Raw material prices are rising Where are China's paint companies going?

With the rise of raw materials, paint companies are under increasing pressure. Many small and medium-sized enterprises that are hitting the market with low prices can no longer obtain price advantages because of the rapid increase in costs, and the more they lose, the more they lose. SMEs are difficult to sustain and have closed down or transitioned. Many companies began to gradually adjust their prices because they could not withstand the rising pressure of raw materials, allowing the market to absorb some of the pressure. At the same time, the state began to exercise stricter control over hazardous chemicals production, sales, and warehousing companies. At the beginning, it is required that the “3C” standard be enforced in the circulation market of wood lacquers. All paints without the “3C” mark shall not be allowed to circulate in the market; and then fire safety shall be rigorously investigated. Every company must meet the fire safety standards, otherwise the deadline will be rectified. Is to cancel its production qualifications; subsequently mandatory production of oil paint companies must apply for "dangerous chemicals safe production license," and various chemical raw materials storage and transportation also made stringent requirements, these measures make the original Enterprises that are struggling to cope with rising raw materials are even worse.

The raw materials are still rising, the operating pressure of companies is getting bigger and bigger, the market prospects are not as good as predicted, the market share of enterprises is gradually shrinking, and companies want to get out of the predicament but they don’t know how to exert power. Many CEOs of companies feel that they are unprecedented. Pressure and confusion, do not know which direction companies should go, how to proceed? In particular, some enterprises that produce civil architectural coatings have become increasingly difficult to survive in the attack of major brands.

The overly serious homogeneity of enterprise products is the main reason why most companies are in trouble. Therefore, if paint companies want to achieve better development, first of all, it must be clear where the company's own competitive advantage is. How do companies adjust their positioning to avoid falling into too much homogenous competition? In a fixed operating model, it is likely that some projects are not profitable and do not bring significant added value to the company. Some processes may also be redundant in the management of the company's operations. However, due to the operation of the company, it has been formed. A kind of habit, some visual blind spots appear, make enterprises only adapt to their existence without improving them, even feel that they will not adapt to changes, will affect the normal operation of the company. As everyone knows, it is often this kind of inertial thinking that has hindered enterprises from achieving better development. The paint industry has entered the “reshuffle era”, and companies (especially some enterprises that have suffered setbacks in recent years) must constantly adjust to meet new development needs during development, resolutely remove this inertial thinking and ambiguous thinking, and re-examine themselves. , Optimize and integrate the company, re-adjust to find its own future development.

Adjust product positioning, and do fine work in one area. Product homogeneity is the most common phenomenon in the coatings industry. It can be repositioned to obtain new market space through adjustments to product formulations, application of concepts, and recombination of products. Adjusting the formulation of paint products is the most common method used by companies. However, with the maturation of paint products and the weak R&D capability of China's paint companies, it is difficult to see the benefits of formula adjustment in the short term. Companies insist on a technology-leading or cost-leading line, then the adjustment of the formula will have a greater impact on the company.

At present, China's paint companies generally prefer concept innovations, such as "nano" coatings, "photocatalyst" coatings, etc. in the previous two years. Although many companies in the industry are applying nanomaterials and nanotechnology to coatings, it is doubtful whether their contents are up to standard and whether formulas can fully exert nano-efficacy. What's more, some companies still have pure concept marketing. "It is. A good product, a good recipe, if it can have a good concept and packaging, then he will get to the market more efficiently and faster. Many paint companies have been pulling their product lines long since they started. As long as they are trying to produce paint products, the company’s strength is not strong enough, and nothing has been done. China's paint companies are generally small in size, and their financial strength is also very limited. Under such circumstances, if we choose to do everything, it will only be doing nothing. At this point, Hideyoshi, known as the "kingdom of floor paints," has set a good example for the paint industry in China.

Choosing a good product portfolio, taking the fine, special development route is the most needed way for China's paint companies to go.

Adjust services and take the road to service. When it comes to service, many people may think of Haier’s “sincere and forever”. Haier earned a good reputation with its five-star service standard, quickly expanded its market share, and grew from a company facing losses to today’s home appliances. The giant, which was written in Harvard's case, is also the first company in China to be written in the Harvard case. For ordinary consumers, paint is still a professional product. Most consumers do not understand how the paint should be painted. Even some professional design companies do not understand the paint's performance and brushing method. This is even more necessary. Coating companies do a good job in service work to win respect and recognition from the market. At present, from the perspective of the entire industry, companies that have done better are more service-oriented. For example, China Resources Coating has provided customers with professional coating services very early.

Differentiate your opponents from your marketing methods. There are usually three kinds of marketing channels for coating products: one is a professional user, such as a furniture factory for which the furniture lacquer is directly targeted; the other is a traditional sales channel, which depends on distributors or large shopping malls for distribution; The species is specialized in professional engineering. China has been at the peak of construction in recent years. The Olympic Games, the Asian Games, the World Expo and the Western Development, and the people's home and work and other projects will produce a large number of projects, which is very much for the coating companies. Good opportunity. Coating companies can choose the channel that is most suitable for the development of the company according to the actual situation of the company and the current situation. Such as Dalian Zhenbang, so many years has been focused on the sale of fluorocarbon paint project, in China has done a lot of fluorocarbon paint project, has become a fluorocarbon paint engineering experts, no one in the industry do not know. Some companies also have two channels or even three channels at the same time.

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