Forecast Analysis of Future Development Trends of Paint Industry in 2011

The business club reported on December 1 that paint is commonly known as “paint”. It is a chemical mixture that can be firmly covered on the surface of objects and used for protection, decoration, signs, and other special purposes. It is usually composed of a binder (resin, adhesive), and pigment. , fillers, solvents and a small amount of functional additives, etc., the product classification method is more, that is, the coatings are divided into industrial coatings, ship (ship) coatings, architectural coatings, wood coatings, automotive coatings. At the same time, we regard architectural coatings and furniture coatings as "home decorating coatings."

According to statistics, in 2006, the total amount of paint reached 5,078,400 tons, an increase of 25.6% from 4,041,000 tons in 2005; product sales revenue reached 96,316 million yuan, an increase of 30.04%; total profit was 6,567 million yuan, an increase of 48.06%. This important source of output and sales growth is home improvement coatings.

In the past several years of decorative coatings, the coatings used on interior walls, exterior walls, roofs, floors, etc. of buildings are called architectural coatings. They can be divided into organic and inorganic coatings, while wood coatings are Mainly used for furniture and other artifacts.

With the reform of the housing distribution system, housing privatization, interior decoration became fashionable, and decorative paints also entered the fast track of development. At the same time, under the influence of numerous factors such as the development of the country’s western regions, the construction of Olympic venues, the increasing number of important projects and civil residential quarters, and the introduction of relevant policies, decorative coatings have maintained rapid growth in the past two years. According to incomplete statistics, in 1996, the country’s total output of architectural coatings was 296,000 tons, accounting for about 20% of the total output of the paint; in 1999 it exceeded 500,000 tons, reaching 515,500 tons; in 2000, it increased to 563,200 tons; in 2004, it reached 1,133,700,000. t; By 2006, over 1.3 million tons of architectural coatings. The wood coating accounts for about 15%-20% of the total coating.

From the perspective of the sources of paint production, the country has now formed a three-large paint production base as the center of radiation to the country's production layout; market concentration is high, large enterprises are in a supportive position; foreign paint companies monopolize the middle and high-grade paint product market.

From the perspective of competition, the top ten global paint brands have all entered China, and they have started to attack the city. Some local brands with relatively abundant resources have also launched multiple rounds of market offensives. At present, Nippon, Dulux, China Resources, and other national brands have formed, including Tuushi, Garboli, Dabao, Sanshu, Bauhinia, Chinese lacquer, Zhanchen, Crocodile, Ivy, Hongchang, Shenzhou, and Ba Famous second-tier brands such as taxis, show, and 3A occupy the competitive landscape in the mid-to-high end market. The “workshop” factories all over the country share the remaining share of the paint consumer market and constitute an important force in the low-end market.

From the perspective of the evolution of technology and function, the basic functions of scrubbing resistance, stain resistance, fire resistance, antisepsis, smoothness, non-toxicity, strong adhesion, brushing area, etc., are all fully functional for bactericidal, odorless, and beautiful colors. Health paint, fashion paint expansion and promotion. At present, organic water-based paints are favored in architectural coatings, and typical examples thereof are latex paints.

At the same time, there have been related environmental health standards for the coatings industry.

Wins new marketing brand communication agency believes that the proportion of consumers who purchase rationally is increasing. Consumers with higher requirements for environmental protection and health standards for coatings, consumers with stronger rational shopping ability and more information acquisition channels will gradually eliminate information on paint purchases. Symmetry, while the consumer's brand awareness will be further enhanced, the opportunity for well-known brands to obtain pro-gaze has become even greater.

The market status and competition pattern due to the low threshold of coating technology, especially the low-end paint, there are a number of market entrants in succession, and the top four state-owned enterprises from Beijing Red Lion, Tianjin Beacon, Shanghai Paint, and Wuhan Twin Tiger occupy the first place. The rise of private paint companies in Shunde, Guangdong Province in the southeast region has resulted in the formation of a comprehensive competition among foreign brands, national brands and regional brands.

According to statistics, currently there are about 8,000 domestic paint manufacturers, mostly small and medium-sized and regional brands, and a large number of workshop-type paint production plants.

At the same time, the paint supply market consisting of thousands of manufacturers has a very low market concentration. The top five manufacturers of decorative paints only account for 25% of the market share. In most countries in Europe and even India, the top three or four decorative painters account for 60%-80% of the market share.

The competitive landscape of the entire decorative paint market can be divided by the tiered relationship among leaders, challengers, followers and fill-ups. Among them, the leaders who play the role are mainly Nippon, China Resources, Dulux and other brands, occupying most of the mid-to-high-end market share, relying on strong financial resources and relatively sophisticated marketing methods, through a huge amount of distribution costs to shape the brand image, and then Form a strong pull for end-consumers; challengers are mainly three trees, elephants, Shenzhou, Garboli, Mei Tuoshi, Bauhinia, etc., and are aggressive and initiate challenges and challenges to front-line brands; emphasis on building a wide range of Dealer network, to protect the interests of distributors through non-transparent prices, even through multi-brand operation to increase network density, reduce price transparency, but relatively insufficient attention to communication and brand pull; followers are mainly Chinese paint, Taichang Resins, Jiangsu Lanling, Sanai Chemicals, etc., have certain popularity and market share in certain regions of the country, have independent product lines, and tend to open up in the marketing strategy, have a certain degree of spirit; The remaining shortages are mainly represented by small factories. Production of brand-name paint, OEM or illegal imitation brand-name paint, low-cost occupation of the market, products are sold in rural areas and various professional markets, but the overall sales can not be overlooked.

Among them, San Ai Chemical carries 3A environmental protection paints to establish a foothold in key regional markets. It adopts a four-fold strategy of “heavy weapon formation, heavy blows, heavy investment, and key breakthroughs” to spur “green environmental protection” and seeks to rank among the challengers. With three trees, elephants, Garbo Li, Mei Tushi and other famous brands dance together.

Several trends in the decorative coatings industry through the analysis of various data, as well as changes in coating technology, functional expansion, observation and analysis of product appeal, decorative coatings will have such trends in product technology and function, market, competition, and marketing. Win Road New Marketing Brand Communications Agency believes that there are specific manifestations at the trend level:

(1) Product Technology and Function Trend Technology and Function As the core support point for product development, the overall trend of decorative coatings is toward water, high solids, high decorative, weathering, and anti-pollution; The development of energy and resources, harmless, and non-polluting is developing in the direction of multiple varieties, functionality, and construction. Among them, functions such as health, environmental protection, sterilization, and degradation have become important selling points in the market. For mid- to high-end consumers, these functions influence their final purchase decision.

(2) Market trends According to statistics, the annual growth rate of China's decorative coatings (excluding non-construction coatings such as industrial paints, marine paints, and other industrial paints) is about 10%, and the total market value is about 1.3 billion Euros. Annual per capita consumption is less than 1 liter. In Europe, the annual market value is about 11 billion euros, and the per capita annual consumption is 10 liters. In the United States, the annual market value reaches 5.8 billion U.S. dollars, and per capita annual consumption has reached 11 liters. In the past two years, the demand for the Chinese paint market has increased by more than 8% year-on-year, and the growth in 2008 will slow down, about 6%-7%. However, the Chinese decorative paint market is expected to catch up with Europe and the United States in more than a decade.

From the perspective of market decomposability, the coating industry has unlimited business opportunities. From oil paints to water-based paints, from acrylic paints to fluorocarbon paints, from flat paints to texture paints, there will be many entrants, and they will produce “leaders through competition”. ".

From the point of view of market concentration, the coating industry will complete the reshuffle stage, and the impact of the “Matthew Effect” will become more pronounced. There will be fewer and fewer coating companies that can fully participate in competition, and the degree of brand concentration will increase.

Since 2007, this phenomenon of merger integration and winner-take-all has been seen everywhere. It can be foreseen that in the next few years, powerful paint companies will expand their original competitive advantage and market share through technological upgrading, product replacement, market expansion, mergers and acquisitions, and strong alliances. At the same time, they will invest in large-scale search. New profit growth point.

(3) Competition Trends The entire competition trend covers the tactical issues of entrants in terms of competition means, such as concept competition, channel competition, competition means of communication, terminal competition and capital level competition, as well as possible competitive pattern and brand pattern. .

From the past two years of competition trajectory, the merger and reorganization of the industry mergers and acquisitions is intensifying, and some regional or local brands can not escape the fate of elimination. For example, first US Valspar acquired 80%% of China Resources Coatings for 281 million US dollars; after PPG acquired some assets of Shanghai Senpu Building Materials Co., Ltd. in early 2006, it announced in August of that year that it had purchased Ameron International for US$115 million. Special coatings and coating business and 50% of the shares of Korea's Linchun Group; Yangzhou Jinling Special Coatings Factory, which cooperated with Mei Tu to produce anti-corrosion coatings, acquired Zhejiang Rongtai Science and Technology Enterprise Co., Ltd., which manufactures insulating paints, and Beijing, which produces fire-retardant coatings. Sanqi Coatings; Hunan Xiangjiang Coatings Group acquired Zhengzhou Shuangta Paint Factory and completed the largest M&A in the domestic paint industry; Zhejiang Private Coatings Enterprise South Paint Industry Co., Ltd. has successfully entered Nanjing Industrial Woodware Factory with over 40 years of history.

At the same time, a new round of market competition and M&A integration is expected to begin around the theme of green environmental protection. The "Eleventh Five-Year Plan" proposes that by 2010, the energy consumption per unit of GDP will be reduced by 20%, and the total discharge of major pollutants will be reduced by 10%. With the introduction of various environmental protection standards and energy-saving measures, it is expected that the monitoring of energy saving and environmental protection will be further strengthened. At the same time, especially the consumer's demand for environmental protection and health functions is the fundamental factor that determines whether a company can survive in a new round of decorative paint competition.

(4) Marketing Trends A large number of hard advertising, sales network construction, terminal lighting and promotion still constitute the mainstream of marketing. Product marketing, investment promotion, conferences, public welfare marketing, event marketing, green marketing and other marketing tools and carriers are also indispensable. .

It is worth noting that the phenomenon of network communication and network marketing will be an important new marketing and communications force to penetrate the paint brand. Traders will invest their horizons in the Internet and channel their communication channels to the Internet. They will use integrated portals, industry portals, regional portals, professional portals, blogs, online communities, classified information platforms, email, SMS platforms, search engines, and electronics. Combining channels such as business platforms, digital magazines, etc., have more to rely on topic marketing, event marketing and event marketing to trigger viral communication and word-of-mouth communication to achieve the “buzzing effect” of marketing communications. On the one hand, SMEs can use this to establish differentiation. The marketing communication has a competitive advantage, breaking through the cost barriers of traditional marketing communication methods; on the other hand, a large-scale and powerful enterprise will open up a broader front outside traditional marketing.

In addition to well-known brands such as Nippon and Garbo Lili, the 3A environmental protection paint is one of the most important ones, focusing on the introduction of online communications and online marketing, and establishing a partnership with the leading organization in the field of integrated network marketing and communications. The relationship, on the one hand, establishes the first-mover advantage of brand-name Internet communication, and on the other hand borrows Internet channels to establish a more direct and intimate relationship with consumers, so as to listen more comprehensively and timely to the views of consumers, and to serve more thoughtfully and thoughtfully. By.