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    Home > Coatings News > Paints and Coatings Market > Paint enterprises single force thin "merger and integration" to build momentum.

    Paint enterprises single force thin "merger and integration" to build momentum.

    • Last Update: 2020-09-24
    • Source: Internet
    • Author: User
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    China Coatings Network
    News: Unknowingly, the
    coatings
    industry has ushered in a new round of industry reshuffle, for
    coatings enterprises
    , this not only means the arrival of opportunities and challenges. In this industry situation, mergers and consolidation of enterprises have become the mainstream of the market.
    , however, the final direction of this wave of annexation and shuffling must be the optimization of the industry ecology.
    At present, the concentration of China's paint industry is low, statistics show that the total number of coatings industry enterprises reached more than 70,000, more than 200,000 corporate brands, the scale is relatively loose, the overall benefits are low, as before the reshuffle of the integration of the home appliance industry. Therefore, next, in the process of industry reshuffle transformation, modern enterprise management frequent mergers and reorganization of the business model will be introduced into the paint industry, resource integration has become the major paint enterprises to break through the industry bottleneck of the first task. Paint industry will also go through like the home appliance industry shuffle mergers, acquisitions and integration process, and ultimately left behind is like Gome Suning-based circulation main body, to the United States Haier and Gree as the main body of the oligarch-led pattern.
    -scale mutual work-building cooperation between brand-name enterprises may eventually lead to large-scale merger and acquisition integration outbreak.
    of the chinese paint industry is just beginning. From the current situation analysis, this wave of annexation may first emerge from three types of enterprises:
    first is the urgent need to expand capacity of enterprises. Such enterprises are usually in good shape, the terminal growth rate is very fast, the factory supply of terminals in short supply, so they need to buy and acquire some small factories to come in and quickly increase factory capacity. At present, some large brand factories in the industry are swallowing up some small factories, such as Citic coatings, Jinfuya coatings and so on. This annexation is characterized by small capital, integration is not difficult, the annexation of small factories around large enterprises, production capacity and technology can meet the requirements of large factories, annexation and integration can be immediately added to production capacity production. It's a bit like outsourcing big factories, big factories can network them when they're doing well, when big factories are not doing well, they can kick them out to ease the burden, and big factories can stretch their capacity very flexibly. Of course, this is an unfair market competition for small factories, but they do not have the ability to turn things around.
    category is a single category of products, such as sofas, mattresses and other software coating enterprises. From the end-market point of view, we live in the product integration of enterprises more competitive, so some categories of relatively single enterprises in the existing production capacity of the factory, want to expand the end product line, or like Xi Linmen, Yihua Wood and Huage coatings such mutual foundry cooperation, this is a low capital, relatively small risk integration model;
    The third category is to enter a new sub-sector, such as South China City wants to enter the home industry, it will buy a hundred years of home; Entering a new or unfamiliar segment 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 to enter this segment, with the aim of quickly participating in the cake segmentation of this segment.
    So, in the industry reshuffle tide, the future of these three types of enterprises must first set off a wave of annexation, the market all kinds of stirs and contradictions will also be in this wave of annexation interpretation of a different "waves", may be turbulence, or it may be beautiful ripples.
    , the paint industry is not uncommon, processing plants are abounding, such as processing export enterprises, small factories to help large factories processing and so on. At the end of 2013, Xi Linmen, Yihua Wood and Huayi Coatings three
    coal brand
    began strong joint, to each other as a model of the integration of resources, complementary advantages, the paint industry has really entered the substantive stage of the integration of large-brand construction.
    the end of December 2013, the three major brands of Xilinmen Coatings, Yihua Wood and Huayi Coatings publicly signed a strategic cooperation framework agreement for the first time. The main contents of the tri-party strategic agreement are: the three parties will take mutual trust as the basis for cooperation, improve efficiency and common development as the fundamental goal and interests, give full play to the respective advantages of the three parties, through the integration of resources and complementary advantages to enhance competitiveness, and jointly carry out market development.
    We know that Yihua Wood is a domestic professional production and sales of solid wood paint, solid wood flooring and other wood products, one of the large-scale paint enterprises, in solid wood coatings and flooring exports have obvious advantages;
    Therefore, according to the agreement of the three-way strategic cooperation, Hi-Lin will produce mattresses, hotel coatings for Yihua, Hua-Day, and respectively, under the brand name "Yihua" and "Hua-Day", Yihua will produce solid wood paint, solid wood flooring, solid wood doors and windows and other products and named the other two brands, Hua-Day paint also in the same way to produce children's paint, overall wardrobe and other products. Yihua Wood Deputy General Manager and Secretary of the Board of Directors Liu Weihong admitted that the cooperation is mainly "commissioned to the other two substitute products, and put in our channels for sales", so as to take advantage of the three paint brands to cooperate and complement each other, for Yihua Wood is mainly to complement the soft home and children's paint short board.
    this is a business model of mutual work between brands, mainly the complementarity and integration of superior products between brands. Recent visits to the market have found that many companies are integrating end product lines through this model. In particular, some product categories of single, temporary and lack of expansion strength of enterprises, in order to integrate the terminal everyone live in the market, more and more inclined to find some of the same problems but products can complement the enterprise for resource integration. Qin Zhansi, executive vice president of the Building Materials Circulation Association, believes that "this integration has played a role in the technology and production advantages between the brand factories, channels or in the control of the brands themselves, equivalent to the use of three brands to sell the same product, cooperation is still relatively crude." Such innovation is worth encouraging, but later development and maintenance is also very important, especially in the construction of a unified market to work hard. The best outcome would be for the three to join forces to develop into trust groups, with each sub-sector selling a particular category of products under one brand. Some
    said that in this business model, the concentration of the home industry will be further enhanced, with capital strength of enterprises in the future may be through mergers and reorganization to achieve cooperation.
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