In 2006, China Resources was acquired by Valspar as a majority stake, from a national paint brand to a foreign-controlled “foreign†brand. Originally used as a model for national brands of paints, China Resources has become the bag of foreign brands overnight, and people can not help but wonder and sigh: paint national brands can persist for how long?
Acquisition and annexation of national brands is worrying
In fact, since 2006, the domestic coating industry has begun to face the situation of foreign enemies. From the acquisition of Huarun Coatings by Valspar in the United States in September, Shanghai IP and Tuideide were acquired by Akzo Nobel, and in January 2009, Australia and Switzerland. Kay officially announced the completion of its wholly-owned acquisition of the new Opel Chemicals Shanghai Co., Ltd. At the same time, Akzo Nobel joined the China Coatings Industry Association, and the Hong Kong Merchants Merchants Group sold 64% of Haihong's elderly paint to Hempel, indicating that the foreign coatings companies' position in the Chinese market has maintained a strong momentum.
Big fish is too big to mature
In the past, the impression given by paint companies was quite traditional. Foreign companies that gradually took the example of brands such as Nippon and Dulux entered the Chinese market, and gradually established the Chinese paint industry through product quality, culture, and services. New image. Since its own brand maturity before entering the Chinese market is very good, after entering the Chinese market, it has covered China's market immediately after a few years of experience. And the substantial acquisition of many domestic brands, the development of the domestic paint market has almost been presented by foreign brands dominate the situation.
“Latex paint is not a high technology at all. It is a very common formula product. As a result, a product that is simple and simple, the commercial structure of our entire country is very unmatched, and it is so simple in latex paint. Among the products, our Chinese market is completely dominated by a foreign brand and is almost monopolized. So for a traditional manufacturing industry where the overall technology content is not high, such a low threshold, in the Chinese market, It is a very strange phenomenon that our own Chinese manufacturers can't do it well, and this phenomenon is extremely inconsistent with China’s current economic structure and the economic situation and background. Twenty years ago we thought it was normal, but now we think it is ridiculous," said Guo Yanru, general manager of the Classic Paint Marketing Center.
Channel expansion to take full advantage of geographical advantages
In this situation, is it that there is no way to represent national brands? What should a national paint company do? The answer is simple: The first is to do it, and the second is to dare to do it.
It is undoubtedly an inevitable solution to actively learn from foreign brands about their advantages and strive to broaden their own roads.
The classic paint Guo gave their answer: I think the most worth learning is their brand efforts. This is precisely the weak point of the national enterprises that we usually talk about. In fact, we often find reasons to say that we have no money to invest in advertisements. This is an argument, but this is only one aspect. Although brands need to be built with resources, there are many ways to build a brand. You can have your own characteristics, different from others. It's not that he has spent a billion investment, so we want to spend 1.5 billion yuan on advertising. This is not the case. We may not have such a big resource. We only have 30 million. Then how do I do it? I want to find a way to make my brand.
In addition, our own national enterprise in China also has its own strengths. For example, we are very strong in our channels. We can use our strengths to make full use of our strengths. Then we can make up for our shortcomings and find the right path for you. Can also be branded.
From this point of view, national brands are not at a loss. However, there is a lack of strategy or courage. As long as you dare to do it, small fish can still have room for their own survival, and the longer the bigger.