Foreign-funded paint enterprises to speed up the "invasion of China" footsteps of national enterprises when self-improvement

China Coatings Network
News: Through the development of recent decades, China has become the world's largest
coatings
producers and consumers, China as the global paint market in the largest demand region, foreign
coatings enterprises
will never let this favorable opportunity. At the same time of the rapid development of China's paint industry, attracted a large number of foreign paint enterprises like Libang, PPG, AkzoNobel, BASF, foreign paint enterprises are not short of funds, two are not short of management, three are not short of technology, the only lack of sales channels and networks. Generally speaking, foreign paint enterprises enter the Chinese market in two ways, one is to invest in China to build factories, and through this way it takes a long time, a lot of human and financial resources. And after the establishment of the factory also need to expand their own market, generally for the first foreign paint enterprises will not choose this approach; The other is through the acquisition of national paint enterprises, which is the best way for foreign paint enterprises, first of all, local paint enterprises themselves have a certain sales channels and networks, and relative to the plant to pay less time and financial resources. So in recent years, we have to a lot of domestic paint enterprises by foreign paint enterprises to buy or joint venture plant. The large-scale layout of foreign-funded paint enterprises in the domestic market has caused a great impact on the development of private-funded paint enterprises, let us discuss the impact of large-scale invasion of foreign-funded coating enterprises on the domestic paint industry and how domestic paint enterprises self-improvement.
:
1, Weissberg acquired China Resources Coatings
In 2006, Wesberg acquired Guangdong China Resources Coatings for $290 million. After the acquisition, Wales took an 80 per cent stake and China Resources took control of 20 per cent. Subsequently, Withersberg used the China Resources platform to accelerate its entry into the Chinese market, and through a huge channel to compete with the two giants of the local Libon Doles. China Resources, by taking advantage of Wiesberger's advanced management and technology, referred to the overall level of operation, to the international level of coatings enterprises.
2, Libang 245 million yuan to shoot a 57% stake in Xiuper Chemical
In December 2013, Libang acquired 27% of the state-owned shares of Guangzhou Xiuper Chemical Co., Ltd. and 299,245 percent of its employees' shares were finally offered at 245 million yuan.
3, Libang Paint acquisition of the famous
wood paint
brand Olong Paint
In January 2014, Libang China announced that it will acquire the OPEL brand and the product technology and channels covered by the OPEL brand of DGLCAMEL on January 15, 2014 in the form of an "asset acquisition". After the acquisition, Libang China will take over the operation of the Euro paint brand in the market.
4, PPG's expansion in China
in addition to recent news that PPG will also accelerate the layout in China, PPG Industrial President and Chief Operating Officer Michael H. McGarry said: "PPG is optimistic about the development of the Chinese market, we spent a lot of time in China, is hoping that China through its own development back to PPG's position in the world's second largest market." PPG's path to capture the Chinese market is two ways, one is natural growth, and in China PPG continues to invest: the resin plant in Zhangjiagang and the tianjin plant are still being expanded. There is also no interrupted investment and development in the Asia-Pacific headquarters in Shanghai and east China. But it is clear that the cycle required for this approach will be too long for PPG. The second is mergers and restructurings, a strategy PPG is good at. In McGarry's words: "We're going to see more acquisition opportunities." Prior to this, there were rumors that PPG's next acquisition in China is likely to be the
building coatings
field of the largest volume and wood paint inside the UV the most characteristic of the two southern paint companies. Although this rumor has not been officially recognized, but from the current PPG China head of the words, it is not difficult to see that this rumor in the near future may become a reality.
a impact on the paint industry
from the scale of enterprises, the current development time of domestic paint enterprises are basically about ten years, its production scale is mostly in the thousands of tons or so, small and medium-sized paint enterprises in the majority. When foreign paint enterprises in the layout of the Chinese market, domestic paint enterprises are using "people-sea tactics" to seize the market, while ignoring the corporate culture and the construction of core competition. This caused when foreign paint enterprises to seize the domestic market, national paint enterprises simply do not have the ability to compete with it, will make a large number of paint enterprises in this smoke-free war to perish.
from a technical point of view, production technology has always been the bottleneck of domestic paint enterprise development. Domestic paint enterprises in the technical research is extremely weak, and imitation ability is unmassable, large-scale imitation caused by the homogenization of domestic paint products. Almost all coating products are the same, without any innovation. Compared with domestic paint enterprises, foreign paint enterprises in technology research and development investment is greater, foreign paint enterprises pay attention to technology research and development and new product research and development, and many foreign paint enterprises refer to the standard higher than the domestic standards, its product performance is better than domestic paint products. In the long run, with the continuous merger and reorganization of foreign-funded coating enterprises in China, there will be a serious monopoly of coating technology, and the technology monopoly of paint products will seriously affect the development of major industries in China, especially the aerospace and military industries.
national paint enterprises when self-improvement
large-scale penetration of foreign-funded paint enterprises will seriously affect the development of the domestic paint industry, but also related to the survival of major paint enterprises. So as a national paint enterprise, how should the Jedi fight back? China Paint Procurement Network believes that should be carried out from the following two aspects:
First, improve industrial concentration, in China's rapid economic development under the environment, China has thousands of paint enterprises, and these coatings are an annual output of several thousand tons or hundreds of tons of small and medium-sized enterprises, the real annual output of more than 10,000 tons of large-scale paint enterprises, paint industry concentration is too low, it is easy to be broken by foreign paint enterprises. Therefore, what domestic paint enterprises need to do now is to speed up the integration of resources between national paint enterprises, play the advantages of major paint enterprises, the establishment of several large-scale coating enterprises with strong comprehensive strength, to counter the penetration of foreign paint enterprises, as long as the concentration of the domestic paint industry can reach more than 70%, the development of foreign paint enterprises in the domestic market will be subject to a certain degree of contained, but also to the development of national
paint brand
.
Second, increase technology and new product research and development efforts, technology is the core competitiveness of coating enterprise development, however, in the current paint industry, domestic paint enterprises in product research and development enthusiasm is not very high, on the one hand, because new product research and development needs to invest a lot of financial and human resources, the second is because the domestic paint enterprises are too strong imitation ability, paint enterprises spend a lot of manpower and money and research and development of a new product, and within a few months after the market, there will be a relative style of products at a higher price, so there is no advantage. Therefore, in the future development process, domestic paint enterprises should strengthen new product research and development, large-scale coating enterprises and small and medium-sized paint enterprises in new products and new technologies to distance, but also to catch up with foreign paint enterprises, so as to ensure that in the future development process is not eaten by others.
penetration of foreign-funded paint enterprises will not only bring fatal impact on the development of domestic paint enterprises, but also seriously threaten the development of domestic aerospace and military industry. Therefore, in the domestic paint market has not been completely occupied by foreign paint enterprises, national paint enterprises need to wake up, through the "Belt and Road" and the Asian Investment Bank and other preferential policies to grow rapidly, the establishment of national paint development camp, to curb the expansion plans of foreign paint enterprises in China, the development of our own national paint brand.