echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Coatings News > Paints and Coatings Market > The way of the development of coating enterprises to technological innovation to benefit

    The way of the development of coating enterprises to technological innovation to benefit

    • Last Update: 2021-01-23
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    China Paint Network
    News: "Standing on the wind, pigs can fly up" era, many
    ponsoars enterprises
    rely on opportunities, opportunities to obtain rich capital accumulation. After
    "
    decade" of the "Golden Decade" of the coatings industry, the days when coatings were booming are gone. Paint companies are about to wave goodbye to the "golden age".
    the past 10 years, although China's total coating production increased from 2.98 million tons in 2004 to 1.3035 million tons in 2013, the growth rate has dropped from 23.45 percent to 3.58 percent. The total output value of the coating industry increased from 239.911 million yuan in 2004 to 34.1677.6 million yuan in 2013, but the growth rate increased from 26.13 percent to 9.15 percent. Expert analysis, the 2014 paint industry growth rate is difficult to return to the double-digit era, and in 2014 the paint industry's difficulties and contradictions will continue to exist, down-line pressure will continue to increase. At the same time, in contrast, many paint companies are increasing their annual output, but profits are falling. In 2013, China's paint industry realized a profit of 24.411 billion yuan, while the profit margin was only 7%. Professionals pointed out: the industry's recognized profit safety line should be more than 10%, the current corporate profit margin is mostly between 5% and 9%, has reached a dangerous warning line.
    analysis of the following reasons: First, macroeconomic adjustment led to the automobile, shipbuilding and other industrial manufacturing industry depression, and then affect the paint market; Second, the downturn in the real estate market depressed the consumption of paint demand; Once again in the environmental standards continue to improve at the time, the traditional paint market has been snubbed; Third, the increasingly fierce competition in the paint market leads to shrinking profits; Finally, the cost of employment of enterprises is constantly increasing. Together, these factors have contributed to slower growth in the paint market and lower corporate profits.
    face a variety of pressures and adverse factors, many paint companies do not reflect on the price war is still carried out without cost. It can be said that many ethnic enterprises still rely heavily on the cost advantage brought about by the demographic dividend. Is the current and even the future consumer market still able to pry through simple low prices?
    With the improvement of consumer consumption level, under the influence of market oversupply and the survival of the fittest among brands, the impact of brand effect will be greater and greater in the future consumption, with low prices as the selling point of small brands in the market is simply difficult to find room for survival. On the other hand, with the saturation of the market and increased competition, the paint market, especially the middle and low-end paint market, has shown a "micro-profit" trend. Therefore, in the traditional low-end paint market, the competition between enterprises will also transition from price competition to brand competition. In this competitive environment, the lack of technical support and brand effect of small and medium-sized brands are difficult to compete with the market strong brands.
    professionals said: "The paint industry is slowly maturing, corporate profits are also tending to be reasonable, brand competition has become the future point of competition, from the process of quantity change to qualitative change, will certainly accompany the pain of the industry and even the adjustment of industrial structure." "And enterprises want to occupy the initiative in the industrial adjustment, through technological innovation to effectively improve product quality, increase product added value, establish their own brand, build brand culture connotation, only in this way in the increasingly fierce market competition in an invincible position."
    with the development of China's economy, the potential of coatings released in railway, marine, aviation and other fields is increasing, and new urbanization, shantytown transformation, etc., put forward higher requirements for product performance, especially environmental protection performance. These, all require enterprises to carry out product replacement, to the technology to benefit. But that's still not enough. China's paint enterprises must get rid of the traditional development thinking, dilute the price advantage brought about by the demographic dividend, find their own position from technological innovation, adapt to market trends, rely on the first productivity of science and technology, increase scientific research investment, build a platform for production, research and development, and promote the rapid development of enterprises.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.