Four major developments in the paint market in 2014

Half of 2014 has already passed. In the past year, the Chinese coating market was fluctuating. With the further intensification of domestic and foreign coating market competition and shrinking profit margins, small and medium-sized paint companies have been struggling to survive. In reviewing the Chinese paint market in 2013, there are four aspects that warrant attention:

First, the low profit era of the paint market

The two-level trend of China's paint market has already presented. The big paint brand has expanded its territory in the form of “opening large stores and opening many stores” due to strong capital and profitability. The small and medium-sized paint brands use the advantages of low cost and low price to make small profits and sell more, and strive for profit in smaller areas. However, regardless of whether the paint brand is large or small, the common trend in the paint market is: Intensified competition, rising raw material costs, and consumer terminals are more difficult than ever to “serve”. Qunqiululu, the era of low profit in China's paint market has arrived.

Second, the paint market survival of the fittest, "inlet and out" large

At present, the "in and out rates" of China's paint market are quite high. Due to the relatively low technical barriers in the coatings industry, new paint brands are constantly entering the paint market to “test water” in an attempt to make profits in the paint market. However, the cost of coating production has been rising in recent years. It has also made paint manufacturers that have already established a foothold in the paint market become unfit, and under the pressure of insufficient trading volume, paint brands that cannot persist will eventually opt out of the paint market. .

Third, the coating company's marketing means is simple, no innovation, heavy surface

China's paint brand marketing methods tend to only focus on the eyeballs and pursue “sensationalism”, but the heavy emphasis on marketing tends to make it difficult for paint brands to enter the market. In the early years, the success of Nippon Paint Advertising had caused many paint companies to follow suit in a crazy manner. Once the large-scale paint advertising media took turns in bombardment, following the failure of Nippon Paint, paint companies promoted it with various public relations activities, and subsequently “drinked paint. "Skin paint body painting" and other eye-catching gimmick promotion method once staged a lively extraordinary. However, due to various reasons, these coatings companies have gradually faded from the perspective of the people - if only relying on eye-catching bread-style promotion, may be able to cause a "sensation" in the short term, but due to lack of core requirements for paint companies to become bigger and stronger, this The influence of this kind of propaganda is very limited, and it is even more difficult for paint companies to bring the “hard power” necessary for long-term survival in the sinister market environment.

Fourth, the rise of local brands in the paint market

Behind the lively Chinese paint market, local paint brands are quietly rising. Some paint SMEs that have been working in the Chinese paint market for many years and are familiar with the laws of the market have already matured in R&D strength and paint quality comparable to foreign brands. At the same time, due to the cost control of localized production and the corresponding support of local governments, their strength in the paint market can not be ignored. While the world's paint giants have increased their investment in China and other factories, the significance of the rise of Chinese domestic paint brands is even more profound.