The paint industry in China is continuously improving and developing. Looking at the paint market, it is developing in the direction of “health, environmental protection and greenâ€. Waterborne paints are also emerging throughout the country, and the Chinese paint market is on the right track, sprinting another peak in production. As of last year, the total amount of paint production in the country reached 3.28 million tons, an increase of 16.3% year-on-year. The Asia-Pacific region has become the largest geographical region, accounting for more than 35% of global coatings production.
However, due to the raging financial crisis, the Chinese paint market has been considered a haven by major paint manufacturers around the world. Strategies such as mergers and acquisitions have been adopted. China's paint market share has been robbed by major foreign companies.
Chinese paint companies face "internal and external attack"
A survey shows that in recent years, the world's coating demand is increasing at an average rate of 3.5% per year. As of last year, the global paint market capacity has reached 27 million tons, involving more than 93 billion US dollars. Among them, the demand for coatings in the Asia Pacific region will reach 8.9 million tons.
In the world paint market environment is in a good situation, the international industrial coatings top brand company mergers and acquisitions intensified, and accelerate the development of the Asian market, especially the Chinese market, AkzoNobel firmly occupy the leading position, ranking first in the world, Benefited from the acquisition of Imperial Chemical ICI, although the Crown of the Crown of the British Paint Company was sold. The PPG acquired macarons further consolidated its market position. RPM increased internal brand integration efforts. Diamond Coatings ranks ninth in the world in the acquisition of Four Seasons Coatings and Frost Coatings.
However, at present, the profits of many paint companies in China have fallen below 10%, exceeding the warning line of normal profits of the industry. Under normal circumstances, the normal industrial profits of paint manufacturers should be 20%-30%, at least more than 10%. There are two main reasons for this phenomenon: First, foreign coatings have increased market competition, such as AkzoNobel, PPG, ICI, Nippon, BASF, DuPont, etc. There are also foreign companies that set up agents in China and put foreign coatings. Products are directly introduced into the Chinese market. It is reported that at present, about 30% of the market share of the Chinese coating market is occupied by foreign companies, and the proportion is still rising.
Second, some domestic paint workshops are also impacting the paint industry. At present, many paint workshops in China do not attach importance to environmental protection and do not pay attention to brands. They are pushing down prices to create vicious competition. In addition to this, some small workshops have also used the name of the product as a "trimming ball". For example, people call it "Dabao lacquer." He called "Taibao lacquer," which has adversely affected the industry.
Inside the refining channel, refining “steel†to improve competitiveness The industry insiders pointed out that at present, there is not yet one company in the Chinese coating industry that can enter the top 50 of the world's coatings, compared with foreign advanced coating companies, in the economic strength, product quality, There is still a considerable gap in the level of scientific research, management basis, and marketing tools. In the category of *** coating products, the most abundant species in China is alkyd resin paint, followed by phenolic resin paint, and the proportion of energy-saving, low-pollution and environmentally friendly coatings (water-based paints, powder coatings, high solids coatings, and radiation-cured coatings) is approximately 26%, while similar products in North America, Western Europe, Japan and other developed countries have accounted for about 80%.
How can Chinese paint companies survive and develop in an increasingly harsh competitive environment?
Domestic paint companies can only seek their own position in the competition by rapidly improving their own technological level, management level, product quality and marketing capabilities. At the same time, the building decorative coating market can develop in a healthy and orderly manner, so that consumers can receive real benefits.
However, due to the raging financial crisis, the Chinese paint market has been considered a haven by major paint manufacturers around the world. Strategies such as mergers and acquisitions have been adopted. China's paint market share has been robbed by major foreign companies.
Chinese paint companies face "internal and external attack"
A survey shows that in recent years, the world's coating demand is increasing at an average rate of 3.5% per year. As of last year, the global paint market capacity has reached 27 million tons, involving more than 93 billion US dollars. Among them, the demand for coatings in the Asia Pacific region will reach 8.9 million tons.
In the world paint market environment is in a good situation, the international industrial coatings top brand company mergers and acquisitions intensified, and accelerate the development of the Asian market, especially the Chinese market, AkzoNobel firmly occupy the leading position, ranking first in the world, Benefited from the acquisition of Imperial Chemical ICI, although the Crown of the Crown of the British Paint Company was sold. The PPG acquired macarons further consolidated its market position. RPM increased internal brand integration efforts. Diamond Coatings ranks ninth in the world in the acquisition of Four Seasons Coatings and Frost Coatings.
However, at present, the profits of many paint companies in China have fallen below 10%, exceeding the warning line of normal profits of the industry. Under normal circumstances, the normal industrial profits of paint manufacturers should be 20%-30%, at least more than 10%. There are two main reasons for this phenomenon: First, foreign coatings have increased market competition, such as AkzoNobel, PPG, ICI, Nippon, BASF, DuPont, etc. There are also foreign companies that set up agents in China and put foreign coatings. Products are directly introduced into the Chinese market. It is reported that at present, about 30% of the market share of the Chinese coating market is occupied by foreign companies, and the proportion is still rising.
Second, some domestic paint workshops are also impacting the paint industry. At present, many paint workshops in China do not attach importance to environmental protection and do not pay attention to brands. They are pushing down prices to create vicious competition. In addition to this, some small workshops have also used the name of the product as a "trimming ball". For example, people call it "Dabao lacquer." He called "Taibao lacquer," which has adversely affected the industry.
Inside the refining channel, refining “steel†to improve competitiveness The industry insiders pointed out that at present, there is not yet one company in the Chinese coating industry that can enter the top 50 of the world's coatings, compared with foreign advanced coating companies, in the economic strength, product quality, There is still a considerable gap in the level of scientific research, management basis, and marketing tools. In the category of *** coating products, the most abundant species in China is alkyd resin paint, followed by phenolic resin paint, and the proportion of energy-saving, low-pollution and environmentally friendly coatings (water-based paints, powder coatings, high solids coatings, and radiation-cured coatings) is approximately 26%, while similar products in North America, Western Europe, Japan and other developed countries have accounted for about 80%.
How can Chinese paint companies survive and develop in an increasingly harsh competitive environment?
Domestic paint companies can only seek their own position in the competition by rapidly improving their own technological level, management level, product quality and marketing capabilities. At the same time, the building decorative coating market can develop in a healthy and orderly manner, so that consumers can receive real benefits.
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