Shanghai paint, with a history of one hundred years, took the lead in announcing the price increase and displaying low VOC products. With the coming of the paint consumption tax, the paint enterprises should strive to make the products and services affordable to the price after the rise rather than tangle over whether to open the price rise. Let the quality and price rise by 4% be worthy of the name.
More than 80% of the income of 90% furniture paint enterprises comes from paint. The net interest rate of furniture paint is 5-10 points on average, and the consumption tax of paint at 4 points is almost a disaster.
As the author said in "low VOC and high added value under the paint consumption tax will become the development direction" published on January 30, and "what seconds kill the consumption tax of paint?" published on February 9, the way to deal with the consumption tax is nothing more than to reduce costs, increase prices and let the paint develop towards low VOC or high added value.
On March 17, the author expressed his understanding of the dilemma faced by the coating enterprises in "is the price rising or not?" that is, the price rising is for survival, the consumption tax is for upgrading, and the Chinese coating industry is waiting and playing the transformation and upgrading.
Many foreign paint companies, such as Berger group, have low VOC paint manufacturing technology, but they prefer to raise prices in the Chinese market rather than produce low VOC paint in China for fear of formula outflow to China. Beige's decision, although somewhat immoral, is the right choice in line with the reality of the Chinese market.
On the contrary, Chinese paint companies really need low VOC paint technology. Only a few enterprises have low VOC paint technology, and they dare not disclose it to the public due to the need for confidentiality of core formula or immature technology.
Looking at Berger Mingming's low VOC paint, he also publicly said that the price was increased. Although Jiabaoli and Huilong said that the price was increased, they could only ask the higher leaders to say that they would not adjust the price temporarily for fear of the loss of customers. The price adjustment is being discussed with customers.
This kind of helplessness caused by homogeneity and overcapacity is deeply understood by the author. At this stage, Tu enterprises are preparing, adjusting and brewing for price increase.
In this year's Dongguan famous furniture exhibition, the coating companies, such as cabaret, zhanchen, Junzilan, China Resources, Huilong and so on, have all locked their exhibits on the low VOC uvcoating, water-based coating, water-based UV and high value-added environmental protection coating solutions or service solutions.
Chinese coating companies have realized that low VOC and high added value are the future development direction of coating industry. But the problem is that the realization of low VOC and high added value needs at least a few years.
And the reality is that it's hard to survive without raising prices. Price rise, how to ensure that customers do not lose, sales do not decline. The double-digit growth that has been used to has become the extravagant hope of Tuqi in 2015.
In other words, although the quality cannot be improved in a short time, the service quality and product added value can be improved in a short time.
As a result, Carpoly, zhanchen, Huilong, Junzilan, China Resources, three trees, huawang and Hualong are all proposing environmental protection coating solutions. Zhanchen focuses on a package of environmental protection coating solutions combining water-based, UV and water-based UVs; Carpoly, who has made great achievements in both water-based and UV, focuses on environmental protection coating solutions, and even introduces environmental protection Pu; China Resources strengthens 4C service quality plan; Huilong focuses on UV environmental protection coating solutions; Junzi LAN, whose UVs are very mature, puts forward that water wood is from Tsinghua University, perfectly combines water-based paint and wood A joint solution.
Huilong even proposed to provide UV equipment for small and medium-sized enterprises free of charge to help small and medium-sized enterprises realize zero investment transformation to environmental protection coating.
They are subverting, or attempting to subvert, the product concept of the paint industry. As Zhou Changfeng, editor in chief of China paint news, said a year ago when he presided over the salon of leaders of Chinese paint companies, the environmental protection coating scheme will gradually replace the paint and become the main product of the paint companies in the future.
They are all adding value to their customers to hedge against rising customer costs.
When the detailed rules for the implementation of the paint consumption tax are issued, it is the time for the paint enterprises to stop waiting and make a decision whether to increase or not, it is the time node for the loss or increase of customers, and it is the beginning of the reshuffle of the furniture and paint industry.
Roger Carr, paint analyst, said in an exclusive interview with China paint news that the price rise of paint is the general trend. Quality and service upgrading is the general trend. There is only one standard for furniture factory to accept the price rise of paint. Coating products and services as well as the benefits, in the end, is worth the price after the rise.
Value based coating enterprises will upgrade in the development and upgrade, so the coating industry will transition to the era of low VOC and realize transformation and upgrading. Worthless Tu enterprises will be eliminated by customers. The same is the price increase, which brand of products and services, behind other coating suppliers, which brand of customers will be lost.