Analysis: The paint market lurks two major concerns and a major advantage

Business Club May 31st The global economic downturn has affected nearly every industry, and the paint industry is certainly not an exception. Industry officials estimate that the increase in production and sales of the paint market in 2011 will be flat or falling. However, due to the support of the Chinese authorities' aggressive policy, the paint market should revise the momentum of rapid growth in 2012.

One of the hidden concerns: Needless to stimulate the market weakness Affected by the economic situation in the world, China's economic growth began to accelerate. Whether from the GDP growth rate, industrial growth value, or from various indicators such as enterprise orders, the Chinese economy was in a state of shrinkage. Insufficient demand has once become an important issue for China's economic growth and the growth of paint assets.

The indirect impact of the economic downturn in the world on China is the rapid decline in internal demand. The impact of the world financial crisis on China's paint and coating industry began in September 2008, with foreign orders dropping by 10% year-on-year. As an important import category, the import volume of construction coatings and wood coatings has dropped significantly. In addition, because the import market for plastic toys, ships and machine tools and other products has shrunk, the demand for responding paint types has dropped, with a range of 5% to 15%.

At the same time that the entrance situation is not pessimistic, the external consumption of Chinese paint products is also facing problems that cannot be quickly and effectively started. Although the country has recently adopted various steps to expand domestic demand, from the perspective of the Chinese chemical industry itself, there is still a period of hardship in 2009. The downturn in the upstream market and the declining popularity of consumption have symbolized the desperate domestic demand for coatings.

In short, 2009 will be a difficult year for Chinese coatings companies. Although the authorities have introduced many plans to stimulate economic and industrial recovery, due to the lagging effect of financial policies, the one-sided restoration of economic increase is estimated to be greater than the fourth order of 2009. According to expert speculation, in the first half of 2009, the domestic demand for paint will increase by 2% to 5% year-on-year, and the year-on-year increase rate for the second half of the year may be about 10%. However, the import market is expected to be a negative increase throughout 2009.

Experts estimate that by the end of 2010, the results of China's economic stimulus and industrial revival plan will gradually show up in the paint market. Therefore, the Chinese paint industry is estimated to be out of the stage of growth reduction in 2010, and the import market will also be increasing in 2010. In short, the output of Chinese coatings is estimated to be redoubled by the double-digit increase rate in 2010.

Hidden fears: lack of talent Although the Chinese paint market still has a large room for growth, the prospects are promising. However, we must understand that there is still a big gap between the growth of the Chinese paint industry and the flourishing country. Including the market capacity and per capita consumption level, market model level, property convergence, talent, business scope and financial resources, skills renewal skills, planning form and mind, law enforcement and so on. Among them, the gap in terms of personnel ranks first. Chinese companies have a wide range of planning talents who have the comprehensive nature of global planning concepts, group management thoughts, financial foreign trade brains, high and low travel integrated marketing forms, and stepping in and out. At present, China's paint industry is dominated by small and medium-sized enterprises with private interests, and the level of civilization of corporate leaders and administrators is widely low. Most enterprises have the disadvantage of the regional nature of the city and the many products, and few companies set up factories in foreign countries. Planning.