There are thousands of large and small paint companies in China, but there are three major characteristics: First, the scale is generally small, second, the brand's influence is weak, and third, the sense of cooperation is weak! There is no doubt that China's current paint market is big, but what is different now is that the paint market in the future must be a separatist situation. I believe that this day is not far away from us! As the saying goes, opportunities are always for those who are prepared, and of course for the paint industry. To gain a foothold in the future market, it is imperative to integrate resources for change!
Why Integration: Weak Integrated Strength 1. Smaller Firms The scale here can be understood as two aspects: whether it is bigger or not, and whether it is stronger. Chinese coatings have long been the world leader in terms of both output and consumption. However, there are not many enterprises that are really big in the national paint business. Although we are familiar with paint brands such as Carpoly, Mei Tushi, and Three Trees, it only accounts for a small portion. Compared with furniture companies and household appliances enterprises, which are often several billion yuan, how to become bigger and stronger and expand the scale of the company is one of the problems the coating industry is currently trying to solve. Under the current situation, the weaknesses of small-scale enterprises with low risk-tolerance capabilities are more likely to be exposed, which is why many paint companies' bosses are complaining.
2, weak brand influence In the coatings industry in addition to a few foreign brands, the current real national brand is still less, more is a regional brand, limited influence, ordinary consumers can hardly remember these brands, the brand as a consumer guide The effect is not significant. When paint products are severely homogenized and promotion becomes a common practice, the paint companies will only have to fight for brands. Products without strong brand or brand influence are doomed to fail to obtain high added value, fail to form strong competitiveness, and are easily eliminated by the market. Under the adverse circumstances of the overall environment, this phenomenon is even more pronounced. Thousands of small and large paint brands, and ordinary people only have a few names. Raising brand awareness and expanding brand influence will become the only way to promote the development of the paint industry.
3. Weak corporate awareness The cooperation here refers to cooperation between peers and cooperation between upstream and downstream industry chains. The "competition" between peers is more important, and the "interests" are more important between the industrial chains. These two points have always hindered the cooperation between the paint companies and the upstream and downstream. As everyone knows, it is precisely this "competition awareness" and "interest concept" that ultimately led to the decline in competitiveness and loss of interest!
However, the current situation is improving. With the market downturn, companies have also realized that the problem lies in the increasing number of cooperation between enterprises and companies and between enterprises and the upstream and downstream. Cooperation between upstream and downstream can be said to be the best way to withstand the crisis, especially in today's capital chain tension situation, the upstream and downstream industry chain linkage has become a consensus! Moreover, companies are no longer purely competitive. In the paint village of Shunde in early 2012, ten paint companies established a brand alliance. Among them, there are stronger companies, most of which are smaller, but pass the industry. The sharing of resources such as situation, brand innovation, marketing model, internal management, and raw material procurement platform will surely help each company's development. However, the above two points are still far from enough for coating companies, and they need to make persistent efforts.
The purpose of integration: The improvement of the healthy and stable industrial chain construction of the industrial chain requires the cooperation of related industries, and the lack of a link or any link in it has problems and the industrial chain is incomplete.
First of all, paint companies should break the cycle of price wars. In order to solve the crisis of survival and development, the building materials industry continues to set off a “price surgeâ€. Cost pressures At present, companies in the paint industry need to consciously avoid price wars.
Second, build a healthy industrial chain to reduce costs. From raw materials to finished products, to logistics, sales and after-sales, every aspect must be done cost most provinces, companies need to reduce production costs and transaction costs through resource integration and optimization, rational allocation, enhance the anti-risk ability.
Third, companies must also consider the transformation and change from producers to service providers. In the context of a shrinking market, resulting in great financial pressure and cost pressures, in this context, integrating the industrial chain has become the most reasonable way for the development of the company.
Each company has its own advantages, blindly greed, and will not be able to play its own advantages. Enterprises should be good to do subtraction, the most powerful part of their reservation, the rest to their strong business to do, to get the most competitive through the complementary advantages to achieve the optimal allocation of industrial chain. In this process, enterprises are separated from simple producers and become an overall service provider after integrating various resources. This is a viable development path. What are the kind of hands-on business in the current circumstances it is difficult to bigger, of course, its ability to resist risks is also the weakest.
"Industry specializing in surgery," the homogenization of the fierce competitive environment, paint companies should not be considered to seize existing market share through what means, but should be thinking about how to integrate the advantages of resources has focused on breakthrough, to seek new The profit growth point.
Why Integration: Weak Integrated Strength 1. Smaller Firms The scale here can be understood as two aspects: whether it is bigger or not, and whether it is stronger. Chinese coatings have long been the world leader in terms of both output and consumption. However, there are not many enterprises that are really big in the national paint business. Although we are familiar with paint brands such as Carpoly, Mei Tushi, and Three Trees, it only accounts for a small portion. Compared with furniture companies and household appliances enterprises, which are often several billion yuan, how to become bigger and stronger and expand the scale of the company is one of the problems the coating industry is currently trying to solve. Under the current situation, the weaknesses of small-scale enterprises with low risk-tolerance capabilities are more likely to be exposed, which is why many paint companies' bosses are complaining.
2, weak brand influence In the coatings industry in addition to a few foreign brands, the current real national brand is still less, more is a regional brand, limited influence, ordinary consumers can hardly remember these brands, the brand as a consumer guide The effect is not significant. When paint products are severely homogenized and promotion becomes a common practice, the paint companies will only have to fight for brands. Products without strong brand or brand influence are doomed to fail to obtain high added value, fail to form strong competitiveness, and are easily eliminated by the market. Under the adverse circumstances of the overall environment, this phenomenon is even more pronounced. Thousands of small and large paint brands, and ordinary people only have a few names. Raising brand awareness and expanding brand influence will become the only way to promote the development of the paint industry.
3. Weak corporate awareness The cooperation here refers to cooperation between peers and cooperation between upstream and downstream industry chains. The "competition" between peers is more important, and the "interests" are more important between the industrial chains. These two points have always hindered the cooperation between the paint companies and the upstream and downstream. As everyone knows, it is precisely this "competition awareness" and "interest concept" that ultimately led to the decline in competitiveness and loss of interest!
However, the current situation is improving. With the market downturn, companies have also realized that the problem lies in the increasing number of cooperation between enterprises and companies and between enterprises and the upstream and downstream. Cooperation between upstream and downstream can be said to be the best way to withstand the crisis, especially in today's capital chain tension situation, the upstream and downstream industry chain linkage has become a consensus! Moreover, companies are no longer purely competitive. In the paint village of Shunde in early 2012, ten paint companies established a brand alliance. Among them, there are stronger companies, most of which are smaller, but pass the industry. The sharing of resources such as situation, brand innovation, marketing model, internal management, and raw material procurement platform will surely help each company's development. However, the above two points are still far from enough for coating companies, and they need to make persistent efforts.
The purpose of integration: The improvement of the healthy and stable industrial chain construction of the industrial chain requires the cooperation of related industries, and the lack of a link or any link in it has problems and the industrial chain is incomplete.
First of all, paint companies should break the cycle of price wars. In order to solve the crisis of survival and development, the building materials industry continues to set off a “price surgeâ€. Cost pressures At present, companies in the paint industry need to consciously avoid price wars.
Second, build a healthy industrial chain to reduce costs. From raw materials to finished products, to logistics, sales and after-sales, every aspect must be done cost most provinces, companies need to reduce production costs and transaction costs through resource integration and optimization, rational allocation, enhance the anti-risk ability.
Third, companies must also consider the transformation and change from producers to service providers. In the context of a shrinking market, resulting in great financial pressure and cost pressures, in this context, integrating the industrial chain has become the most reasonable way for the development of the company.
Each company has its own advantages, blindly greed, and will not be able to play its own advantages. Enterprises should be good to do subtraction, the most powerful part of their reservation, the rest to their strong business to do, to get the most competitive through the complementary advantages to achieve the optimal allocation of industrial chain. In this process, enterprises are separated from simple producers and become an overall service provider after integrating various resources. This is a viable development path. What are the kind of hands-on business in the current circumstances it is difficult to bigger, of course, its ability to resist risks is also the weakest.
"Industry specializing in surgery," the homogenization of the fierce competitive environment, paint companies should not be considered to seize existing market share through what means, but should be thinking about how to integrate the advantages of resources has focused on breakthrough, to seek new The profit growth point.
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