Domestic Coating National Brand's Survival Dilemma

In the article titled "Domestic Coating National Brand's Survival Dilemma," it highlights the challenges that Chinese paint manufacturers face in today’s competitive market. Rising production costs, especially due to increasing raw material and labor expenses, have put pressure on companies to maintain high-quality standards while trying to reduce costs. This delicate balance has become a critical issue for many domestic brands. One of the major issues is the intense price competition among Chinese paint companies. With numerous promotional activities, discounts, and aggressive marketing strategies, the industry has seen a lot of short-term success, but few long-term winners. The market is flooded with similar products, leading to a cycle of price wars that often results in declining profit margins. In such a saturated environment, building a unique brand identity, cultivating a strong brand culture, and finding a niche in the market have become essential for survival. Another challenge is the proliferation of counterfeit products. Weak supervision and chaotic distribution channels have allowed fake goods to flood the market, damaging the reputation of legitimate brands. This not only affects sales performance but also hinders the long-term growth of companies. Establishing reliable and secure supply chains is now a top priority for all paint manufacturers. Take Jiangshan City, for example—a small county-level city in Ganzhou. Local paint shops are mainly concentrated along Jiefang Road. According to local dealers, the market is quite regulated, and most shop owners know each other well. Selling counterfeit products is risky, and maintaining a good reputation is crucial for brand development. However, despite this, many stores still carry foreign brands like Dulux and Nippon, which dominate the market. This raises an important question: why do so many retailers prefer foreign brands? Is it because of consumer perception, or are there other underlying factors? From the author's perspective, although Chinese consumers still show strong brand loyalty—especially after events like the recent fishery incidents and the steady growth of brands like Haier—the foreign brands have a strong foothold due to their high-quality products and effective advertising campaigns. If domestic brands can match this quality and marketing power, they might stand a better chance in the market. In the Yangzhou market, the rise of paint-free alternatives has further reduced the market share of traditional coatings. Many consumers now opt for wallpaper or wall coverings due to concerns about construction issues and the prevalence of fake paints. This shift presents a big challenge for coating companies looking to increase their market presence. With the paint market becoming increasingly saturated, companies are now exploring new opportunities. As urbanization accelerates in China, more cities and towns are emerging, offering fresh potential for growth. Paint dealers and manufacturers are beginning to see these areas as promising markets. Expanding into rural regions and small towns is now a key strategy. By promoting their brands more actively in these areas, companies can tap into a vast and underdeveloped market, ensuring long-term sustainability and growth.

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