Can architectural coatings compete with ceramic ti

Can architectural coatings compete with ceramic tiles in the third and fourth tier cities

can architectural coatings compete with ceramic tiles in the third and fourth tier cities

September 18, 2014

[China paint information] architectural paint, also known as wall paint, generally refers to the paint used for the interior wall, exterior wall, ceiling and ground of buildings. As a kind of coating products mainly used for house decoration, the market of architectural coatings is closely related to the development of the real estate industry. In recent years, the frequent emergence of real estate policies has posed great challenges to the survival of the coating industry, and its competition situation is becoming increasingly severe

in this context, various architectural coating enterprises are seeking new ways out, and many coating brands have focused on the third and fourth tier cities

purchase restrictions in big cities derive from the third and fourth tier markets

the state continues to tighten the regulation policy of the real estate market, which has brought pressure to the building coating industry. On the other hand, the purchase restrictions in big cities also leave room for the development of the third and fourth tier cities and provide a good opportunity for the channel sinking of the building coating industry

the development strategy of architectural coating enterprises that rely heavily on real estate is often formulated around the development trend of the real estate industry. At present, many first tier cities are still adhering to the purchase restriction policy, while the transaction volume of the real estate market has not increased significantly in cities that have been deregulated due to factors such as loan restrictions. According to data, among the eight cities that took the lead in adjusting the purchase restriction policy, only Hohhot saw a significant rebound in transactions, while Wuxi, Nanning, Shenyang, Lanzhou and Wenzhou saw a short-term surge in transactions at the beginning of the policy relaxation, and then gradually recovered to the level since March this year. Xiamen and Tianjin almost did not respond to the policy adjustment

therefore, in the face of the increasingly saturated market in big cities, the coating industry has vigorously expanded county and township channels, from first tier cities to second tier cities, to third and fourth tier cities

on the other hand, with the promotion of the national new urbanization policy, the real estate in the third and fourth tier cities showed a good development trend, which gave birth to many small and medium-sized coating enterprises in a short time. A brand paint dealer in a county said that in recent years, the number of farmers who came to buy products has greatly increased, accounting for the average of daily sales. He analyzed, "the increase of rural migrant workers and entrepreneurs returning to their hometown to build houses directly stimulated the demand growth. These people have experienced urban life, have a certain understanding and recognition of brands, and have a certain pursuit of product quality, which led to the increase in demand for water-based coatings, architectural coatings, etc."

several architectural coating brands have entered the third and fourth tier cities

Nippon Paint, as the industry leader, has also targeted the third and fourth tier cities in this year's brand driven black knob upgrade strategy, successively setting up franchised stores in the third and fourth tier markets to further expand its market share. This undoubtedly brings a strong impact to the small and medium-sized enterprises in the third and fourth tier. The person in charge of a small and medium-sized paint enterprise in Shunde, Guangdong Province said, "Nippon is now crazy about opening stores in the third and fourth tier market, which puts a lot of pressure on our small and medium-sized (paint) enterprises. The price of big brands like Nippon is lower than ours, and consumers are increasingly tending to brand consumption, so we have no advantage." He admitted that the sales performance in the first quarter of 2014 was very poor

in fact, in addition to nippon, coating giants such as Dulux, China Resources precision, carlys, and Metso have also targeted the "cake" of second and third tier cities, deployed business opportunities, accelerated channel sinking, and gradually penetrated products into the second and third tier, or even fourth tier markets. Zhang Wenhui, general manager of Jialishi paint, one of the top ten enterprises in China's coating industry, whose business department is scattered in the following places around the world: dormagen, Germany (R & D); Krayfield udingen, Germany (nylon 6 polymer, composite products); Germany utrop (PBT polymer, composite products); Britten, Germany (tepex production and development); Antwerp, Belgium (nylon 6 polymer); Wuxi, China; India jihagadia (composite products); Gastonia, USA (composite products); Mr. felis port (composite products) of Brazil said: "the second and third tier cities are no longer an empty slogan, but are becoming a real and predictable future. When we talk about the foam, return tide and changes in the situation of the first tier cities, the second and third tier cities are ushering in the spring of China's coating industry."

industry experts pointed out that the consumption level and purchasing power of people in the third and fourth tier markets are not as good as those in big cities to a certain extent. If paint brands want to open up a new paint field in the third and fourth tier markets, they need to clearly understand the purchasing power of local consumers and make paint products that are consistent with the local purchasing power

can coatings compete with ceramic tiles in the market

in everyone's traditional concept, it has always been believed that "face bricks are higher than paint, and stone materials are higher than face bricks". However, with the development of the times, decoration is becoming more and more rich and fashionable, and architectural coatings can play a dual effect of protection and beautification, which has gradually attracted people's attention

in contrast, ceramic tiles have also been sinking channels in recent years, expanding to third and fourth tier cities. In the third and fourth tier markets that have been gradually tapped, architectural coatings may have a certain impact on the ceramic tile market