Paint prices are not terrible, what is terrible?

China Coatings Network
: The century-old Shanghai
Coatings
the first to announce price increases and show low VOC products. Paint consumption tax hit,
coatings enterprises
rather than the issue of want to open price increases, it is better to strive to make products and services can afford to rise after the price. Let the quality and the price increase of 4% be true.
90% of furniture paint enterprises, more than 80% of the income
from
. The net interest rate of furniture paint is also 5-10 points on average, and the 4 points of paint consumption tax is almost a disaster.
as the author published on January 30, "paint consumption tax under low VOC, high added value will become the direction of development" published on February 9th, "With what seconds to kill paint consumption tax eating?" As stated in the report, the way to deal with consumption tax is nothing more than to reduce costs, raise prices, so that paint to low VOC or high value-added direction.
March 17, the author in the "paint consumption tax hit, rise or not?" To the dilemma faced by the coating enterprises expressed understanding that the price increase is to survive, consumption tax is to upgrade, China's paint industry is watching and fighting in the transformation and upgrading.
many foreign coating companies such as the Berg Group have low VOC paint manufacturing technology, but for fear of formula outflow to China, would rather increase prices in the Chinese market than produce low VOC paint in China. Berger's decision, while somewhat moral, was the right choice in line with the reality of the Chinese market.
contrary, Chinese companies do badly need low-VOC paint technology. Only a very small number of enterprises have low VOC paint technology, based on the core formula needs to be confidential or the technology is not mature and other reasons, also dare not disclose.
Berger clearly has low VOC paint, but also publicly expressed price increases. Although Carrie, Huilong said the price increase, but out of fear of customer loss and other reasons, can only be by the higher leadership to say that the price adjustment is not adjusted, the price adjustment is being discussed with customers.
this kind of helplessness brought about by homogenization and overcapacity, the author deeply understands. At this stage, Tu enterprises are in order to raise prices to prepare, adjust, brewing.
This year's Dongguan famous furniture exhibition, Jiabao, Zhanchen, Junke Lan, China Resources, Huilong and other major exhibitors will be locked in the low VOC
uv coating
,
water-based paint
, water-based UV and high value-added environmental protection coating solutions or service solutions.
Chinese coating enterprises have recognized the low VOC and high added value, is the future development direction of the coating industry. But the problem is that low VOCs and high value-added implementations require at least a few years of processing.
the present reality is not to raise prices, it is difficult to survive. Price increases, how to ensure that customers do not lose, sales do not decline. Double-digit growth, which has become accustomed to, has become a luxury for Tu enterprises in 2015.
, although it is not possible to improve quality in a short period of time, but improve the quality of service and enhance the added value of products, or can be done in a short period of time.
, Carrie, Zhanchen, Huilong, Junlan, China Resources,
This Tree
, Flower King, Hualong are all mentioning environmental protection coating solutions. The exhibition focuses on water-based, UV, water-based UV combined with environmentally friendly coating package solutions; In the water and UV have been built in the Jiabao, focusing on environmentally friendly coating solutions, and even launched environmentally friendly PU; China Resources has strengthened the 4C service quality program; Huilong focuses on UV environmentally friendly coating solutions; UV has been very mature gentleman Orchid, put forward water wood since Tsinghua, water-based paint and wood perfect combination of the solution.
Huilong even proposed to provide free UV equipment for small and medium-sized door enterprises, to help small and medium-sized door enterprises to achieve zero investment transformation to environmental protection coating.
they are subverting, or trying to disrupt, the concept of products in the coatings industry. As Zhou Changfeng, editor-in-chief of China Paint Daily, said a year ago when he chaired salons for Chinese coating leaders, environmental protection coating programs will gradually replace coatings as the main product of the future of coating companies.
are all adding value to their customers to hedge against the increased cost to customers that will result from higher prices.
paint consumption tax implementation rules issued at the moment, is the paint enterprises stop watching, make the rise and fall decision, is the customer loss or increase the time node, is the beginning of the furniture paint industry shuffle.
, an analyst at China Coatings, said in an exclusive interview with China Paint Daily that the increase in paint prices is the general trend. Quality and service upgrading is the trend. Whether the furniture factory can accept the increase in paint prices, the standard is only one. The products and services of coatings and the benefits they bring are not worth the price after the increase.
value of the coating enterprises, will be upgraded in the development, in the upgrading of the development, the paint industry will therefore transition to the low VOC era, to achieve transformation and upgrading. Valueless coating enterprises, will be eliminated by customers. The same is the price increase, which brand of products and services, behind other paint suppliers, which brand of customers will lose.