Disadvantages of Dialysis Market in China's Paint Distributors and Treatment Measures

With the increasingly fierce competition in the coating market, online sales have become more and more profitable, and provincial-level agents that were strongly supported by the original companies may turn into agents for other paint brands at any time. Therefore, many paint companies have not only focused on network sales, but have formed a development team to carry out carpet-based customer development for industrial clusters.

This year, many paint companies are making concerted efforts to sink their marketing channels. Dealing with distributors and directly facing customers is an increasing sales strategy adopted by Shandong paint companies. A paint terminal battle is underway.

Incentives: The drawbacks of the traditional marketing model highlight the “fierce competition in the coatings market, and the disadvantages of the multi-level, pyramid-based traditional channel marketing model are highlighted.” Gao Daqing, manager of North China Marketing Department of Shandong Pentium Paints, said. He explained that the traditional channels and modes of circulation, dealers at all levels of price increase resulted in low product price competitiveness, and market information feedback lags behind, highlighting the phenomenon of counterfeiting, and the phenomenon of stocking is serious. After the paint companies invested human and financial resources to support dealers and open up the market network, dealers often registered similar paint brands, causing companies to suffer losses.

“The sinking of channels is an inevitable choice for enterprises to strengthen market control.” Sun Hongyuan, chairman of Shandong Qilu Paint Co., Ltd. believes that, like other industries, the market game between paint companies and distributors has never stopped.

Shandong Liandi Paint Co., Ltd. is a new high-end paint company established for 15 years. In order to expand the end customer base, the company launched the “Use Liandi Paint, Get Air Conditioning Machine” activity on June 8. This is the first large-scale free market development activity since the establishment of the plant. "The market is changing rapidly. If we want to avoid being eliminated, we must keep up with this change. What we need to do now is to innovate the sales model and make efforts in the terminal and go straight to the forefront of the market," said Dai Maozhen, manager of the company.

The author also learned that Shandong Lehua Group, together with the Qingdao Coating Research Institute, jointly invested in the establishment of an industrial anti-corrosion paint R&D center this year to connect construction units and paint units.

Measures: Reduce circulation, speed up the benefits of capital turnover on channel sinking, and the heads of several paint companies have reached a consensus - can effectively reduce the circulation, speed up capital turnover, it can give the end customer greater room for profit; Can reduce the power of distributors' speech and enhance the company's own market control; directly facing the use of paint companies, you can also compress the living space of counterfeit paint, further standardize the market competition order, safeguard the vital interests of paint companies, establish and expand the brand Influence.

According to Yue Wangkun, the former secretary general of the China Coatings Industry Association, the consumption structure of the terminal has undergone tremendous changes, and the new environmental requirements for anti-corrosion and other projects have accelerated. Directly from the paint manufacturers to purchase, and get the manufacturers to track the product after-sales service, become the customer's consumer demand. This demand was quickly captured by many paint companies and incorporated into marketing strategies.

“The paint industry has entered the stage of integration and reshuffle. Whoever can control the terminal can truly win the market.” Meng Xiangkai, Chairman of Shandong Pentium Paint Industry, predicted.

Coating dealers talked about business development. “Wang Shengxue, the manager of Hebei Wuji Responsible Market Development, successfully developed the trailer plant market in May. Only auto paints sold over 50,000 yuan.” On June 11th, the author was at Shandong Pentium Paint Co., Ltd. During the interview, Liu Jing, manager of the North China market for the company, said.

Mr. Gu Shigang, Marketing Director of Shandong Pentium Paint Industry, told the author that in order to reduce the adverse effects of raw material price increases, the company quickly integrated the sales mechanism.

Transit banks were set up in areas where sales of agents were weak, and the company's business managers entered the market directly to do brand promotion, delineate industrial users, and improve after-sales service.

“Currently, the Zhangqiu Tower Crane and Huangqi Auto Cluster have used our products. We have also increased sales while maximizing product efficiency,” said Mr. Gu. The author learned that Pentium and Qilu paints started earlier in channel sinking and terminal services. The 20 paint industrial development teams recently formed by Shandong Pentium Paint have achieved good results across the country. According to reports, this is an important part of the company's overall marketing strategy this year.

"Courtesy of foreign affairs" will surely become the past with the promulgation of the "Twelfth Five-Year Plan", and the country's development policy is a good opportunity for the domestic paint and coating industry. Domestic paint brand development needs to see the trend of the industry and improve the technology. After all, the national paint brand will break the consumer market of “beauty”.