Shunde coating industry turns to local brands in the era of meager profits and strives to break through.
Shunde coating industry turns to local brands in the era of meager profits and strives to break through.
October 12, 2013
[China coating information] "China coating sees Guangdong, Guangdong coating sees Shunde". After more than 50 years of development, Shunde coating has become a "coating kingdom" with many well-known brands since it was unknown at the beginning
at present, the coating industry has become one of the eight pillar industries in Shunde, and has formed a perfect "production, supply and marketing" industrial chain. However, Shunde coating industry has inevitably encountered a bottleneck in its development. Last year, Changzhou replaced Shunde as the second "hometown of Chinese coatings". Since then, China's coating industry has evolved from Shunde to the north and south
the more important change is that the coating industry has entered the era of low profit, and the polarization of domestic coating enterprises is serious. Looking at the whole Chinese coating industry, the current industrial concentration is not very high. A large part of the market is controlled by foreign brands. Local brands cannot compete with foreign brands for various reasons, so they can only retreat to the second and third tier markets. In addition, excellent local brands often cannot escape the fate of being acquired by foreign capital. The interview found that because big brands make too little profit for dealers, dealers' participation in making and selling fake products has become a hidden rule of the industry, which has greatly damaged the interests of coating manufacturers and end consumers. Zhouchanghuai, general manager of the Group Marketing Department of Jiabaoli Chemical Group Co., Ltd., believes that the coating industry will usher in a round of industry reshuffle
at a time when danger and opportunity coexist, Shunde coating enterprises need to adjust their strategies in advance before the industry reshuffle, so as to gain greater competitive advantage in the next stage of fierce battle
"paint kingdom" Shunde
"Guangdong is the focus of Chinese paint and Shunde is the focus of Guangdong paint"
how did Shunde become the birthplace of Chinese coatings
the history of Shunde coating industry can be traced back to 1958. Up to now, there has been the first coating manufacturer in Shunde for nearly half a century - Longjiang chemical plant. However, Shunde coating industry really started to rise after the reform and opening up
Mr. Huang, who has been involved in the immersion coating industry in Shunde for more than ten years, introduced: "The development of Shunde coating industry is favorable to both time and place. In the 1980s and 1990s, when people's living standards were improved and their demand for furniture was very strong, Lecong and Longjiang furniture industries had developed and needed a large amount of wood paint. At that time, almost all paint and coatings were imported, with high prices and few quantities. At that time, a state-owned enterprise producing packaging materials also relied on imports, and one of its managers thought, 'why do we import Can't you make your own ink? " "
Mr. Huang recalled that, taking advantage of the proximity to Hong Kong, the aforementioned forerunner went to Hong Kong to find a technician of a certain brand of ink, and hired him to help set up his own ink factory in Shunde with the favorable conditions of technology as a shareholder. This was Shunde Jinlong ink factory (later renamed as" Jinlong ink Chemical Co., Ltd. ") which was later known as" Huangpu Military Academy of Shunde coatings " , officially established in 1985
the establishment of Jinlong ink Chemical Co., Ltd. has really started Shunde paint to enter the embryonic stage. Shunde Lantian Industrial Co., Ltd. and Longjiang Wan'an paint Co., Ltd. have been established successively. Jinlong ink Chemical Co., Ltd. formally developed polyurethane furniture paint in 1987, which is mainly used in furniture coating. It is understood that most of the entrepreneurs who started their business in coatings after 1991 came from Jinlong ink Chemical Co., Ltd., and many of them have become the mainstay of Shunde coatings industry
Lecong and Longjiang furniture markets adjacent to Shunde constitute a large and stable furniture production and sales base. The prosperous furniture industry has driven the development of upstream and downstream industrial chains. As one of the important raw materials for furniture production, coating has naturally been the driving force for development, and a large number of coating plants have sprung up
Mr. Huang introduced the grand occasion of Shunde coating industry in the early 1990s. At that time, it was estimated that there were thousands of large and small coating manufacturers in Shunde, most of which were simple workshop production. However, at that time, there were few domestic paint production enterprises, most of which were enterprises from other provinces. The road was long and the output was insufficient. The rapid development of the furniture industry caused a huge gap in paint supply. Therefore, these enterprises can supply the products needed by the market in large quantities in the early stage. Many brands such as China Resources, Jiabaoli, Hongchang chemical, Jinguan coating, Hualong, Shenzhou coating, metus coating, Huilong chemical, Dibang coating, etc. started their businesses at this stage of development. At the same time of the birth of new paint manufacturers, some large-scale paint enterprises are gradually transitioning from industrial to civil products
when some enterprises switched to civilian products, they found that emulsion paint had broad development prospects, so they began to produce emulsion paint one after another to open up the building paint market. With the development of this market, the strength of many coating plants has been improved on the basis of the development of wood lacquer. At that time, the scale of thousands of brands, the marketing network all over the country, and the leading technology made Shunde paint famous in China
it is learned that a large number of coating enterprises, including China Resources, Jinguan and Hongchang, were founded in Shunde in the 1990s. During the 15 years from 1991 to 2006, Shunde coating industry developed rapidly from disorder to vigorous and orderly development; As the competition intensifies, many enterprises have changed their multi brand strategies and carried out brand integration
after years of development, Shunde has cultivated a number of excellent local paint brands, such as China Resources paint, Hongchang chemical, metus, Hualong paint, Jiabaoli chemical, Jinguan paint, Coase chemical, Shenzhou engineering parts paint, Huilong chemical, Mingya paint, Changshi chemical, AIA paint, etc
in 2005, the output value of Shunde coating industry was 5.3 billion yuan, and there were more than 260 coating production enterprises, including furniture, decoration, construction, fire protection, corrosion protection, automobile repair, powder and other products. In 2005, the total output was about 360000 tons, accounting for 1/10 of the country, and the market share of special furniture coatings accounted for 50% of the country. In that year, China Resources and garberry won the title of "China's famous brand products". Among the first eight award-winning coating enterprises, Shunde accounted for two places. At that time, Shunde was unique in China in terms of annual output and the number of well-known brands and famous enterprises
in June, 2006, Shunde was officially awarded the title of "hometown of Chinese coatings" by China Petroleum and chemical association and China Coating Industry Association, and Shunde was also known as "coating kingdom" by the outside world
at present, the development of Shunde coating industry can not be underestimated. According to statistics, in January, 2012, the coating output of Guangdong Province reached 1282700 tons, a year-on-year increase of 17.39%, accounting for 19.41% of the total national output. As a core member of Guangdong coating circle, Shunde coating industry accounts for more than 40% of the output
industry reshuffle is imminent
although foreign brands have competed in the Central Plains in recent years and have also achieved a large market share, in the opinion of zhouchanghuai, general manager of the Group Marketing Department of Jiabaoli Chemical Group Co., Ltd., the brand concentration in China's coating market is not high. "There are threethousand fourthousand registered paint enterprises and more than tenthousand brands in China. Even by 2030, the top five decorative paint manufacturers will account for only 40% of the market share. In most countries in Europe, even in India, the top three to four decorative paint manufacturers account for 60% to 80% of the market share."
relevant data show that Nippon and Dulux have long been the leading paint brands in China's paint market. Nippon's market share has remained at about 17% for several years, and Dulux is on a par with them. These two brands are the first echelon of China's paint market. The second echelon consists of brands such as China Resources, Carpoly, Metz and sankeshu, with a market share of 1%-5%. "The coating industry is like Chinese universities. Tsinghua and Peking University are competing for the first place, and the rest are competing for the third place."
yangyuande, Secretary General of China Coating Industry Association, revealed that China's coating output exceeded the 10 million tons mark for the first time in 2011, reaching 10.795 million tons; In 2012, the total output of China's coating industry reached 12.71875 million tons, a year-on-year increase of 11.79%, hitting a new record, and maintaining its position as the largest coating manufacturer in the world. The current total industrial output value is 2934 6billion yuan, a year-on-year increase of 12.42%, while industrial coatings showed a negative growth. In the whole industry, the main growth power is still concentrated in the field of architectural coatings. Among them,
repainting of internal and external walls of buildings will account for an increasing proportion
such an attractive cake is also the reason why foreign brands are eyeing the Chinese market. However, compared with many years ago, today's coating industry is no longer a "cash cow". The coating industry has entered a meager profit era, and the polarization of domestic coating enterprises is serious. According to experts, on the one hand, big brands, due to their great influence, high customer loyalty, strong profitability, and strong resource accumulation, lost no time in launching the "sweeping" strong expansion strategy of "opening big stores and opening more stores", which is calculated by the total root mean square value formula of acceleration: gmis= ==17.25 stores ". On the other hand, small and medium-sized paint brands can only take advantage of their small scale and low cost to fight a big price war and use the strategy of small profits but quick turnover to occupy a lot of shares in the paint market. However, these paints often face quality problems and often survive for a short time under the scrutiny of the industrial and commercial departments. There are also some coating enterprises that are wandering between big brands and non brands. They have no influence of big brands, and the reasons for scale and cost and the requirements for quality make it impossible for them to fight a price war. Therefore, whether it is a big brand or a non brand army, the profitability is generally getting weaker and weaker. With the increasing market competition and the rising prices of raw materials, the current market environment of the coating industry is getting worse and worse. Zhouchanghuai concluded that the coating industry will usher in a round of industry reshuffle
it is understood that the cost of coating production mainly includes plant rent, workers' wages and raw materials. The cost pressure of dealers mostly comes from the rent of shopping malls, the salary of salespersons and operating expenses. As long as the cost of one link increases, the channel cost will increase. And the current market situation is that the cost is calculated in the form of superposition value, so the paint price will continue to rise. However, it is obviously unacceptable for consumers to absorb costs by raising prices. Therefore, the market will shrink and the profits will become weaker and weaker
counterfeiting has become a public nuisance in the industry
low profits have led to the growing phenomenon of operators' participation in the production and sale of counterfeits, and counterfeiting has become a public nuisance in the paint industry
in those years when the coating industry developed extremely rapidly, coating enterprises blossomed everywhere, with tens of thousands of coating brands on the market. In order to expand sales, many enterprises implemented multi brand strategy. Often, before a brand is launched, several more brands will be launched to achieve multi brand and multi profit. This does have some effect in the period when consumer brand recognition is not so concentrated
however, with the increase of brands, the market competition is becoming more and more fierce. On the contrary, after a long-term market test, only a few brands with excellent quality can win the recognition of consumers. The contradiction between the two has led to the demise of a large number of brands. It also causes damage to coating manufacturers