Coatings: Refinement, Scale and Branding

After years of development in the paint industry, market competition is fierce. In the future, domestic coatings companies will develop in three directions: refinement, scale, and branding.

Refinement: the common pursuit of paint products

The paint industry is a traditional manufacturing industry. Many small and medium-sized paint companies are gradually increasing their scale and forming paint manufacturers after the family workshop has accumulated certain funds. Most of the paint companies developed in this way are very extensive in management, and their production and sales are lacking in pertinence, operability, and strong execution power. Their organizational structure and functions are ambiguous and their productivity is low.

The competition of paint companies depends to a large extent on the competition of products. Under the condition of high homogeneity of products, competition can only be demonstrated in details. Details affect quality, details reflect taste, details show differences, details determine success or failure. The valuable value of the details lies in creativity, uniqueness, and invincibility in the competition of products. Almost all paint brands are aware of the importance of refinement, but the difference lies in whether it can truly be refined.

Scale: the only way to become bigger and stronger

At present, the characteristics of regional agglomeration in the coatings industry are increasingly evident, but the paint industry is still dominated by small and medium-sized enterprises, and industry concentration is very low. Large-scale paint companies are very few in the country, which shows that the paint industry has a huge space for development compared with other mature industries. This is where small and medium-sized paint companies hope.

In recent years, some paint companies have accelerated the construction of factories and industrial parks, and gradually introduced some advanced production processes and equipment. From the point of view and the status quo of the paint industry, the scale of production in the paint industry is approaching. It can be predicted that with the continuous expansion of the production capacity of paint companies, the cost of paint products will be further reduced, and their prices will also be closer to the people. On the other hand, rising labor costs and the lack of skilled workers in the coatings industry will lead to a continued narrowing of profit margins for small and medium-sized paint companies, and a large number of SMEs will gradually fade out of the market.

Branding: Consumers follow the concept

The concept of consumer spending is shifting from quantitative consumption to qualitative consumption. The brand era of paint consumption is approaching. People's requirements for paints are no longer purely functional requirements, but rise to the level of decorative beauty and individuality. Consumers are becoming more aware of paint products. More consumers will establish the brand concept of paint consumption and pay more attention to aesthetics and artistry of paint. With the increasing competition, paint companies will increasingly focus on packaging, from product competition evolved into brand competition. Those coating companies with poor brand image, limited technology and financial strength will become increasingly disadvantaged in the competition.