Overcapacity in the domestic market, paint companies boldly "go away"

China Coatings Network
: As we all know, China is a
coatings
production country, whether the output or output value has leapt to the forefront of the world, production technology and equipment has been fully improved. However, the problem has also come, the domestic paint market "overcrowded", on the one hand, more and more new brands, and on the other hand, because more and more foreign brands into the market, market competition pressure increased sharply, for this, the domestic
placement enterprises
how to break the game?
as the most traditional and most in-demand paint industry in the home building materials industry, the overcapacity situation is particularly evident in the process of market adjustment, which starts early, has many brands and has large capacity. Industry experts pointed out that the current paint industry overcapacity ratio of about 5% to 10%, the direct result of overcapacity is to waste resources, enterprise capital turnover difficulties. Therefore, the development of coating enterprises also need to be based on the enterprise's own circumstances, do not blindly enter or start a new project.
2014 paint market environment is not very optimistic, rather than the whole, negative silence, it is better to break the routine, pre-emptively, find another way, in order to fight for a place. Paint enterprises need to recognize the situation in the market competition as a whole and find the gap between themselves and the overall level of the industry. For paint enterprises with less pressure resistance, can not be in accordance with the scale of high-end paint enterprises, capital and other standards to demand their own, as long as in the development process, their own level of development is not lower than the overall level of development of the industry, enterprises are not backward, nor to be eliminated. Whether it is the development of the same level of coating enterprise alliance, or innovative development model for internal structural adjustment, paint enterprises can not because of the pressure brought by the outside world and retreat, only the right attitude, in order to fundamentally improve.
U.S. housing market continued to pick up in 2015, according to November data from the National Association of Home Builders. Demand for single-family homes grew 4.4 per cent year-on-year and total project starts rose 8.2 per cent year-on-year, while residential construction will continue to grow at a faster rate than ever before this year to meet demand growth. In addition, data from 100,000 U.S. households in 2013 on "what kind of home improvement projects will you do in the next two years" showed strong demand for bathrooms, bedrooms, kitchens, and more.
In the face of the bullish trend of foreign demand, Tian Wanliang, vice president of the China Interior Decoration Association, said, "China's home building materials enterprises can take advantage of this opportunity to lay out the United States and other foreign markets, the current competition in China's home market competition, enterprises must seek new markets, new economic growth points." Similarly, paint enterprises "going out" to find the market, is to promote the healthy development of the industry, promote the internationalization of the brand an important way. How to grasp the key moment of economic recovery in Europe and the United States, and actively explore foreign markets, is the most important strategic development direction of Chinese paint enterprises in the next few years of 2015.