Du Fang paint Yu Heng: Preparing for the arrival of spring to expand into third- and fourth-tier cities

The 12th China Real Estate Development Annual Meeting of 2012, co-hosted by the Policy Research Center of the Ministry of Housing and Urban-Rural Development and the China Index Academy, was jointly organized by SouFun and the China Real Estate Dynamic Policy Design Research Group. It was opened in Beijing on February 24th. As the real-time adjustment of the real estate industry on the eve of the national “**”, the China Real Estate Development Annual Meeting has been a benchmark for the direction of the industry’s direction since its inception in 2000. Dufang lacquer companies are also involved.

The 12th China Real Estate Development Annual Meeting 2012 At the annual meeting, the reporter interviewed Du Fangqi, Chairman of the Board, Yu Heng. He said that in terms of coatings in 2012, he was cautious with optimism. The company will invest in strength development this year. Renovation and decoration of the market three times, and sink sales channels into the third and fourth-tier cities to prepare for the arrival of the home furnishing industry.

Interview guests: Dufang Paint Chairman Yu Heng Interviews: February 24th, 2012 Interview Reporter: SouFun Home Network Bai Xiuhua Interview Record [Sou Fang Reporter Bai Xiuhua] Yu Yu Hello, Today You Participate in the Twelfth China Real Estate Development Year 2012 Will you hear the special lectures and related data analysis of upstream real estate developers? What do you think?

[Dufang Qi Yuheng] The overall feeling is that this winter in the real estate industry is a bit cold, but I still have great confidence in the outlook. The home industry is closely related to the real estate industry. If the real estate industry develops well, the home industry will inevitably develop very well. Although various national policies currently appear to be detrimental to the real estate company’s home sales, these policies are based on the long-term healthy development of the real estate industry. Only the long-term healthy development of the real estate industry will lead to greater development of the home industry. And if the Chinese market is so big, the market development in different regions is not balanced. As long as you look for it, there will be many opportunities. Therefore, for the current situation, it does not need to be so pessimistic.

[Soufang reporter Bai Xiuhua] Why do you say that?

[Dufang Qi Yuheng] At the same time as the market environment changes, the original opportunities are few, but many new opportunities have emerged, depending on whether you can find them. For example, although the government is now restricting the sales of new houses, At the same time, it increased the supply of affordable housing, which is a new market opportunity. At the same time, as the level of household consumption increases, there will be no need for new homes but there will be a need for home re-decoration or three-time decoration. This proportion is also increasing year by year. In the mature foreign markets, most of the paint sales came from this kind of remodeling, just like the headquarters of Doufang Paint - Germany. The area is only as large as Sichuan Province, but the annual coating production and sales volume is amazing. . In addition, the sales situation in the third and fourth-tier cities is not as bad as that of the first-tier and second-tier cities. The sales data of western cities is better than that of the eastern coastal cities. Therefore, we must look at the macroeconomic policy on the one hand, and on the other Looking for opportunities on the microscopic side, it is not only to be cautious about the current situation but also full of confidence.

[Soufang reporter Bai Xiuhua] Dou Fang paint market layout has begun to shift?

[Dufang Qi Yuheng] Dufang Paint has been focusing on the development of the Chinese market. We have our own market development rhythm and strategy. At the same time as strengthening the first- and second-tier cities, the business gradually expands to the third and fourth-tier cities. Over the years, we have established many new distribution points, offices and branches, and we have focused on market expansion on a step-by-step basis. We are not pursuing a blind expansionary expansion and we need a sustainable and stable breakthrough.

[Soufang reporter Bai Xiuhua] What is the situation now?

[Dufang Qi Yuheng] The development of the market as a whole is in line with expectations. We will adjust our strategies in accordance with changes in the situation, and achieving stable and sustainable growth is our basic strategy. When the situation is good, we must ride the wind and waves, and the situation is grim. At the time, we have to strengthen management to improve internal strength. Therefore, under such a bad situation last year, our sales still achieved growth.

[Soufang reporter Bai Xiuhua] What about profits?

[Dufang Qi Yuheng] When the situation is not good, profits will certainly decline, because the relevant brand marketing activities cannot stop. At the same time, the worse the situation is, the more fierce competition will be, and the higher the related expenses.

[Soufang reporter Bai Xiuhua] price war?

[Dufang Qi Yuheng] The marketing method that domestic enterprises are best at is the price war. The price war in the paint industry has long been driven by Nippon and Dulux, and we do not try to avoid price wars. Because our advantage is that the quality of our products is much better than similar products. We are the largest imported paint brand in China. According to customs statistics, Dufang accounts for about 25% of the total imports of Chinese paints, which is in the home improvement. The coating data is an absolute advantage.

As the concept of environmental protection for consumers in the Chinese market is now becoming stronger, in 1996, when we entered the Chinese market, DuPont Paint in Germany also introduced the concept of water-based paint to China, and some media said that Yu is always the No. 1 water-based paint in China. "People", indeed, at that time we didn't know what the water-based paint was. "How could water be added inside the paint?" "Can that brush?" In fact, it uses the most advanced technology in the paint industry. Our advertisements are broadcast on radio every day, and the unique environmental protection features of “Right now, no poison, no smell” are advertised. When they first entered the Chinese market, Chinese home furnishings only focused on aesthetics and did not pay attention to environmental protection.

When the concept of environmental home improvement came into China, people realized that high-quality home furnishings don’t just have to be beautiful, but more importantly, they must protect themselves and their family’s health. Since entering the Chinese market for 16 years, we have completed take-off development with the entire Chinese real estate market, so we say we are the beneficiaries. At the same time, we are also one of the founders of China's environmental protection home improvement. Therefore, our marketing methods rely more on the high quality of the products and the reputation of the brand rather than the price.

[Sou Fang reporter Bai Xiuhua] What do you think our paint industry will have in the future?

[Dufang Qi Yuheng] I am cautiously optimistic about this year's coatings industry.

[Sou Fang reporter Bai Xiuhua] Why do you say that?

[Dufang Qi Yuheng] As I said earlier, although this winter is a bit cold, I think the overall trend of the housing market is positive. Even if it is controlled by policies, the overall housing price development trend is slowly increasing. The market environment is changing and new sales opportunities will follow. What we need to do is to look for new opportunities from the changes. From the perspective of market demand, I will add that from the perspective of the international financial market, global central banks are all restarting easing. In fact, the current situation in China is the same, and the currency is depreciating. There are more and more people watching the currency, and the most valuable investment method is investment in non-renewable resources, such as real estate, gold and so on. In addition to the rigid demand, once the policy is loosened, this large-scale capital that seeks to preserve and increase value will be flocked to the real estate market, which will once again promote the rapid development of real estate. By then, the paint industry will face a new opportunity. What we need to do now is Do everything ready.