The water-based interior wall paint market is gradually rising.

2014-08-04

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With the gradual deepening of reform and opening up, the overall economic development is showing a downward trend, and the market competition environment is becoming increasingly fierce. The maturity of the industry is rising, and many sectors have formed an oligopolistic competition model. The paint industry in our country has experienced a period of rapid development, but in the past two years, the growth pace has not matched the speed of the past. Small and medium-sized paint enterprises are facing an increasingly harsh survival environment. The national macro-control of the real estate market has led to limited demand, and many small and medium-sized paint companies are struggling on the "edge of survival" every day. According to statistics from national authoritative departments, the average lifespan of small and medium-sized enterprises in our country is only 2.5 years, and a large number of small and medium-sized enterprises are forced to close almost every day.

With the gradual deepening of reform and opening up, the overall economic development shows a downward trend, and the market competition environment is becoming increasingly fierce. The maturity of the industry is rising, and many industries have formed an oligopoly competition model. However, during this period of rapid development, the growth pace of China's coating industry in the past two years has not matched the speed of the past. Small and medium-sized coating enterprises are facing an increasingly severe survival environment, with national real estate macro-control and limited demand. Many small and medium-sized coating enterprises are struggling on the "death line" every day. According to statistics from national authoritative departments, the average lifespan of small and medium-sized enterprises in China is only 2.5 years, and a large number of small and medium-sized enterprises are forced to close almost every day. How small and medium-sized coating enterprises can survive, grow, and strengthen faces unprecedented challenges.

Factors restricting the development of small and medium-sized enterprises

1. Macroeconomic policies

Although the historical opportunity of reform and opening up has provided unprecedented development opportunities for small and medium-sized enterprises, many existing administrative systems in China have also restricted the development of small and medium-sized enterprises to a certain extent, such as the common difficulties in financing and heavy tax burdens faced by small and medium-sized enterprises!

2. Difficulty in recruiting, retaining, and keeping talent

People, especially talent, are fundamental to the growth and strength of enterprises! Due to the small scale of small and medium-sized coating enterprises, relatively rough management, weaker brand power, and significant differences in the compensation system compared to large enterprises, these enterprises face many difficulties in recruitment and retention. From a marketing perspective alone, it is very challenging to establish a stable and "battle-hardened" marketing team.

3. Limited resources, "willing but unable"

Limited resources are the most critical factor restricting the survival, development, growth, and strengthening of small and medium-sized coating enterprises!

4. Vague marketing strategy direction and weak tactics

Marketing is one of the most important aspects of enterprise development, especially for small and medium-sized coating enterprises! Due to the limited resources of small coating enterprises and their inability to afford losses, marketing strategies and tactics become exceptionally important for small enterprises compared to large ones! If large enterprises are likened to camels, small coating enterprises are like rabbits. Camels can go without food and water for a long time, while rabbits must run every day for food! In fact, many small coating enterprises do not have a truly mature and clearly feasible strategy and tactics developed with full consideration of their existing resources.

Correct concepts for formulating marketing strategies for small coating enterprises

Before discussing the marketing strategy choices for small coating enterprises, it is essential to accurately judge and understand the existing marketing environment. Only with the correct concepts can our starting point for thinking be correct, and only with a correct starting point can we formulate the right marketing strategy!

The orthodox marketing concept holds that: marketing is about meeting customer needs and creating value for customers! Is that wrong? No! The key issue is how many "suppliers" are trying their best to please and cater to consumers for the same demand? For example, regarding the demand for water, you can think of at least five major brands (Wahaha, Master Kong, Uni-President, Nongfu Spring, Yibao...). If you are a small enterprise producing water, what would you think? Some say, I can create a new category to achieve product segmentation and take a differentiated route! That's right, this strategy has indeed helped many enterprises achieve rapid growth and even become leaders in segmented categories for a long time. But does today's market environment still provide such opportunities? For instance, the tea beverage industry has long been segmented into green tea, black tea, chrysanthemum tea, oolong tea, etc., and the market is already filled with various segmented categories! How many unsegmented category opportunities are left for you? The reason why many small and medium-sized enterprises, including many large enterprises in China, find it difficult to move forward and fall into difficulties is precisely because everyone is still using a consumer-oriented thinking model for marketing in an era of excess economy, without considering competitors.

In today's fiercely competitive market environment, marketing has become a kind of war. To win, you must achieve victory through flexible and varied strategies and tactics in the confrontation with competitors! In this war, the territory we need to occupy is the consumer's mind! The memory of consumers is limited, and the territory is already "occupied" by various types of enemies. Our only choice is to defeat one or more competitors to gain "a foothold." Small coating enterprises must always use competitive concepts to guide the formulation of any marketing strategy and tactics.

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