and pigment ink. These products feature stable performance, strong light resistance and wide compatibility. Presently, their production capacity reaches nearly 1000t/year. They are exported to America, Europe and Southeast Asia.
Zhuhai JetColour Nanotech Co., Ltd.
Founded in April 2006, this is a high-tech enterprise group supported by the government. It possesses up-to-date pigment disperser technology and is equipped with ultrafine powder processing equipment. Its annual capacity is 3000t. It specialises in nanometer pigment slurry, new jet-ink pigment and jet-ink pigment used for textile printing and has passed ISO9001 certification. These products are widely used in jet-ink and its consumables, high-grade coating, digital printing, digital imaging and ad spray-drawing. They feature sound light resistance, are waterproof, soap resistant, and clean and dust free. The annual output is 1500t and this is mostly exported to Singapore, Indonesia and the USA.
IC Chip
Zhuhai Apex Microelectronics Co., Ltd
Since it was founded in 2001, the company has committed itself to the design, R&D and manufacture of compatible chips, including jet-ink and laser types covering more than ten series’ and more than 1,000 models. These chips are sold over the world. At present, the company’s annual production capacity is 10 million pieces, with 8 million being created on average per year.
Print-Rite Technology Development Co., Ltd of Zhuhai
Founded in 2004, the company specialises in technical development in aftermarkets, including compatible laser cartridges, ink cartridges and chips. There are more than 100 members of staff. So far, it has been authorised for 117 patents. Chip products include jet-ink chips, laser chips, and those chips used in duplicating machines. Moreover, it is able to provide electric equipment peculiar to the aftermarket field, such as restorer, rewriter, SMARTBOX and so on. Its products sell well in the domestic market, Southeast Asia, Middle East and Europe. In addition, it has established long-term cooperation relationship with more than 100 enterprises.
Toner
ICMI (China) Limited
Founded in 2003, this is a Sino-American joint venture that took the lead in adopting USA technology to make toners used in laser printers. It introduced an overall manufacturing process from foreign countries, including raw materials, production technology, production equipment and complete test instruments. Annual capacity of toner is 1500t. Thanks to their high quality, these toners sell well in Europe, America, Southeast Asia, Hong Kong, Taiwan and the Chinese mainland.
Plastic Parts
Huiwei Corporation
This company provides customers with complete cartridge solutions from design, development, mould fabrication and spare parts for plastic products. As a result of its seven year development, it is able to provide compatible toner/laser cartridges covering 10 series’ and more than 60 models and their spare parts and has developed new models continuously. In addition, it was authorised to act as a global agent of OPC parts. Moreover, all products are exported to Europe, North America, South America, Australia, Middle East and Southeast Asia.
Foreign Companies in Zhuhai
As the Capital of Printer Consumables, Zhuhai has attracted many related foreign enterprises that have set up affiliated businesses or offices on the strength of the advantageous development environment for the printer consumables industry here.
Future Graphics is an American company that sells imaging equipment and provides the remanufacturing industry with general solutions. The company established an office in Zhuhai around a year ago. Dick Yu explains that they choose Zhuhai because 40% of remanufactured and compatible consumables on the worldwide market are made in China and of this 75% is made in Zhuhai. The company has been satisfied with the achievements of its Zhuhai office during the past year and it’s planning to up its business targets and to set up a laboratory and training centre.
Korean company, InkTec, has had a representative office in Zhuhai for four months. Vice General Manager Bart Han points out that as the world’s factory, China has so many manufacturers which are doing very well in the consumables industry. InkTec considers China to be the biggest market for bulk ink. Here in Zhuhai there are large companies such as Print-Rite, Ninestar and Gree and having a base that is close to these enterprises means InkTec can receive more accurate information in time and expand and develop more efficiently. The company has established partnerships with a quarter of the enterprises in Zhuhai and nearby districts. “At present, InkTec is aiming at expanding sales. But we can’t guarantee expansion because it depends on the decisions of our clients.” said Mr. Bart Han. “We must therefore try our best to meet the clients’ needs. In the future, we will continue to develop our ink business in China. InkTec will choose the appropriate companies with whom to have further cooperation after the market survey.”
An increasing number of foreign enterprises are coming to Zhuhai, which not only promotes the development of the printer consumables industry in Zhuhai, but also advances communication between Zhuhai and the world. Interest and attention from home and abroad should ensure that the Capital of Printer Consumables will have more and more development energy.
Service Organisations
Zhuhai Printing Consumables Industry Association
The Zhuhai Printing Consumables Industry Association came into being in 2006 and was officially established on 30th March, 2007. It is a service organisation, which is headed by eight companies –
Zhuhai Print-Rite Unicorn Image Products Co. Ltd.
Zhuhai Ninestar Technology Co., Ltd.
Guangdong Printer Consumables Engineering Technology Research and Development Center.
Zhuhai Yuzhou Print Supplies Ltd.
Zhuhai Gree Magneto-electric Co., Ltd.
Zhuhai Free Trade Zone.
Neojet-Apollojet Imaging Materials Co., Ltd.
Zhuhai Pu-Tech Industrial Co., Ltd.
In order to make good use of the advantages offered by Zhuhai’s printer consumables industry for both China and the world, the association implements guidelines focused on “supplies, careers, competition, bridges and links”. It plays an organisational and harmonising role, advocates independent innovation and seeks to standardise the industry market. As a result, it can support the promotion of industry and the government to ensure the healthy development of the supplies industry. Meanwhile, the association serves as a link between government and enterprises and among the enterprises themselves.
So far, the number of members in the association stands at over 50.
National patent database for the printer consumables industry
The Intellectual Property Office of Guangdong Province has chosen Zhuhai as the location in which to build the national patent database for the printer consumables industry.
The database is under construction and it uses data from the Patent Information Centre of Guangdong. It is scheduled to be in operation in the middle of next year. Upon its completion, the Intellectual Property Office will also train users within supplies industry to use it. The database will contain industry patent information from the USA, Japan, the EU and so on. However, negotiations regarding payments needed for using the database are as yet to be finalised.
Guangdong printer consumables engineering technology R&D centre
The Guangdong Printer Consumables Engineering Technology R&D Centre is the domestic supplies industry research and development base, which was established in September, 2005. It is approved by Guangdong Technology Office, Planning Commission and Economy and Trade Commission.
It is important to ensure that scientific and technological advances and are reflected by the industry so that the print supplies industry develops both rapidly and healthily. Companies are therefore encouraged to develop their own patented products so as to improve intellectual property and technology standards within the sector. The engineering technology centre makes efforts to encourage companies to cooperate and develop the key technologies in the print supplies industry. Meanwhile, it also makes good use of its supporting company (Zhuhai Print-Rite Unicorn Image Products Co. Ltd.) and help from society so that the achievements will be directly applied to industrial development. Furthermore, the expert advisory group and Hong Kong Productivity Council also supports technology research.
The centre is guided by the market and it aims at promoting the development and cultivation of new products and managing crucial issues such as projects, quality, tests and standards of other enterprises. It also aims at overcoming the obstacles of technology, encourages companies to work together in order to move forward and provides technology training.
Thanks to its extensive contacts with both universities and scientific research institutes, the centre can also take part in more technology research. Having such a strong influence on research, development and technological achievement also enhances the industry’s public image.
Remax Trade Show
Remax Trade Show is one of the main business activities conducted by Recycler Publishing & Events Ltd. Now in its eighth year, it has become a critical trade show for the print supplies industry. It is held both in Europe and in the Asia-Pacific region every year. Remax supplies a level platform for manufacturers, dealers and professional visitors from all over the world, allowing them to exchange information and showcase their companies. Visitors can catch up on the latest industry and market developments, meet manufacturers, inspect products and forge new business contacts.
Remax Europe is the biggest European trade show for the printer consumables industry. It has developed over its eight year tenure to a stage where it now features nearly 200 exhibitors and over 8,000 visitors. Remax Asia Pacific was established in 2005 and began by laying a good foundation in Australia. In the light of the rapid development in China’s market and the important role of China’s supplies industry, Remax Asia Pacific moved to Zhuhai, China, in 2007. This established a new model for a trade show that attracts both outsourcing partners and component suppliers.
Recycler Trade Magazine
Established in 1992, the Recycler Trade Magazine is another major part of the work that Recycler Publishing & Events does for the industry. The monthly magazine now spans more than 170 issues and is read in over 60 countries around the world. It has become one of the preferred sources for manufacturers and dealers wanting to get market information and make informed decisions about the future development of their business. In 2007, Recycler Trade Magazine launched its Chinese version which is produced in Zhuhai, China.
From day one the Recycler Trade Magazine has aimed at providing readers with information on all aspects of the industry, with a view to helping them to run successful supplies companies, regardless of the size of the business. The Recycler strongly believes in the concept of remanufacturing, especially from the environmental point of view, and a major aim is to unite the whole industry and make it strong.
Recycler also plays an important role in bringing together remanufacturers from across the globe and encouraging the formation of many industry associations. It is committed to creating a global “remanufacturing community” so as to protect the interests of the whole industry.
INNOPAT Intellectual Property Co., Ltd.
INNOPAT Intellectual Property Co., Ltd. is the foreign agency institute appointed by the State Intellectual Property Office and one of the most professional companies for researching the supplies patent brands. Its abundant experience has played a large role in leading enterprises towards successful independent innovation.
Within the organisation there are a lot of technology and law experts who are good at foreign languages and as a result the company has dealt with plenty of trans-national patents and patent tort cases. It aims to provide the best service for China’s supplies industry and to communicate with the foreign supplies industry in order to promote understanding of the industry in China.
Development of the Printer Consumables Industry in Zhuhai
Zhuhai has become established as the world’s “Capital of Printer Consumables”. Could reviewing the way the aftermarket industry has developed here could inform a strategy for future development?
Initial stage (1988 – 1999)
When speaking of the development of the aftermarket industry in Zhuhai, we have to mention Print-rite, whose influence illustrates how “a single spark may set the prairie ablaze”.
In 1988, Mr. Arnold Ho and others came to Zhuhai from Hong Kong. They set up Print-Rite Unicorn Image Products Co. Ltd., making ink tapes. Unlike similar manufacturers in the Zhejiang province, they sold their products to overseas markets instead of the domestic market. A member of staff who has worked at the company for more than ten years explained how “When the company was founded, there were no more than 10 staff and just 300 square metres of workshop. However, everybody worked actively and with much enthusiasm, so we developed very quickly. In 1996, we passed the ISO9002 system certification implemented by BSI (British Standard Institute) and by HK QAA (Hong Kong Quality Assurance Administration)”
After six years, Zhongshan Yuzhou Printer Parts Manufacturing Co., Ltd (known as Ribbon Tree in the international market) was founded to manufacture ribbons. Again, in contrast to companies in the Zhejiang Province, the enterprises in Zhuhai and Zhongshan (the city next to Zhuhai) relied on their international market development and Hong Kong management model, to establish their positions in domestic market.
Because ribbon prices were not competitive, Print-Rite and Yuzhou (Ribbon Tree) didn’t initially draw attention away from other manufacturers in Zhuhai. However, since 1996, the situation has changed; Print-Rite and Ribbon Tree started manufacturing compatible ink cartridges and became a great success with these new products. This success inspired a new generation of companies. In 1998, Zhuhai Gree Magneto-Electric Co., Ltd. started to produce its ink cartridges, followed by Richeng Technology and Dongwei Computer Consumables Co., Ltd, Zhuhai China.
Rapid development (2000 – 2005)
Between 2000 and 2005, the printer market in China developed rapidly, particularly with regard to photo printers. The inkjet printer market maintained over 20% growth every year. Monochrome laser printers started to be widely adopted by cooperate clients because they offered both high printing speeds and low cost.
During this period, consumables manufacturers appeared one after another in Zhuhai, with the arrival of Ninestar, Zhuhai Mingjia, Zhuhai Pu-Tech Industrial Co., Ltd, Un-Tern, Reachfill Printmax etc. By 2005, there were about 300 or more manufacturers in the industry in Zhuhai, producing various parts, materials and equipment.
Most manufacturers chose to manufacture private label products for their clients from different parts of China and around the world. Only a few manufacturers – for instance Print-Rite, MMC and G&G – created and developed their own brands.
In addition to compatible and remanufactured ink cartridges, extremely high profits led to a boom in counterfeiting, leaving OEM products, replacement cartridges and counterfeit cartridges sharing the market.
Adjustment stage (2006 to present)
On 17th February 2006, Epson brought 24 compatible inkjet cartridge manufacturers in front of the US ITC, and began what has been dubbed the “377 investigation”. Then on 19th October 2007, the US ITC determined in favour of Epson and issued exclusion and desist orders. In the wake of the 337 investigation the Chinese industry has come to a crossroads.
“If the industry is compared to the stock market, I think it has reached an adjustment stage and in the long run, its potential will be substantial. The 377 case will serve to standardise this industry’s development and adjustments will allow these manufacturers to gather the momentum needed to handle greater challenges”, commented Tony Lee, MD of Recycler Publishing & Events (China) Co., Ltd.
Indeed, many companies are already actively making breakthroughs. Some companies have sunk more resources and efforts into developing self-proprietary products, while others have switched to making remanufactured cartridges or developing other products such as refill kits and equipment.
As the Chinese aftermarket embarked upon this period of adjustment, good news appeared in the form of a February 2007 announcement that the State Quality Inspection Administration had approved the Zhuhai Quality & Technology Supervision Bureau to set up the National Quality Supervision and Inspection Center of Printer and OA Consumables. Then in April 2007 the Zhuhai Printing Consumables Industry Association was established. These factors will undoubtedly play a huge role in establishing a sound foundation for the industry in Zhuhai and indeed throughout the country.
Analysis and suggestions for the printing aftermarket industry in Zhuhai - An environmentally friendly printer consumables industry could become a mould for China and the world
by Dr. Tom Zhang
Zhuhai’s aftermarket industry holds a leading position in China and indeed the world. From this point onwards, government departments, the industry association and enterprises need to cooperate further to promote the healthy development of the aftermarket industry and enable it to become a globally competitive core industry in respect of both scale and quality. Meanwhile, by aiming for an environmentally-friendly aftermarket industry, Zhuhai could become a model of resource reuse – both in China and even worldwide.
Scale, level and situation of the aftermarket industry in Zhuhai
1. Production base
Because Zhuhai’s cartridge aftermarket industry has a sound foundation and large scale, many world leading cartridge manufacturers are located here. The chairman and vice chairman member manufacturers in the Printer Consumables Committee of the China Computer Industry Association are also based here. Led by these leading manufacturers, more than 100 small- to mid-sized manufacturers specialising in printer aftermarket supplies such as spare parts, materials and ink have realised a sales volume of RMB 10 billion.
In terms of statistics, in 2006, about 100 manufacturers in Zhuahi contributed 70% of ink ribbons (0.5 billion pieces), 60% of ink cartridges (.260 million pieces) and 20% of remanufactured and compatible toner cartridges (10 million pieces) to the global market. These manufacturers have more than 40,000 employees. Their products are exported to more than 70 countries and regions. The world’s top four raw material suppliers have set up sales subsidiaries in Zhuhai.
In addition, the manufacturers in the Pearl River Delta cities near to Zhuhai, such as Zhongshan, Jiangmen, Guangzhou and Shenzhen, account for 70% of all manufacturers in China. A perfect supply chain has formed to become the largest production base of cartridges and accessories in the world.
2. Research and Development base
Besides this production base, Zhuhai has become a global R&D base. The Guangdong Printer Consumables Engineering Technology R&D Centre is located in Zhuhai. At present, manufacturers in Zhuhai have more than 1,000 patents – giving Zhuhai the world’s top spot in terms of cartridge patents – both quantitatively and qualitatively. Print-rite has almost 800 patents and evidently holds a leading position in the industry. Furthermore, plans are afoot to set up a National Patent Database for the printer consumables industry in Zhuhai, consolidating the region’s powerful role as an R&D base.
3. Standard base
As one of the key drafters among these manufacturers in Zhuhai, Print-Rite participated in the preparation of Chinese industrial standards for the cartridge aftermarket. It has also attended ISO SC28 standard forums many times. The “General Specification for Inkjet Cartridges” was executed on 1st September 2006 in Guangdong and was implemented in the main by Zhuhai manufacturers. The Secretariat of the National Printer Consumables Technical Standard Committee is also located in Zhuhai.
4. Talent base
There are 142,471 employees engaging in the cartridge aftermarket globally – of these approximately a third are working in Zhuahi – nearly 50,000 persons (quoted from Recycler Trade Magazine).
5. Standard test base
Approved in 2007, the National Quality Supervision and Inspection Centre of Printer and OA Consumables is currently under construction in Zhuhai.
6. The industrial association and its publications
Founded in April 2007, the Zhuhai Printing Consumables Industry Association has become a communication and development platform for the industry. Having a Chinese language version of The Recycler, a dedicated aftermarket magazine, published in Zhuhai is also favourable for aftermarket research and industrial development.
7. Exhibition base
In 2007, Remax Asia Pacific, a professional exhibition for the printer supplies industry, was held successfully in Zhuhai. 113 manufacturers from 13 countries and regions participated in the event, which attracted 3,533 visitors from 48 countries and regions. Remax Asia Pacific looks set to become one of most important international exhibitions in the industry.
Weaknesses
Despite the development advantages in Zhuhai’s aftermarket industry, there are some weaknesses: in particular the industry is immature and lacks innovation ability.
As an environmentally friendly industry and resource-recycling project supported by national policies, remanufactured cartridges show potential. Nevertheless, only a few manufacturers in Zhuhai, such as Print-Rite, Nu-Kote China，AFEX and Ninestar, are capable of large-scale production, so industrialisation and scale production should be upgraded. In spite of some supporting policies, governmental departments still lack understanding of the industry as a whole and this prevents them from bringing forward policies and allocating resources that can help to solve the problems in the industry. It would therefore help if the manufacturers in the industry were standardised and managed strictly.
III. Development targets
The construction of a Capital of Printer Consumables has to be a systemic project, requiring close cooperation among governments, manufacturers, the association and media. Each should play a part in pooling their wisdom and efforts to develop the aftermarket industry rapidly, yet also healthily and in an orderly fashion.
1. Governmental support
The aftermarket industry in Zhuhai should be supported by the government, particularly as industrial plans and development orientation are focused on building up a printing aftermarket industry zone here.
A green government should actively encourage and support environmentally friendly remanufactured consumables through feasible policies. Enterprises should be encouraged to industrialise and standardise in such a way as to make Zhuhai a model “green city” for the rest of the country and even the world to emulate. Those manufacturers that standardise operation and management should enjoy the status of “model remanufacturers in Zhuhai”. As such they would be supported by credit extension in commodities inspection and customs etc. in order to upgrade their industrialisation to become capable of global production. In the meanwhile, supporting policies favourable for the manufacturers’ high-efficiency operation should be established.
Relevant policies are stipulated to guide this industry to develop itself healthily and continuously. The industrial chain should be perfected, looking in particular at issues such as colour slurry, OPCs, colour toner, chips and media (printing paper), to change Zhuhai’s status from maker to creator and from ordinary manufacturers – to a city with a concentrated green industry base.
2. Role in arrangement and coordination
Assuming that the Zhuhai Printing Consumables Industry Association plays its role sufficiently, it is advisable that the government should set up a trans-department leadership team to investigate and settle industrial issues. By doing this it would also create a “brainpower” responsible for industrial development to plan and build the “Capital of Printer Consumables”. Such “brainpower” would consist of industry associations, experts, manufacturer representatives, lawyers and journalists etc.
3. Exhibitions and tradeshows
Building an international trade hub will showcase the industry and provide a platform for the trade of printer supplies products.
4. Quality supervision
The National Quality Inspection Administration has approved the set up of a National Quality Supervision and Inspection Centre for Printer and OA Consumables in Zhuhai, also a first test centre at national level in Zhuhai. From a functional point of view, it will promote industrial development greatly. For this reason, it is strongly recommended that this test centre should be built up as soon as possible to establish industrial authority.
5. Development Fund for the Industry
A special development fund should be established to reward organisations, manufacturers and teams making outstanding contributions to the aftermarket industry in Zhuhai; thus encouraging independent innovation and development, patents and international competition. Led by the government, we should make every effort to create a positive aftermarket industry image in Zhuhai and support manufacturers, arranging for them to participate in professional and international exhibitions and encouraging them to take part in creating international standards, to develop their own brands, to enhance competitive edge in international trade and to hold leading positions in the market.
We should support aftermarket exhibitions arranged and held by the industrial association and Remax Asia Pacific to enable the manufacturers in Zhuhai to participate in international competition.
6. Consolidated research mechanisms
Guided by government and the industrial association, the manufacturers establish a mutually cooperative mechanism to study industrial issues and core technologies to mutual benefit.
7. Highly enhance publicity to build Zhuhai into an “Aftermarket Town” and a resource-regenerating green city
It is strongly recommended to promote the aftermarket industry environment and investment environment; to make good use of Remax Asia Pacific and other media platforms to put emphasis on a green government image; modelling Zhuhai to be a green city.
IV. Predictions for the future industry
In 3-5 years, if governments, the industrial association and manufacturers cooperate to promote the aftermarket industry development and perfect the supply chain from raw material to finished products and production chain from R&D through to production, test, sale, exhibition to service etc, I predict that Zhuhai will achieve the following:
1. 100,000 employees in this industry;
2. RMB50.0-100.0 billion production value;
3. Number of registered patents will increase from 1,000 currently to 5,000-8,000;
4. Remanufactured laser cartridges will account for over 50% output and compatible laser cartridges will account for in excess of 30% output. This is in addition to the fact that ink ribbons and compatible ink cartridges already account for 50% of output globally;
5. Zhuhai will become a leading city, both domestically and internationally, in the remanufactured and compatible aftermarket and a genuine “World Capital of Printer Consumables”.
V. Summary
At present, Zhuhai has laid a sound foundation for an aftermarket town relying on following advantages in Zhuhai:
Remanufacturing in Zhuhai is supported by the National IT Development Fund;
Zhuhai has the one and only Golden National Patent Award;
Zhuhai’s manufacturers play a decisive role in setting the national standards;
Zhuhai’s manufacturers play an important role in the national industry association;
Remax Asia Pacific is held in Zhuhai;
Representatives from Zhuhai undertake key tasks in the National Printer Consumables Technical Standard Committee;
The National Quality Supervision and Inspection Centre of Printer and OA Consumables and Guangdong Printer Consumables Engineering Technology R&D Centre are located in Zhuhai;
Zhuhai has its own industry association;
Recycler Trade Magazine has an office in Zhuhai;
Zhuhai is to have its patent database for the printer supplies industry.
To ensure its future, the city needs to catch hold of opportunities, change its extensive growth mode and promote Zhuhai’s aftermarket industry to develop from being manufacturers to being creators.
Aiming at a green printing aftermarket industry, we need to model Zhuhai as green city and build a sound ecological environment in which to create a Capital of Printer Consumables in Zhuhai. However, these should be included in governmental agenda and the government should work with the manufacturers and the association to improve the market environment continuously, to encourage extensive development of the aftermarket industry.
A brief introduction to Zhuhai Geography and climate
The famous coastal garden city of Zhuhai is situated in the south of Guangdong Province. It covers an area of 7,650 square kilometres, of which land constitutes 1,630 square kilometres and the sea 6,020 square kilometres. There are 146 islands dotted around Zhuhai, hence its reputation as “the city of a hundred islands”. Zhuhai’s location is strategically very good – it connects with Macao and from here it takes just 70 minutes to go from Zhuhai to Hong Kong by ship. The population of Zhuhai is now 1.15 million and the city encompasses the Xiangzhou, Doumen and Jinwan districts.
Leisure and entertainment
Zhuhai has been classed as one of the “Top 40 places of great interest in China” and has also been recognised for its international best practices in terms of improving its living environment and national city landscaping. With the combined attractions of the sea, islands, natural environment, culture and entertainment, it represents an ideal place for travelling and recreational activities. Amazing seafood restaurants and restaurants offering different cuisines, hot spring resorts and golf courses attract tourists both from China and abroad. In addition the Zhuhai International Circuit also hosts different international car races every year.
As Zhuhai is so close to Hong Kong and Macao, it’s also convenient for shopping in Hong Kong or enjoying the fabulous entertainment on offer in Macao.
Transportation
1. Plane
For international travellers wanting to get to Zhuhai, the closest airport is Hong Kong International Airport. And there are ferry services between Hong Kong and Zhuhai every hour. For domestic travellers there is Zhuhai Airport – just 40 kilometres from downtown Zhuhai – offering flights to more than 30 cities in China. Hong Kong, Macao, Guangzhou and Shenzhen airports are all within 150 kilometres of the city, allowing travellers to go to places all over the world by air.
2. Road
Zhuhai offers many comfortable buses able to take passengers out of the city and back again. It’s very easy to go from Zhuhai to Guangzhou, Foshan, Dongguan, and Shenzhen – journeys which may take only 1 or 2 hours on the highway.
3. Water
There are ferries from Zhuhai to Hong Kong and Shenzhen every day. 28 water ferries a day go from Jiuzhou Port to Hong Kong and the journey takes approximately 70 minutes, while from Shekou Port in Shenzhen there are 50 ferries every day, each taking about an hour.
Investment policy
1. Land price
The prices of land for industry in the three Zhuhai districts are different. In Xiangzhou and Jinwan Districts, the price for land is ￥480 per square metre while in Doumen District it stands at￥252 per square metre.
2. Corporate income tax
The tax rate of corporate income tax is 15 % (backland city is 33%).
3. Value-added tax and excise tax
Tax breaks are available if a foreign-owned operation exports products by itself or by proxy. In addition, foreign-owned operations can import goods used in production without paying some taxes and can export the end products without the value-added and excise tax for producing.
4. Personal Income Tax
After deducting ￥4,000 from wages, foreigners pay between 5%-45% of the rest of their wages as personal income tax. Foreigners can deposit in any finance institution of Zhuhai and get the interest without paying personal income tax. Compatriots of Hong Kong, Macao and Taiwan must follow the same personal income tax policy.
5. Proportion of product sale
There is no restriction governing the proportion of products a company makes for foreign markets, as long as the imported materials aren’t encompassed by a quota permit.
Visas
In general, a foreigner should apply for a visa to diplomatic missions, consulates of China or any other unit authorised by the Ministry of Foreign Affairs of China in Foreign countries to visit China. The overseas Chinese visa authorities include Chinese embassies, consulates, visa offices and the consular department of the Office of the Commissioner of the Ministry of Foreign Affairs in HKSAR. However, a landing visa is available for foreign visitors from most countries, with some notable exceptions including the USA, Egypt, Israel and Iran. This landing visa allows single entry and stay for 144 hours (effectively six days).
