How foreign investment pressure Chinese paint to build its own "value advantage"

The history of the development of Chinese coatings has been ten years. With constant pressure and setbacks at home and abroad, the development has become more and more complete. When the Chinese paints didn't have time to grow up, they ushered in the WTO. The rush of foreign capital made domestic paint companies caught off guard. Of course, it is not surprising that the maturity and maturity of international companies in the growing stage are not surprising.

In the past, China Resources has not been subjected to market competition with the famous foreign coating brands Dulux and Libang by foreign investment giant Valspar. Even though China Resources did not lose its grip in the contest, it only relied on temporary market environment opportunities. It shows that it has the strength to compete with multinational companies on the same stage. After the rapid growth of Garboli, Dabao, Bauhinia, and Mei Tushi, as well as the recently-announced huge sums of money in the CCTV to become the advertising standard king tree and other national paint companies have not caused the Dulux, Nippon and other foreign brands The encirclement of influence. Some people in the industry are pessimistically expecting Chinese national paint companies to face fierce competition from foreign companies. The paint industry, like the camera industry, will become an industry that does not have a globally recognized national brand.

The situation of the national paint industry is not optimistic. Statistics show that since the financial crisis so far, the profitability of Chinese paint companies has decreased, and the loss has further expanded. Most of the paint industry profits are owned by foreign companies and joint venture paint companies, and local companies cannot compete with them. After the news that the Chinese government encouraged foreign investors to participate in the reorganization, restructuring and merger and reorganization of domestic enterprises by means of mergers and acquisitions, it was undoubtedly cast a shadow over the development prospects of the Chinese national paint industry in the eyes of the public. Based on the bad situation, some people in the industry believe that the national enterprises not only have to face the pressure of increasing raw materials prices in recent years, but also face the pressure of international multinational companies' technology and price competition, and some domestic paint industries are overwhelmed. Under the condition that it is not yet mature, the local ethnic paint companies are even more in danger.

According to statistics, China's paint output is as high as 9 million tons, and the huge space for development in the Chinese paint market has also enabled foreign investment to increase investment in China. AkzoNobel and Nippon State have established a solid position in the Chinese market. The US Sherwin-Williams new plant in Zhaoqing has been put into operation. Germany Doufang paint has opened up the market in the north. At present in China, it is the largest in the world. Paint multinational companies have entered the domestic market.

At present, how to survive and develop under the pressure of strong foreign investment is a very serious issue that China's national paint companies urgently need to study.