Paint industry winter fade away warm spring will come?

China Paint Network
News: Last year,
coatings
industry "chilling war" broke out completely, the entire industry into the cold winter, business failure, boss running, executive departure, such as the paint industry, the market temperature plummeted, for a while, the industry panic. And in 2015, the paint industry slightly "warmed up", the paint industry is expected to usher in the spring ...
. In fact, the cause of the paint industry market downturn, from the economic and industry status quo, the author believes that the following are mainly the following points:
First, the overall Chinese economy down: the slowdown in economic growth, to a certain extent, caused by the slowdown in overall consumer income growth, coupled with China's high-end consumption decline, leading to the decline in overall social consumption power.
Second, upstream real estate industry depression: China's real estate industry in previous years has been a rapid development, the overall drive of the development of nearly 50 industries downstream of real estate, but also brought China's rapid economic growth, and in 2014, with the decline in economic growth, high housing prices slowed the release of demand, but also compressed the owner's budget for the overall home improvement;
Third, the stock market capital market is active: from July 2014 on, the indulgenze of the stock market began to explode, to June this year alone, the Shanghai Composite Index from about 2000 points all the way up to the highest 5100 points, a 250% jump, the total daily trading volume from the level of 80 billion, the highest to about 1 trillion yuan of total transactions. A large amount of social funds into the stock market, resulting in money to the consumption of liquidity reduced, so that a large number of demand was curbed or delayed;
Fourth, the disorderly expansion of stores everywhere: from 2010 onwards, home stores in major cities showed explosive expansion, the size of home stores in many cities has more than tripled in five years;
Fifth, the division of innovative channels: soft-packing, the rapid growth of the assembly industry brought about by the integration of home solutions and the rapid development of e-commerce, but also eating away at the paint industry this cup this year is not too much;
This year's environment, so that part of the positioning is not clear, management is not strong, weak channels and cash flow is not abundant
paint enterprises
struggling, or even collapsed; In fact, in all walks of life in the development of the law is the same, only the tide fades, just know who swims naked;
there still spring in the paint industry? The answer is yes! The author believes that the future of China's paint industry is beautiful, first of all, in China's urbanization process brought about by the just needs. China's overall real development was carried out in 1998, during which a large number of farmers entered the city, while creating the era of China's commercial housing, in 1998 the per capita housing area of 9.3, urban residents of about 230 million; Between, 500 million people will enter the city from rural areas, so the past 17 years for the real estate industry and the downstream home building materials industry, according to projections, in the next 2020, China's urbanization rate will reach 60%, which means that China will add about 170 million urban population, so in the future, just need to have.
second is a surge in demand for improvement: the average Chinese household's reload cycle of 8-15 years also means a wave of improvement demand is coming! And according to the upward consumption trend, once improved, it means better than before, especially the consumer durable goods industry, like changing cars, once determined to change, certainly better than before, otherwise would rather live together. In 2003, China's paint market size of about 150 billion, if this group of people began to change paint, the demand for improvement is at least more than 250 billion; We see in recent years to improve demand consumption-oriented red star Mei Kailong, actually home and other large-scale stores: solid wood, Europe and the United States, classical coatings and other high-grade coatings rise, but also to comply with the trend of the product;
third is the increase in spending power brought about by China's economic growth: China's economy is still growing at around 7%, an alarming rate compared with about 1% growth in developed countries in Europe and the United States. China's middle class is projected to triple in the next 15-20 years, representing the country's most promising consumer groups in the future. In developed countries, the average annual consumption of paint is about 300 euros per person, while in China, currently less than 50 euros, from the total amount of future consumption and consumption trends, this demand growth space is obviously very large;
The consumption power of the just-needed group and the consumption power of the improved demand are very different, if the past paint consumption presents the pyramid-type consumption structure, and the future must present dumbbell-shaped sales structure, straightening out a little, just need to be basic needs, strengthen practicality, strengthen cost-effective;
Because of the gradual disappearance of demographic dividends, rising costs such as resources, labor and other costs, so that China's paint exports gradually difficult, a large number of foreign orders began to low resource prices, low labor costs of the country or region transfer;
At the same time, many domestic-oriented enterprises are currently focusing on investment, and less investment in terminals and brands; 5 years old, the purchase participation of the highest mainstream consumer groups, the importance of the brand will be higher and higher, and brand presentation in addition to visibility, more is the physical experience and reputation;
This is the enterprise marketing core strategy of the rear shift, and gradually the focus of enterprise marketing from the investment shop, bit to the terminal profitability, bit to the consumer's visibility and reputation on the;
That is to attach importance to the Internet, this is not to let everyone to open an online shop, but the use of the Internet for brand promotion and dissemination, thereby conducive to brand promotion;
The fourth is to strengthen the cooperation and expansion of emerging channels, in recent years, the whole and soft-pack industry has developed rapidly, including the construction of hardcout housing, which is precisely the improvement of the demand group in the future for a better home life pursuit of a way to achieve, integrated hard and soft-pack program;
The fifth is to strengthen research and development capabilities, to upstream style trends to determine the direction of new product research and development will never go wrong, China's paint industry has been growing in imitation, and differentiated products are nothing but to avoid disorderly competition, mature industries are to research and development and marketing as the two core, the future of the paint industry will naturally not be exceptional;
Winter is coming, we must add more clothes, only to accept the status quo, immediately change can survive and develop;