Demand for home improvement market is falling, coatings companies are facing test

In 2012, the paint industry was destined to be a difficult year. It was destined to be a crisis year, or a crisis year. Over the past year, the industrial market environment has been deteriorating. Affected by the domestic macroeconomic downturn and the country’s control of real estate and rising raw material costs, consumers have begun to tighten their pockets. Demand for the home improvement market has plummeted, and some paint companies sell their products. Significantly lower year-on-year. The market environment is still showing a downward trend: the growth rate of the domestic economy has declined and will continue to decline for a long time; the business environment will become more and more difficult and will be even more difficult; the cost of production and operation will become higher and higher; The pressure for survival is getting bigger and bigger, and it will be even greater; market competition is already fierce, and it will be even more intense... These difficulties and problems cannot be changed at present and will only get bigger.

The weak ability of independent innovation and the increasingly serious homogeneity of the products have led to a worsening of the low-level marketing competition in the coatings industry, and the company’s meager profit margins have been continuously compressed. Consumers' increasingly smart and rational, so that the coating companies marketing and other marketing tools are getting weaker and weaker. International strong brands monopolize the domestic high-end one-and-two-line coating market, forcing paint companies to sink channels and paint to the countryside, but the effect is limited and the pressure on survival has doubled. The collapse of companies and brands, closure of doors, bosses' running and closing of stores, and other information indicate that the paint industry's past big leap forward development model has shown signs of decline in the market during the cold winter. The pressure of industry reshuffling has made the entire industry environment more complex. Coating companies have always been using incremental growth as the main development method, low value-added products, lack of popular brands, competing to sink channels, increase sales by increasing the number of dealers to earn profits, and ultimately lead to product and marketing model homogenization , price vicious competition and a series of issues. Independent research and development, weak design, brand innovation, lack of channel innovation, single sources of profit, and services, R&D, channels, management, and other factors that increase profit sources have almost nothing, not only affect the paint companies to create an international, modern (modern decoration effect map) The companies and brands have also hindered the process of “creating China” as a painter. Therefore, the innovation of the business model is listed in the development plan of the industry during the "Twelfth Five-Year Plan". Its importance is evident.