To survive in the cracks of the coating industry, "increase income without increasing profit" is such a crack!
May 29, 2024, 11:58 AM
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Powder coating companies have begun to realize that the market winter is unavoidable, and the industry reshuffle is inevitable. Comprehensively improving the connotation brand and innovation of "powder coatings" and realizing differentiated competition is the only way out.
China's coatings industry is currently caught in a strange paradox. On the one hand, the upstream raw materials continue to rise, and on the other hand, the downstream terminal market continues to decline. Under the joint pressure of upstream and downstream, powder coating companies are caught in a dilemma, but what is more serious is that the current industry concentration of powder coating companies. Not high, there are frequent price wars in the industry, many companies do not hesitate to sacrifice product quality in exchange for profits, and they have dug a big hole for the entire industry. Another important reason for such a situation is that the innovation and upgrading of the industry has not kept pace with the development of the industry.
The lack of innovation ability has caused a large number of coating companies to start price involution. Without creating eye-catching, bright and selling products, coating companies can only start a fierce price war. Is low price a good thing for downstream companies? The example of "bad money drives out good money" happens from time to time. In the environment of quality China and craftsmanship advocated by the government, this kind of disharmony should not occur.
In fact, in recent years, the overall "operating cost" of paint companies has always been operating at a high level. Under the turbulent international situation, a new round of global energy and supply chain crisis triggered by the Russian-Ukrainian war has caused the paint industry to rapidly increase prices, but only With "price increases", the industry cannot be saved. More and more powder coating companies are beginning to realize that the market winter is unavoidable, and the industry reshuffle is inevitable. Comprehensively enhance the connotative brand and innovation of "powder coatings" and realize differentiated competition. It is the only way out, so that enterprises can find suitable living space and differentiated competitiveness in this round of commercial channels with worse market, more difficult to control situation and more complex competition, so as to get rid of the dependence on low price war, And the demand for large-scale low-cost profitability.
The crisis of profit warning in the coatings industry has far-reaching effects, so the future powder coatings industry may have these three outcomes: first, directly eliminating low-quality powder companies that are not enterprising; development; thirdly, develop in the direction of subdivision, improve the quality of the industry with the spirit of specialization, refinement and specialization, and achieve rigid internal circulation. Therefore, if a paint company wants to go more and better, it must strengthen its own innovation and upgrade, move towards differentiated competition, and win with unique and excellent quality.