Market Decay How Coating SMEs Cope with Crises

Over the years, “Jin 9 Silver 10” has been regarded as the traditional peak season for real estate sales, and developers have placed high hopes on sales. However, this year’s “Jin 9 Silver 10” property market turnover has fallen sharply as in previous years. The housing market has been sluggish and the property market has entered the winter early.

It is reported that, as a result of the country's successive introduction of policies to curb rising house prices, first-tier cities’ housing transactions have seen a total decline, with Hangzhou witnessing the largest decline, down 72.55% from the previous quarter. Among the 10 key monitored cities, the transaction area of ​​9 cities fell in a circle. As a downstream industry in the real estate industry, the home furnishing industry will inevitably suffer from the danger of death.

Although the current home furnishing coating industry has not encountered large fluctuations, but as the downstream industry of the real estate industry, it is affected by the upstream industry changes have a certain lag, therefore, the home furnishing coating industry must not be taken lightly, companies need to paint the future consumer market Do a good job of analysis and timely adjust production and sales.

China is the world's largest paint producing and consuming country. However, due to the low barriers to entry in the coatings industry and the relative profitability of the coatings industry, a large number of companies are attracted to the paint industry to compete for market niches. Therefore, at present, the paint market in our country is confusing, and the quality of products and the strength of companies are uneven. The homogeneity competition is serious and the product credibility is hard to be guaranteed.

The distinctive feature of the paint market is that consumers’ choice of products is increasingly concentrated on several well-known brands. Such as the formation of wood lacquer in the market to Carpoly, China Resources, Cardin, Nippon as the main camp; wall paint to Nippon, Dulux as the main camp.

On the one hand, the vicious competition of SMEs and the cohabitation of the paint market have caused consumers to lose confidence in brands that are not well-known. On the other hand, many well-known brands have already had a more complete service and quality assurance system. At the same time, they also pay more attention to brand management and attract more consumers.

Then, the paint industry is facing the danger of shrinking the market. At the same time, with the concentration of consumption, how should SMEs seek survival and development? In this regard, Xiao Bian has the following two suggestions.

First, take the differentiated route and provide personalized services.

In fact, one of the most important reasons for the fierce competition among SMEs in the coatings industry is that the homogenization competition is serious. Under the circumstances of product quality, brand publicity, and corporate strength, many companies often attract consumers by depressing prices. As more and more companies are involved in the vicious competition in price wars, the profitability of paint companies will become smaller and smaller.

Although small and medium-sized enterprises do not have the mature R&D and sales promotion models as well-known large companies, small businesses are also more flexible and tend to outperform large enterprises in terms of personalized services. Therefore, Xiaobian thinks that SMEs may wish By providing personalized services to accumulate corporate reputation, once a company has a reputation, the product will naturally attract more consumers.

Second, take the brand strategy and build core competitiveness.

Many SMEs are aware of the importance of the brand, but in brand promotion, they are often constrained by factors such as financial resources, promotion ability, etc., and thus fail to achieve the desired publicity effect. In this regard, Xiao Bian believes that on the one hand, SMEs should establish brand awareness, and also try to find different ways to promote the brand, not just advertising, through the media as simple as propaganda. SMEs are best able to invest in team building that specializes in corporate brand marketing.

Enterprises must take the brand strategy, it is essential for the company's core competitiveness, companies need to continue technological innovation, service innovation, and actively develop new environmentally friendly, high-performance new products in order to have full strength in the fierce competition The foundation will have the opportunity to win the market.