Review: 2014 China Coatings Market Industry Analysis Report

Nippon Paint China acquired the Oulong paint brand under Dejialang Camel and the product technologies and channels covered by the brand.
Fei Kai Materials acquired 100% equity of Jiayu Coatings (Huizhou) Co.
, Ltd.
held by Jiayu Hong Kong with its own funds.
China Nuclear Titanium Dioxide acquired 100% of the shares of Gansu Dongfang Titanium Industry Co.
, Ltd.
and Nantong Baoju Pigment Co.
, Ltd.
, taking advantage of the continued downturn in the price of titanium dioxide, China Nuclear Titanium Dioxide acquired Dongfang Titanium Industry and Haopu Titanium Industry in advance, establishing this in advance.
The status of the world after the reshuffle of the titanium dioxide industry.
Arkema and Jiangsu Jurong Chemical established a joint venture, Shengke Company.
This acquisition is the first phase of Arkema’s acrylic acid business in China.
Titanium dioxide producer Cristal acquired the titanium dioxide business of Jiangxi Tianguang Chemical Co.
, Ltd.
, which involved asset and equity transactions.
CNNC Titanium Dioxide acquired 25% of Wuxi Haopu Titanium Industry Co.
, Ltd.
through its wholly-owned subsidiary, Anhui Jinxing Titanium Dioxide (Group) Co.
, Ltd.
PolyOne acquired the specialty chemicals assets of Hydraulic Materials.

2.
3 Marketing chasing new picture changes

The traditional sales model is the usual and dominant sales model used by paint companies, that is, companies analyze and position the market, train market sales personnel on paint product knowledge, and then go to the market to find business opportunities to develop the market, or through distributors.
Sales.
However, with the continuous changes in the external market, traditional sales have exposed a series of problems, such as high sales costs, low efficiency, and serious customer loss.
It is urgent to change the marketing model.

With the normalization of online life, more and more paint companies have incorporated online marketing into their entire marketing plans, through the construction and improvement of their own official websites, the placement of hard-brand online advertisements, online news dissemination, special reports, and forums.
Promotion, Weibo marketing, WeChat marketing, etc.
, realized online marketing.
"Double Eleven" has also become a commercial activity that is valued by the coatings industry.
The official paint flagship stores currently online on Tmall are: Dulux, Nippon, Crocodile, Dufang Paint, Baise Bear, Fenlin Paint, Meitushi, Bardez, Three Trees, Bauhinia Paint, China Resources, Gordon Lacquer, Gallus, 3A, Chenyang, Star Manor, Shengbang Paint, Shanggong, Hualong, etc.
Regarding paint e-commerce, people are most concerned about sales performance.
However, it is not complete to talk about the market based on sales data.
Non-sales data such as the number of products sold, the unit price of the transaction, the number of followers, the number of search clicks, and the regional ranking of the transaction amount are also not complete.
Worthy of attention.
For paint companies testing water and e-commerce, the following three aspects still need to be strengthened: one is to actively develop painters' consumption habits of purchasing paint online; the second is to carry out secondary development of products; and the third is to control e-commerce sales channels.

(Dulux joins hands with Lin Zhiying)

The diversification of paint marketing is also reflected in the innovation of methods.
Jiabaoli tried multi-dimensional integrated marketing of air, ground and electricity, first with high-speed rail pillows, then airplane headbands, and later on the Jiangsu Satellite TV entertainment program "Open Sesame", and tried micro-film marketing with "Ubiquitous Mom".
Nippon's titled "Dream Transformer" conveys the brand proposition of "refreshing life".
Fuster took advantage of the focal haze incident to launch the first "Haze Control in Action" activity.
Three Trees tried implanted marketing, sponsored "Sun Like Me", and exclusively titled "Oriental Time and Space", which attracted everyone's attention.
With the endorsement of Yao Ming, "Water-based Keyian" named "True Hero" and the general title of "Good Voice 4" on the Internet, etc.
, intended to uphold the "Leadership Brand of Water-based Coatings.
" The classic paint is the first paint plate for a special train in China.
Li Shiqi launched the "Mr.
Fashion" trial.
The colorful decoration industry has created a new model of O2O home beauty service integration.
Dulux joined hands with Lin Zhiying, and Mei Tu Shi asked Jiang Wenli as the brand's image spokesperson to create a fan economy model.

2.
4 Start the capital wave

2014 can be called the first year of capitalization of China's coatings industry.
After 30 years of rapid development, China's coatings industry has completed the original accumulation.
The encounter between the coatings industry and the capital era is overwhelming.
The situation of the large industry and small capital of the coatings industry It is also changing.
Many companies have made gains in the capital market.
A large number of paint companies are active in the ChiNext market, the New Third Board, the Fourth Board, and the venture capital market.
Capital is the lifeblood of all walks of life.
With the development of China's coatings industry, "listing and financing" has become a constant topic of Chinese national coatings companies in recent years.
The return on capital and reputation brought about by listing far exceeds the hardships of a company's IPO.

In recent years, the topic of who is the first Chinese private coating company to get the first share has attracted much attention from the industry.
After the failure of IPO efforts of representative national coating companies such as Jiabaoli, Zhanchen Paint, Meitushi, and Sankeshu, it was surprising that Shanghai Feikai Optoelectronic Materials Co.
, Ltd.
went public and its new shares were listed on the Shenzhen Stock Exchange’s Growth Enterprise Market.
It became the only company among coating companies that successfully listed on the main board in 2014.
Due to the rigor of listing on the main board, more coating companies have begun to find new paths, plan to list on the New Third Board, and squeeze into the capital market.
The "New Third Board" is a multi-level capital market established in my country following the main board, small and medium-sized board and the Growth Enterprise Board, a trading market for technology-based small and medium-sized enterprises, with the purpose of solving the transfer and financing of shares of high-tech enterprises in the start-up period.
problem.
It is understood that as long as the high-tech enterprises with independent intellectual property rights, reasonable business models and expected space for continuous growth, all high-tech enterprises with independent intellectual property rights, reasonable operating models and expected space for continuous growth, all have been listed hope.
In 2014, Zhengzhou Upco, Changzhou Sixth Element, Suzhou Jiren, Guangdong Meitushi, Jiangyin Tianbang and other enterprises, in 2015, Seven Color Pearl, Youmei Te, Xingyu Co.
, Ltd.
, Jiangsu Runtai and other enterprises were also officially listed.
"New Third Board", advance into the capital market.

In China's multi-level capital market, entities of different sizes strive to enter different capital markets.
In addition to the "New Third Board", there are also a number of coating companies listed on the Shanghai Equity Exchange Center, which is a regional equity exchange market.
In 2014, many companies including Shanghai Jizhong, Bensel, Jiangsu Jinming, Jiaixi, Jiangmen Runli, and Huicai Paint were listed in the Shanghai Equity Custody and Trading Center.

In the four-board capital market sector, in 2014, Jordans, Bentsel, Jizhong Chemical, Jinming Waterproofing, Nobert Chemicals, Ferris fluorocarbon, Advanced Coating, Chiba Pine, Brilliant Coating, Wattsb, A large number of coating companies such as Kaiwen Engineering, Jiaixi, Runli Chemical, Dongming Chemical, etc.
were listed on the market.

Since Shuanghu Coatings and Lighthouse Coatings opened a new chapter for coating companies to land in the capital market, the significance of the capital market for the development of coatings companies has been recognized.
With the help of capital, coating companies have doubled their revenue, soared market value, and greatly increased their influence.
Their awareness of using the capital market to achieve transcending development has gradually awakened.
The entry of coatings companies into the capital market will bring major opportunities for corporate development, indicating that the development of the company has entered the fast lane, and it will rapidly grow into a coating engineering management company with outstanding main business, replicable business model and high growth.
The integration of the coating industry and the capital market in the future has become one of the development trends of the coating industry in my country.

3.
Changes in key markets in the terminal industry

In 2014, China's economy softly landed, with a GDP growth rate of 7.
4%, the lowest growth rate in 24 years.
The coating industry, which is synchronized with the development of the national economy, has also changed accordingly.
As an intermediate product, coatings have a wide range of applications in many fields.
The changes in the terminal market directly affect the development of the coating industry, especially the real estate industry, industrial protection field, furniture industry, and automobile market closely related to the coating industry.
Affect the overall consumption level of coatings.

In 2014, my country's national economic development entered a new normal, and the growth rate of real estate investment also dropped to 10.
5%.
The real estate market has entered a period of adjustment, and the inventory of commercial residential buildings in various regions is high.
The change in market expectations has further affected the overall pace of new construction, and the growth rate of real estate investment has declined significantly.
The decline in the growth rate of real estate investment has brought the closely related architectural coatings industry into a new normal.
The growth rate of architectural coatings has dropped from double digits to single digits.
The growth momentum of architectural coatings has gradually shifted from real estate investment to real estate investment and old house renovation.
Commonly driven transformation, the driving force of real estate investment is gradually weakening, and the driving force of old house renovation will gradually increase.
After a relatively long period of time, it will gradually transition to the situation of developed countries, mainly driven by the renovation of old houses.
In the 33 years from 1981 to 2013, when the Bureau of Statistics has statistics, my country built 60.
1 billion m2 of houses, of which 40.
5 billion m2 of residential houses, accounting for 2/3.
Based on this estimate, there are at least 40 billion m2 of existing buildings.
Taking 1.
5% of them to be repainted and renovated, there are 600 million m2, accounting for about 17% of newly built houses.
The old house renovation market has huge potential and deserves the attention of architectural coating companies.

The steady development of China's economy has brought a broad development space for the transportation, petrochemical, energy, machinery and other industries, thereby driving the development of related supporting products.
Anti-corrosion coatings, which occupy the second place in the coatings market, play a pivotal role in the national economy.
In particular, marine anti-corrosion coatings, container anti-corrosion coatings and industrial anti-corrosion coatings with high technical requirements have good development prospects.
Drawing on the experience of developed countries, the demand in the field of industrial protection in my country will continue to expand, and its development prospects, market space and potential are huge, and the supporting anti-corrosion coatings market has huge development space.

Affected by the national macroeconomic policy regulation, the traditional furniture and home furnishing markets, which are closely connected with the real estate industry, have gradually become "cold".
Consumer demand for home furnishings has narrowed, and competition in the furniture market has become more intense.
The furniture industry has entered a shift from a period of rapid development.
Period, from the high-speed development stage to the medium-low-speed development stage.
At the same time, the prices of raw materials have risen to varying degrees, and the cost of human resources has risen sharply, causing the cost of enterprises to rise sharply.
These have greatly restricted the development of labor-intensive industries such as furniture.
The furniture industry's profit growth rate continued to decline, entering an era of meager profit.
Changes in the furniture market affect the development of furniture coatings.
Under the concept of low carbon and environmental protection, water-based furniture coatings will enter a period of rapid development, especially water-based UV coatings will have a broad development space.

In 2014, the economic performance of China's auto industry was stable, and the growth rate of major economic indicators slowed down compared with the previous year.
Main business income increased steadily, and the growth rate slowed down; the total profit and total profit and tax increased rapidly, and the growth rate slowed down; fixed asset investment increased steadily, and the growth rate decreased steadily; the number of loss-making enterprises increased; accounts receivable, finished products Inventory funds showed different growth.
Chinese automobiles will have a certain growth potential in the next 5-10 years.
National automobile coating brands should, like Chinese automobile brands, develop coating products suitable for the market and the characteristics of Chinese automobiles.
Otherwise, the influence in the field of automobile coatings will become weaker and weaker.

 4.
Conclusion

China's economic growth rate has changed from high-speed to medium-high speed, the economic structure has been continuously optimized, and the quality and efficiency have been significantly improved.
Under the new normal, in order to ensure the completion of the key construction tasks of the "Twelfth Five-Year Plan", a batch of new major engineering projects will be launched.
These construction plans will surely promote the further increase of consumer demand for coating products.
With the implementation of the "One Belt, One Road" strategy, a large number of construction projects will be promoted, and new development opportunities will be brought to the relevant construction, engineering machinery, power equipment, steel and building materials industries.
These are important consumption of coating products.
field.

While welcoming market growth expectations, the coatings industry also faced new challenges in 2015.
The impact of the collection of paint consumption tax and sewage charges on the paint industry will be huge.
But relying solely on policies to speed up the development of environmentally friendly coatings? Promoting the development of the coatings industry is obviously not feasible.
The environmental protection coating industry upgrade is a gradual process, and its implementation progress is affected by various links such as coating product technology and construction technology.
On the one hand, the current application areas where environmentally-friendly technologies cannot meet the needs can only maintain a living space through moderate price adjustments.
On the other hand, it is also necessary to accelerate the pace of technological innovation and strive to upgrade products.

Although there are many difficulties, with the implementation of the government’s various stable growth policies, market demand is expected to rebound, and my country’s coatings manufacturing industry is expected to achieve steady development.
The annual output is expected to continue to grow by 6% to 7%, and sales are expected to increase.
Year-on-year growth of 12%~13%.
In the future, the development of my country's coatings industry has a long way to go.
To predict the industry situation and analyze the economic situation of the industry, it is necessary to recognize and actively adapt to the new requirements of the new normal.
Enterprises should seize opportunities? Face difficulties On the other hand, we take the initiative to form a strong synergy to promote the sustainable and healthy development of the industry, and strive to open up a new situation in the development of the normal coating industry.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http:// )