Analyze the dilemma of the transformation and upgrading of the paint industry

Although this year's goal has been completed, the process is still somewhat difficult. As we all know, the current market for architectural coatings has already been eroded. Unruly companies or non-brand companies continue to unscrupulously stir in the market. The most obvious is to fight price wars. The formal enterprises are struggling to cope, and they will increase intangibly. Various costs. “A high-level person in charge of the home improvement paint division of a well-known paint company in China expressed this when discussing this year's paint market performance with the author. Of course, similar voices are often heard, but it seems very helpless.

Before this discussion with business people to discuss the current development of the real stone paint market, the author realized that the "price" of the temptation. "Even if your real stone paint product is a few cents higher than others per kilogram, your product may be rejected by the engineering firm. Of course, your business is taken away by other companies that are not following the rules." In the market, "regular forces" have lost to "guerrillas" or unruly people, and low prices are often the main reason. The author believes that the reason may be that small enterprises and unruly companies have lower costs in production and operations. Of course, the reasons are very complicated.

There are nearly 10,000 paint companies in China, and most of them are small and medium-sized enterprises. Many of them are no lack of workshop-style production companies, or companies that share production workshops among several companies. "Some enterprise technology research and development, equipment investment is basically no or very little, of course, the production cost is very low." Although these companies have low production costs, but the quality of paint products is often not guaranteed, causing great harm to consumers. This is why the paint market frequently suffers from product quality problems, and various kinds of hazards caused by problem products are frequently staged.

Obviously, formal enterprises have paid more for their corporate responsibilities, social responsibilities, and environmental responsibilities, such as technological research and development, process equipment, wages and benefits, taxes, and other costs. Enterprises that do not abide by rules just abandon these responsibilities, save most of the costs that should not be saved, and occupy the advantages of market price competition. When companies investing tens of millions of yuan in technical R&D and manufacturing equipment worth tens of millions of yuan have encountered unscrupulous enterprises, the formal enterprise’s technological R&D, advanced equipment, coating technology, and service advantages have been cast into costs. The burden is so that it cannot participate in distorted price competition.

The emergence of unruly companies and unrestrained splurring stem from the imperfections of the regulatory system in the paint industry in China and the lack of industry standards, as well as the inaction of government regulators. However, the author recently saw little hope. According to reports, the “Titanium Dioxide Industry Access Requirements (Revised Edition)” will be released next year, and the titanium dioxide industry related provisions have given new policy heights and requirements to the concept of “admission” in the “conditions”. The restrictive attribute of the entry threshold has been promoted as an operational regulation that regulates compliance.

According to an industry analyst, the improvement of access conditions will promote the pace of mergers and reorganizations of titanium dioxide companies. In my opinion, the introduction of the "Conditions" (on the premise of strict implementation) will undoubtedly regulate the titanium dioxide industry. Those companies that do not meet the requirements will be eliminated and will be more conducive to the development of formal enterprises. However, it is regrettable that the “Administrative Measures for the Coating Industry” and “Access Requirements for the Coating Industry” mentioned in the “Twelfth Five-Year Plan” of the Coatings Industry have not yet been introduced.

At the same time, in the case of imperfect management systems and rules, many standards are imperfect or in a blank state. This has also led to confusion in the paint market, such as functional coatings, and there are no corresponding standards. Each company has its own function. Shantou, and those companies that do not have technical strength or have no production function products also play a role in slushing the water with all kinds of functional flags. This confuses the entire market and makes consumers unclear exactly which products are functional; the lack of standards. It also caused many paint companies to produce products that were judged as unqualified in quality inspections by the quality supervision department. “City gates caught fire, spilled into pond fish”, and the quality problems of paints that were exposed frequently caused consumers to have doubts about coating products. The result was that consumers only I believe that foreign brands do not believe in national brands, but also to smear the image of the paint industry, some of the formal national paint companies are also implicated, but they can only do nothing about it.

The "bad money drives out good money" rule is emerging in the paint industry. In the opinion of Jiuzheng Building Materials Xiaobian, if there is no need to adopt more stringent regulatory systems and production standards to control the appearance of poor quality paint products and false publicity, a possible situation is that those who pay attention to technological research and development and are honest are often indifferent. Those who are squeezed by the market, but who have poor ability and are not good at playing with the rules of the game, often take things in their pockets and snatch the market through low-cost advantages. Over time, fair rules of the game have been destroyed, and fewer and fewer companies have strictly followed relevant standards. In the face of production, everyone takes the initiative to lower their standards and make false propaganda; more and more regular companies are either moving away from themselves or becoming mundane. , Even unscrupulous, but the fly bastards are gradually popular in the paint market, "bad money drive out good money," the effect is highlighted, and ultimately not only hurt consumers, the company and the industry as a whole may also be "injured."

As we all know, in economics, the law of “bad money drives out good money” states that in the era of coinage, when those “bad coins” that are less than the legal weight or fineness enter the circulation field, people tend to use those “values”. "Good money" is collected and traded using "bad money." In the end, "good money" will be expelled, and "bad money" circulated in the market will become more and more.

In the same way, in the coatings industry, if diligent, honest, and honest industrial coatings companies are eventually unduly harassed by those who do not abide by the rules, their development will be affected. Instead, they rely on low-price competition, speculation, and play. "Splendid" and the first generation of gimmicks are the first to sign up. Isn't that a tragedy? Therefore, it is not so much the case of a regular paint company. It is better to say that it is the pain of the entire paint industry. It is this spread of bad habits that cannot be effectively curbed, and it has laid a more vicious circle for the paint industry. The transformation, upgrading and healthy development of the paint industry in China have caused great obstacles.