It is expected that the paint market will usher in the tide of elimination from 3 to 5 years

The "hundred flowers" of the paint industry often say that there are 8,000 companies and more than 10,000 brands. From the perspective of the development curve, the gold development period of the paint industry has passed. If we are looking for a watershed, 2008 is a turning point. Financial crisis, rising costs, backward equipment, and intensified market competition have caused the closure and closure of many small paint companies and distributors. Although it is impossible to accurately count down the number of paint companies and brands, it is certain that the paint industry has begun to phase out. If you want to survive and develop in the long term, you must look at the "big picture" of the paint market for more than 3-5 years and do your own "12th Five-Year Plan". This article analyzes and predicts the four aspects of product category, enterprise layout, channel/terminal mode and promotion to provide reference and decision for coating companies.

First, analysis and prediction of paint product category

Here, we need to inventory and analyze three categories of paint products: latex paint, waterborne wood paint, and oily wood paint.

(A), latex paint - popular red paint protagonist

It is not an exaggeration to describe the development of latex paint in the past two years. First, the definition of latex paint, refers to the building wall paint, including the inner and outer walls of the two.

1. First, the growth of interior wall paint. There are two factors in the growth of interior latex paint on the market. The first is the maturity and popularity of the spraying technology. Since Huarun Paint took the lead in popularizing the spraying technology, paint companies have followed suit. Moreover, learning and promoting this model is not difficult. Just started investing in a spraying machine with a price of about RMB 10,000. The dealers are still hesitant. Later, the manufacturers used to complete sales tasks to purchase subsidies to help distributors solve some of the funding problems. Together with the domestic spraying machine, a spraying machine The machine is about 5,000 yuan cheaper than foreign brands. Sprayer and spraying technology have been rapidly popularized, contributing more than 30% to the sales growth of wall paint; second, secondary wall coating. Nowadays, the paint industry is a popular point of view, that is, a home decoration house is usually 1-2 times. The current situation has shaken this view. Because the decoration of the average family is not more than 1-2 times, but the renovation of the small area, especially the renovation of the wall, can be carried out once a decade, and it will be renovated in a short period of five years. In 2010, in the provinces of Guangdong, Guangxi, Jiangxi, Hunan, and Fujian in the southern provinces, more than 20% of households suffered from mildew, light discoloration, and heavy hair because of severe rain and moisture. Coupled with latex paint in the decoration after a decade of yellowing, peeling, cracking, etc., most families choose to redecorate the wall. When the owner renovates, the decoration company will not be selected because the project is smaller. Most of the dealers do not provide painting services (regular coating engineering teams). The owners have to find a good painter first and then buy a wall paint. In fact, the owner is very afraid of the problem of decoration, which makes it necessary to provide regular painting services. Jia Tule, an industry pioneer, was born, and the owner of the company was Meng Wei, who had been responsible for Airless spraying. Of course, in this market, not only Tu Le, a company, Dulux launched the “Home Easy Tu” painting integration service in 2010, and it also carried out regional promotion in big cities. The vision and actions of the giants are bound to drive the development of secondary wall paintings, which in turn will drive the growth of latex paint on the walls.

2. The growth of exterior paint for architectural projects is also very rapid. After the financial crisis in 2008, the state invested 4 trillion yuan in infrastructure construction to expand domestic demand. At the same time, formulate a series of national policies conducive to the development of civilian real estate. These two good news made the rigid demand for exterior latex paints to increase. Faced with such a big "cake", paint companies have made moves, tricks: paint / insulation / waterproof integration. The country advocates the concept of “energy saving, emission reduction and low-carbon life” and requires that the entire country’s building walls be insulated. However, if you want to achieve waterproof, thermal insulation and decorative effects on the external walls, you have to construct them on the external walls of the building one layer at a time. Not only is the procedure complicated and the project is long, but the quality is not guaranteed. The waterproof/insulating/coating integrated product board solutions represented by Ascot and Crocodile paints solved the construction and energy saving issues at one stroke and received general favorable comments from the market. This will also become the trend of development in the next 3-5 years. Trick II: Development of building exterior customers. Many paint companies are very enthusiastic about doing paint exterior wall projects, and have also invested human and material resources for development. However, one feature of the exterior wall project is that it is never known where the next project is, and sales are not guaranteed. This also caused some companies to cancel the engineering team and allow it to develop. To solve this problem, large customers with large engineering requirements and long-term cooperation are needed. After 2-3 years of hard work, a growing number of strategic alliances have been formed between paint companies and large real estate companies. Such as Chinese paint and Country Garden, Garbo and Evergrande, crocodile paint and Vanke. The cooperation with large-scale real estate companies has led to a significant increase in the sales of exterior wall projects for paint companies. The annual increase in turnover is as low as several million, and as many as tens of millions. China's lacquerware has annual sales of more than 50 million on Country Garden's oil-based exterior wall paint. Trick 3: Establish a professional engineering sales service team. In the past, paint companies were either not without professional engineering sales teams or were very poorly regarded as negligible. Most of them were responsible for market distribution channels and their sales teams were also engaged in projects. Today's paint companies, especially large-scale paint companies, like Bauhinia, Garbo, Three Trees, Crocodile, etc., have established independent engineering sales teams and are strictly separated from retail sales and are directly responsible to the general manager. The original retail distributor’s engineering distribution rights were recovered and a professional engineering agency system was completed. If small and medium-sized enterprises do not adjust in time, it will be too late for large companies to eat up the engineering market. The pressing matter of the moment is to imitate large-scale enterprises and set up professional engineering sales teams to seize the fast-growing engineering market, so as to enable them to grow and become large enterprises.

3, latex paint hidden concerns and solutions. The rapid development of latex paint does not mean that there is no hidden worry. If you can't see the problem clearly and start solving it early, you will have a passive situation. The defects of interior wall latex paint products are monotonous color, no texture, and easy yellowing and aging. After investigation, about 85% of the interior wall paint is white, and it is flat without texture. It begins yellowing, cracking, and peeling in about three years, which cannot meet the growing demand for individuality and the pursuit of beauty.

(B), waterborne wood ware - the future of growth

Waterborne wood lacquer is an upgraded product of oily wood lacquer, which is in line with the prevailing theme of "energy conservation, environmental protection and low carbon health". The advanced nature of waterborne wood lacquers should be scientifically and objectively recognized: low VOC, convenient construction, environmental protection, and health. After five years of marketing, many manufacturers have begun to take a rational attitude towards the prospect of waterborne wood coatings. It is not as fanatical as it used to be. It seems to dig into gold mines. Whether the waterborne wood lacquer can reach a market share of about 5% in the next five-year plan, experts and leaders of the China Coatings Industry Association have expressed cautious optimism. I wrote an article in the article “New Wisdom Pig Game: Promotion and Application of Waterborne Wood Coatings” in 2008 and conducted a detailed analysis on the corporate strategy, misunderstandings and promotion prospects of waterborne wood coatings. Over the past three years, the views in the article are still available. There are two points that need to be increased here:

First, the retail market for oily wood lacquers replaced by waterborne wood lacquers is shrinking, resulting in low enthusiasm for manufacturers to promote them. In other industries, such as televisions, LCD/LEDs are the upgrading products of traditional CRT TVs. Their advantages such as energy saving/environmental protection, high definition, and light/thin space saving have advantages over traditional CRT TVs. Coupled with the fact that the TV market itself is large, the market after replacement will be even bigger, and more people will buy new products. In contrast, the retail market for oily wood coatings to be replaced by waterborne wood coatings is not increasing but shrinking. According to market surveys, five years ago, the owner’s decoration often had more than 30 wood panels, and he needed to purchase 5 kg of oil paint wood primer 5-6 sets, and 3-4 sets of finish paint. Now the number of panels is generally around 10 As long as the primer 2-3 sets, 1-2 sets of paint is enough. The amount of single-family purchases has been greatly reduced, and the overall market share has shown a downward trend. Faced with this situation, many manufacturers will be planning to promote waterborne wood coatings on cost/benefit.

The second is the growth of waterborne wood lacquers, focusing on furniture applications. The shrinking of wood lacquer in the home improvement retail industry is due to the increasing use of finished furniture. In the past, many home renovations were not only door covers and window covers, but even most of the furniture was made on-site by carpenters, and then the painters were painted. A light floor paint, in Zhejiang and other provinces, a purchase will be tens of thousands. However, the production and painting of woodwork at the scene is not only slow, but also has large smell and serious pollution, and it cannot meet the fast pace of modern life and environmental protection/health requirements. Therefore, most of the owners began to change the way, only the door/window cover was produced on site, and all the furniture purchased finished products. In the long run, in fact, this change is in line with market development. In many developed countries in Europe and America, home decoration is basically backcourt production and then installed on site. The increase in the sales of furniture lacquer was attributed to the shrinking of home improvement retail sales. In many companies, the growth of home improvement wood lacquer retail sales was little, or did not increase or even decrease. For comprehensive companies such as Carpoly and Zhanchen, sales of furniture lacquer, such as home lacquer and architectural coatings, rank among the highest, and sales are expected to exceed 10 billion in 2010. This directly proves that the growth of furniture lacquer is unstoppable. The furniture paint market is booming and the prospects are limitless. Waterborne wood coatings must be adapted to the requirements of modern industrial painting in order to be widely promoted in furniture factories. Unlike the owners, the furniture factory only pays attention to the requirements of environmental protection and health, and more importantly, it controls the cost strictly. The paints used in modern furniture factories are mostly PE paints, UV paints, NC paints, and PU paints. They are low in cost, dry quickly, and have no pollution after painting equipment and finished products. Waterborne wood lacquers can hardly be compared with existing paints, except for their healthiness during construction.

(C), oily wood paint - the decline of the former nobles

After reading the product analysis of the above two categories, the situation of the oily wood lacquer (hereinafter referred to as the oil paint) in the home improvement field has been generally known. In the retail sector, oil paints are mainly based on PU paints and NC paints (sets). Since it was put on the market in the early 1990s, it has been the favorite product of the coating companies and distributors for a long time. Here, three aspects of the oil paint's function change, policy development, and solution are elaborated to illustrate the tangled mood of many paint companies and distributors.

Second, business layout and expansion

In the 1990s, a large number of coating private enterprises were established in the Pearl River Delta, the Yangtze River Delta, and the Bohai Rim. After more than a decade of development, some of these outstanding companies have come to the fore, with sales exceeding 100 million yuan, and companies like Garbo and China Resources Coatings have broken through 2 billion. Some companies declined and closed down for various reasons. As the saying goes, "The king is defeated and defeated." Successful people seek greater success, and the defeated people can only drink hate sighs.

(II) Diversification of successful industries

(III) Development Trend of Winners

1. Continue to expand. Domestic paint companies first set up factories outside the province, it should be the exhibition Chenda in Shenzhen. Since 2000, the paint industry in Guangdong has developed rapidly. More than 500 million companies are found everywhere, but there are not many companies with more than one billion. In the next five years, there will also be a group of enterprises from 100 million to 500 million, from 500 million to 1 billion. These growing companies also need to build factories outside the province to expand and create layouts. The provinces that have chosen to invest include the three provinces of the East, Shandong, Hebei, Shanghai, Wuhan, Chengdu, Chongqing and the northwestern provinces. Expansion is not a simple enclosure to build factories. More importantly, it replaces and introduces new production, R&D, and quality control equipment to improve the overall level of the coatings industry.

2, the development of industrial paint. In fact, some domestic state-owned paint companies have industrial paints such as Yongxin and Jiren, but most of them are low-grade industrial paints with low technical content. Private paint companies can understand the mood of industrial paints, but if they want to make a difference in the industrial paint field, they will not be able to compete with foreign companies in the short term without huge amounts of capital, technology, and other strength reserves. It takes at least 10 years to explore. And try.

3, mergers and reorganization. The expansion of a company's growth does not guarantee that every step is solid, and it will surely have unsuccessful investment expansion. At that time, the production bases invested and established have become a burden to be thrown away, and other successful companies need to continue to expand, so that the acquisition of reorganization becomes inevitable.

Third, channel/terminal status and changes

Coating companies’ sales channels have been flat since the beginning of the 21st century until now. Manufacturers continue to adjust and reduce sales regions for provincial distributors and prefecture-level dealers, trying to open up more outlets and develop more. The distributor works directly with the company. In the terminal stores, specialty stores and large stores are popular, and grocery/small-store operations are struggling. Some manufacturers have begun to promote new types of stores, trying to increase the competitiveness of dealers and brands at terminals. The management and cost awareness of distributors began to gradually increase, relying on the strength of manufacturers to upgrade their promotion level and sales skills in order to achieve greater development.