Shandong paint sales fell 10% year-on-year in the first eight months of this year

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In the first eight months of this year, sales of
paints
in Shandong fell 10% compared with a year earlier, and some companies fell by as much as 40%. Shandong is a major paint production province, not only has The Paint Industry, Qilu Enterprise and Pentium shares of the three major paint production enterprises, but also the United Technologies, Yili Paint Industry, Lunandi high nearly 10 small paint production enterprises, more unknown Shandong Liangshan many small paint workshops, relying on Liangshan trailer production base, become a small well-famous car trailer paint production base. But this year's shandong paint sales status quo, so that the industry can not help but predict that the end of the year may be some enterprises paint sales decline even greater, and even the risk of encountering waist cuts. Environmental bottlenecks increasingly highlight that the biggest hard injury to paint is environmental pollution. Dai Maozhen, chairman of United Technologies, said that due to the use of petroleum resin, solvent oil, pigments, fillers mixed production of oily
coating
, in the brush construction must be added benzene dilution to achieve the brushing conditions, construction is easy to harmful ingredients VOC or benzene solvents directly into the air, resulting in air pollution. Huang Yue, manager of The New Materials Shandong Region, told reporters that the sales areas of Shandong's three
painting enterprises
cover more than 20 provinces, cities and regions across the country, with sales totaling 2 billion yuan at peak times. But whether it is a large paint enterprises in Shandong or small paint workshops, in the strict environmental protection situation, sales are shrinking year by year. Under the new environmental policy, the paint market is slowly shrinking. From February 1, 2015, a 4% consumption tax will be levied on coatings nationwide, making it another pusher for the transformation of oily
coatings companies
into the
water-based coatings
field. Industry insiders believe that under the government-led, media publicity, self-discipline of enterprises under the three-party siege, paint use will be reduced day by day. In a few years, oily coatings will be replaced by water-based coatings and gradually disappeared. Market demand green and yellow do not pick up Huang Yue told reporters that the real estate depression led to the decline in home wear, so that the number of large households using paint fell, in the real estate depression closed not only in the market a single paint sales shop, but also did not have time to transform the paint enterprises. At present, many paint enterprises are still in the surplus of serious low-end products on the article, there is no high value-added products, the market is facing green and yellow, with the change of market environment, its sales are decreasing. Huang Yue believes that even if such enterprises now have a certain market share, over time, sales will continue to decline, or even a sharp decline. Dai Maozhen analysis, paint enterprise market development business managers are trying their best to let the paint enterprises use their own brand, a new paint project on the horse, dozens of paint companies competed to bid, but the final winner is only one. "The misposition led to a sharp drop in sales, which was a domino effect of the industry's downturn, leaving upstream and downstream related paint companies in a zero-use state, leading to a sharp decline in paint sales." Shandong, a large-scale paint business manager, the enterprise at the beginning of the year set a target for the construction tower machine paint sales growth of 30% this year, but ignored the real estate downturn brought about by the chain reaction, resulting in the associated tower machine enterprises have stopped production, so that the company's sales in the first half of this year fell by as much as 30%. Pentium paint business manager Song in Liang lamented, "the river has no water small river dry, the original some large amount of paint enterprises in one after another to reduce, with a small amount of paint enterprises simply fell, this year's paint market is too bad." Merchant manufacturers do not cooperate well" dealers are another factor in the market decline. Huang Yue said, a class of dealers gradually aging, the level of education is not high, there is a small rich that is the concept of security, in the sale of a certain scale, accumulated a certain amount of wealth, will not be like the original to develop the market. Keeping the original paint market share from developing new market customers is undoubtedly not the risk of developing new customers. Another category of dealers in order to increase sales, get the enterprise to give the end of the year 3% rebate, will be low-cost dumping of their own distribution of
paint brand
products, sales will be a large number of hoarding, some dealers hoarding brands can be bought next April, this will be passed to paint enterprises a market sales firestorm, the final result is misleading paint enterprises on the market sales judgment. But dealers also complain. Botou dealer Wu manager told reporters that he signed a paint sales contract with manufacturers in 2015 than in 2014 increased by 20%, if this year to achieve sales targets, enterprises next year will ask for an increase of 20%, year after year unbridled growth trend, so that dealers bear a heavy burden. "Factory bullies in the market is a famous saying, especially very strong brands, foreign-funded enterprises and some large-scale production enterprises in the south are quite harsh on dealers, as long as you have a little do not follow the wishes of manufacturers to cooperate, manufacturers will not hesitate to cut you off." Qingxian, a paint store Manager Zhang said, easily cut off a dealer is actually one of the reasons for the decline in business market sales, paint brands, dealers do not sell this brand, will go to sell another brand, dealers familiar with the local paint market customers, in the enterprise has not found a suitable dealer, dealers distribution of other brands have been widely spread out.
market is constantly changing, enterprises should also continue to grow. In the face of overcapacity, oversupply, the overall growth rate of the industry slows down, market competition tends to heat up the new normal, paint enterprise brand survival is more obvious. Industry experts believe that paint companies should speed up the transition to environmentally friendly products, while according to the new normal of the market carefully formulate sales strategy, in order to curb the decline in sales, and ultimately avoid being eliminated.