2011 FAGAT Country Report Japan

Japan
Japan Federation of Printing Industries
12th forum of asian graphic arts technology
FAGAT
WEDNESDAY 4 – FRIDAY 6 MAY 2011 | SYDNEY AUSTRALIA
1
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Economic Trend in Japan
2
After world economic crisis started in 2007, Japanese economy finally
showing pick up in 2010. But the recovery started getting weaker in latter
half of 2010 and devastating Earthquake and Tsunami in 2011 blown out
hope for recovery.
600
Fig1 GDP and Printing Market
580
8
7
Printing(Trillion Yen)
560
GDP(Trillion Yen)
Many concerns
/ Power & energy shortage
/ Huge government deficit
/ Jobless among young student
/ Excess valuation of Yen
/ Aging population etc
9
6
540
5
520
4
500
3
480
2
460
1
440
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
GDP indicated slow but
Printing 7.97 7.61 7.43
continued growth till 2007 but
printing market has been in constant shrinkage.
GDP
504
505
513
527
537
548
561
554
525
7.21
7.12
7.01
7.14
6.9
6.24
Data: JFPI & METI
540
0
Status of Publishing & Advertisement Market
Publishing Segment
3
 Publishing market continues to decline in both amount and volume.
Number of new titles decreased 4.9% from previous year to 74,714 titles.
Number of new magazine decreased 25 titles to 110 titles.(smallest number in past 40 years)
Number of magazines discontinued 216 titles(increase 27 titles) which is 2nd largest discontinue.
 Facing with decrease in readership and reduction for advertisement(magazine) influenced by
internet, mobile handset and e-book.
There is strong interest in e-book but actual business volume is still marginal.
(In 2009, entire book/magazine market was Yen1,875B vs Yen57.4B or 3% of the market)
Data: Syuppan Geppou Jan 2011
(Publishing Monthly)
Magazine
Sales
(B Yen) Book
FAGAT
Monthly
Weekly
Total
Monthly
Magazine
Qty
Weekly
(M
copies) Book
total
Table 2 Publishing market
2006
952
268
933
2,153
1,795
904
755
3,454
2007
913
270
903
2,085
1,723
889
755
3,367
2008
872
258
888
2,018
1,611
827
751
3,189
2009
845
242
849
1,936
1,516
753
718
2,987
2010
824
229
821
1,875
1,461
711
702
2,874
2010(B$)
2010/2006
9.16
86.5%
2.55
85.7%
9.13
88.1%
20.83
87.1%
81.4%
78.7%
93.0%
83.2%
Status of Publishing & Advertisement Market
Advertisement Segment
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4
 Entire advertisement market size in 2010:
$64.92B(-1.3% from 2009, -14.4% from 2005)
 Comparing with 2005, largest shrinkage was Tel Directory with 55.5% followed by
Magazine with 56.4%.
 The largest increase was Internet with 205.1%, followed by Satellite TV with 161%.
 From the stand point of the amount, TV is still far largest with $19.25B followed by
Internet with $8.61B and Newspaper with $7.11B.
 Free Paper indicated healthy growth till 2007 but since then it faltered.
 DM and POP are doing well among print media but all other print advertisements
are affected with economic slowdown and wide spread of internet.
FAGAT
Status of Publishing & Advertisement Market
Advertisement Segment
5
Table 3 Advertising market
Advertisement expense（100 million Yen)
media
Total Advertisement expense
4 Major Media
Newspaper
Magazines
Radio
TV
Satellite TV
Internet
Promotion Media
Outdoor Ad
Transportation
Newspaper Insert
DM
Freepaper
POP
Tel Directory
Exhibition etc
US$ Billion Comparison Comparison
2005
68235
2006
69399
2007
70191
2008
66926
2009
59222
2010
58427
37408
36668
35699
32995
28282
27749
30.83
98.1%
74.2%
10377
4842
1778
20411
487
3777
26563
3806
2463
6649
4313
2835
1782
1192
3522
9986
4777
1744
20161
544
4826
27361
3946
2539
6662
4314
3357
1845
1154
3456
9462
4585
1671
19981
603
6003
27886
4041
2591
6549
4537
3684
1886
1014
3584
8276
4078
1549
19092
676
6983
26272
3709
2495
6156
4427
3545
1852
892
3196
6739
3034
1370
17139
709
7069
23162
3218
2045
5444
4198
2881
1837
764
2775
6396
2733
1299
17321
784
7747
22147
3095
1922
5279
4075
2640
1840
662
2634
7.11
3.04
1.44
19.25
0.87
8.61
24.61
3.44
2.14
5.87
4.53
2.93
2.04
0.74
2.93
$1.00=Yen90
94.9%
90.1%
94.8%
101.1%
110.6%
109.6%
95.6%
96.2%
94.0%
97.0%
97.1%
91.6%
100.2%
86.6%
94.9%
61.6%
56.4%
73.1%
84.9%
161.0%
205.1%
83.4%
81.3%
78.0%
79.4%
94.5%
93.1%
103.3%
55.5%
74.8%
Data: Dentsu Japanese Advertisement 2009
2010
2010/2009 2010/2005
64.92
98.7%
85.6%
Industry Survey 2010 by AJFPIA
Status of SME (1)
6
Management status report from All Japan Federation of Printing Industry
Association (AJFPIA) which is major federation for small to mid size
commercial printers.
Survey conducted in July 2010 to 2,000 members with response from 360
companies.
Summary of the Survey:
1. Average company size of respondents:
FAGAT
65.4 people
2. Per head sale amount: Yen 17,601,000.-($195,600.- $1.00=Yen 90)
9.9% decrease from previous year
3. Operating income 1.4％ （-0.6% fm previous yr)
Lehman crisis & paper price hike impacted profitability
FAGAT
Industry Survey 2010 by AJFPIA
Status of SME (2)
7
Table 4 Business Segments share(%) vs 2009
4. Business Segments
Commercial printing consists of 44.5% of
Commercial Printing
44.5
-6.1
entire business and it decreased 6.1% from
Publishing
19.0
4.4
Package
14.1
-0.6
previous year due to recession.
Business Forms
11.0
1
Publishing increased due to decrease in other
Software/Services
2.5
-0.5
business
Other special printing
1.9
0.1
Software/Service decreased 0.5% from previous
Security Printing
1.6
0.8
3% of entire business.
Others
5.2
0.8
Data: AJFPIA
5. Sales proportion based on press type
Offset printing remain the dominant type
but web has decreased significantly.
On-demand still small in proportion.
Table 5 Sales % of Press Type
sales
increase fm
proportion(%) prev yr(%)
Sheet Offset
60.7
5.2
Web Offset
25.7
-5.2
On-Demand
2.1
0.2
Other Printing
5.9
0.5
Software/Services
5.7
-0.6
Data: AJFPIA
FAGAT
Industry Survey 2010 by AJFPIA
Status of SME (3)
8
Table 6 Operating Income by company size
6. Operating income with company size
Smaller company indicated better profitability
followed by largest category.
company size
(person)
1-4
5-9
10-19
20-29
30-49
50-99
100-299
300-
profit
(%)
5.6
3.6
-1.4
-0.8
0.8
0.5
1.6
2.8
Data: AJFPIA
FAGAT
Recent Trends in Japanese Printing Industries
1. Continued Decline in Printing Market
9
600
9
580
8
560
7
5
520
4
500
3
480
2
460
1
440
Data: JFPI Marketing Data Book
6
540
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
GDP
504
505
513
527
537
548
561
554
525
540
Printing
7.97
7.61
7.43
7.21
7.12
7.01
7.14
6.9
6.24
0
Printing(Trillion Yen)
GDP(Trillion Yen)
 Continued Decline in Printing Market
In the past, Printing Market tends to show similar growth as GDP.
In the last decade, Printing Market continued to decline even at the time of
GDP growth.
Recent Trends in Japanese Printing Industries
2. Web Presses Capacity Adjustment
FAGAT
10
 Web presses capacity adjustment
Rotary web press capacity has increased 4 times during past 20 years due to
increase of the number of presses and performance improvement of each press.
This overcapacity is now in adjustment stage to show decrease in the number
of presses since 2008.
Fig 7 No. of Commercial Web Presses
Data: Nihon Insatsu Shinbun
(Japan Printing Newspaper)
1420
1400
1380
1360
1340
1320
1300
1280
1260
1240
1220
No. of Press
2003 2004 2005 2006 2007 2008 2009
No. of Press 1298 1315 1327 1362 1402 1361 1289
FAGAT
Recent Trends in Japanese Printing Industries
3. Growth of Digital Printing Market (1)
11
 Digital printing market size in 2008 was 214.7 Billion Yen ($2.39B based on
$1.00=Yen 90) （7% increase from previous year）
 Due to economic depression, the growth rate was in single digit but it still
maintain the growth and expected to maintain 7% growth rate for 2009 and
after.
Fig8 Digital Print Market
Digital Print Market(Billion Yen)
300.0
113%
250.0
116%
200.0
150.0
200.1
107%
214.7
261.0
228.7
243.5
176.6
128.7
141.9
151.9
100.0
（Data ：Yano Economic Research Institutes 2009/9/17)50.0
0.0
2003
2004
2005
2006
2007
2008
2009（E) 2010（E) 2011（E)
Recent Trends in Japanese Printing Industries
FAGAT
3. Growth of Digital Printing Market (2)
12
 Number of Digital Press in 2008 was 4,437 units（98.5% of previous year）
 Due to depressed economy, capital expenditure was reduced and the industry
experienced first decrease in the number of installation.
13% increase is expected after 2009.
Color
Fig9 Number of Digital Press
（Data ：Yano Economic Research Institutes)
Monochrome
Recent Trends in Japanese Printing Industries
3. Growth of Digital Printing Market (3)
13
Market Size of Digital Printing（comparison with USA）
•
Japan（year 2008）
– Entire printing market
– Digital printing
：$ 76.7 B（6,904 Billion Yen）
：$ 2.4 B（ 215 Billion Yen）
※ $1.00 = Yen 90
•
USA（Year 2008）
– Entire printing market ： $166.6 B
– Digital printing
：$ 20.0 B
•
Summary
– Entire printing ：Japan is 46% of USA
– Digital :
Japan is 12% of USA
– Ratio of digital： USA：12％ Japan：3％
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Recent Trends in Japanese Printing Industries
4. Attention to e-Book
14
 e-Book Market
Maket Size(Yen 100M)
・ e-Book has been paid attention since year 2002.
But the market size at that time was mere Yen 1 Billion(approx $10M)
・ Since initial implementation of 3G mobile in 2001, Japanese mobile handset has come up with
large screen and many advanced features much before Smart Phones show up in the market.
It provide market for e-books for mobile.
700
Fig 10 e-Book Market
・ The e-book for mobile expand the market rapidly
600
but the contents are mostly comics and
500
“light novels”.
400
・ In addition to conventional 3G phones,
wide varieties of reading devices are
300
now available in 2010, such as Smart
200
Phone, dedicated readers and tablet PCs.
100
・The market for e-reader & tablet PC is
0
expected to be 650(Yen 100M) from 6 in
2002 2003 2004 2005 2006 2007 2008
2009.
e-reader & tablet
Data: Impress R&D
mobile
PC
10
2009
6
0.5
12
46
112
283
402
513
17.5
33
48
70
72
62
55
Recent Trends in Japanese Printing Industries
4. Attention to e-Book
 e-Books Business
1. Business Model
USA: All-in-one(Winner-takes-all) Model?
Apple
i-Bookstore i-Phone/i-Pad
Amazon Amazon Bookstore Kindle
B&N
B&N Nook
Japan: Alliance(following the crowds) Model?
2. Participation of Printing Companies
Large printing companies are trying to establish “platform” for e-Book.
Many SME are also trying to enter e-Book market.
3. Unique technical issues associated with Japanese
Vertical writing, “furigana”, character codes etc.
4. Resale Price Maintenance
Not much price discount for books, thus there are no or very small price difference between
e-book and physical paper book.(Book, magazine, news paper & music CD are under resale price
maintenance in Japan. Video, software, game and downloaded products are excluded.)
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15
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Recent Trends in Japanese Printing Industries
4. Attention to e-Book
16
 JFPI Survey on e-Book Status
・JFPI conducted a survey on e-Book.
Questionnaire were sent to 136
companies and 63 responded.
・54% of companies are already
implemented e-Book business with
high percentage in medium size
company.(100-299 people)
Table 11 Status of e-Book Business
No. of
status of e-book business
companies implemented implement
under
shortly
consideration
Total
1-19 people
20-49
50-99
100-299
more than 300
63
54.0%
7
10
13
20
12
7.9%
42.9
40.0
46.2
70.0
50.0
14.3
10.0
15.4
5.0
0.0
27.0%
11.1%
28.6
14.3
50.0
0.0
38.5
0.0
15.0
10.0
16.7
33.3
Data: JFPI
80.0%
Fig 12 Area of Interest
60.0%
40.0%
・Area of interest book, practical book,
magazine and news letter.
For non-book application, catalog and
manual are most interested area.
no plan
20.0%
0.0%
Data: JFPI
Recent Trends in Japanese Printing Industries
4. Attention to e-Book
17
Fig 13 Major e-Book Players
E-Book Reader
Sony
Reader
Sony Book
Store
KDDI
Biblio leaf
KDDI Lismo
Book Store
E-Book Platform
Apple
i-Pad
Players
Toppan Printing
Asahi-Shinbun News
Sony
KDDI(Mobile Operator)
Tsutaya(Video Rental &
Book Store)
Sharp
Sharp
Galapagos
DoCoMo
Galaxy Tab
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DoCoMo
SH-07C
Dai Nippon Printing
CHI Group(Book Store)
DoCoMo(Mobile Operator)
i-Book Store
Apple
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Recent Trends in Japanese Printing Industries
4. Attention to e-Book
Issues to be solved
18
Fig 14 Ex of “Furigana”
1. Technical Issues
a) Japanese text required vertical expression and also “furigama” which
show the reading of a Chinese character by writing [printing] small “kana”
at its side.
b) There are JIS(Japan Industrial Standard) based sets of Kanji(Chinese
Characters) but much larger number of Kanji is used in books and magazine
which are prepared by each printing company with its own “code
assignment”.(i.e. the same character may be assigned with different code
number among different printing companies, thus no interoperability.)
2. Business issues
a) Too many “platforms” with certain limitation in interoperability.
b) e-Book do not have much price advantage vs physical book
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し
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し
石
橋
く
に
お
邦
夫
Recent Trends in Japanese Printing Industries
5. Looking for new business opportunities
 Facing with declining printing market, All Japan Federation of
Printing Industry Association (AJFPIA) is encouraging its members
to be “One-Stop-Service” and “Solution Provider”.
 Web-to-Print is getting certain recognition from the market.
(But the number of printer which provide such service is still rather
small, i.e. only 4%)
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19