What are the barriers to entry in the small roll thermal label industry?

The entry barriers of the small roll thermal label paper industry are mainly reflected in the following aspects:

First, technical barriers

1.High technical requirements: The production principle of heat-sensitive label paper is to coat the ordinary paper base with fine powder, which needs to undergo color reaction under hot conditions. This process involves complex chemical reactions and coating technology, which requires high technical strength of production enterprises.

2.The process is difficult: in the production process of thermal label paper, various process parameters need to be strictly controlled, such as coating amount, drying temperature, color development speed, etc., to ensure the stability and consistency of product quality. These processes require enterprises to have rich production experience and advanced production equipment.

Second, supply chain barriers

1.Raw material supply: The production of thermal label paper depends on specific raw materials, such as thermal coating materials. The supply channels of these raw materials may be relatively concentrated, and new entrants may face difficulties in purchasing raw materials.

2.Complex supply chain: The supply chain of the thermal label paper industry involves raw material supply, production and processing, sales and other links, and the links are closely linked. New entrants need to establish a complete supply chain system, which requires time and resource investment.

Third, market competition barriers

1.Market share concentration: The market competition pattern of the thermal label industry is relatively concentrated, and a few large enterprises occupy a dominant position in the market. It is difficult for new entrants to break the existing market pattern and gain enough market share in a short period of time.

2.Brand reputation and customer relationship: Existing enterprises have established a stable customer relationship and brand reputation, new entrants need to invest a lot of resources for market development and brand building.

Fourth, environmental protection and safety requirements

With the increasing attention of consumers to environmental protection and health issues, the quality and safety requirements for thermal label paper are also increasing. Especially for thermal labels containing harmful substances such as bisphenol A, consumers are increasingly rejecting them. This has prompted the thermal label industry to face the pressure and challenges of transformation and upgrading, and new entrants need to make more efforts in terms of product environmental protection and safety.

Fifth, capital and scale barriers

1.Large capital investment: thermal label industry production equipment and technology research and development investment is large, new entrants need to have a certain financial strength to support production and research and development.

2.The scale effect is obvious: the production of thermal label paper industry has scale effect, that is, the larger the production scale, the lower the unit cost. New entrants may face diseconomies of scale and struggle to compete with incumbents on price.

In summary, the entry barriers of the small roll thermal label industry are mainly reflected in technology, supply chain, market competition, environmental protection and safety requirements, as well as capital and scale. New entrants need to make adequate preparation and efforts in these aspects in order to successfully enter and establish themselves in the industry.