Cost rises paint companies feel pressure to open up new channels

According to the traditions of previous years, starting from May, China's paint market should begin to enter the sales season gradually. However, from the actual situation of some paint companies in Shenzhen recently visited, this year's sales situation is not as optimistic as in previous years. The emergence of this situation, the author analyzes the following reasons.

Increase in labor costs According to the current situation of market development, with the increasingly fierce market competition, workers in paint companies have become fragrant. The product is the lifeline of the company, and the worker is the main body of the production product. From the purchase of raw materials to the production of finished products, the role of workers can be considered to be of great importance. Without workers, there is no product. Therefore, in order to retain skilled workers, paint companies adopt various methods and even increase their salaries. As a result, the company's profits have fallen relatively, and the difficulty of the company's survival and development has been relatively increased. This has forced painters' CEOs to change their marketing strategies and continue to innovate to compensate for the impact of increased labor costs on paint companies.

Rising raw material prices With the impact of the international financial crisis in previous years and the current increase in domestic inflation, raw material prices have continued to increase, which has increased the production costs of China's paint companies. In order to enable itself to develop, companies shift the risks and pressures of rising raw materials to consumers. The prices of products are getting higher and higher, affecting the purchasing power of consumers.

Rising raw materials is an objective risk to the company, and this risk is prevalent for the entire market, so if you want to protect the company from the risk of rising raw materials, only subjectively put the economic benefits of their own companies up Only in this way can the impact be offset and the market can be invincible.

Coating companies need to open up new market channels. As the saying goes, "The channel is king," paint companies must further explore new market channels, and increase sales to offset the increase in labor costs and rising raw material prices. As a wood coating company, no matter the size or the product is produced, sales are the basis for the company to obtain profits. The source of profit is the customer, and the source of the customer is the development of the marketing channel. Therefore, only the development of channels is the fundamental guarantee for the development of enterprises. If the channels are developed well and the quality of channel providers is high, then the business operations will be more painstaking and labor-saving, and the profits will also roll. The establishment of a good market channel will bring about a virtuous circle for the development of coating companies.