It's time for the water paint industry to declare war on foreign brands

China Paint Online News Information:
huawei declared war, it is time for national paint in the field of water paint to declare war on foreign brands! In recent years, China's paint industry is quietly taking place a huge change, this change is capital activity and water paint and other environmentally friendly products are becoming the focus of industry development. As of July 2016, more than 100 private/state-owned coatings companies were listed in the capital market, and green growth was a central concern for the entire coatings industry, with water paint becoming one of the key points for all paint companies to find new growth in the market. But at the same time, in the process of adapting to the new normal of domestic private paint enterprises, foreign paint not only hit the market to seize market share, the momentum is quite strong. According to
China Paint Onlineexperts
introduced, Libang, AkzoNobel (Doles), Xuanwei - Weisberg (China Resources) three brands are still pressed on the domestic local paint brand head of the "three mountains", these three foreign giants accounted for about 7.5% of China's paint market share, to Jiabao, Zhangchen, Chenyang water, three trees, Bads and other domestic national paint enterprises. National paint brand to the most dangerous moment: the relevant data show that by the end of 2014, China has become the world's largest foreign investment attraction. The way Western enterprises invest in China has also been transformed from "product export" to "brand export", and this "export" has become an important strategy for foreign investors to occupy the Chinese market.
What's more, in May 2016, foreign giant Doles China, in the form of oral notice, asked stores, direct stores to sell some products (allegedly involving "many products") with zero profits, or even operating at a loss, in order to further crack down on the domestic market share of small and medium-sized paint brands, take the "price butcher" road, so that other small and medium-sized domestic paint brands have no way to go. The competition of China's paint market has entered the stage of international brand and national brand competition. In addition to Libang, Dolezal, Xuanwei - Weisper (China Resources), there are PPG, Fenlin, Crocodile, Dufang, Kansai, Jotun, Haihong old man, Astor and other foreign paint enterprises have begun to attack the Chinese market, increase efforts in mainland China mergers, acquisitions of Chinese private paint enterprises, such as Libang acquisition Xiuper, Olong, Xuanwei to take over China Resources, etc. In addition, at this stage of China's national paint leading brand Jiabao and wood door paint leadership brand Huilong have been asked by foreign enterprises, the future if these high-quality national brands are acquired by foreign enterprises, waiting for China's national paint brand will inevitably be the end of the disaster, I am afraid that The end of China Resources, after the acquisition of Weisberg, China Resources brand was tied to the high court, and the Weisberg brand is using China Resources original channels to do its best.
can we resist the pressure of foreign brands? Listing to obtain sufficient funds to improve the industrial chain layout of private paint enterprises and product expansion has become the best choice. Three trees, Mattel and Carberry and other enterprises in many years ago shouted out the target of 10 billion sales, but compared with Libang, Dolezal, Xuanwei - Weisberg - China Resources and other three giants, if the old system into the funds, can only solve the problem of shortage of funds in the short term, can not fundamentally get rid of brand renewal and access to market growth opportunities. Therefore, the opportunity to get rid of the danger can only be to open up new categories, and "three mountains" to do a bayonet to see bayonets of the new category of war, and water paint this recent rise of the new category has served as a pig on the wind, and water paint front-line soldiers can only be national brands. Why water paint can only be led by national brands: In the past 10 years, although China's total paint production increased from 2.98 million tons in 2004 to 17.11 million tons in 2015, the growth rate has dropped from 23.45 percent to 3.8 percent. In contrast, China's share of the water-based coatings market is increasing year by year, and the growth rate has accelerated significantly, it is understood that china's water-based coatings market size in 2011 was about 35.31 billion yuan, in 2012 about 38.31 billion yuan, in 2013 about 41.98 billion yuan, in 2014 about 46.48 billion yuan, about 55 billion yuan in 2015.
the outbreak of water paint has policy guidance, national promotion and media opinion-led atmosphere, but more because of the gradual maturity of water-based paint technology, and the maturity of this technology and foreign-funded enterprises have nothing to do. Representing the highest level of China's water-based wood paint technology, "China International Water-based wood coating development seminar" has been the 10th, but every year there are technical personnel to express the same view, the lack of core technology and the monopoly of major raw materials by foreign brands is the biggest reason for the promotion of water-based wood paint. But this also gives some of China's focused raw materials manufacturers more opportunities to develop their core technology, such as Foshan Monkey St. Chemical Co., Ltd., the largest domestic wood furniture coatings industry transparent powder, glass powder suppliers, accounting for more than 50% of the domestic market share. Since 2014, the research and development of water-based resin field, in 2015 monkey holy chemical water-based resin production of about 1500 tons, according to the monkey holy chemical plan, can maintain 100% annual growth rate. By 2019, the total annual production of Monkey Sacred Chemical will reach 32,000 tons, which is the best counter-attack by Chinese national enterprises under the blockaded conditions. There is an old saying in China: thirty years east of the river, forty years west of the river. Apple, Samsung, Nokia, Sony, Motorola and other foreign brands that once occupied an important place in consumer life in China are going down the altar, although there are often some "golden men and women" on the Network to show off how much respect for foreign brands, but the netizens are almost one-way sarcasm.
from the development trend, foreign brands are unlikely to return to the past "prestige." In today's global integration, especially in the network era, developing countries are also "the center of the world", in the media power of the spotlight, foreign brands under the bright appearance of the dark side can not hide: Libang's "channel false door", Doles", The "price door", Gucci's "abuse door", Siemens' "fridge door", Wal-Mart's "pig's head door", HP's "fraud door", KFC's "Fuxi incident" and so on, in various forms, different. Inspiculation is that almost all foreign brands in the face of doubt, criticism, attitude is the same tough, I do my best. Scandal-plagued, troubled, this is the new image of foreign brands. Times are changing, everything is changing, without the support of Chinese consumers, the globalization of foreign brands is incomplete or even failure. Now we can see that the mystery of foreign brands is gradually lifted, dazzling aura is slowly fading, with the improvement of Chinese consumers' rational consumption awareness, with the improvement of the international competitiveness of Chinese enterprises, especially the acceleration of China's legal process, foreign brands in China has been far less relaxed than before. From 2005 the state regulations, no longer approve new solvent-based coatings production enterprises.
So the government's guidance on water-based paint and other environmentally friendly products is to become a major trend, in the whole oil-to-water situation, this is a once-in-a-lifetime opportunity for national enterprises, especially in the field of water-based paint, national brands have the opportunity to catch up with foreign brands. Master well, can reverse the strong position of foreign investment, grasp bad not only let foreign capital continue to ride on the head peeing, national brand status will be even lower. The battle of water paint is not only related to the development environment of enterprises themselves, but also the future of a country's industry, which must be led only by national brands. Large enterprises should bear a big responsibility, the original foreign mergers and acquisitions is not a "smell change" thing, there have been "beautiful girls marry first" foreign brands, Chinese national brands also expect to be able to obtain funds, technology and experience from mergers and acquisitions, but often find it is only wishful thinking. After the acquisition, China Resources not only experienced a sharp decline in annual sales and market share growth, but also a near-sharp decline in channel loyalty. This has become an important reason why we have always been worried about foreign mergers and acquisitions. Huilong Coatings' rejection of Libang's takeover plans last year may have been a cause for concern. Is the so-called lip-dead tooth cold, China's national paint brand, in the lion firmly eyed on our sheep's background, beyond the "national complex", should have a more sober understanding of the future development, so that China's national paint brand "dancing with the lion", become passive for the initiative?
As early as 2013, in the face of Libang, AkzoNobel, Weissberg's aggressive, including Jiabao, Mei Tushi, Bades, Zhangchen, three trees, Huilong, Changrunfa, Dabao, Ye's chemical, Gentleman's Lan, Hongchang Chemical, Chinese paint and other coatings enterprises frequently gathered to jointly discuss coping strategies, until 2015, "conspiracy" has reached 5 rare. In 2016, China's private paint enterprises have a better start, three trees become the first domestic A-share listed private paint enterprises; Carrie announced that through restructuring to return to the fast track of development, the first quarter results growth of 9%; China's water paint leader Chenyang water paint terminal channel area continues to expand rapidly ... In 2015, when the economy was down, demand for water paint continued to grow rapidly and acceptance of the market increased. Here, we may wish to make a bold hypothesis: if Jiabaoli, Bades, Chenyang water paint, Mei Tus, Zhangchen, three trees, Bauhinia flowers, Chinese paint, Dabao, Gentleman Orchid and other national paint giants to form a group of over 10 billion paint alliance with water paint to foreign enterprises, can win a battle? Water paint can take on more sharing responsibilities. In many national brands, although chenyang water paint at this stage is not the largest volume, but it is the only 18 years has been focused on water paint research and development, production, promotion of enterprises, and Chenyang water paint is the first to do "water paint" popular science promotion enterprises, in the "oil to water" development opportunities have any domestic water paint enterprises can not match the advantages.
In the field of furniture and wood coatings in China, Jiabao, Zhanchen, Junzilan, Bards, Mei Tushi, three trees, Huilong, Changrunfa, Chibasong, Baichuan, Owen, Chenyang water paint, Hualong, Thousand Colors, As well as Taiwan-funded enterprises Dabao, Hong Kong-funded enterprises Chinese paint, Bauhinia and other local paint enterprises as the absolute main force, firmly control more than 90% of the domestic furniture paint market share, in the "oil-to-water" industry transformation and upgrading tide, must be determined by the national paint itself. Market competition follows the laws of physics in natural science, and the party with the greatest comprehensive force or total strength will surely defeat the party with the smallest power. Environmental governance, the government is serious, enterprises to follow the trend, which is also the social responsibility of chemical enterprises. Learn Huawei, Gree through their own efforts to counter foreign investment, to reverse the status of national paint enterprises. It is sad that many national brands have declined or disappeared as a result of joint ventures with or acquisitions by foreign companies, but it does not help to give too much political significance and national sentiment to this matter. Even if it's a collaboration between a national brand and a foreign brand, it's a competition ("Co-Opetition") that can't be "full of love". At this stage, the national brand has encountered the fiercest battle, only to win this battle, can really be strong. Therefore, large enterprises should bear a big responsibility to join forces with foreign enterprises to cut their wrists. Huawei declared war on Apple and Samsung, and national paint brands should declare war on foreign brands. Of course, this declaration of war is about feelings, but it is more about the future of an industry!
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