2012 Chinese coatings companies need to integrate resources for change

There are thousands of large and small paint companies in China, but there are three major characteristics: first, the scale is generally small, second, the brand influence is weak, and third, the cooperation consciousness is weak! China's current coatings market is undoubtedly big, but what is different now is that the future coatings market must be a situation of separation. I believe this day is not far away from us! As the saying goes, opportunities are always for those who are prepared, and the paint industry is of course the same. Want to gain a foothold in the future market, it is imperative to integrate resources for change!

Why integrate: weak overall strength

1. Smaller companies

The scale here can be understood as two aspects: one is whether it is bigger, and the other is whether it is stronger. Chinese paints are the world's number one in terms of production and consumption. However, there are not many companies that are truly big in national paint companies. Although the paint brands such as Carpoly, Mei Tu Shi and San Shu are well known, this is only a small part. Compared with furniture companies and home appliance enterprises, how to become bigger and stronger and expand the scale of enterprises is one of the problems that the coating industry has to solve at present. In the current general situation, the weakness of small-scale enterprises with low risk resistance is more likely to be exposed, which is why many paint company owners are complaining.

2. Brand influence is weak

In addition to a few foreign brands in the coatings industry, there are still few truly national brands. More regional brands have limited influence. It is difficult for ordinary consumers to remember these brands. The role of brands as a consumer guide is not significant. When the coating products are seriously homogenized, the promotion becomes the usual means, and the coating companies will only have to brand the next one. Products that have no brand or brand influence are destined to achieve high added value, cannot form strong competitiveness, and are easily eliminated by the market. Under the unfavorable overall environment, this phenomenon is more obvious. There are thousands of large and small paint brands, and there are only a few people who are famous for their names. Increasing brand awareness and expanding brand influence will become the only way to promote the development of the coatings industry.

3. Weak corporate awareness

The cooperation here refers to cooperation between peers as well as cooperation between upstream and downstream industry chains. The “competition” between the peers is heavier, and the “interests” between the industry chains are heavier. These two points have been blocking the cooperation between the coatings companies and the upstream and downstream. As everyone knows, it is this kind of "competition consciousness" and "concept of interests" that ultimately led to the decline of competitiveness and the loss of interests!

However, the current situation is improving. As the market is sluggish, companies are also aware of the problem. The cooperation between enterprises and enterprises, and between enterprises and upstream and downstream is increasing! The cooperation between upstream and downstream can be said to be the best way to resist the crisis, especially in the current tight capital chain, the upstream and downstream industry chain linkage has become a consensus! Moreover, enterprises are no longer pure competition. In the beginning of 2012, in the town of paint, Shunde, ten paint companies set up brand alliances. Among them, there are strong companies, most of which are smaller, but through the industry. The sharing of resources such as situation, brand innovation, marketing model, internal management, and raw material procurement platform will definitely help each company's development. But the above two points, for the coatings industry, are still not enough, and we need to make persistent efforts.

Integration purpose: improve the industrial chain

The construction of a healthy and stable industrial chain requires the cooperation of various industries, and there is a lack of a link or any one of them. The industrial chain is incomplete.

First, paint companies should break the cycle of price wars. In order to solve the crisis of survival and development, the building materials industry has constantly set off a “price surge”, and the cost pressure is currently, companies in the coating industry need to consciously avoid price wars.

Second, build a healthy industrial chain to reduce costs. From raw materials to finished products, to logistics, sales and after-sales, each link must be cost-effective. Enterprises need to reduce production costs and transaction costs through resource integration and optimization and rational allocation, and enhance their ability to resist risks.

Once again, companies must also consider transformation, from producers to service providers. In the case of shrinking market, it has caused great financial pressure and cost pressure. Under this background, integrating the industrial chain has become the most reasonable way for enterprise development.

Every enterprise has its own advantages, blindly greedy, and its own advantages can not be played. Enterprises should be good at doing subtraction, retaining their most powerful part, and the rest will be handed over to their respective strong enterprises to achieve the optimal allocation of the industrial chain through complementary advantages and obtain the strongest competitiveness. In this process, the company is separated from the pure producers, and it is a feasible development path to become an overall service provider after integrating various resources. Enterprises that are all personally involved are difficult to grow in the current situation. Of course, their ability to resist risks is also the weakest.

“There is a specialization in the industry.” In a highly competitive environment of homogenization, coating companies should not consider the means to seize the existing market share. Instead, they should consider how to integrate the advantages of resources and focus on breakthroughs to seek new The point of profit growth.

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