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The impact of this epidemic on the coating industry

Addtime:2020-03-05

The paint industry market presses the pause key, the physical store encounters the freezing period, and the paint sales are close to stagnation

The impact of this epidemic on China's first-line paint market has been fully revealed. The most obvious is the suspension of coating distribution logistics, offline promotion and promotion activities, and even the business hours and passenger flow of building materials chain stores are still in continuous compression.

Although it is not clear when the epidemic will end, short or long, the impact on all levels of the coating industry has gradually emerged and affected the vital interests of every coating person.

Short term impact, mainly in

Supply chain and cash flow stop

1. Difficulties in coating manufacturing and production recovery

Due to the fact that during the epidemic period, personnel can not flow freely, the logistics and transportation are also limited to a certain extent, and the industrial production activities may be passively postponed due to the time limit for resumption of work, the actual rework situation of employees, the protection standards and material conditions during resumption of production, etc. It is difficult to maximize the operating efficiency of the enterprise. The product delivery of the manufacturer and the purchase of the terminal enterprise are affected, which directly brings the whole coating manufacturing system an industrial halt.

Especially for the coating manufacturing enterprises that actively promote "de Stocking" in recent years, the factory inventory of resin, titanium dioxide, solvent and other main raw materials is gradually tightening. Even if they can quickly return to work and start full power production in the future, they will also face many problems, such as shortage of raw materials and rising prices of raw materials.

2. Paint sales suddenly fell into the mud

Encourage home-based protection, suspend commercial activities such as exhibition and promotion, return to work late in the terminal home building materials hypermarket and dealer stores, stagnate paint supply and sales, and press the suspend key for all businesses in the first-line paint market. A large number of offline promotion, experience and promotion activities have been stopped, and only online promotion activities barely maintain the status quo. But logistics distribution will lag far behind.

At the same time, the coating engineering service has been put on hold under the background of strict management of road and village closures. The downstream application industries of coatings, such as real estate, furniture, automobile, industry, infrastructure, construction site, etc., are also hard to recover immediately, the terminal sales link is not through, and the coating enterprises are facing cash flow difficulties.

Therefore, from late January to February, it's not surprising that the paint sales market experienced a precipice like decline. There are already many enterprises and institutions with early warning. According to the survey report on the resumption of coating industry in Guangdong Province, most of the enterprises are expected to have difficulty in the operation this year. Only by "overcoming the difficulties together" can the brands, retailers and service providers get better.

3. The development situation of coating industry is even worse

After continuous decline in 2018 and 2019, the whole Chinese coating industry is more confused and confused about the future prospects. Now, under the epidemic situation, the paint market will be "worse than worse" in 2020, and "confusion, hesitation, anxiety and worry" are still common emotions. The epidemic situation is far away, but the company's pressure is near at hand, and a large number of coating people's confidence is frustrated and passion is hard to continue.

At present, the whole Chinese coating industry has been immersed in a round of "continuous silence" for the future development and change prospects. Many manufacturers have neglected three months, half a year and one year later, but how to get through the most difficult two or three months at present.

Since the start of 2020, due to the early arrival of the Spring Festival, many enterprises' business work has been scheduled to February and later, but now it has been flashed by this "natural disaster". If large enterprises can still be "rich", then a large number of small and medium-sized enterprises are obviously "one day after another". If they can't survive, they will disappear.

Medium and long term impact, leading to marketing mode fission and channel change

In the medium and long term, the whole China's family consumption concept will face a great change after this home-based prevention and control and health baptism. Finally, the fission of life style and the change of consumption style will directly lead to the layout of the whole coating product system, the change of multi-channel, and the chain reaction of marketing service mode.

1. Promote a healthy and environmental protection consumption tide

The emergence of novel coronavirus pneumonia has become the consensus of people to pay attention to improving the health of individuals and the environment. Consumers are paying more attention to health and hygiene. Healthy and environment-friendly, anti-bacterial and air purifying coatings will rebound in stages, especially the sub categories such as anti-bacterial coatings, air purifying coatings and air fresh coatings, which will become the key projects recommended by many coating brands in the future, driving the structural growth of the products of the enterprise and accelerating the development of high quality.

From the perspective of long-term prevention of pathogens, in addition to developing good health habits and enhancing physical fitness, promoting the use of antibacterial materials, and creating a safe and healthy living environment in the whole society, it is also an effective way to prevent diseases in the future. The epidemic at least gave the anti-bacterial coating products of many leading enterprises such as Kansai coating, Nippon, sanjeshu, Chenguang, and Maxus enough publicity.

2. Start a flow of media sales

The physical stores are temporarily frozen, but the impact of the paint dealer channel is intuitive but unavoidable. The new media retail channel layout starts, the network sales speed up the landing, and the paint sales channel presents an all-round starting point. We need to keep pace online and offline.

First, no one came to the offline physical stores, forcing all the shopping guides and salespeople to take live sales, friends circle sales, even wechat group, QQ group and other streaming media platforms to transfer information to achieve drainage and find customers.

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