Coating companies still have a lot of room for development in 2011

Faced with the new market economic environment, 2011 was a difficult and challenging year. More and more companies have already felt the pressure from the internal and external environment. Many companies choose to accelerate the pace of expansion or actively , third-tier cities, or extension of product lines to increase market sales. Despite the increasingly fierce competition in the paint market, the paint companies still indicated that there is still room for development and there is pressure to be more motivated.

The national economy is growing steadily. The domestic situation is likely to grow at a rate of 9%. The price of energy may rise. JP Morgan issued the 2011 China Economic Forecast Report. JP Morgan pointed out that the Chinese economy will show a steady growth momentum throughout 2011. In particular, the acceleration of global economic growth will accelerate and will support China's export industry. At the same time, supported by the improvement of the labor market and the appropriate increase in wages, domestic consumption may maintain a steady upward trend.

Accelerated government investment Although investment in real estate and related industries may begin to cool down, government investment growth may accelerate again given that the central government will work hard to achieve the goal of guaranteed housing and that local governments begin to deploy new projects under the 12th Five-Year Plan.

The country’s overall economy is growing at a rapid rate. However, in the face of various macroeconomic adjustment policies and sudden rises in energy prices that the country may undertake, companies should also actively respond to and make timely decisions while maintaining optimism about the macroeconomic situation in 2011. Correct adjustment.

With the development of urbanization, the traditional building materials store model with the main features of dirtyness, chaos, and difference has become the focus of the second- and third-tier cities. The new, large-scale, standardized, unified operations, and unified management of the new building materials market have been born one after another, providing material and market foundations for the entry and sales of large-brand building materials products. It is precisely this mature consumer base and market foundation, coupled with the competitive pressure of the primary market, the secondary and tertiary markets will naturally become a contestable place for paint brands. However, commonalities are accidental and differences are inevitable. Different levels of the market and different consumer groups have a wide gap between the consumer behavior and the objective marketing environment and the primary market. We cannot view the secondary and tertiary markets from the perspective of the primary market, and we cannot easily replicate the successful model of the primary market. To the second and third-tier markets.

Urbanization has always been a major guideline for social development, but it is after 2002 that the real peak has been reached. Whether it is a big city or a small and medium-sized city, the climax of real estate construction and urbanization has been set off. Commercial houses are everywhere, commercial housing sales continue to be hot, and farmers have become a fashion and pursuit.

In the entire secondary and tertiary markets, the new rich have emerged in a new round of economic growth, and they have the spending power of consumers in the primary market. The pursuit is no longer cheap, but fashionable. The second and third tier markets will surely be the main battlefield for the future paint industry competition.

Industry standards Although the paint quality of big brands is indeed good, the public should know that the so-called big brands are piled up by advertising fees. The wool is on the sheep and the price naturally goes up.

In addition to underground factories in China as long as it is a regular manufacturer, they must produce paints according to national standards, or have their own company standards for production, and if the national standards are mandatory, corporate standards can not be lower than the national standard, so the market is now The coatings supplied must all meet the national environmental standards.

Rural market new channel model to be developed With the government's economic work conference put forward the requirements of accelerating urban construction and energy saving to the countryside, the real estate industry is also actively developing second- and third-tier cities, creating greater business opportunities for the coatings industry. Industry professionals believe that more market opportunities this year are in the rural market. In 2010, a large number of coating companies have entered the secondary and tertiary markets through “wood products to the countryside” and have even expanded into the rural market.

The rural market will show an unprecedented boom in sales. However, in the face of this big cake, how companies can develop new channel models and win greater market share is worth the company to study.

The consumer market's young, personalized products are subject to subdivisions of macroeconomics and strong market demand, which are just sufficient conditions for the industry to be good. In fact, even the most optimistic forecasters realize that the rapid growth rate in the past is gone forever. The paint market will return to the normal growth range from ultra-high growth. In this process, companies must start again in adjustments.

The so-called re-departure, that is to rediscover the blue ocean, open up new market opportunities, to meet the "after 80", "post 90" consumer demand, the introduction of more young products to become a corporate strategy. As one manager put it, “Now loading the houses are all after 70 after 80 and even after 90, they are more pursuing personalization, as companies should pay more attention to market segmentation.”

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