Is there an entry barrier in the wax based carbon ribbon industry?

There are indeed entry barriers in the wax based carbon ribbon industry, which are mainly reflected in the following aspects:

1、 Technical and process barriers

The wax based carbon ribbon industry involves comprehensive applications in multiple disciplines such as polymer chemistry, physics, optics, and automatic control. In the formulation of heat transfer ink, it is necessary to ensure that the ink has good heat transfer properties and can maintain adhesion to the base film in storage and use environments, avoiding back migration in high temperature environments and detachment in low temperature environments. This requires a large number of scientific experiments and repeated use testing, which requires high long-term and sustained investment in research and development. In addition, innovative production processes such as multi-layer uniform coating, anti infiltration technology, hot melt coating, and water-based coating also require long-term production practice, experience accumulation, and technological upgrading investment. Therefore, new entrants face high technological and process barriers.

2、 Sales channel barriers

As a consumable for thermal transfer printers, the sales of thermal transfer carbon ribbon usually rely on a dealer network. Distributors are widely distributed and numerous, and cultivating and developing distributors not only requires product quality and price advantages, but also requires a long time of accumulation. International first-class enterprises generally have already laid out their sales channels globally, which poses a significant sales channel barrier for new entrants in the industry.

3、 Industry application experience barriers

The application of heat transfer carbon ribbon in barcode printing needs to have a deep accumulation in industry applications. New entrants may lack competitiveness in terminal applications due to a lack of industry application experience. At the same time, downstream customers generally do not easily change suppliers to avoid the impact of quality fluctuations in thermal transfer carbon ribbon products on printing quality.

4、 Production scale barriers

Large scale continuous production is crucial for the stability of the quality of heat transfer carbon ribbon products. Enterprises in industries with large production scales have significant advantages in product quality, while large-scale production can also improve bargaining power with suppliers and have considerable cost advantages. In addition, these enterprises can also ensure timely and stable supply. Therefore, for new entrants, they are at a disadvantage in competition compared to companies that have already formed a certain scale.

5、 Alternative barriers

Thermal transfer printing is generally integrated and sold to end users by distributors in the form of providing services, and continues to provide services such as consumables supply and maintenance after sales are completed. End users have a high dependence on dealer services, and thermal transfer printing has unique advantages compared to other printing methods. Therefore, end users generally do not easily replace thermal transfer printing with other printing methods. This also creates alternative barriers for new entrants.

In summary, there are various entry barriers in the wax based carbon ribbon industry, which limit the entry ability of new entrants and make the competition in the industry relatively stable.