Expansion or tillage? Paint enterprises may wish to do a self-examination first.

China Coatings Network
: With the increasingly fierce market competition,
coating
are almost thinking about the future development of the way out. In terms of products, whether to take the "expansion" route or "hard work" route has become the
coating
enterprises urgently need to solve the problem. However, in the eyes of the industry, enterprises before making a choice to do their own "medical examination" is the key.
with the industry's survival of the fittest intensified, the development of paint enterprises once again into the market competition war. As capital operations continue to accelerate, the phenomenon of mergers and acquisitions in the coatings industry occurs from time to time. For paint enterprises, into a new or unfamiliar sub-sector, it takes a long time to start from the beginning, but if the financial strength is sufficient, many manufacturers are willing to choose the merger model into this sub-sector, the purpose is to quickly participate in this sub-sector of cake segmentation.
the time, from the end market, we live in product integration enterprises are more competitive, so some categories of relatively single paint enterprises in the existing capacity of the factory, want to expand the end product line. Industry insiders pointed out that such enterprises are either like Xi Linmen, Yihua Wood and Hua-Japanese home such mutual work-giving cooperation, this is a low-cost capital, relatively small risk integration model;
Whether it is to take the road of hard work or the road of expansion, for coating enterprises, the appropriate merger and reorganization can help enterprises in the fierce competition in the market to obtain further development, but on the other hand, in the market competition environment is particularly complex at present, mergers also have certain risks. Although mergers have become an irreversible trend under the survival of the industry, companies need to maintain a rational attitude before they can get involved. More importantly, paint enterprises should always do for their own "medical examination", carefully examine the development of enterprises, and actively make strategic adjustments, only in this way, in order to achieve real development.