Three Paths for Coatings Companies to Transform to a New Model of "Service-oriented"

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Case 1: China Resources Coatings: Selling more than just "paints"

The success of China Resources Coatings lies in one thing: service marketing.

Service marketing is a strategic market positioning or breakthrough made by China Resources based on the increasing competition in the coatings market and the allocation of its own advantages.

In fact, the "sales network" and "service" have always been the two magic weapons for China Resources Coatings to win.

The so-called "three-part paint, seven-part work", no matter how good the product is, if the construction is not in place, it will definitely not produce good results.

In 2003, the airless spraying service launched by China Resources Coatings set off the coating construction service of my country's coatings industry and promoted the sales of China Resources latex paint.

　　After establishing the goal of internationalization, China Resources made a decisive decision to take the initiative to transform from a production-oriented enterprise to a production, service, and trade enterprise group.

　　Generally, the products produced by enterprises enter the market or reach consumers, and their services are limited to this product.

　　Since 2003, China Resources has promoted the spraying service activities of "good paint, good home spray" nationwide.

　　The background for this achievement is: raw material prices have risen and product profits have fallen; market competition has intensified, and fish and dragons have been mixed; international giants have conquered cities and land, but many domestic enterprises have been unable to sustain themselves, and they are precarious.

　　In this case, China Resources has clearly defined its position, that is, "the best surface (coating) effect expert", implemented the service activity of "good paint, spraying a good home", and since then announced that it has entered the era of service marketing, through Service brings the greatest added value to their products and doubles profits.

　　Path 2-commercialization of service functions: from products to complete solutions

　　This model focuses on the creation of service value.

　　1.
The background of the model: With the increasing complexity of products, consumer demand has gradually shifted from simply purchasing products or services to integrated solutions that include products and services.
Enterprises must provide consumers with integrated products, services, and support.
The whole set of solutions for, knowledge, etc.
The various components in the solution package can be seen as two major "modules" of products and services: the hardware as a "product" module can be produced by the provider itself or by other manufacturers.
The "service" module mainly refers to the skills training, painting and other services required for the use of the product, as well as the services that users can participate in by themselves.
For example, furniture companies not only buy paint from Carbo-Li, Zhanchen, Dabao Chemical, Changrunfa, Clivia, Huilong and other coating companies, but give the entire process of paint services to such companies to complete.
Because these can provide furniture coating solutions; Akzo Nobel is no longer just providing paint and coatings in terms of building green and energy-saving, but also provides green and energy-saving coating solutions for the entire building.

　　2.
The role of the model: In this model, the most significant part of the added value of the manufacturing enterprise’s products has gradually shifted from manufacturing activities to knowledge-based service activities at different points in the value chain, such as R&D, marketing, channels, Toning, painting construction, etc.
This service activity is an activity that revolves around customer needs and has a certain strategic depth.
It can provide differentiated, personalized, and integrated solutions, creating an insurmountable barrier to entry for competitors; at the same time, the service itself Can create value.
For manufacturing companies in a rapidly changing global market, creating "service value" is the key to maintaining long-term competitive advantage.

　　Case 2: Akzo Nobel-from manufacturer to solution provider

　　China's economy is undergoing structural reforms.
The unprecedented development of urbanization will inevitably stimulate domestic demand and become one of the main economic driving forces to replace exports.
Akzo Nobel, the world's leading paint and paint manufacturer, believes that as urbanization enters the fast lane, the demand for smart homes will increase day by day, and all manufacturers in the entire construction industry value chain are duty-bound.

　　At the 2013 Shanghai International Green Building and Energy Conservation Exhibition, Akzo Nobel demonstrated its overall coating solutions and analyzed the coating solutions that are ubiquitous in people's lives.
Lin Liangqi, President of Akzo Nobel China, said: "Due to the ever-decreasing resources, green intelligence will eventually become the standard for all residential construction.
This includes the provision of efficient insulation and protection layers, the use of renewable energy, and the provision of smarter water circulation systems, etc.
.
"

　　"The market needs builders to provide more housing that meets sustainability standards.
In order to meet this demand, builders will need their suppliers to help them meet this challenge together.
Therefore, whether it is cement suppliers, renewable energy suppliers, Glass production plants, or paint and coating companies like Akzo Nobel, have the opportunity to play an important role in promoting sustainable development.
" He added.

　　In the past, construction companies usually needed to cooperate with hundreds of suppliers at the same time, and it was difficult to collaborate effectively.
Therefore, those suppliers who can provide a variety of integrated solutions and combine different solutions will stand out.
Global Coatings Network believes that over time, construction companies will rely more on those few suppliers who can provide overall solutions for building environmental protection.

　　From another perspective, the cooperation of suppliers will also form a strong driving force to help build a series of sustainable development standards in the field of housing construction.
It is precisely those suppliers who actively combine products and originally intend to cooperate with other companies that will gain something.
Lin Liangqi said that Akzo Nobel is a leading company in this area.

　　Akzo Nobel has established a cross-business department for the construction industry to provide customers with tailor-made overall coating solutions.
The program concentrates Akzo Nobel's businesses including decorative paints, powder coatings, protective coatings, wood paints and adhesives, and coil coatings.
The overall coating solution has achieved impressive results as soon as it was launched.
For example, the Shanghai Center has adopted Akzo Nobel's protective coatings to provide safer fire protection for the building.

　　Path 3-Service Value Innovation: Use intangible assets to control tangible assets

　　Under this model, paint companies do not engage in manufacturing operations themselves, but become pure service providers and directly create value through the service itself.

　　1.
The background of the model: With the shift of industrial gradients and global division of labor, manufacturing companies have gradually lost their cost advantages in their own production and manufacturing links, and can find lower-cost manufacturers around the world.
On the other hand, the needs of consumers are becoming increasingly diversified.
Therefore, in the process of reorganizing their business activities, manufacturing companies pay more and more attention to providing related services to consumers around their products.
They not only regard services as effective measures to improve product competitiveness, but also directly treat services as value-added means.
Think of product manufacturing as a "cost center.
" The business focus of manufacturing companies has undergone a fundamental change, and the organization and management are getting closer and closer to service companies.

　　2.
The role of the model: In this model, product service competition not only becomes an important way to improve product competitiveness, but also becomes independent of the product and becomes a new value-added activity of the enterprise.
Product services are breaking away from the original state of dependence on products, becoming an important way of value innovation and new value creation.
Services can not only rely on the realization of product value to realize their own value, but also realize service value-added and create new value beyond product value.

　　Case 3: Kefu Technology-Complete Transformation of Coating Service Provider

　　Guangdong Kefu Technology Co.
, Ltd.
, founded in 1992, mainly develops, produces and sells electrophoretic coatings (undertaking the process, engineering design and construction of the entire coating production line), surface pretreatment agents for steel, aluminum and plastic parts , Paint spray room circulating water paint (paint mist) coagulant and other fine chemicals.

　　Around 2010, as the cost of the coating chemical industry tends to become more transparent, profits are lower, and the cost of industrial dispersion and environmental protection is high, Kefu Technology, who is born in the coating industry, decided to spin off the original Foshan production base and choose qualified manufacturers to outsource Processing products, focusing on product development and sales channel construction.

　　So far, Kefu Technology has successfully transformed into a coating engineering system solution service provider, engaged in coating equipment engineering system general contracting (turnkey project, system supply, operation general contracting) and special chemicals for coating system operation, Development and promotion of coating technologies such as new materials and new processes.

　　"We adjusted the profit model, developed the engineering market, and provided the company with the engineering design and construction of the coating production line, that is, transforming into a general contractor of the coating equipment project.
Some projects adopt the DBO service model, and after the completion of the coating project construction , Continue to be responsible for the general contracting services of the post-production and operation, and on the basis of the sales income of coating engineering and coating chemicals, can stably obtain the service proliferation income of the post-production and operation.
" said Feng Yanjing, the company's technology project specialist.

　　The transformation has activated the market.
"This is'service-oriented manufacturing', and we win in service.
" Feng Yanjing said, "For example, a passenger car factory needs an automobile coating production line.
We are responsible for the design and construction of the production line, to specific coatings and process matching; trial production, adjustment, and acceptance.
After that, workers will be trained and technicians will be stationed to check the follow-up production process, and the company can directly carry out automotive coating production.
"

　　At present, Kefu has completed the design and construction of more than 200 coating production line projects, and provided coating chemical products to more than 300 companies, which has become the basis for its impact on the new third board.
At present, this company is planning a new adjustment: invest 20 million yuan to settle in the fine chemical base of Qingyuan Overseas Chinese Industrial Park.
The chemical base has built a relatively complete sewage treatment system and other infrastructure for chemical companies, which will greatly reduce the environmental protection costs and risks of Kefu.

　　Combining the above three models, no matter which model is adopted, the successfully transformed coating companies have one thing in common, that is, they have a certain aspect of core competitiveness, whether it is soft power or hard power.
For example, Akzo Nobel China is based on it.
R&D, brand operation and service capabilities at both ends of the value chain.
At the same time, according to the company's own situation and development opportunities, it is also important to choose a transformation model that suits you.
On the transformation path, it can either rely on itself to directly transform to service, or integrate external resources, and develop service business with the help of external forces through mergers and acquisitions, strategic alliances, outsourcing, etc.
, to achieve service-oriented development.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http:// )