The development path of the chemical industry is "muddy", and coating enterprises need to move forward with caution.

China Paint Network
News: At present, the domestic chemical market is extremely depressed, business operations into the valley, seven out of ten in the loss, operating efficiency is inefficient. The reason, of course, there are internal and external market demand and other factors, but the root cause is that the industry has been "sick body entangled", and the cause is precisely the deviation of business philosophy, market rules misreading and marketing model old. In a word, there are three big "traps" in the market that are getting companies deeper and deeper.
of these traps, market blindness and price submission. In the view of many enterprises, the market economy is subject to the economy, what the market requirements, enterprises do; At first glance, this perception seems to be very much in line with the laws of the market and is typical of respect for the market.
, in fact, this perception is absolutely biased on closer look. It is true that, as a commodity producer, whether a business is strong or not, it cannot ultimately go against the market. However, economics also tells us that the price of a product is determined by two factors: first, the innate value of the product, that is, the cost of manufacturing, and second, the relationship between supply and demand. In the current context of severe oversupply, it is often the latter that determines the price of products. Obviously, if the industry wants to change the inefficient operation situation, it must improve the relationship between supply and demand, the implementation of total control; Visible, enterprises not only understand the market pricing, but also familiar with the relationship between supply and demand, otherwise it is a leaf barrier not to see Mount Tai, self-trap without notice, doomed to suffer.
trap, worship economies of scale and despise marginal effects. Many enterprises believe that only by achieving a large scale of production can we reduce unit costs and gain market competitive advantage by virtue of economies of scale. Therefore, in the past ten years we have seen a roaring tide of energy expansion, enterprises in order to obtain the so-called leading position and you catch up with me. Therefore, under the guidance of this business philosophy, out of the actual oversupply impact on the market, the only result of competition is price out of value, so that enterprises into the mire of loss.
now, many enterprises want to install a higher load, can share more fixed costs. This is not a problem if analysed from the perspective of management accounting. The variable costs that constitute the manufacturing cost of the product, in addition to the original auxiliary materials, hydropower and steam, are not related to the output; "Under the condition that the total fixed cost remains the same, the higher the output, the less the fixed cost is allocated to the unit product." Enterprises try their best to increase the load rate in order to dilute fixed costs, but ignore the price loss caused by the price of surplus products competing to price. Perhaps the latter is more of a loss than the former.
trap, production and marketing upside down with "blood pumping" to protect the market. Now, most companies produce and sell upside down, but gritted their teeth, and if asked, it is more than a one-off answer, in order to maintain user relations and retain market share. In the eyes of these enterprises, it is very difficult to win users, it is very easy to lose customers, make some sacrifices today, in order to have business tomorrow. Therefore, in order to ensure a certain market share and do not lose customers, grievances become the norm.
is true, respect for customers and good, maintenance of business relations is also necessary, but the problem is that if the enterprise in the market for a long time such operations, I am afraid there is less ferocity. Just like a very strong man, if he draws blood every day, I am afraid that sooner or later he will be drawn out of blood and die.