How will small and medium-sized paint companies break the situation in 2016?

Mergers and reorganizations hold group for warmth

The total output of coatings in 2015 was 17.
18 million tons, a year-on-year increase of 4.
2%.
This figure with a growth rate of only one digit indicates that the coating industry has entered a slowdown stage after years of rapid development.
At the same time, after decades of development, the coating industry has overcapacity, poor products and serious homogeneity.
In this regard, the state hopes to clean up zombie enterprises through "supply-side reforms", liberate productivity, enhance competitiveness and promote economic development.

In this context, small and medium-sized paint companies seeking a way out through transformation and upgrading can be a way of "self-help".
However, in real life, due to the influence of many factors such as its own resources, internal structure, business ability, personal thinking, external environment, etc.
, either the transformation and upgrading cannot be carried out, or the effect of transformation and upgrading is not significant, resulting in the development of small and medium-sized paint companies is still not ideal.

So, what can small and medium-sized paint companies do if they want to develop against the trend when they are faced with many bottlenecks in technology and demand space? Perhaps, "mergers and reorganizations, group together for warmth" is also one of the feasible methods.

Although there is a competitive relationship among small and medium-sized paint companies, focusing on larger and longer-term development and the entire paint market, "mergers and reorganizations" may be able to achieve win-win results.
After mergers and reorganizations, small and medium-sized paint companies integrate and utilize existing resources, seize opportunities, join forces, and strive to find partners who have complementary advantages with themselves and realize their own sustainable development.

Of course, for "mergers and reorganizations", there is another saying in the industry: holding a group for warmth is not suitable for any enterprise.
A group of mobs is still a mob.
Indeed, in the current market environment is not very optimistic, many small and medium-sized paint companies are busy practicing their internal skills, mergers and reorganizations are dangerous for them.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http:// )