The hottest home decoration market meets the test

The home decoration market meets the face-to-face test of the coating industry in the cold winter

the home decoration market meets the face-to-face test of the coating industry in the cold winter

July 18, 2014

[China coating information] 2014 is destined to be a difficult year for the coating industry, destined to be a year of crisis, or a year of crisis. Over the past year, the market environment of the industry has been deteriorating. Affected by the superposition effect of many factors, such as the domestic macroeconomic downturn, the state's regulation of real estate, and the rising cost of raw materials, consumers began to tighten their pockets, the demand of the home decoration market has plummeted, and the sales of some coating enterprises have decreased significantly compared with the same period. The market environment is still showing a downward trend: the domestic economic growth rate has declined and will decline for a long time; The business environment of enterprises is becoming more and more difficult, and it will be more difficult; Production and operation costs are getting higher and higher; The survival pressure of coating enterprises is increasing, and will be greater; The market competition is already very fierce, and it will become more intense... These difficulties and problems cannot be changed at present, but will only become bigger

the weak ability of independent innovation and the increasingly serious homogenization of products have led to the intensification of low-level marketing competition in the coating industry, and the already meager profit space of enterprises has been continuously compressed. The increasingly smart and rational consumers have made the effect of marketing means such as promotion of paint enterprises weaker and weaker. International strong brands monopolize the domestic first and second tier high-end coating market, forcing coating enterprises to sink their channels and send coatings to the countryside, but the effect is limited and the survival pressure is doubled. The collapse and closure of enterprises and brands, the running of bosses, the closure of stores and other information indicate that the past great leap forward development model of the coating industry has shown a decline in the cold winter of the market, and the pressure of the industry reshuffle has made the entire industry environment more complex

the extensive development mode for many years has accumulated many problems and focuses in the coating industry. After the abnormal market environment, all kinds of crisis symptoms broke out at once, which caught the coating enterprises unprepared and temporarily in trouble. Marketing crisis. Under the promotion revenue of first-line brands increased by 3.31% to 888.5 and the market penetration offensive, the second and third tier brands that originally relied on price advantages to survive, and the main battlefield was the second and third tier and third and fourth tier markets, their advantages were weakened or even lost, and there was almost nothing to do

due to the lack of sufficient brand influence, coupled with the limited profit space of the original implementation of the "cost performance strategy", and the lack of sufficient product features, although the majority of small and medium-sized enterprises have done their best and made unique moves, their driving force for sales growth is very limited. In addition, in terms of product research and development, some coating enterprises did not have an insight into the differentiation of consumer demand. They piled up a concept only by advertising bombing, which won the temporary attention of the market, but ignored the refinement of the differences between their own product services and their peers, did not form a common ground with consumers, and even fake and inferior products flooded the market, resulting in low-price competition and disorderly competition of similar products in the market. On the other hand, under the weak market environment, dealers are cautious about adding new brands and new projects with very obvious price advantages, and it is also difficult for small and medium-sized enterprises to develop the blank area market

capital flow crisis. Capital flow is like the blood of enterprises. Under the macroeconomic environment of market obstruction, rising costs, tight money supply and so on, the capital flow of some coating enterprises has a crisis, which is not only the inevitable result of the marketing crisis, but also the biggest inducement to the failure of enterprises. If the capital flow breaks, the survival crisis of enterprises will reach the peak and burst out in a concentrated manner, and it is not difficult to understand the shutdown, bankruptcy and running away. Some people have advised that in a crisis, we should especially tighten our pockets, not only to spend the endless crisis years, but also to ensure that the minimum reading of corporate muscle reaches 0.0001n

this is a conservative policy, and there is also a positive approach, that is, to take advantage of the crisis and look for opportunities in the crisis to create tomorrow's competitive advantage, and then the processor will deal with this signal, and make early investment and paving, such as accelerating R & D and innovation, improving services, expanding channels, promoting transformation, and realizing overtaking on curves or rising against the trend

cost crisis. This is also one of the biggest crises facing coating enterprises. In recent years, the rising cost has made coating enterprises miserable. Labor, raw materials, operating costs, etc. are rising all the way. Both manufacturers and dealers are facing the same problem - rising cost

the rising cost not only compresses the profit space, but also puts great pressure on the survival and development of enterprises and dealers. According to insiders, the cost crisis has exposed that the extensive development mode of low-cost in the domestic coating industry for many years has come to an end. Market, capital and cost crises are interdependent and cause and effect each other, which together constitute the crisis trilogy of coating enterprises

the crisis of business model is also a matter of concern for coating enterprises, which not only includes market, capital and cost, but also includes a series of elements such as R & D, design, innovation, brand, manpower, management, organizational structure, process and so on. Paint enterprises have been taking increment as the main means of development, with low added value of products and lack of popular well-known brands. They compete to pile up and sink channels, expand sales and earn profits by increasing the number of dealers, which eventually leads to a series of problems such as homogenization of products and marketing models, vicious price competition and so on

weak independent R & D and design, weak brand innovation and channel innovation, single profit source channel, and almost nothing to do to increase the profit source, such as service, R & D, channel, management, not only affect the coating enterprises to build international and modern enterprises and brands, but also hinder the process of "creating a coating power in China". Therefore, the importance of business model innovation is evident when it is included in the industry's 12th Five Year Plan

the crisis is a test for all paint enterprises, but the results will be different