The measures to deal with the cost-driven price increase should be multi-pronged, but the basic premise is to change the current business direction of the newspaper industry, further improve and consolidate the traditional main business, and at the same time increase efforts to expand diversified operations in the market environment.

The price increase of newsprint in recent ten years coincides with the critical stage of the great adjustment of newspaper advertising market. With the adjustment of industrial structure, advertisements in some major industries such as real estate, medical care and automobiles have declined or stagnated for several years, while advertisements in emerging industries such as consumer services have not fully grown into new mainstream advertisements. The rising cost of newspaper industry and the stagnation or slight increase of advertising amount make the survival and development of newspaper industry face double pressures. At this time, the development mode of simple low-price distribution and scale expansion in the past will face adjustment, and a new "turning point" in newspaper development may appear at any time.

After this "turning point" appears, it will bring two directional choices: one is to return to the environment that relied entirely on policy protection in the past, and the other is to take the initiative to meet the market challenge, brew a breakthrough in the newspaper system, and carry out in-depth reforms, so that the propaganda and public opinion attributes within the newspaper group are relatively separated from the functions of industrialized operation, and explore the newspaper management system and development model that conforms to China's characteristics under the new market environment. According to the above analysis, the second choice after the "turning point" is the general trend of the situation. Therefore, when the newspaper industry is facing a crisis, it may also be an opportunity for recovery and revitalization.

In the process of business transformation, the factors that affect the operating cost of newspaper groups are mainly concentrated in two aspects, namely, the cost drivers from outside the newspaper industry and the cost drivers from inside. The former is mainly the price increase of newsprint this time and the high-end and low-end price choice of newspaper price in the next step, while the latter includes the increase of labor cost and management cost with the steady growth of social GDP. How to digest and absorb these cost-increasing factors, seize the opportunity, and complete the transition from crisis state to recovery state, and from relying solely on the traditional main business operation to the diversified operation of modern newspaper industry, we need to take a long-term view and take various countermeasures. At present, the countermeasures to actively reduce the cost of increasing expenditure should start from the following aspects.

The particularity of the propaganda function of the party newspaper group requires the state to give it a preferential policy of support. At present, the real orientation of the party newspaper group not only has the political propaganda function of the party governing the mainstream media and firmly grasping the guidance of public opinion, but also bears the great responsibility of the media industrialization development. This special historical orientation determines that the newspaper industry is not an ordinary cultural industry, and there must be corresponding reform policies when changing the management system. The ten years' development course of newspaper group and the actual situation of this sudden cost-driven price increase show that this policy should have a clear industry inclination, which is also an objective need to support the development of the industry. After the newspaper group has gone through a difficult period, can the state give supportive policy support in the following two aspects: first, the advertising revenue of the newspaper industry is moderately inclined in the business tax rate, which is from 8.2% to 3% ~ 4% of the total advertising revenue at present, which seems to be very large on the surface, but in fact, from the perspective of the total advertising revenue of all newspapers, the whole country is about 100 million yuan; The second is to adjust the income tax policy of the party newspaper group from 25% of the national unified new tax rate to 10%. This part of tax reduction is very small in the whole national tax revenue, and will not have any great impact on the country, but the impact on the accumulation and development of the newspaper industry cannot be underestimated.

Establish a domestic factory newspaper pricing alliance system led by government functional departments as soon as possible. The social and economic benefits undertaken by the Party newspaper group are the first of the two responsibilities. However, the newspaper industry is in a passive and helpless state for the market changes such as the rising price of newsprint. At this time, it is necessary for government departments to take active measures to help the newspaper industry tide over the difficulties. Specifically, the relevant state departments should investigate, evaluate and demonstrate the production, import and paper production costs of papermaking raw materials, so as to make the ex-factory price of newsprint fluctuate appropriately and orderly, taking into account not only the profits of manufacturers, but also the affordability of the newspaper industry, so as to avoid ups and downs in the process of market fluctuations, and finally establish a paper pricing and supply-marketing alliance system that can basically adapt to the relationship between market supply and demand and maintain the stable development of the newspaper industry.

Open up channels to increase the value and income of newspaper advertisements. In recent two years, great changes have taken place in China newspaper advertising market. The growth rate of newspaper advertisements is far lower than the growth rate of the total investment in advertising in the whole society, and it also lags behind the growth rate of GDP in the whole society. The share of newspaper advertisements in the advertising market shows a continuous downward trend. According to statistics, the national newspaper advertising growth rate in 2007 was only about 6%. Coupled with the internal factors of the newspaper industry, such as discount of page price, newsprint printing after price increase, increase of labor cost and decrease of actual income, the actual increase may be even smaller.

However, the advertising market in China has not declined. According to the forecast of relevant industry departments, there is no doubt that China will become the second largest advertising market in the world in the next few years. In 2009, the national advertising investment will still increase by 19.5%. Although the Internet, television, outdoor and multimedia advertisements are the main sources of advertising growth, the industry advantages and mature management of the newspaper industry are still an important force in the advertising industry. The difference is that in the face of the current situation of the advertising market, the newspaper industry must have more effective advertising revenue channels and management methods than other media in by going up one flight of stairs, in order to have more extraordinary new ideas. While continuing to do well in brand, special issue and classified advertisements, the cross-industry and cross-regional business ideas of newspaper advertisements are still promising. The key question is who will do it and what kind of project.

Study the newspaper price increase policy that can be accepted by the market. On the basis of establishing a coordinated paper price alliance, raising the selling price of newspapers, including wholesale price and retail price, is a direct way to deal with rising costs. In this regard, some of the newspapers mentioned above have taken the lead, and more newspapers are still waiting to see, and this wait-and-see situation may continue. Because newspaper prices have always been low-level sales in the past, it is difficult to predict how much the market can bear if the price is raised sharply. Without price adjustment, the newspaper business is under great pressure, and the time span under pressure is difficult to predict, which makes the newspaper industry in a dilemma. Therefore, the price increase of newspapers is inevitable, but different newspaper groups choose different times and different adjustment ranges according to their different actual conditions.

In the new turning point of newspaper management, we should speed up the process of diversified management and change the single mode of newspaper development. This cost-driven price increase is a severe test for the newspaper industry. At this stage, everyone's urgent and feasible measures are to control the expansion of newspaper periodicals as soon as possible, slim down newspapers as much as possible, reduce the loss rate and reduce direct costs. While doing this emergency work well, it is more important to change the development mode of newspaper industry, seize the opportunity, improve the quality of running newspapers, squeeze out news and change the profit model of single thick newspaper and special issue. On the basis of doing a good job in traditional business, deepening reform, tapping potential and seeking benefits from management, we will actively carry out diversified operations and gradually transform into new media and digital newspapers.

Traditionally, layout advertisement is the foundation of newspaper industry's survival and development, but it can't be the brand of newspaper industry's development. What can really support the newspaper industry and make it develop into a brand advantage is the diversified brand management realized by the newspaper industry after adopting modern management system. This brand advantage will have a greater impact and function on the formation of a new development model of the newspaper group. (