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Home > News > Paint & Coating News > Some paint companies in China have entered the market terminal battle

Some paint companies in China have entered the market terminal battle

ECHEMI 2020-04-02

With the increasingly fierce competition in the coatings market, online sales have become more and more profitable. Many coatings companies this year have invariably worked hard to sink marketing channels. Bypassing dealers and directly facing customers is the sales strategy adopted by more and more Shandong coatings companies. A paint terminal battle is underway.

 

With regard to the benefits of channel sinking, the leaders of many paint companies reached a consensus which can effectively reduce the circulation and speed up the capital turnover and also give the end customer more room for profit. It can weaken the dealer's right to speak and enhance the company's own market control and directly facing paint companies, it can also reduce the living space of fake and inferior paints, further regulate the market competition order, maintain the vital interests of paint companies, and expand brand influence.


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Judging from the development curve, the golden development period of the coatings industry has passed. Rising costs, backward equipment and intensified market competition have led to the closure of many small coatings companies and distributors. Although it is impossible to count exactly how many coating companies and brands are still there, it is certain that the phase-out period of the coating industry has begun.

 

The sales channels of coatings companies have been flat from the beginning of the 21st century to the present. Manufacturers have continuously adjusted and reduced sales areas to provincial-level general distributors and prefecture-level distributors in an attempt to open more outlets and develop more. Dealers work directly with the company. In the terminal store, the specialty store and big store models are all the rage, and the small store operation is struggling. Some manufacturers have begun to promote new stores, trying to improve the competitiveness of dealers and brands in the terminal. Dealer management and cost awareness have gradually increased, relying on the strength of manufacturers to improve their promotion level and sales skills in order to develop more.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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