Coating market enters the era of micro growth

In 2014, the growth rate of the major economic indicators in the paint industry in China slowed down, and the activeness of the industry was generally low. The paint market entered the era of micro growth. In particular, industrial coatings use industries; labor costs, tax costs, and management costs have generally risen, and the reduction in raw material costs has increased the overall profitability of the paint industry.

In addition to the country’s emphasis on environmental governance, rising production costs, and increasing consumer awareness of environmental protection, and the future, the Ministry of Environmental Protection, the State Administration of Taxation, and the Ministry of Finance may “acquire an increase in consumption tax on solvent-based paints in the restricted category of industrial structure adjustment guidelines”. All of these make traditional paint companies more and more “unprofitable” and have entered the era of micro growth.

However, it is not so much that the market environment has changed the past profit model of the paint industry. It would be better to say that the paint industry as a whole has lagging development concepts and cannot keep up with the changes in the market.

The paint industry has entered the era of meager profits and has issued warnings to paint companies that they are “changing with the change, failing when they are unchanged, changing when they are born, and changing when they die unchanged”. Only the “structure adjustment, transformation and upgrading” of the whole industry can find new profit growth points in the already saturated industrial market, and can be applied and developed in more segments. Only by getting rid of the paint industry's past problems, environmental pollution, and lack of scientific and technological R&D investment, the paint industry can really break through the bottleneck and regain the favor and recognition of the market and consumers before it can start a new market. Competition and demand are invincible.