China's coating industry is preparing for the fourth reshuffle
China's coating industry is preparing for the fourth reshuffle
April 6, 2005
in the first quarter of this year, the spring of sudden warmth and cold did not bring any good news to China's coating industry: first, the bad news of "the world's coating raw materials generally rise in prices" brought by the cold wind in January made China's small and medium-sized coating enterprises constantly lament, Guangdong Province, one of the largest paint production bases in China, finally couldn't help raising prices; In February, as the boss of Beijing Fuya, who became famous for drinking paint, announced to the public that he would sue all infringers who counterfeited his "health" registered trademark, the issue of integrity pushed China's paint industry to the forefront of the storm again...
raw materials rose! Integrity crisis! Another batch of small and medium-sized enterprises with small scale and weak strength will be doomed to be kicked out. "Not raising prices is waiting for death, and raising prices is looking for death." for the price increase that some Chinese coating enterprises with strong scale and strength have begun to implement, marketing strategy experts give advice: do not participate in the "price war", but further integrate the Chinese coating market by taking advantage of the market and "kill" a number of "miscellaneous brands". For the time being, it is wise to bear the pressure of profit and loss caused by the rise in the price of raw materials and focus on "self construction"
China's coating industry, which is mixed with good and bad
"at present, there are nearly 8000 coating enterprises in China, but none of them can enter the world's top 50 coatings enterprises, and less than 3% of large enterprises with an annual output of more than 5000 tons." Speaking of this, Wu Yingjun, Secretary General of the construction professional committee of China Building and decoration materials Association, sighed, saying, "due to the lack of funds, quick results, and the need to register a company and get a business license to enter, many small enterprises with small scale, weak strength and insufficient qualifications have crowded into the coating industry."
according to Yi Ming, director of Beijing Building Materials Industry Management Office, this year, China's urban new housing area will reach 300million square meters, and the existing 2.9 billion square meters of urban housing will be transformed to varying degrees. In the next three years, there will be 568million square meters of residential demand in rural areas, and the development potential of rural paint market is great. In the next five years, the use of architectural coatings in China will increase at an annual rate of about 15%. By 2007, the total output of architectural coatings in China will reach 1.6 million tons. According to the Beijing Olympic Plan, the peak construction period of Olympic venues will take place from 2004 to 2006, and all other supporting facilities will be completed by the end of 2007. Therefore, the peak demand of Beijing's paint market will appear from this year to 2007, and the total demand of Beijing's architectural paint market will continue to remain at 10% to 15%
what makes Secretary General Wu Yingjun feel headache is that some brand dealers will sell fake products in order to pursue greater profits, and non brand enterprises will engage in fake and shoddy activities in troubled waters for the sake of interests. Even some relatively powerful and large enterprises also hold several "brands" in their hands, consciously or unconsciously, to carry out disorderly competition
according to incomplete statistics, more than half of the domestic coating enterprises have two or more coating brands, and some coating enterprises even have more than a dozen coating brands. Every day, new coating brands join the competition. In Shunde, Guangdong, the "hometown of coatings", it is very common for an enterprise to have sevenoreight brands; Although some enterprises are small in scale, they have more than 10 brands. This situation of "one mother gives birth to several children, and everyone grabs food" leads to the dispersion of resources and the cultivation of leading brands. You are like Xinjiang, which is relatively far away in China, but the freight is relatively expensive, and the cost and difficulty are further increased. On the one hand, the establishment and cultivation of these brands need financial support, and the dispersion of resources has greatly increased the burden on enterprises; On the other hand, it also causes the situation that every brand is difficult to stand out
small enterprises are weak and can not follow any rules in front of interests; Larger enterprises hand control multiple money making "chess pieces", either attack in an all-round way to grab food, or stink one and then send another. So scattered strength, each attack, the result is to be defeated by competitors. It is undeniable that China's paint market is currently in a state of chaos. Small scale, weak strength and low quality have become a serious injury to this industry. It has become a top priority to clean up the paint market
the chaotic state of the paint market and the primary primitive competition also give powerful large enterprises the opportunity to enter the market and integrate the market. Recently, Singapore Nart paint group stepped in strongly and invested nearly 700million yuan to build China's largest paint production base in Beijing through its subsidiary Nart paint (Beijing)
"there are indeed many problems in China's paint market, but this chaotic state also gives us the opportunity to practice the strategic model of 'scale + quality'. We hope that this model can become an international operation model for China's paint industry." Yu Changfu, chairman of Nart paint (Beijing), said in an interview
three major shuffles in four years
chaotic times have their own classics! China's coating industry has appeared four times so far. The problem now is that some domestic enterprises shuffle the industry in order to survive, and the hands of this shuffle are only market and policy
in recent years, China's coating industry has suffered from various difficulties due to its small scale, weak strength and low quality, and there is no lack of painful memory. In fact, the first reshuffle in the history of Chinese coatings led to the expulsion of a large number of enterprises, which was caused by the coating manufacturers themselves
before 2001, there was a mess in China's coating market. Many coating enterprises fabricated various certificates and boasted that their products had passed the "environmental protection certification" and "famous and high-quality product certification", but their corporate image and product image surprised customers. Under such circumstances, most domestic coating enterprises had to carry out rectification actions in 2001: improving corporate image, improving product quality, integrating multi brand management, etc. In this shuffle to test strength, scale and marketing, a large number of small and medium-sized enterprises with small scale, rigid thinking or stagnant were eliminated
at that time, some people pushed the "sin" of the first reshuffle on foreign-funded enterprises, believing that "foreign paint brands took the opportunity to make a big fuss, seizing the domestic market share of nearly 5 new nano materials that can repair soil heavy metal pollution by 0%, which prompted the Chinese paint industry to start the brutal" bloody "integration for the first time. In this regard, a marketing expert from the China Enterprise Development Research Center said, "it's like putting a catfish in a fish tank. It's a biological instinct for catfish to eat the small fish. In the process of being chased by catfish, the small fish also learned the skill of avoiding danger. For the paint market, competition is a market instinct. In the process of competing with foreign capital, Chinese enterprises gradually learned the ability to survive and grow imperceptibly."
after the first reshuffle was spontaneously completed by the hand of the market, the hand of the policy immediately followed up and contributed to the second reshuffle of the coating industry. On July 1st, 2002, the relevant departments of the state issued two mandatory standards GB18581-2001 and gb18582-2001. The two national standards have strict regulations on VOC (volatile toxic gas release of paint), heavy metals, solvent oil and other indicators. These two national standards have become the terminator of a large number of enterprises whose products do not meet the standards
some people attributed the loss of some small and medium-sized enterprises caused by this reshuffle to the standard setters, believing that they did not protect the small and medium-sized enterprises in the coating industry and did not give them buffer time. In fact, the relevant state departments are promoting the development of the coating industry from the perspective of developing national industries and accelerating the integration of China's coating industry with the world. Despite different views and voices, it still failed to prevent the hands of policy and market from jointly reshuffling the Chinese paint market for the third time in 2004. At the beginning of this year, the General Administration of quality supervision, inspection and Quarantine of the people's Republic of China and other relevant departments issued an announcement that: from May 1, 2004, wood coatings that are not architectural coatings will be subject to 3C certification. By August this year, those who fail to obtain the compulsory 3C certification certificate and do not strengthen the institutional certification mark will be subject to compulsory measures. According to the relevant statistics of Guangdong coating industry association, dozens of enterprises located in the remote areas of the province with low production conditions and more than 80 varieties of Yongtai technology products, including liquid crystal chemicals and pharmaceutical chemicals, which are far from the requirements of the national standard, have been unable to escape the closure
several market fluctuations have made small and medium-sized enterprises lament, and relevant people believe that gold is only after the waves wash the sand! Although these large-scale reshuffles in China's coating industry have had a certain impact on some small enterprises, this is the only way for the coating industry to transition from incomplete competition to orderly competition, and it is also a sign that China's coating market is gradually maturing. This will not only bring more affordable high-end products to consumers, but also promote the standardization and growth of the coating industry
where is the way out for the coating industry
after the first three reshuffles, the entire coating industry is constantly looking for the final way out of the dilemma
at the beginning of this year's new year, there was another news about the general price rise of coatings and coating raw materials all over the world: "if the price does not rise, you will die, and if the price rises, you will die!" Then, Guangdong Province, one of the largest paint production bases in China, finally couldn't help raising prices. For the price increase of these enterprises, some marketing strategy experts gave advice: do not participate in the "price war", and further integrate the Chinese coating market by taking advantage of the market. For the time being, it is wise to bear the pressure of profit and loss caused by the rise in the price of raw materials and focus on "self construction"
at this turbulent time, Nart paint (Beijing), a wholly-owned subsidiary of Singapore Nart paint group, an international paint giant, is immersed in the practice of international marketing strategy. Their practice may represent the trend of China's paint industry to integrate with the international market in the future
Nart paint (Beijing) invested nearly 700million yuan to build China's largest paint production base in Beijing, and embarked on the strategic development path of "building an international aircraft carrier and shaping an international brand". Yu Changfu, chairman of Nart paint (Beijing), revealed in an interview that Nart paint will start with quality leadership, "a research and development department jointly composed of a number of Singapore and domestic coating experts, specializing in the research of super environmental protection and ecological coatings in line with China's climate characteristics." In terms of marketing, he declared: "we will introduce the integrated marketing strategy system, and pass the company's high-quality products to every family and customer who pursues fashion and advocates health through agents, dealers, engineering agents, etc. naldt will work with Chinese people to create a first-class green home."
analysts in the coating industry believe that naldt's move is opening the prelude to the fourth reshuffle of China's coating industry, and the results of the fourth reshuffle will promote China's coating production enterprises to gradually complete the evolution of "scale" and "quality"
"from a series of measures such as Nart paint (Beijing) invested 700million yuan in China to build China's largest paint production base at present, and announced that it would vigorously promote its' green 'products in all prefecture level cities in China within this year, and' maintain integrity with high profits' for dealers, the fourth reshuffle of China's paint industry will be a 'Nart model' reshuffle, and