The 'price war' in the coatings industry started

According to the latest data from the National Bureau of Statistics, the producer price index of the national paint, ink, pigment and similar products manufacturing industry (the same month of the previous year = 100) will be 99.7, 99.7, 99.8, 98.3, 97.2, 96.9 from January to July 2020, respectively. , 96.4.

Among them, the producer price index of paint, ink, pigment and similar products manufacturing industry in July 2020 dropped 3.6% year-on-year, which is the month with the largest decline so far. In addition, from the data point of view, product prices are all the way down, and low prices can be said to have spread in the coatings market.

In 2020, the macro-environmental economy will have a clear downward trend, and with the impact of the new crown epidemic, the demand in the coatings market has been largely suppressed, and coating manufacturers are generally facing financial pressures. "This year’s life is really difficult, as long as you can survive. "The winner is down" has become a common voice.
"Reducing the price of paint products is the most direct way to attract distributors and consumers. Recently, the company's paint product prices have been lowered, and some products have reduced prices by more than 20%." Meng Tengfei, deputy general manager of Bestune Paint, once expressed this.

Therefore, regardless of brand size and positioning, low prices are used as a killer feature. Products are sold at the lowest price, sacrificing profits in exchange for market sales in order to survive. At present, many companies including Chenhong Paint, Jiren Paint and Yili Paint have also lowered the prices of some coating products by about 10%.

 If this situation continues, it will definitely cause a chaos in the paint market, which will harm the industry's morals by then.