Reflections on the Future Development of Coatings Industry under the Industry Chain Model

In the first half of 2011, it was a good period for the Chinese paint industry. Many domestic paint companies have achieved good results. With the constant promotion of the regulation of the property market, real estate companies need to adapt and adjust in time, and the architectural coatings industry has been affected. From the second half of the year, and the multi-application market including the architectural coatings market, the period of high growth for the coatings industry has passed. 2011 is nearing completion and the rational growth of the paint market seems to be a foregone conclusion. However, people in the industry believe that the success of the upstream and downstream “value chain system” is the foundation for the future development of Chinese paint brands in China.


For some of the paint companies that have previously embarked on an aggressive strategic expansion plan, it is necessary to adopt differentiated products and services to become one of the most competitive companies in the coatings industry, and to become a leading corporate target for contrarian growth. Hard to do. For coatings companies that are about to enter 2012, the need to achieve double-value growth in their own value means that they must grab more of their competitors' share as the overall market growth slows. Not only is the main competitor performing nationwide production layout and vertical industrial chain layout, but also because the coating companies forged through the integrated resource approach have a large leading edge in scale and profits compared to ordinary companies. .

On the industry chain, we generally believe that this is the path from one or several resources to the downstream industry through several industrial levels and continue to reach consumers. It contains four layers of meaning: First, the industrial chain is the expression of the industrial level. Second, the industrial chain is the expression of the degree of industrial linkage. The stronger the industry relationship is, the closer the chain is, and the more efficient the allocation of resources. Third, the industrial chain is an expression of the depth of resource processing. The longer the industry chain, the deeper the depth of processing can be achieved. Fourth, the industry chain is to meet the level of demand expression. The industry chain starts with natural resources and ends at the consumer market, but the starting point and the ending point are not fixed. From the point of view of the transition from traditional coatings to modern coatings, the application field of coatings has also been expanded. It can be said that this is a “**”. For decades, coatings companies have faced linkage and cooperation between coatings and painting, production and customers, production and design, production and materials.

The severely controlled real estate market, challenges and opportunities coexist, and industry insiders believe that real estate companies need to work together with upstream and downstream partners to carry out product innovation and service upgrades and improve their overall competitiveness. Zhang Fu, chairman of Forte Group, said at a meeting of partners in Shanghai recently that real estate in the future cannot be separated from the cooperation of various partners in the industry chain, and the real estate industry needs to establish a business model that combines win-win and win. It is worth mentioning that: Forte signed contracts with representatives of Nippon Paint, Mitsubishi Heavy Industries and other 15 partners. Forte's combined business model of this industrial chain can enable excellent brands to achieve a win-win situation. Under this model, the two partners will be transformed into partners with identical ideas and consistent goals in the same industry value chain. In order to promote the strategic procurement of scale, standardization is to achieve the company's long-term strategic goals. This may provide a reference for the development of weak paint companies.

From a traditional point of view, the entire industry chain is a very heroic formulation, because there is no long-term history of accumulation, there is no basis for the scale and layout of assets, the general enterprise is difficult to establish a business model of the entire industry chain. For the current stage of Chinese coatings, it is still in the theoretical stage. But at present, what we can do is: rely on the idea of ​​the industrial chain to enhance the company's own ideas, improve the ability to use existing resources and future resources, and let resources concentrate in the interaction and excitation. The ultimate goal is to work hard.

For the “super integration” between upstream and downstream industries and between industry and industry in the paint industry, the term “integrated” may reflect this trend. After 5-10 years, we may see such a situation: First, the extension of large enterprises to build a new type of paint companies; Second, paint companies to complete their own self-extension; Third, the paint business with unique advantages self-improvement and promotion. In the future, paint companies will only be able to stand out in the industry and win new market competition through multi-channel and multi-brand integration of upstream and downstream industry chain business models.

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