Nippon, PPG, Axalta, Akzo, BASF and other giants are all doing the same thing!

In recent years, raw material prices have risen sharply, and cost pressures have become particularly heavy under fierce market competition

Since the beginning of this year, Nippon, PPG, Axalta, Akzo Nobel, BASF, Kansai Paint, etc.

The giants speed up the development of new products

In recent years, although the sharp increase in raw material prices has brought huge cost pressures, the coating giants are still committed to accelerating technological innovation, focusing on the market, developing new technologies and new processes, and constantly creating new products with high technological content and high added value.

A reporter from the paint industry noticed that Nippon Paint launched a new water-based automotive refinish product in May this year, and launched three new products in the field of architectural and steel structure coatings on June 20 this year

As the world's largest paint company, PPG announced in July this year that the automotive original equipment manufacturer (OEM) for the Chinese market had launched the first new generation of electrophoretic primer product Enviro-Prime? 8000

In May of this year, PPG also launched many new coating products in the field of metal packaging in China.

As a world-renowned manufacturer of automotive coatings, Axalta (Axalta) launched a new water-based refinish paint product Paime TM in August this year

A reporter from the coating industry noticed that since this year, AkzoNobel has launched a variety of new products in the fields of marine and protective coatings, architectural coatings, powder coatings, packaging coatings, etc.

The reason for the widening gap has been found

  In the fierce competition in the coatings market, the launch speed of new products is related to the development of the company

  According to Li Mingyue’s analysis, “At present, the prices of raw materials are getting higher and higher, but coating giants use innovative technologies to effectively control the materials needed in the manufacturing process to avoid waste; more importantly, to increase the technology of products through innovative technologies.

  But on the contrary, domestic paint companies face cost pressures from raw materials, but they choose to reduce R&D investment and find ways to reduce the cost of the investment

  For a manufacturing coatings company, what kind of company you ultimately become depends on where you put R&D

  "Chinese paints mostly play the role of'followers' in the world market

  “For coating companies, if they want to survive the fierce market competition, the best way is to accelerate the pace of technological innovation and rely on the development of new products instead of relying on past products

  At present, many of the key core technologies in the fields of China's automotive coatings, marine coatings, heavy-duty coatings, nuclear power coatings, wind power coatings, and marine engineering coatings are still in the hands of foreign-funded companies, but Chinese coatings companies have more than enough energy

  "Chinese paint companies have been trying their best to make up for these shortcomings, but it still takes a long time for customers to watch
.
The research and development of key technologies requires time, funds, and talents.
Many companies face the pressure of revenue and profit.
Will choose to reduce R&D investment or directly rely on imports
.
" Li Mingyue said
.

  Therefore, the biggest worry for many domestic paint companies is that the brand reputation does not match the brand awareness, and the brand lags behind the product
.
Because brand reputation is not planned, it is naturally derived from product power, technical power and corporate image itself, and product power is the greatest support among them
.
However, compared with foreign-funded enterprises, domestic enterprises appear to be weak in terms of product capabilities
.

  So, what is one of the most important weapons for domestic companies to surpass foreign companies? It is the transition to "tall and big"
.
Intensify product innovation and promote technological advantages and establish a high-end image through high-priced marketing
.
"This is what domestic paint companies lack after years of pursuing a low-price strategy
.
Product innovation and brand premium capabilities are the biggest challenges for domestic companies
.
" Li Mingyue pointed out that this is a universal problem
.
Of course, this is also an opportunity for domestic companies in the future
.

  R&D determines technology, technology determines product, and product determines market
.
Especially at this time node, domestic coating companies need to pay more attention to R&D and innovation
.
"Many paint categories in China have gradually entered the stage of upgrading mainly: consumer preferences in the renewal cycle will be different from the first purchase, because the first purchase of the product will find that there are a series of pain points in the use of the paint, and the second purchase Consumers will pay more attention to high-quality products
.
The continuous investment of coating companies in product research and development is the fundamental guarantee for the improvement of product strength
.
” Li Mingyue analyzed
.

  Li Mingyue said that the development of China's coatings industry has undergone a transition from imitation to a latecomer: In the past, new products could be introduced through imitation learning, but now China's coatings companies have entered the "no man's land".
What form and technology will future products take? To impress consumers, you need to explore on your own.
The industry has not many benchmarks for reference.
This also means that the future coating companies need to invest more research and development to support their own development
.

  "Innovation is the first driving force for corporate development, which is the common attribute of global coatings companies
.
In the face of increasingly fierce market competition, coating giants still do not relax technological research and development, and quickly provide users with the latest products
.
Foreign companies still do this, domestic Enterprises have to accelerate innovation and development
.
" Li Mingyue said
.

  China's coatings industry is at a critical stage of becoming stronger.
Without independent technological innovation to drive growth, there will be no lasting profit dividends, and it will be difficult to have real brand influence and the right to speak in the industry chain
.