The paint industry should be “warm up” to jointly resist the cold market

From the initial soaring prices of raw materials, to the increase in the cost of logistics personnel, to the pressure of repayment of funds, and to the end of the year, “copper, nine, silver, and ten”, it is indeed an extraordinary year for the paint industry in 2011. While gradually falling, many people in the coatings industry also lamented the chilling market. Enthusiasm for warmth, when the cold weather strikes, the paint industry through this way to accumulate power and help each other to break the current predicament.

In 2011, as the upstream industry of the paint industry, its raw materials were greatly affected by the fluctuation of international crude oil prices, such as the prices of chemical solvents, titanium dioxide, tung oil, and rosin all rose in different ranges; as downstream industries, furniture and building materials Other industries have also shown a downturn this year, and market demand has decreased. Throughout the entire industry chain, the development of the coatings industry is facing the situation of “the purchase price of the upstream market increases and the demand in the downstream market is sluggish”.

As the saying goes: "Alternative wood is not a forest." The construction of a healthy and stable industrial chain requires the cooperation of related industries. The lack of a link or any link in it has problems and the industrial chain is incomplete. For the coatings industry, its collaboration with the upstream and downstream industries should accomplish the following aspects:

First, break the "price war" cycle. In order to solve the crisis of survival and development, the coatings raw materials industry, furniture, and building materials industry have all set off a “price surge” in an attempt to survive the crisis. However, the simple "price war" is not a rational choice. It not only disturbs the market order but also suppresses the market demand.

Second, build a healthy industrial chain to reduce costs. From raw materials to finished paints, to painting of furniture and building materials, and finally to transportation and sales, each of these links must be opened up. Through resource integration and optimized distribution, production costs and transaction costs are reduced, and people are able to strengthen the market. The ability of the crisis.

Again, coordinate the development pace of each link in the industry chain. A complete and healthy industrial chain contains all the links that should be coordinated. For the coatings industry, the R&D of raw materials should be consistent with the technical level of the coating products. If a new type of raw material cannot be applied to the production of finished products in the end, it can only temporarily become a “waste material”; and coating products It should also be consistent with the coating industry, the introduction of new products should be consistent with the coating technology, otherwise, the coating products are not actually applied only a semi-finished product. Therefore, the paint industry should cooperate closely with the upstream and downstream enterprises, strengthen communication and exchange, maintain consistency in the pace of development, and reduce the waste of resources.

Paint companies should concentrate their advantages and seek common development In 2011, a surge of “price increases” caused the paint industry to face a cruel reshuffle, especially as SMEs faced a crisis of survival and development. It is not difficult to see that when dealing with difficult situations, many paint companies chose to fight for each other. As mentioned before, “Alone is hard to become a forest.” The ability of Zhongmu Chenglin to resist market risks has also been correspondingly enhanced. Therefore, at the onset of the cold, paint companies should work together to focus their respective resources and break through the existing development difficulties.

First of all, paint companies need to “complement each other to sing a good show”. The “price war” is just a stage for various companies to set their own concerts. Their vicious cycle leads to mutual disintegration, and the final result may lead to a collapse, which will bring heavy losses to the entire industry. Paint companies are interconnected. Only companies that cooperate with each other and seek common development can "sing and sing well" to win consumers' admiration and applause.

Second, paint companies should integrate superior resources to achieve brand marketing. As the old saying goes: “The industry specializes.” In an environment of fierce homogenization competition, paint companies should not consider what means to seize the existing market share, but should think about how to integrate the advantages they have and concentrate on breakthroughs. In order to seek new profit growth points, they will occupy a place in their respective fields through brand marketing.

Again, paint companies need to create a good competitive environment. Coating companies have both cooperation and competition, and benign competition can promote enterprises to continuously innovate technologies and services, increase market competitiveness and respond to risks.

Fourth, paint companies should work hand in hand against the impact of foreign giants. Despite the relative slowdown in the demand growth of the Chinese paint market, the market space is still very broad. Many foreign paint brands such as AkzoNobel, PPG, Sherwin-William, and Japan’s Daikin have all increased their investment in China. Split the big cake in the Chinese market. Therefore, Chinese paint companies should take into account both internal and external factors, achieve industrial structure upgrades and technological innovations, open up new marketing and service models, and, while stabilizing the domestic market, focus on the international market.