Transformation and upgrading will become the focus of the paint industry

In the context of the post-financial crisis, unprecedented changes have taken place in the business environment in which coatings companies are located, and the source of competitive advantages has been being engineered and eroded at a gradual pace. Many paint companies have embarked on a strategic transformation path in order to survive in an uncertain environment, become bigger and stronger, and seek continuous growth. In 2012, we saw that many paint companies have already begun or are in the process of implementing transformation and upgrading. It can be expected that the transformation and upgrading will become the highlight of the paint industry in 2013.

Severe situation forced the transformation and upgrading of enterprises "transition" has become the most popular hot words today. The transformation of the national economic growth model, the transformation of government functions, the economic restructuring of Guangdong, the transformation of private enterprises, etc. The Chinese paint industry has even reached the cusp of transition, with constant price wars, constantly evolving market structures, rising raw material prices, and rising labor costs. * The environment of appreciation and anti-dumping has made each paint entrepreneur deeply think about a matter of vital importance – strategic transformation.

Early transition benefited early. Baotashan Coatings Co., Ltd., located in Shaanxi Province, has seen an increase in 2012. Li Songcai, chairman of the company, stated that Baota Mountain had already begun to seek transformation. "I proposed three 'learnings' last year, that is, learn to transform, learn to manage, learn to cooperate and win together." Director of Shaanxi Baotashan Coating Co., Ltd. Chang Li Songcai said, “This year our company has implemented a strategic adjustment and has withstood the market's 'cold bite', so we can step out of a different direction in the contrarian.” It is understood that in 2012, Baotashan completed the paint. The sales volume of architectural coatings products was 36,677 tons, and the sales revenue was RMB 410 million, an increase of 10.5% and 12.8% over the previous year, achieving a sales revenue target that exceeded 400 million yuan in three years.

“After more than 20 years of development in the paint industry, the competition among companies is the competition of brand ideas and culture, and the competition of comprehensive strength. As the industry matures, the industry has entered a difficult transition period. In this process, some Enterprises that rely on low-cost, low-quality products to make markets will gradually be eliminated. The industry will enter a period of rapid technological upgrading, and it can truly provide customers with high-value-added enterprises in order to achieve sustainable development." Managing Director, Guangdong Huilong Paint Co., Ltd. Chen Huiting said.

The concept of high environmental protection and health, leading technology, advanced production equipment, and the meticulous and meticulous quality that the Yangtze River people have consistently strive for, are rapidly stimulating the civil market of the Yangtze River lacquer. Jiangsu Nanjing Changjiang Coatings Co., Ltd., which has been focusing on the development of industrial coatings, has begun to accelerate its advancement into the civilian market. The chairman of the company, Zhang Weizhong, believes that they have obvious advantages. In 2012, many paint companies, like Changjiang Coatings, began to infiltrate the business from "industry to civilian" or "civilian to industrial".

In the future, accelerating urbanization will become another bright spot in China's economic development. Su Zhongjun, chairman and general manager of Yansanxia, ​​said that this is undoubtedly another major opportunity for the development of the Three Gorges Project. In order to turn opportunities into productivity, the company has set up an architectural coatings subsidiary. The goal is to meet the huge market demand for architectural paint products created in public rental housing and new urban construction.

“The appearance of China can not be separated from environmentally friendly paint products. The pace of urbanization in China is accelerating, this is a golden opportunity for China's economic development, which bred a huge business opportunities.” Chairman Su Zhongjun said that as a painter has engaged in dozens of With a history of business, the Three Gorges Project has mature production technology, advanced product technology, and strong market grasp and market development capabilities. As a result of industrial paints, the Three Gorges Project also proposed a transition to civilian coatings, which is also due to market demand.

Foreign coatings companies are also seeking transformation. According to Yan Caiming, general manager of PPG Asia Pacific, the current PPG plant in Tianjin has developed into the world's largest paint factory. The Asia-Pacific region with Tianjin company as the core has also become the fastest growing region in the global layout of PPG Corporation. To better meet the development needs, PPG Tianjin is gradually upgrading from a manufacturing center to a research and development center for the Asia-Pacific region.

National policies are also forcing corporate transformation. In 2011, the Ministry of Industry and Information Technology promulgated the "clean production factory" requirements for solvent-based paint companies to implement the production of pipeline sealing production technology, which further tightened the development restrictions of existing oil paint manufacturers. Some people in the industry regard it as "measures that will be used to phase out a batch of solvent-based companies." According to the analysis, this is an overall and overall measure to promote the transformation and upgrading of solvent-based paint companies. “Once oil paints are included as mandatory measures, it will have a milestone significance for the transformation and upgrading of the Chinese paint industry.”

Transformation is not easy but it is definitely not a dead end without transformation. However, transformation is not easy. Now that labor, raw materials, and corporate financial costs are all so high, the market is so weak, products cannot be sold, or sales are not profitable. Enterprises are in pain and must be transformed. Applying the phrase “doesn't transform in pain and die in pain” ".

“The transformation and upgrading of the paint industry is a matter of great concern to colleagues in the industry. What is being done in the industry is to explore, practice, re-explore, and practice. Transformation and upgrading do not mean changing the production of water-based paints to produce oil paints, or the production of new types. The essence of the transformation and upgrading of environmental protection high performance coatings lies in transforming the development mode and improving the quality of development.” said Liu Fang, Marketing Director of the Decoration Paint Division of Guangdong Hongchang Chemical Co., Ltd., “We all know that the transition to green high performance coatings and new functional coatings is The general direction of the transformation of the paint industry, but this situation is not the same in the field of subdivision.The transformation to a single enterprise, subject to a variety of factors, is not to say that it will certainly be able to make it. The things we are familiar with are not very good, and we do not understand new things well. There are many uncertainties in the future. Where are the transformation roads?

A coating company in Guangdong also holds the same view. He said that not developing a new product is a transformation, not simply transferring the factory to another place is a transformation. The success of the transformation should be smart, well-positioned, and investing in matching resources. This is no less than a second venture.

"There is no doubt that the transition will not be dead, and it will not be faster to die." In the face of most domestic small and medium-sized paint companies, this has become a matter of life and death. Facing the decline in sales caused by comprehensive factors and the decline in corporate profits, many small and medium-sized paint companies have embarked on a road of independent innovation and brand building.

However, the explosive growth of local paint brands did not allow people to see the bright direction of the transition. Because this road is destined to be a brutal road to survival of the fittest. On this road, many paint production companies will be eliminated. Only the minority who really start branding and occupy the market will be able to sneer.

Nowadays, the shortage of land and labor resources, the slowdown in the growth of the paint market in China, and the disadvantages of the large-scale production and low-price competition models in the past have mixed these factors and have caused the “Chinese paint giant” to enter a “bottleneck”: no transformation. To die, the transition means huge costs and pain.

Adjustment: In 2013, the year of transformation and upgrading was affected by the macroeconomic situation, the general growth of major economic indicators in the paint industry slowed down, the increase in costs led to a drop in the growth rate of industry profits, the industrial situation in the downstream industries was generally sluggish, and the industrial structure was accelerated. There is a trend of further acceleration; in 2013, the development of the Chinese coatings industry is still in an important strategic opportunity period. The industrial structure is in a critical period of transformation and upgrading. Domestic demand will gradually expand, and technological innovation will become the main theme of the industry development. Cleaner production Energy saving, environmental protection, recycling economy, high-functionality processes and products will become new growth points for the development of the industry, and the proportion of the national paint industry will become larger and larger.” Wei Hua, General Manager of Wuhan Shuanghu Coating Co., Ltd., December 2012 Held on the 17th at the "Hubei Provincial Coatings Industry Association tenth general assembly and general assembly" expressed.

Industry veterans also stated that "in 2013, China's paint industry will be in a critical period of transformation and upgrading, or that it has entered a deep-seated transformation."