Coatings Industry: Where to Go When Shuffling

Over the past year or so, due to various adverse factors, the paint industry has been very sluggish. As a result, the word “shuffle” has become a hot topic in the paint industry. There are many opinions from experts in the industry. Most people think that the paint industry is washing. The trend of the card is difficult to reverse. It is also claimed that those no-name brands will withdraw from history, and the paint industry will truly have a situation in which brand companies dominate the world.

This view has been recognized by many people in the industry. The reason is mainly based on two points: First, the continuous pressure of China's real estate, some companies can not withstand the cold winter, will inevitably quit the competition; Second, paint as a resource Sex industry, resources will be increasingly centralized brand enterprises.

In fact, the word “shuffle” has been frequently reported to the newspaper several years ago. However, after a few years, paint companies have actually turned up more and more, and there have been no expert predictions.

It is entirely possible that there will be shuffles. At present, all paint companies have already faced their own difficulties. Up to now, there has been no sign of a strong rebound in real estate. As the coating industry lagging behind real estate, it will inevitably experience longer life-spans than real estate. Even if real estate rebounds in the second half of the year, it does not mean that home improvement will immediately prosper.

In addition, at present, part of the list of paint distributors was booked last year, and the pressure in 2012 has not yet been truly tasted. Once the pressure is too heavy, a chain reaction may occur from the dealer to the company. At that time, it is shuffled. Start.

However, it may not necessarily mean that it will happen. Even if it does occur, it does not mean that most companies will be eliminated. This is because: 1. The industry that has shuffled more than half of the time in a crisis has never appeared. There does not seem to be any international precedent. 2. There is a large number of no-name companies in the paint industry as one of the entry thresholds. There is a clear shape of the pyramids, and those no-name brands, because of their small size, low fixed assets, and low liquidity, may temporarily suspend production to avoid the cold. Frozen, once the economy recovers, it may start again.

This is totally meaningless for shuffling. At best, it can only be said to be temporarily suspended. 3, the so-called resource industry issues do exist, brand companies do indeed be favored by resource providers, but the market determines everything, since the existence of no-name cards, there must be a reason for its existence, and this market is still powerful in China Therefore, it is entirely possible for a brand-name brand to use resources abandoned by brand enterprises, such as two-color board and veneer, for production and survival. In addition, resource constraints are not obvious for enhanced coatings. Therefore, the use of resources in the short term to conclude that 60% of shuffling cannot be established.

Some industry experts believe that some experts believe that after this winter, the paint industry will be truly standardized, no-name brands will suffer a devastating blow. China's wood coating companies will appear in the "TV, refrigerator industry" brand enterprises, "Junlin The world" situation.

On this issue, the author does not agree with the above remarks and agrees with the statement that it is not those no-name brands that are really being washed, but those companies that are not brand-name companies.

For a strong brand, because of its popularity and reputation in the market, it is entirely possible to escape the so-called disaster. This is like the principle of cake. When there are many people, the size of the cake may be smaller and smaller. Small cakes are not necessarily separated. In this period of time, if the brand enterprises have grasped the core of the market and adjusted themselves in time, it is entirely possible for them to achieve greater success in the off-season. For non-branded brands, the author has analyzed that they are entirely likely to temporarily suspend business and wait for the spring. The arrival of new roots sprouted.

However, for some "weak brand enterprises", because of the excessively large base of their fixed assets, liquidity, personnel ratio, corporate reputation, and marketing networks, they cannot obtain a large proportion of "small cakes" like brand companies. It can't be "temporarily closed down" like a no-name card. Once it has suffered serious setbacks, it is possible to "make history" from now on.

The author believes that if the situation of reshuffle really arises, there may be such a pattern: from the situation of the completely large tower of gold to the transition of the “little tower of gold” with an increasing proportion of both sides.

In summary, individuals think that first, “shuffle” can only be said to happen, not necessarily happen. Second, shuffling will not wash the so-called elimination half. Third, the biggest pressure for shuffling is those "weak brands", not those no-name brands.