According to the latest data from IDC’s “China Industrial Printer Quarterly Tracker (Q2 2022)”, shipments of large-format printers in the second quarter of 2022 (2Q22) fell by 53.3% year-on-year and 17.4% month-on-month. Affected by the epidemic, China’s GDP grew by 0.4% year-on-year in the second quarter. Since Shanghai entered a state of lockdown at the end of March until it was lifted in June, the supply and demand sides of the domestic economy stagnated. Large-format products dominated by international brands have been severely impacted under the influence of the lockdown.
·The demand for infrastructure construction has not been transmitted to the CAD market, and the introduction of the policy of guaranteeing the delivery of buildings cannot stimulate the demand in the real estate market
The closure and control caused by the Shanghai epidemic in 2022 will greatly affect the CAD market, and the shipment volume will drop by 42.9% year-on-year. Affected by the epidemic, the Shanghai import warehouse cannot deliver goods from April to May. With the implementation of supply guarantee measures in June, logistics gradually recovered, and some unmet demand in the first quarter was also released in the second quarter. CAD products mainly based on international brands, after experiencing the impact of shortages from the fourth quarter of 2021 to the first quarter of 2022, the supply will slowly recover in the second quarter of 2022. At the same time, due to the reduced market demand, the impact of shortages in the domestic market will not be affected. Significantly. Although the major infrastructure projects disclosed by various provinces and cities at the beginning of the year involve tens of trillions of investment, it will take at least half a year from the dissemination of funds to the full formation of investment. Even if the funds are broadcast to the project unit, the preparatory work is still required, and the construction cannot be started immediately. Therefore, infrastructure investment has not yet been reflected in the demand for CAD products.
IDC believes that although domestic demand is limited due to the impact of the epidemic in the second quarter, as the country continues to implement the policy of increasing infrastructure investment to stimulate domestic demand, the CAD market after the 20th National Congress will usher in new opportunities.
IDC believes that the purpose of the policy bailout is to “guarantee the delivery of buildings” rather than to stimulate the real estate market. In the case that the relevant projects already have drawings, the bailout policy cannot promote the overall demand of the real estate market, so it cannot generate more demand for CAD product procurement. Great stimulus.
·Pandemic lockdown disrupts supply chains, and consumption habits shift online
The Graphics market fell 20.1% quarter-on-quarter in the second quarter. Prevention and control measures such as lockdowns and stay-at-home orders have continued to expand the impact on the offline advertising industry; online advertising models such as online advertising and live streaming have become more mature, resulting in an accelerated shift in consumer purchasing habits to online. In the imaging application, the users who are mainly photo studios are affected by the epidemic, and the orders for wedding dresses and travel photography have dropped significantly. The users who are mainly photo studios still have weak product demand. After the experience of Shanghai’s epidemic containment and control, local governments have become more flexible in their policies on epidemic control. In the second half of the year, with the implementation of a series of policies to stabilize the economy, ensure employment, and expand consumption, the domestic economy will continue to recover, and residents’ consumer confidence and expectations will steadily increase.
IDC believes that in the second quarter of this year, the epidemic had a great impact on the industrial chain of various industries. The economic downturn caused enterprises and consumers to reduce discretionary spending, hindering consumer confidence in the large-scale market. Although the market demand will be suppressed in the short term, with the successive introduction of national policies to expand domestic demand, the continuous advancement of large-scale infrastructure projects, and the more humane epidemic control policies, the domestic large-format market may have reached its bottom. The market will recover slowly in the short term, but after the 20th National Congress of the Communist Party of China, relevant policies will gradually accelerate the process of domestic economic recovery in 2023, and the large-format market will enter a longer recovery period.
Post time: Sep-23-2022