Small and medium-sized paint manufacturers are facing difficulties. What lies ahead?

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 getting higher and higher, and many industries have formed an oligopolistic competition model. However, during this period of rapid development, the growth pace of China's coating industry in the past two years has not been as fast as before. Small and medium-sized coating enterprises are facing an increasingly severe survival environment, with national macro-control of the real estate market and limited demand. Many small and medium-sized coating enterprises are even 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 opportunities brought by reform and opening up have 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, weak 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 difficult 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 and medium-sized coating enterprises and their inability to afford losses, marketing strategies and tactics become exceptionally important for them compared to large enterprises! If large enterprises are likened to camels, then small and medium-sized 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 and medium-sized 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 and medium-sized coating enterprises

Before discussing the marketing strategy choices for small and medium-sized coating enterprises, it is essential to make an accurate judgment and understanding of the existing marketing environment. Only with the correct concept 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 and medium-sized 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' minds is limited, and various types of enemies have already "occupied" the territory. Our only choice is to defeat one or more competitors to gain "a foothold." Small and medium-sized coating enterprises must always use competitive thinking to guide the formulation of any marketing strategy and tactics.