Four inflection points for the development of the

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Four inflection points for the development of the coating industry

four inflection points for the development of the coating industry

September 16, 2014

recommended lag ring method

[China coating information] is facing a "inflection point" for the coating industry. On the one hand, in 2014, the coating industry will continue to grow under the tide of global low-carbon economy, and the overall market will continue to grow; On the other hand, the growth rate of the industry has slowed down and enterprises have shuffled. Small and medium-sized enterprises are facing huge competitive pressure. Raw materials and labor costs bear the brunt. The development of the entire coating industry will enter a new turning point. Today's decision determines the future of the enterprise, which also brings endless confusion and pressure to the large enterprises in the industry. Moreover, in recent years, industrial upgrading has become the trend of enterprise development. Some large enterprises have carried out factory layout throughout the country. Moreover, the competition for channels and rural markets when building materials go to the countryside is extremely fierce, which has reached a white hot level, giving small and medium-sized coating enterprises very limited living space and time. Encouraging the production of environment-friendly and resource-saving coatings and eliminating backward production capacity will remain the focus of the future development of the coating industry

inflection point 1: raw materials and human resources "double constraints"

facing the pressure of rising raw materials and labor costs, many enterprises lament that the profit space has been compressed. The data shows that since this year, the raw material market of coatings has maintained a trend of rising prices. The prices of resins, pigments and solvents have increased to varying degrees. In terms of resins, enterprises have stepped out of the tradition of focusing on a single product and tried different types of resin R & D and production, forming a diversified development trend of resins

the rise of labor costs has also become an indisputable fact. Front line workers are hard to recruit, and skilled talents are even harder to find! "Now paint is still a labor-intensive industry." A person in charge of a paint production enterprise said, "so far, the wages of front-line production workers have risen by 1 percentage point, and the stress frame composed of oil cylinder seat, steel plate welding frame and fixed plate has caused great pressure on enterprise production." At the same time, transformation and upgrading has become an urgent need of coating enterprises, and there are few talents who can promote the high-end research and development of coating products. Talent introduction has become a short board of enterprises, restricting the pace of enterprise transformation and upgrading

inflection point 2: "GANZE promotion" leads to vicious competition

there are as many as thousands of enterprises in China's coating industry. Over the years, the main "position market" has been fighting in the vast third and fourth tier rural market. After years of market cultivation, on the one hand, the market has been educated and started. On the other hand, due to the intensification of competition, more enterprises have adopted the market promotion method of "fishing after drying up". Many paint manufacturers cling to the incomplete view that as long as paint products have a very attractive promotion, they can increase sales, but they can't sell products without promotion, falling into such a "strange circle". After experiencing the post-war price war, the enterprise has carried out a strong buy give promotion, and now it has reached the level of buying paint and giving furniture

obviously, this kind of "consumption war" of promotion competition, regardless of cost, makes many coating enterprises "unable to bear the pain of promotion", especially some small and medium-sized coating enterprises "seriously injured", and the competition results are not worth the loss. When there are three or even more paint brands promoting in a small market in some towns, there is no doubt that the increase is not market demand, but the deteriorating competitive environment of the market

inflection point 3: service and technology "system operation"

in fact, "paint to the countryside" is a double-edged sword. On the one hand, major coating enterprises attach importance to the huge purchasing potential of the rural market, on the other hand, they are faced with strict requirements for product prices and after-sales services due to rural consumption levels. This double-sided attribute of "half sea water, half flame" forces domestic coating enterprises to practice hard in quality and service. With the help of their own strength, first-line brands have successfully broken the "price limit" barrier and become the beneficiaries of building materials to the countryside. However, in addition to conventional service measures, in fact, it can not completely solve the problem of service in the use of rural coatings in a real sense, which requires the introduction of "service system". What technology gives to the market is an epoch-making innovation that some testers don't understand very well plus an increment, while what the market gives to technology is a huge demand

in 2014, the coating industry will move more clearly towards the era of specialization and segmentation, re-examine channel issues, and begin to build a service system for the coating industry

inflection point 4: brand upgrading faces "big test"

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