Coating Enterprises: How to Grow Bigger and Stronger
Under the dual impact of continuous shrinkage of external demand and a decline in domestic economic growth, some industries in our country are currently experiencing serious overcapacity, especially in industries with economies of scale. The issues of high capacity, high inventory, high costs, low demand, low prices, and low efficiency are very prominent. The overcapacity situation in the paint industry is also quite serious.
With the current overall order volume not progressing quickly, we definitely need to find ways in the incremental market. The first change in color will bring about an increase in space. Second, if we want to change the market colors in the incremental area, the requirements for other additives will be higher, thus finding value-added space. Different color mixing, including pigments, involves a large amount of consumption, which will also drive the expansion of the upstream chain, and colored paint sells for more than white paint. Third, with the increasing demand for environmental protection, this part of the market is also very broad. The entire paint market first sees an increase in quantity, followed by an increase in quality, ultimately driving the growth of profits in the entire industry. This is one of the paths for China to transform from a major country to a strong country.
From a micro data perspective, including product quality, added value, cash flow, etc., the transition from big to strong should not involve price wars among factories and suppliers. Instead, they should sell more expensive pigments to manufacturers, who in turn should produce better products for consumers. By controlling prices internally, we can increase China's output value. With effective control, we can definitely become stronger.
From a macro perspective, whether from personal feelings or observed data, for China to transition from a major country to a strong country, the first step is to accelerate the performance and quality of products to surpass foreign suppliers and manufacturers. The acceleration of localization is also a sign of China's transition from a major country to a strong country. Secondly, in the process of localization, we must rely on technology and even aim to jump higher based on technology, without fearing being copied. We must innovate and further develop.
China's journey from a major paint country to a strong country still requires a process, and during this process, all practitioners in the paint industry need to work together to create a better future.
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