Converters must embrace Big Data era

The signs of change are everywhere in China, said Liu, impacting brick and mortar retail stores, traditional hardware companies like Kodak, changing banking models and the way mobile phone companies derive their revenue.

In the recent record November sales in China, 42 percent of purchases were made from mobile phones – a further record.

‘Printers must not panic – they need to take the initiative,’ said Liu. ‘You have to think from the e-commerce perspective. We should welcome the internet economy not as an enemy but as a friend.’

The Big Data era is coming and there are two highlights, said Liu. ‘Firstly your business model will change and your source of profits. In the past, you first sell something, and then earn something. That model will change, so you earn profits from services even before something is printed. Secondly, every item will have related information online.’

Big Data allows manufacturers to predict customers’ buying preferences and push relevant product information to them dynamically – a different paradigm to ‘static’ TV commercials. Brands might share Big Data resources and integrate consumer rewards into their packaging.

Another growing force is the Internet of Things, which bridges the physical and virtual worlds. It focuses on mobile devices including phones and other sensors gathering information from the surrounding environment.

‘Packaging is an important entry point to the Internet of Things,’ said Liu. ‘QR codes are already everywhere and we can give them increasing functionality.’

Label converters will need to become expert in handling the Big Data they will increasingly receive from their customers, and applying this to packaging.

‘This will impact all stages of manufactured goods from the manufacturing process through to delivery to the end customer and beyond that through the life of a product. All this data can be controlled in real time.

These developments will increase the importance and functionality of labels, said Liu. ‘Labels are like the faces of products in the real world.’

In 2011,Beijing Founder launched its own VDP software, integrated into its inkjet presses. Applications have included hiding variable data in relevant graphics. This operates even if a nozzle is blocked, said Liu, as the algorithms ‘smooth’ over the white lines. The program is now 64 bit capable to handle the volume requirements of Big Data in real time.

Encrypted QR codes are another digital application, helping manufacturers monitor their own products through the supply chain.

The role of converters is to offer technical support in implementing these new strategies using digital printing and real-time handling of variable data.

‘The message I want to send out is the Big Data era is coming. A lot of people say online economics is just a mirage – but it’s an extension of the real world and solid just like the earth. Big Data is like a nerve system, ever developing, and everyone can contribute to it.’