Art Paint: The next nugget point in the micro-profit trap.

China Coatings network
: At present, the traditional market profit margins are gradually compressed, is allowing
coatings factory
merchants in the transformation to seek new selling points. Recently, Italy's centennia
coating brand
Tasani TASSANI was revealed by the media will be officially landed in China at the end of August this year, competing for high-margin art
coatings
market.
There are many adverse factors, resulting in paint manufacturers are facing an inescapable "micro-profit" challenge, but also prompted it to re-examine the traditional paint market input and output, more and more paint manufacturers have begun to realize that art coatings will be the next high-margin nuggets, and high-end, personalized products will be a new direction of development.
, in order to seek new profit growth points, many paint manufacturers have increased the adjustment of product structure. Since this year, Libang, Carberry, Bards, Mattus, Hualong,
thry trees
, Eastman and many other domestic and foreign
coal enterprises
have launched art coatings, dealers are also actively seeking agents competitive art paint brands. It can be said that art coatings are seen by the industry as the paint industry's next profit Nuggets new category.
industry insiders said that China's paint market has begun to saturate, endo-growth space is increasingly limited. Therefore, the main growth of the future market no longer depends on expansion penetration, nor on the traditional paint market to tap profit growth points, more likely through product restructuring, product quality upgrades and consumer consumption. As a new category of art coatings, is in line with the current and future market consumption trends.
business in the first half of 2015 was a bit light and life was a bit bitter.
the first half of the year was not very good, not only sales continued to decline, but even profits are falling. Do traditional paint market business, life is a bit bitter, not only not high profits, but also labored, hard not to please. "
" I personally also feel that this year's business is really difficult to do, do conventional product volume, hope all pinned on dealers, they also said that business is not good, do not take goods, we do not rut; "
these conditions are a microcosm of the downturn in the paint industry. On the decline in profits, many business people believe that, first, the rising costs, further compressed the profit margins of products;
the current net profit of paint enterprises only 7% to 8%, but some people in the industry feel that this figure for paint enterprises, is still a barely qualified report card. In fact, this view is not unreasonable, reporters recently in a few paint enterprises chat, most people have revealed the decline in profit information. Many enterprises, including large paint enterprises, are facing the embarrassing situation of "increasing revenue without increasing profits".
for many manufacturers doing traditional paint business, profits are falling and gradually entering the new normal. Liu Fang, head of tasani's China office in Italy, says there is not much profit margin for traditional conventional products to tap, and sometimes there is the embarrassment of "the bigger the sales, the less the profits".
, according to reporters, because of the paint access market threshold is low, many enterprises in recent years, but large-scale expansion. However, "one net down" enterprises did not earn "pot full", but fell into the vortex of overcapacity, high inventory, which is the industrial restructuring is not in place caused by the problem. These outstanding problems and contradictions have brought constraints to the healthy development of the coating industry, resulting in the traditional paint market profit margins are increasingly compressed.
China
Coatings Network
News:
Art coatings due to high profits competing for food
for most paint manufacturers, to maintain the vitality of enterprises, increase revenue and profits is essential, of course, on this basis to increase the profit margins of enterprises is undoubtedly the icing on the cake. No manufacturer will want to make less money, naturally every manufacturer will not give up the opportunity to get more revenue.
" in China, the profit margin of art coatings is very high, the price in 200 yuan / square meters - 1200 yuan / square meters, some even higher, profit is several times the ordinary paint. Mr. Chen, a company mainly engaged in art coatings, told reporters, "Art coatings, a high-margin market, naturally has become the paint manufacturers' eyes nails, meat thorns." "
" in the first half of this year, the overall sales of manufacturers fell by more than 30%, the country's only western region sales growth of about 20%. Due to market needs, I am currently acting for an imported art paint brand, recently signed a new high-end decoration is the use of art paint, 480 yuan / square meters, business single amount of 730,000. Yang, who represents a brand of paint in Kunming, told reporters.
however, according to industry sources, the current art at home and abroad
coal prices
vary greatly, domestic products have prices of only 48 yuan / square meters, but also more than 100 yuan / square meters;
" in the market, many manufacturers selling art coatings under the banner of 'Italy', is because Italy's art coatings in the world market is more well-known, not only product quality is stable, but also high level of color and technology, can afford high prices in the market, natural profits are very high, but generally go through high-end market channels. "A dealer who has been fighting in the paint market for more than 10 years told reporters.
Liu Fang said at an art
Coatings Forum
that "at present, China's art coatings market has been slowly cultivated, has a huge market potential", and thus attracted Italian enterprises to China to compete for the art coatings market. At the same time, a large number of domestic paint enterprises have also opened up new categories of art paint, in an attempt to eat this part of the market cake.
brand was born in 1918, the famous Italian paint brand, TASSANI Tasani will soon be introduced to China. According to reports, the brand owns art coatings,
building coatings
and other products, is the designated partner of the Olympic venues, but also in the paint color leader. Sales network throughout Italy, and in 45 countries and regions around the world sales.
" not long ago, when we went to Italy to explore the market, we visited several Italian companies doing art coatings, and finally finalized the cooperation with TASSANI Tasani, that is, the brand has a long history, whether it is product quality, color and technology, representing a high level of art coatings. Liu Fang, head of TASSANI Tasani's China office, said.
not only do companies look at the seductive cake of art paint, but dealers are also keeping an eye on it. "In the first half of this year, sales of ordinary home paint fell sharply, about 35 per cent, and profits were far less than before, and it was difficult to survive. So, in April, I started acting for an art paint brand, and so far, business is very good and very profitable. The dealer from Hangzhou said.
For dealers, or the volume of conventional products go large, although the profit margin is not high, but can be small profits and more sales, and high-end personalized products although the volume of sales is relatively small, but the profit margin is sufficient, such as a dealer in Chongqing agent of Italian art paint, the price is more than 400 yuan / square meters, profit is several times the ordinary paint.
dealers and companies are similar in terms of profit opportunities: how to seize the opportunity of the market, seize the opportunity at the time of the highest profits, or face a stable high-margin industry. "Getting high profits is not just a matter of funding to support store survival and growth for our dealers, it's also about building confidence in our customers." Some dealers say so.
since last year, the development of the domestic paint market has been not optimistic. According to statistics from the National Bureau of Statistics, China's total paint production reached 16.48188 million tons in 2014, an adjusted increase of 7.87 percent year-on-year. In May 2015, the paint industry experienced negative growth, resulting in a national paint industry output of only 6.23 million tons in January-May, an increase of less than 1% YoY.
the domestic paint market has experienced a serious decline, sales and sales growth has been reduced to the lowest point. Subsequently also triggered the paint industry's price war, many manufacturers through a variety of forms of profit has continued to this day, the paint industry how to bid farewell to the price war to the value war is becoming the key to the transformation of the industry.
in the eyes of industry experts, high-end, personalized is undoubtedly the future of coating industrial restructuring of a normal development trend, while health has become a major selling point. Although the current stage of art paint as the representative of high-end consumer goods are still in the cultivation period, but I believe that the future market potential is huge.