In 2007, it was a year for China's small-scale paint companies: raw materials continued to rise, business operations became increasingly stressful, and market share shrank. The development of the paint industry has now become stronger and the weaker have become weaker. The data shows that in China's paint industry, small companies account for more than 80% of the total number of companies, but only have about 20% market share. In some developed countries, the number of small paint companies is also very large, but they are very moist. why? The author believes that there are two main reasons.
First, in our country, the product lines of most small paint companies are very long, so long as they are trying to produce paint products. However, due to its small size and limited financial strength, nothing has been done. Different from the situation in China, foreign small paint companies do not pursue small and complete products in terms of product scale, but instead carry out specialized production of intermediate products from raw materials to final products, and have formed their own unique characteristics. And avoid homogenous competition. This is very different from the closed production mode of most paint companies in China.
Second, in China, a considerable number of small paint companies and large companies compete for raw materials, compete for transportation, and sell the market. The two sides are in an opposing competitive state. What's more, some small companies have also played with the name of the product. People call it “Da Bao Qi†and he calls it “Tai Bao Qiâ€, which has caused an adverse effect on the industry. In developed countries, small paint companies are usually attached to large companies. They provide various specialized services for large paint companies, and rely on the support and assistance of large paint companies in the supply, distribution, and sales of technologies, materials, and sales. The two sides formed a relationship of mutual dependence and peaceful coexistence.
At present, as the construction industry continues to heat up, paint companies have a rare opportunity. However, due to the excessive number of brands in the industry and the homogenization, companies will soon face reshuffle. Compared with large companies, small paint companies have inherent deficiencies in technology, capital, and scale. Therefore, if you want to survive or even win, just relying on disorderly competition will not solve the problem. From this perspective, small paint companies in China should also change their thinking and learn from abroad.
First, in our country, the product lines of most small paint companies are very long, so long as they are trying to produce paint products. However, due to its small size and limited financial strength, nothing has been done. Different from the situation in China, foreign small paint companies do not pursue small and complete products in terms of product scale, but instead carry out specialized production of intermediate products from raw materials to final products, and have formed their own unique characteristics. And avoid homogenous competition. This is very different from the closed production mode of most paint companies in China.
Second, in China, a considerable number of small paint companies and large companies compete for raw materials, compete for transportation, and sell the market. The two sides are in an opposing competitive state. What's more, some small companies have also played with the name of the product. People call it “Da Bao Qi†and he calls it “Tai Bao Qiâ€, which has caused an adverse effect on the industry. In developed countries, small paint companies are usually attached to large companies. They provide various specialized services for large paint companies, and rely on the support and assistance of large paint companies in the supply, distribution, and sales of technologies, materials, and sales. The two sides formed a relationship of mutual dependence and peaceful coexistence.
At present, as the construction industry continues to heat up, paint companies have a rare opportunity. However, due to the excessive number of brands in the industry and the homogenization, companies will soon face reshuffle. Compared with large companies, small paint companies have inherent deficiencies in technology, capital, and scale. Therefore, if you want to survive or even win, just relying on disorderly competition will not solve the problem. From this perspective, small paint companies in China should also change their thinking and learn from abroad.
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