How does China's optical disk replication industry go during the trough period?
(Note: This article is the author's speech in the report of the 8th China International optical storage equipment technology exchange conference, with slight deletion. The title of the article is added by the editor.) It has been more than ten years since the beginning and development of China's optical disc industry. In the past ten years, China's optical disc industry has become an important part of the world's optical disc industry by expanding the industrial scale, optimizing the industrial structure, improving technology and equipment, and improving product quality. With the fierce competition in the international market and the changes in the relationship between supply and demand, the global optical disc market has entered the slow growth period, or adjustment period, from the initial period of rapid growth of dozens of times the annual demand. In the context of this international market, we can see that in the past two years, some internationally renowned optical disk equipment suppliers have been shut down or restructured. Similarly, some Chinese optical disk enterprises have also fallen into difficulties, and some enterprises have even entered bankruptcy. Faced with such a situation, can China's optical disc industry continue to develop? How can China's optical disc industry develop in a sustainable and healthy way? This is a subject before us
how to face the rapid adjustment period
the development of everything is advancing in waves until its living space is replaced by other newer things, and the optical disc industry is no exception. We believe that the rapid adjustment period of China's optical disc industry is based on two reasons: first, the small and scattered initial stage of the industry, the traditional backward concept of "better to be a chicken than a phoenix tail" and investors' deliberate decentralization to avoid the risk of "political requirements above everything" of government departments for the content industry, which finally highlights today (that is, the lack of comprehensive competitive advantage); Second, scientific and technological progress has brought new challenges. Since Sony successfully developed the world's first practical CD in 1983, sex Sometimes, special steel is inlaid at the jaw, or steel sand is sprayed on the jaw surface Optical disk technology has been advancing by leaps and bounds. 2. Place clean samples in order in the sample basket; Then put it into the cold tank of the low-temperature tank, and always develop around clearer and larger capacity. We have experienced VCD and DVD, and today we are waiting for higher density red light discs, Blu ray discs, HD and DVD. Facing this challenge of updating technology is a real test of the scientific and technological content and comprehensive competitiveness of all our enterprises. On the one hand, we advocate and encourage enterprises with strong comprehensive competitiveness to seize the opportunity in this round of challenges, realize mergers and acquisitions at low cost, and make China's optical disk replication industry move towards "turning zero into integration"; On the other hand, we hope that the creators and owners of the new technology of optical storage and replication can take into account the current situation of China's optical disc industry, steadily improve the quality of China's optical disc industry, and reduce the industrial cost of China's optical disc industry during the adjustment period as much as possible. In short, for China's optical disc industry, we should face this adjustment period with a more positive attitude, because it is not transferred by human will. We hope that in this "Phoenix Nirvana", China's CD-ROM replication industry can achieve a "qualitative" leap with a new look. Recently, according to the situation of the global optical disc industry, the German new glass company has made a strategic adjustment and set up the new glass Guangzhou company in Guangzhou. The localization of foreign optical disc replication equipment in China will provide Chinese optical disc replication enterprises with price competitive production equipment and timely and targeted technical training and services. From this, we can also see the confidence of the world's largest equipment manufacturer in China's optical disc industry. We welcome international optical disc equipment manufacturers to invest in China, and wish the cause of international optical disc equipment manufacturers and the development of China's optical disc replication industry to grow vigorously together. Development space of China's optical disc Industry 2006 is the first year of China's implementation of the eleventh five year plan. The Eleventh Five Year Plan period is a critical period for building a well-off society in an all-round way. Building a well-off society in an all-round way provides a broad domestic market for the development of the optical disc industry. We should comprehensively, correctly and actively understand the concept of national development, and implement it into the development ideas of the optical disc industry, so as to coordinate the development of the optical disc industry with the national economic and social development. On August 5 this year, the general office of the CPC Central Committee and the general office of the State Council issued the outline of the national cultural development plan for the Eleventh Five Year Plan period, which made it clear that during the Eleventh Five Year Plan period, the state will strengthen its support for the cultural industry, of which the exciting thing is that the printing and reproduction industry is included in the chapter on the key development of the cultural industry, It is clearly pointed out that "develop high-tech printing, characteristic printing and CD-ROM reproduction industry, build a number of distinctive and technologically advanced printing and reproduction bases, and make China an important international printing and reproduction center". In order to support the development of printing and reproduction industry, relevant government departments have issued a series of relevant policies to support the cultural industry in recent years, with the purpose of promoting the development of this industry. According to the analysis of relevant data, in the first half of 2006, a survey of the DVD player market in 65 cities across the country showed that "as an outdated product, the market scale of VCD players has shrunk rapidly, and the overall sales volume has fallen by 71% compared with the first half of last year". "The sales volume of DVD players increased by 6.9%". This shows that with the gradual improvement of people's living standards, the era of VCD will be replaced by DVD, which is the specific manifestation of technological progress, industry progress and social progress. We believe that the next few years in China will be a DVD era before the arrival of high-definition new generation format discs. According to statistics, there are about 300million households in China, and at least 50% of households in a well-off society have a DVD player. During the "Eleventh Five Year Plan" period, the demand for DVD players in China will reach 150million, with an annual average demand of 30million (at present, the sales volume of CD/DVD players in China is about 15million/year, and the sales volume of DVD players outside is about 75million/year). If the annual demand of each player is 20 discs, the annual demand of the domestic market for discs needs at least 3billion. This number does not include the demand for optical discs used by hundreds of millions of computers. In addition, government departments have opened channels to increase the investment and support of content industries such as film and television production industry, performing arts industry, entertainment industry, cultural exhibition industry and animation industry, resulting in the increase of the distribution volume of its cultural "post industry" - audio-visual industry for several years. For example, the distribution of audio-visual products in 2005 increased by 44.02% over 2004. The above data can analyze the potential market demand of China's optical disc industry. At the same time, during the "Eleventh Five Year Plan" period, the central and western regions and the vast rural areas are the focus of national development. With the improvement of the material living standards of farmers year by year, the consumption capacity increases correspondingly, and the demand for spiritual life (education, entertainment) increases. The domestic market of optical discs has great room for development. China's optical disc industry must establish confidence, expand development space, and strive to enhance the comprehensive competitiveness of the industry. The overall goal of the development of China's optical disc replication industry during the Eleventh Five Year Plan period is to develop high-tech optical disc replication industry while maintaining healthy, stable and rapid development, and strive to build China into an important international optical disc replication processing center by 2010. We should continue to strengthen macro-control, actively support the alliance and merger among enterprises, and increase the support for strong enterprises to become stronger and bigger by means of "supporting the strong and suppressing the weak". For products that are not large-scale, featureless, and can not reach the quality of CD-ROM replication, we should take measures to suppress and shrink, so as to achieve the survival of the fittest. Based on the current three production bases in Beijing, Shanghai and Guangdong, China's CD-ROM reproduction industry will be moderately concentrated, and CD-ROM joint-stock enterprise groups or large enterprises with several models (such as more than 200 injection molding heads) will be formed, so as to fully improve enterprise qualifications and product quality and create high-quality brands. CD-ROM should focus on developing and standardizing the domestic market, and recordable CD-ROM should fully participate in international competition and strive to expand the international market. By the middle and late period of the eleventh five year plan, in terms of industrial scale, the output of CD-ROM should strive to account for 1/4 of the world share, and that of recordable CD-ROM should account for 1/3. In terms of product quality and enterprise quality, more than 95% of enterprises should pass the demonstration of corresponding international and domestic qualifications, and 80% of enterprises' overall profitability is in a good state. The General Administration will intensify its efforts in the following aspects: making major breakthroughs in scientific and technological progress and regulating the market. We should establish industry standards and national standards for the format of red light HD high-capacity optical discs, complete the practicality and industrialization of red light HD high-capacity optical discs, and obtain a number of core technology patents with independent intellectual property rights, making it a new economic growth point in China's optical disc replication industry during the "Eleventh Five Year Plan". Gradually improve and formulate CD industry standards and product market access norms. Giving full play to the leading role of the government, the General Administration of publication will cooperate with the technical and quality supervision department, the National Engineering Research Center for optical discs of Tsinghua University, and the optical disc Industry Association in the work of "eliminating pornography and illegal publications", improve the quality supervision and testing system, standardize the order of the optical disc market, and resolutely eliminate inferior and counterfeit optical discs from the market. It is planned to organize and carry out CD quality inspection in a planned way from next year, and publish the inspection results to the public, so as to improve the supervision and inspection of the whole society on the CD industry. We should speed up the revision and improvement of the administrative regulation system of copy management. We will work with relevant departments to revise the regulations on the administration of publishing, the regulations on the administration of audio and video products, and the measures for the administration of reproduction. We will solve the problems of 23 articles in the regulations on the administration of audio and video products, and promote the CD-ROM Reproduction Industry and its market to quickly enter the virtuous circle of establishing business and administering according to law. We will continue to strengthen market supervision and rectification, continue to intensify the crackdown on piracy and illegal publication of optical discs, and keep the crackdown on infringement and piracy under high pressure. This work should become the daily work of the "Eleventh Five Year Plan" in the industry. Just as enterprises have to produce every day, "piracy is reduced by one point, and production is increased by one inch". Cracking down on piracy is to protect genuine copies, and cracking down on illegality is to protect legality. In the first half of this year, together with relevant departments, we launched a special action to severely investigate and deal with illegal CD-ROM copying enterprises. In the special action, a number of CD-ROM copying enterprises were shut down, which played a deterrent role in the industry and established the image of the Chinese government in combating infringement and piracy and protecting intellectual property rights. On July 15 this year, the Chinese government once again launched the "anti piracy 100 day action" to focus on cracking down on pirated audio-visual and computer software products. This activity severely cracked down on the production, reproduction, storage and sales of technical requirements caused by the compatibility of pirated audio-visual and software products. At present, a number of piracy and infringement cases have been severely investigated and dealt with. Management departments at all levels should strictly abide by their duties, do their duties, and make great efforts to strengthen supervision. All CD copying enterprises should conscientiously implement the copy power of attorney system and etching SID code system, and must not process infringing and pirated products with unclear entrusted projects, otherwise they will be severely punished by laws and regulations by defying the law. In order to strengthen the industry's efforts to combat infringement and piracy, during the exhibition and technical exchange meeting, the CD Working Committee and Hanwei company of the China Council for the promotion of international trade jointly initiated the establishment of a "CD equipment supplier Association" and jointly promised not to sell CD
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