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How does Lihua Color Printing Become the Top 100 Printing Companies in China?
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How does Lihua Color Printing Become the Top 100 Printing Companies in China?

How does Lihua Color Printing Become the Top 100 Printing Companies in China?
The advantages of stable political and economic environment, low labor costs and broad domestic demand market make Taiwanese investment in the mainland uninterrupted and continue to expand at different levels. Sun Fuzhu is one of these Taiwanese businessmen, and now he is the head of Lihua Color Printing (Kunshan) Co., Ltd. with a total assets of over 400 million yuan. From him, we can see the career of Taiwanese businessmen in mainland China.

"In our business, except for myself and my daughter who are Taiwanese, all the others are local people. In my eyes, they are serious and decisive, "said Sun Fuzhu, a Taiwanese owner who has worked in the mainland for more than 20 years.

In the late 1980s, he came to the mainland from Taiwan alone, and in 1996 he invested in the creation of Lihua Color Print. In 20 years, Sun Fuzhu fulfilled his dream of starting a business in mainland China. Under his leadership, Lihua Color Printing has developed from a small enterprise with an initial area of less than 20 mu and fixed assets of millions of yuan to a "Top 100 Printing Companies in China" with total assets of more than 400 million yuan.

"Starting a business is not only making money, but also experiencing life. The most important thing is serving light and courage," Sun Fuzhu said in an interview with China News, Publishing, Radio and Television. It is precisely because of Sun's unique vision and decisive choice that Lihua Color Printing's business jigsaw can be improved day by day.

North-up "card position"

In the early 1980s, Taiwan's labor costs rose, and a number of industries such as Pengtai Album Printing, Baoding Album Printing, Zhangjiakou Album Printing, Chengde Album Printing, Cangzhou Album Printing, Gallery Album Printing, Gallery Album Printing, and Non-adhesive Album Printing urgently needed to be moved out. At that time, the reform and opening up of the mainland opened up warm arms to Taiwanese businessmen. Since the first upsurge of Taiwanese businessmen investing in the mainland in the late 1980s, a large number of Taiwanese-funded enterprises have grown rapidly in this vast land in the past 20 years. In 1989, Sun Fuzhu followed the "trend" to the mainland and began his career in the mainland with dreams. The "seedlings" that broke through the earth in those days have gradually grown into "towering trees".

Unlike other Taiwanese bosses who chose to "stay" in the Pearl River Delta, Sun Fuzhi resolutely built a factory in Kunshan, Suzhou. In fact, he was also in the Pearl River Delta tillage label at the beginning, doing screen printing in Zhongshan, Guangdong Province, an old line in Taiwan, but on a smaller scale, in the process, he saw the great potential hidden in the Yangtze River Delta. "With 1% of the land and 6% of the population, the Yangtze River Delta region has created 18% of GDP, which is a great potential market. Lihua color printing factory in Kunshan, Suzhou, is like a factory in the middle of the market. Distribution distance is greatly reduced, and it can serve the society more quickly. This is Sun Fuzhu's introduction.

"Cost" and "market" are the root of Sun Fuzhi's choice of the Yangtze River Delta. He is moved by the high quality and low-cost talent resources and good natural and social environment. But more importantly, the cluster effect of Taiwanese-funded enterprises' investment in the mainland has brought about very obvious industrial chain effect. At present, many Taiwanese-funded enterprises have been stationed in Kunshan. Sun Fuzhu explained that Suzhou gathered a full range of computer accessories manufacturers, from keyboards to magnetic heads, power supplies, display screens, packaging and so on, which quickly highlighted the cost advantages of products in the region, which is now suitable for Lihua color printing service in the IT field.

Westward "grabbing position"

After seeing IT industry giants such as Hewlett-Packard, Dell and Asus invest in the West and Foxconn, Yingda, Quanta and Heshuo have settled in Chongqing and Chengdu, Sun Fuzhu believes that as a service provider for these customers, Lihua Color printing must base on long-term strategy, so he decides to March southwest.

However, at the same time, there were more than one color printing company in Chengdu and Chongqing. When Nali, Yutong, Zhenglong, Qiaokun, Yihua and other well-known printing and packaging enterprises came in succession, competition pressure still existed. However, Sun Fuzhu has optimistic expectations and full confidence in the southwest market. His investment in IT services is the largest. The total investment of 200 mu factory buildings, 100,000 square meters of building area and top-level equipment allocation has so far approached 400 million yuan.

"Geographically, Suining is between Chongqing and Chengdu, 120 kilometers from each place. Our customers are mainly located in Chongqing and Chengdu, so that we can serve customers more efficiently and quickly. Sun Fuzhi expressed to reporters the original intention of the site selection in Suining, Sichuan. In his view, the deeper the wading, the greater the challenge and the more opportunities. "In our overall planning, in addition to serving IT customers, Suining factory will also make new exploration in the direction of high-quality packaging." With the establishment of production bases in Kunshan and Suining, the layout of Lihua color printing has been very clear. From Sun Fuzhu's point of view, this is the advantage of Lihua color printing to expand its new business in the future.

"Supplementary Position" in the Southern Expedition

More than 80% of Lihua's color printing is the customers of IT and electronics industries. Most of them come from Taiwan, so Sun Fuzhu has to think about "coming back to Taiwan and from Taiwan". "Taiwan's printing enterprises have a clear division of labor, and seldom provide integrated solutions and services. Their business model is similar to that of Japanese printing enterprises. Every part of pre-press, printing and post-press processing is scattered in different professional fields. That is to say, different companies need to go through the process to get the final product. Sun Fuzhi explained to reporters the difference between the printing industry in mainland China and Taiwan.

Based on this, as early as before the westward march, Sun Fuzhu set up a research and development center in Taiwan, took Taipei as its headquarters, and trained dozens of excellent designers. It has a clear division of labour with Kunshan factories, and Taiwan mainly provides design services. "We can confidently tell our customers that Lihua color printing has a professional design and development team, and can do one-to-one personal service. In fact, this is also to reduce the burden of customers. Sun Fuzhu admits that whoever owns the copyright of packaging design decides the printing right of packaging products. Since then, Sun has also established a design and R&D center in the United States to directly contact customers.

Innovation is not an invention, but a change made on the basis of the existing, and an extension of the relationship based on the core business to actively explore the market. In Sun Fuzhu's view, "Keep up with the pace of customers and produce products suitable for different regions and customers, and the future development space will be broader." In fact, the industrial transfer track of Lihua color printing is the epitome of the development of a large number of enterprises moving northward, westward, inward and even outward.