What contributes to the "micro-profit" of coatings?

China Coatings Online News Information: What is
the "micro-profit" of paint companies? Data show that in the past 10 years, although China's total output increased from 2.98 million tons in 2004 to 13.0335 million tons in 2013, the growth rate has dropped from 23.45 percent to 3.58 percent, and the total output value of the coating industry has increased from 539.91 million yuan in 2004 to 34.4 million tons in 2013. 167.76 million yuan, but the growth rate fell from 26.13 percent to 9.51 percent,
China Coatings Onlineexpert
predicted that 2014 production growth will be difficult to return to double-digit times, may be stable compared to 3.58 percent in 2013. The average price of 262,000 yuan/tonne of paint in 2013 was the second highest in the history of the paint industry, only lower than the 2008 financial crisis when the average price of 286,000 yuan/tonne of paint was the second highest in the history of the paint industry, and only lower than the abnormal price of 286,000 yuan/tonne during the 2008 financial crisis. The data show that the coating industry has entered an era of micro-growth. It has to be admitted that although the increase in the price of raw materials for coatings has accelerated the upgrading of competition in the industry, it has promoted the maturity of the coating industry to a certain extent, and the 28 principles of the coating industry have been highlighted in advance.
market share is more and more concentrated in Libang, Dolezal, China Resources, Jiabao and a few other large enterprises, eliminated is the inevitable destination of most small and medium-sized paint enterprises. Between the rise in raw material prices, enterprise financing difficulties, rising labor costs and other factors, seriously affecting the survival of paint enterprises, in the face of the market economy environment in 2012 ruthless and the industry situation of the depressed environment, for the travel between the big brands and miscellaneous brands of paint enterprises living environment is even worse. As we all know, the influence of large brands, high customer loyalty, strong natural profitability, coupled with the accumulation of resources, without losing the opportunity to launch a "big store, open more stores" "sweeping" strong expansion strategy. And miscellaneous paint is small, low cost, on the low price war, so that wandering between the two paint enterprises almost difficult to have greater market space.
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