2011 China Coatings Industry Analysis and Forecast

Business News Agency June 20th At present, the “hundred flowers” ​​used to describe 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 coating product category Here, we must conduct inventory and analysis of three coating product categories: one is latex paint, the other is waterborne wood paint, and third is oily wood paint.

(A), latex paint - when the red paint protagonist with "popular" to describe the development of latex paint in the past two years, is not an exaggeration. 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. Some consumers began to use wall (wall) paper, marble, ceramic tile, diatom mud, art composite design and other materials and methods to replace interior latex paint when they were decorating interior walls. The problem of exterior paint is mainly quality issues. In order to get the project, some paint companies at the expense of lower prices, sacrifice quality, and ultimately in the project completed less than a year, or even six months or so appear discoloration, cracking, peeling and other quality problems. This problem affects not only one company and one project, but also affects the entire paint industry and the entire construction project. Some real estate developers experienced a problem with inferior exterior wall paint and never dared to use paint exterior products. To solve the problems encountered in interior and exterior latex paints, the solution lies in the development of a variety of new products derived from interior latex paints, to solve the defects of latex paints. Applying the slogan "Adhesion paint for interior walls for 30 years without new products" is not an exaggeration. The interior wall latex paint has no new products for a long time. In the long run, the growth of interior latex paints has slowed down, and it has entered the product development curve. Mature period. If there is no new product to pull the curve up, latex paint will continue to decline, giving up part of the interior wall decoration market. Many paint companies actually saw this trend, and many have introduced their own latex paint-derived new art paints, but the promotion efforts are small and have little effect. In this regard, the successful experience of the Chinese-German joint venture crocodile paint launching “make-up paint” is worth learning from. It is the realization of the inherent flaws of interior latex paints, recognizing that only by pushing new interior wall products out of the "Red Sea" of price competition, and conducting "different competition" of "Blue Ocean", crocodile paint takes a series of measures, including employing well-known marketing FromEMKT. Com. Cn Consultant company navigation, build makeup paint experience hall, introduced more than a hundred kinds of makeup paint new products, training professional construction team license, etc., 2010 promotion has achieved initial results, become a unique "landscape" in the paint business.

(B), water-based wood paint - the growth of the stars of tomorrow Waterborne Wood Coatings is the upgrading of oil wood paint, in line with the popular "energy saving, low carbon health," the era of the main theme. 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 figure out whether the promotion of waterborne wood coatings is worth the cost/benefit. Conversely, if waterborne wood paints replace oily wood paints, the amount of single-family purchases will increase by about 50%, and the promotion enthusiasm will naturally rise.

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. This is why the market share of waterborne wood coatings in developed countries such as Europe and the United States is only 20%. Waterborne wood paints must solve these problems if they are to be used in a wide range of furniture factories. After clearing their own strength, paint companies that want to push water-based wood lacquers think about whether they have any solutions to the above problems. If you are not an industry leader, resources are insufficient, technology is not enough, and integration is hopeless, you should not rush forward. After spending a lot of financial resources and energy, you can only try several furniture factories to become “martyrs”. Or look for Carpoly's OEM and put several sets of waterborne wood lacquer on the surface of your dealer store.

(C), oily wood paint - the decline of the former aristocrats After reading the product analysis of the above two categories, generally known oil wood paint (hereinafter referred to as oil paint) in the field of home improvement. In the retail sector, oil paints are mainly based on PU paints and NC paints (sets). Since the launch of the market in early 1990s, it has been a favorite product of paint companies and distributors for a long period of 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.

First, functional changes. Since oil paints such as PU and NC were put on the market, they were unapproachable in terms of function and application to the previous products. In the first place in Shunde, which was the home of paint, it was popular with dealers and consumers. At the beginning of this century, we began to pay attention to its performance advantages, such as the product's solid content, hardness, feel, and workability. The most important is the yellowing resistance. Because the most used plates at that time were light-colored oak wood and oak boards. If the yellowing resistance does not work, the color of the plate will soon be yellowed, affecting the decorative effect. Around 2005, dark-colored plates such as teak and walnut began to become popular and began to pay attention to the performance of oil paints in terms of powder content and transparency. Some manufacturers cater to the introduction of Walnut special bottom paint, dark paint and other special paint products, in fact, is to adjust and modify the oil paint composition, from a good yellowing resistance to have excellent transparency performance. Only high-transparency paints can show the natural wood grain decoration effect of dark-colored plates. In the past two years, owners have begun to pay attention to the environmental and physical effects of paint, and this trend will also be popular in the next 3-5 years. Many manufacturers have begun to introduce oily paints with net odor, botanical refining and herbs as selling points to meet the market demand, telling consumers the health and environmental protection of their products. Coating companies will continue to improve the health and environmental protection functions of oil paint products in 2011 and promote them with different slogans and formats.

Second, policy development. For the development of oil paints, the state regulates and upgrades from the formulation or upgrading of product standards. In 2001, it was a year worth remembering in the history of oil paint development. This year, the state formulated a special standard GB18581 on the environmental protection indicators of oil paints, requiring paint manufacturers to complete product upgrades within one year. Subsequently, 3C compulsory certification and III product standard certification were applied to the oil paint. These three items all set new requirements for the health and environmental protection of oil paints, which greatly improved the health and environmental performance of oil paints. In recent years, we plan to revise the GB18581 standard, and once again raise the standards and requirements for VOCs, heavy metals and other indicators to meet the current era of “energy saving, low carbon health”. It can be expected that under the premise of satisfying the conditions, the country’s requirements for oil paints will become increasingly stringent. Whether or not oil paints that are of general concern to paint companies will abolish the problem, it is expected that this will not happen within five years.

Third, solve the "chicken ribs" way. For the oil paint manufacturers, not only the market growth space is limited, but also the cost rises with the rise of oil, and the gross profit drops sharply. Like "chicken ribs," tasteless food, it is a pity. Take Shanghai Shenzheng as an example. In 2004, it invested tens of millions of dollars to build an oil paint production base. Since the date of completion, it has faced the problems of overcapacity and high cost. Afterwards, the leadership decisively handled the subcontracting of surplus production capacity, and he himself rebranded at a professional oil paint factory. Renting and renting not only stops losses, but also increases working capital by tens of millions. This successful management case is worthy of the paint industry. The advice given to paint companies is that oily paints will have a monthly sales volume of less than 1 million yuan, and will be directly used for OEM production of professional oil plants. As a result, not only the management and production costs are greatly reduced, but also the working capital can be increased by at least 2 million. In recent years, there has been a homeopathic brand of oil paints, such as Zhongshan Lingjun and Shanghai Byron. The emergence of oil paint OEM factories can not only reduce costs through intensive and scale production, but also ensure the continuity of quality.

II. Layout and expansion of enterprises 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.

(a), the layout of successful people in the three major paint industry clusters, the expansion of Guangdong paint companies is unstoppable. Not to mention that Nippon and Dorothy put the industrial layout in place at the beginning of their entry into China, saying that they are excellent representatives of private paint companies Garbo Li, Chin Chen, Bardez, Hong Kong companies representing Chinese paint, Yip Chemical, in recent years Come to build factories in other provinces to expand. There are two types of this situation. One is the new construction in Guangdong Province and the other is the expansion outside Guangdong Province. The newly-built coating companies in Guangdong Province, on the one hand, had to build their own production bases such as Yacheng in Zhongshan after many years of development due to funding problems when building factories. On the other hand, because of the adjustment of industrial structure in cities such as Shunde, Zhongshan, and Shenzhen, some companies that do not have high added value, encourage large-scale environmental pollution, or do not approve new expansions have been added. If an enterprise wants to build a factory to expand its production capacity, it can only find new ground. Such as Shunde Mingbang, Huilong. All these companies have a distinct feature. They are medium-sized companies and have an annual sales volume of around 100 million yuan. In addition, they are optimistic about the paint industry and have enough confidence to develop themselves. The paint companies expanding outside Guangdong Province are mainly large-scale enterprises. Most of them have annual sales of more than 500 million, such as Carpoly in Chengdu, Shanghai, Hebei, Bardez in Jiangxi, Shanghai and Sichuan. Shanghai, Hubei, Jiangsu and so on. When China Resources, the big brother of private paints, was acquired by Valspar, he did nothing on the road to expansion. With a stagnant growth in sales in recent years, frequent replacement of senior staff, and lack of sales team vitality, coupled with the lack of dealership model and lack of confidence, China Resources Coating's outlook is worrisome.