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Etiketka 2008 - show declines despite the industry growth
By Gregory Grishchenko

Lable 2008

Organized by the Russian media holding MVK (International Exhibition Company), and supported by Moscow Chamber of Commerce and Industry, Russian agricultural, cosmetics and label makers associations along with Alexander Watson Associates, international market research company, Label Show 2008 in Moscow has marked its thirteenth year.

Lable 2008

Etiketka - LabelShow - 2008 (October 7- 10, 2008) has moved from the historical Sokolniki Park to the gleaming modern Crocus Expo Exhibition Center located on the major Moscow highway ring.

The show keeps shrinking in size hosting nearly 100 exhibitors from 13 countries in a hall that was half full. Etiketka 2008, still very Russian in nature, handed over 25% of space to packaging media companies Lable 2008 number of exhibitors chart representing magazines, internet sources and trade publications and held a number of educational and competitive award events promoting label design and technology including the 4th GrandEtikett (International design competition for the best label). The information sponsor was the major Russian packaging magazine Tara I Upakovka (Package and Packaging). Tara I Upakovka's Editor-in-chief Igor Smirennyi, was very assenting in his statements during the show events: "The show started in 1995 and has served its purpose very well. Thanks to the show Russian label industry gained access to the world's most modern label printing equipment and technologies. Russians started to print their own labels at the world quality level (and sometimes ever higher) and with own unique designs. During the past 10 years a number of specialized label producers were established across the huge territory. However, in 2005-2006 the principal Western equipment making exhibitors reduced their presence at the Label show due lack of investment money from local printers. So, currently the show going through makeover changing its strategy in the direction of marketing, design, merchandizing, and logistics. This transformation causing departure of some principal equipment and technology suppliers to the other more specialized shows and appearance of new players".

Lable 2008 - ExhibitorIt is typical for major European and US suppliers to delegate Russian and CIS sales activities to their local distributors stuffed with Russian speaking personnel working close with their colleagues from the main office. During the show Walter Eitner from Switzerland, East Europe/ CIS Sales Manager for Mark Andy working in the Variant Flexo Ltd. booth (Mark Andy's Russian distributor) noted still high demand for higher-end but affordable printing presses. Variant Flexo also represents German flexopress maker Fischer & Krecke and sells refurbished equipment, claiming that in today's climate companies selling refurbished presses may do better than the ones selling new.

Lable 2008 - Exhibitor

Ogard, the small Russian privately owned company used to be a distributor for American companies Comco and Sohn Manufacturing when I met them 6 years ago at Etiketka 2002. Even with the loss of representation for these companies due the industry acquisitions and merges, Ogard remains strong full service supplier for domestic printing houses, evolving into affiliation with the converting industry leaders Nordmeccanica (laminators), MPS Systems (flexo printers) and Schober (rotary tools). Ogard's Sales Director, Dmitry Emelin has offered his version of the Russian label industry current state: "The double-digit growth of the 1990s was driven by enormous capital that happened to be in the hands of Russian nouveau riche who did not know where to invest. Consumer packaging, an industry almost non-existent before, was a good choice to spend money purchasing technologies and equipment from the West. Currently, the situation gets stabilized: the fittest survived the pressure of competition providing the label industry with the decent growth of 4% a year".

Lable 2008 - ExhibitorThis year Heidelberg CIS, Russian subsidiary of a printing giant was the only industry major press manufacturer at the show. Company markets its line of Gallus narrow web label presses, restores used Heidelberg printing machinery and run educational programs at their Print Media Center in Moscow. The single Swiss participant at the show Graficon Maschinenbau was also affiliated with Gallus presses offering refurbished machines. Both companies consider taking part of the Russian show as very important channel to keep connection with current and potential customers.

When it comes to RFID labels, Mühlbauer AG from Germany offered its expertise for this emerging and costly new field in Russia. This company with about 1,800 employees in 29 locations on five continents, is a leading supplier of production equipment for the smart card industry and recently secured the order to modernize the Moscow subway system. Russia is implementing new label technologies including RFID in the public transportation system (not only in Moscow and St. Petersburg but in all major cities across the country) and in the higher price end consumer products like liquor and tobacco. Actually the most attractive labels with special features like holograms might be noticed when buying vodka or cigarettes. Another principal player in RFID business UPM Raflatac does not manufacture in Russia, however its sales office is very active and generates enough trade to justify the presence in all regional shows despite the recent 20% personnel cutback in Europe.

Lable 2008 - Exhibitor

Avery Dennison sponsored all Etiketka shows and became a major label stock supplier since 1990s being the first Western company opening Russian subsidiary. "Avery Dennison's booth at the show that carries the company mission statement Ideas That Work for You falls into current show strategy of innovation", said Angelo Depietri,Vice-President and General Manager for Avery Dennison Roll Material Europe.

Label printers and converters occupied over 50% of floor space at the show. Over 50 companies engaged in production of labels demonstrated a trend to advanced technologies with Moscow and St. Petersburg based printing houses prevailed. This year event was signified by presence of Lable 2008 - Exhibitor label makers from Turkey (Yakasan and YBS) and Singapore(S-Chem). Homespun label converters Imagency Print, Shamta and Neoprint as well as market leader Okil and CCL -Kontur Canadian-Russian joint venture are the world level label suppliers setting standards for Russian market.

Printing machine manufacturing capacity plummeted almost to zero after the collapse of the Soviet Union. Yet, there was a Russian press maker at the show that makes its own flexo machines. Flexo-Kaskad narrow web (190 mm) press looks more like a jig, however, with the printing speed of 80 m/min, five color heads, anilox rolls from Kharkov (Ukraine) and the price tag being a fraction of Western made counterparts, it was generating small crouds in the booth.

Attendance statistics were not completed by the time of the report, but the projected number of 5,000 will be realistic enough. This estimate may match the show size with the current situation in the maturing Russian label market.

Lable 2008 - Exhibitor