The pattern of China's decorative paint market is facing tremendous changes. It is estimated that China will become the largest market in the world in the next 10 years. At the same time, the market competition environment and national consumer psychology will also have great changes. The international paint giants have already set their sights on China. Very attractive market.
Market Status Quo: Very fragmented At present, a distinctive feature of the Chinese decorative paint market is very fragmented, with more than 7,000 manufacturers competing together. The top five decorative paint manufacturers only have a market share of 25%. In most countries in Europe and even India, the first three to four decorative painters together have a market share of 60 to 80%.
The development potential of the Chinese decorative paint market is also outstanding. Excluding non-construction paints such as industrial paints, marine paints, and Other industrial paints, the annual growth rate of the Chinese decorative paint market is about 10%, and the total annual market value is about For 1.3 billion euros, annual per capita consumption was less than 1 liter. In Europe, the annual market value is about 11 billion euros, and the per capita annual consumption is 10 liters. In the United States, the annual market value is 5.8 billion euros, and the per capita annual consumption is 11 liters. This shows that the Chinese decorative paint market exists. A huge space for development.
On the other hand, this cake has also been made bigger and bigger by several factors: China's GDP has increased by an average of 9.5% per year, and people’s living standards have greatly improved; the construction industry has continued to develop, and industry data shows that the Chinese construction industry has grown by 7% annually, including East China. And the growth rates of major cities have reached 15% to 20%; the housing industry has grown rapidly; housing owners have increased by 30% annually; 59% of Chinese urban residents own their own properties; The transition to the use of decorative coatings, along with the refurbishment of young people and urban family homes, has increased the demand for decorative paint.
The industry expects that the size of China's decorative paint market will increase at a rate of 10% per year. Although it will slow slightly to 6 to 8% by 2008, it is still very impressive. In the next decade, the scale of the European decorative paint market will be annual. Will be reduced by 1%, the United States market will remain stable. Therefore, the Chinese decorative paint market will overtake Europe in 10 years, and then catch up with the United States for some time to become the world's largest decorative paint market. The future development trend of the Chinese decorative paint market will not be able to maintain a fragmented situation for a long time. Mergers and integration are the inevitable direction. The final result may be similar to the Indian decorative paint market, that is, large manufacturers compete in an orderly market and small local manufacturers. Then compete in another more chaotic field.
Consumer psychology: from white to colored, compared to the goods for a long time, Chinese consumers tend to use a single color (usually white) when painting the interior of the house, and will not repaint once they stay in the country, but in Western countries, consumption The painter will choose the paint of various colors to decorate the house, and it will be repainted every two or three years. But now the situation in China has begun to change gradually. Many young and affluent urban residents have started to boldly choose the colors of home improvement coatings. They have gradually adopted more intense and deeper colors and gradually abandoned the use of a single white paint as decoration.
At present, there are too many brands in the Chinese decorative paint market, and it is inevitable that the brands will be mixed. In the face of so many choices, Chinese consumers are good at carefully examining products and comparing prices in order to achieve optimal consumption. As a result, Chinese consumers often visit the newly opened international DIY store for consultation. Refer to the product specification, reference price, and then go to the local lower-priced retail store to buy products. This phenomenon makes many shops can not be called "sales." Center", but can only be called "display center." Another effect of too many brands is that consumers do not believe the brand's surface, but pay more attention to its deeper connotation - the strength of the manufacturer and goodwill.
Akzo Nobel believes that the above-mentioned local consumer psychology is beneficial to its development in the Chinese decorative paint market. The company has a world-leading color matching center, a strong R&D team and a team of experts. It is colourful and diverse, and it has a very high degree of precision. Each color has more than a dozen nuances of different shades. Advanced technology can satisfy consumers. Multiple needs for product color. In addition, Akzo Nobel, as the world's largest painter, also gives local consumers sufficient confidence, which is a competitive advantage that other small and unknown manufacturers can not compare.
Latest Competitiveness Standards: Environmental Protection Capabilities As China agrees to abide by the Kyoto Protocol, and environmental protection has become one of the main themes of the 11th Five-Year Economic Plan, the level of environmental protection ability of decorative paint manufacturers will be a weak one for the future. Watershed.
International companies generally draw lessons from all over the world to reduce the negative impact of their factories on the environment, such as reducing the use of hazardous materials, using the most effective method of waste disposal, and introducing more environmentally friendly products and production processes. International companies in China have advantages in environmental protection because they enter the Chinese market relatively late, so factories and equipment are the most advanced.
On the contrary, many local manufacturers have been operating in China for a long time, and the production process and preparation are relatively old, and it is difficult to meet the requirements of ecological and environmental protection. Therefore, compared with international companies, local manufacturers need to invest more in equipment renewal, waste treatment processes, etc., and change from solvent-based products to water-soluble products in order to meet the increasingly stringent environmental protection requirements of the Chinese government. Bring a lot of pressure.
Industry experts stated that the pressure of environmental protection will be combined with other competitive factors, such as China's accession to the WTO, to promote the transformation of the Chinese decorative paint market and accelerate the integration process of more than 7,000 decorative paint manufacturers in the Chinese market.
Market Status Quo: Very fragmented At present, a distinctive feature of the Chinese decorative paint market is very fragmented, with more than 7,000 manufacturers competing together. The top five decorative paint manufacturers only have a market share of 25%. In most countries in Europe and even India, the first three to four decorative painters together have a market share of 60 to 80%.
The development potential of the Chinese decorative paint market is also outstanding. Excluding non-construction paints such as industrial paints, marine paints, and Other industrial paints, the annual growth rate of the Chinese decorative paint market is about 10%, and the total annual market value is about For 1.3 billion euros, annual per capita consumption was less than 1 liter. In Europe, the annual market value is about 11 billion euros, and the per capita annual consumption is 10 liters. In the United States, the annual market value is 5.8 billion euros, and the per capita annual consumption is 11 liters. This shows that the Chinese decorative paint market exists. A huge space for development.
On the other hand, this cake has also been made bigger and bigger by several factors: China's GDP has increased by an average of 9.5% per year, and people’s living standards have greatly improved; the construction industry has continued to develop, and industry data shows that the Chinese construction industry has grown by 7% annually, including East China. And the growth rates of major cities have reached 15% to 20%; the housing industry has grown rapidly; housing owners have increased by 30% annually; 59% of Chinese urban residents own their own properties; The transition to the use of decorative coatings, along with the refurbishment of young people and urban family homes, has increased the demand for decorative paint.
The industry expects that the size of China's decorative paint market will increase at a rate of 10% per year. Although it will slow slightly to 6 to 8% by 2008, it is still very impressive. In the next decade, the scale of the European decorative paint market will be annual. Will be reduced by 1%, the United States market will remain stable. Therefore, the Chinese decorative paint market will overtake Europe in 10 years, and then catch up with the United States for some time to become the world's largest decorative paint market. The future development trend of the Chinese decorative paint market will not be able to maintain a fragmented situation for a long time. Mergers and integration are the inevitable direction. The final result may be similar to the Indian decorative paint market, that is, large manufacturers compete in an orderly market and small local manufacturers. Then compete in another more chaotic field.
Consumer psychology: from white to colored, compared to the goods for a long time, Chinese consumers tend to use a single color (usually white) when painting the interior of the house, and will not repaint once they stay in the country, but in Western countries, consumption The painter will choose the paint of various colors to decorate the house, and it will be repainted every two or three years. But now the situation in China has begun to change gradually. Many young and affluent urban residents have started to boldly choose the colors of home improvement coatings. They have gradually adopted more intense and deeper colors and gradually abandoned the use of a single white paint as decoration.
At present, there are too many brands in the Chinese decorative paint market, and it is inevitable that the brands will be mixed. In the face of so many choices, Chinese consumers are good at carefully examining products and comparing prices in order to achieve optimal consumption. As a result, Chinese consumers often visit the newly opened international DIY store for consultation. Refer to the product specification, reference price, and then go to the local lower-priced retail store to buy products. This phenomenon makes many shops can not be called "sales." Center", but can only be called "display center." Another effect of too many brands is that consumers do not believe the brand's surface, but pay more attention to its deeper connotation - the strength of the manufacturer and goodwill.
Akzo Nobel believes that the above-mentioned local consumer psychology is beneficial to its development in the Chinese decorative paint market. The company has a world-leading color matching center, a strong R&D team and a team of experts. It is colourful and diverse, and it has a very high degree of precision. Each color has more than a dozen nuances of different shades. Advanced technology can satisfy consumers. Multiple needs for product color. In addition, Akzo Nobel, as the world's largest painter, also gives local consumers sufficient confidence, which is a competitive advantage that other small and unknown manufacturers can not compare.
Latest Competitiveness Standards: Environmental Protection Capabilities As China agrees to abide by the Kyoto Protocol, and environmental protection has become one of the main themes of the 11th Five-Year Economic Plan, the level of environmental protection ability of decorative paint manufacturers will be a weak one for the future. Watershed.
International companies generally draw lessons from all over the world to reduce the negative impact of their factories on the environment, such as reducing the use of hazardous materials, using the most effective method of waste disposal, and introducing more environmentally friendly products and production processes. International companies in China have advantages in environmental protection because they enter the Chinese market relatively late, so factories and equipment are the most advanced.
On the contrary, many local manufacturers have been operating in China for a long time, and the production process and preparation are relatively old, and it is difficult to meet the requirements of ecological and environmental protection. Therefore, compared with international companies, local manufacturers need to invest more in equipment renewal, waste treatment processes, etc., and change from solvent-based products to water-soluble products in order to meet the increasingly stringent environmental protection requirements of the Chinese government. Bring a lot of pressure.
Industry experts stated that the pressure of environmental protection will be combined with other competitive factors, such as China's accession to the WTO, to promote the transformation of the Chinese decorative paint market and accelerate the integration process of more than 7,000 decorative paint manufacturers in the Chinese market.
Bolts Screws Rivet Co., Ltd. , http://www.cn-screws.com