Supply side reform in coating industry focuses on upgrading quality

[] the paint industry supply side reform and quality, followed by the amount of maintaining stability. The focus of expanding domestic demand is incremental, incremental, in fact, is the only GDP theory. The supply side reform is in the elimination of backward production capacity, boosting the quality and efficiency of enterprises, industry upgrading, the upgrading of consumption, but also will be more overseas purchasing power at home, only on the GDP treatment and repair caused by the low excess capacity, environmental damage and serious side effects. In other words, upgrading and healing is the key to the reform of the supply side of the coatings industry. The supply side reforms and expanding domestic demand is a double-edged sword. But we used to focus too much on the three carriages to expand domestic demand and stimulate domestic demand. Coating analyst Roger Karl said that over the past ten years, our country has been expanding domestic demand, that is, Paul growth, in fact, is the only GDP theory. This is China’s grasp of the world economic crisis, and the need for a rapid rise, as well as the great rejuvenation of the Chinese nation. After ten years of barbaric growth, Chinese, financial capital, manufacturing, services, real estate industry, a lot of problems with the current residual lag economy does not match the hardware software, soil, air, water, vegetation and other natural environment has been severely damaged, Chinese manufacturing in the low-end backward production overcapacity, serious in the high-end advanced capacity. Paint, steel, cement, photovoltaic and other industries, structural overcapacity serious, it is time to adjust the structure, repair the rapid growth of the internal injury and side effects of the time.
On the surface, the supply side is in the reform and improve the industry threshold, forced the elimination of backward production capacity, accelerate the transformation and upgrading of the industry, promote the quality and efficiency of enterprises, accelerate the upgrading of industrial structure adjustment and market consumption structure, is in fact the country intends to supply side reforms, upgrading of the consumption structure will Chinese overseas consumption huge purchasing power, as much as possible in China, to stimulate domestic demand, and repair only on the GDP of the low-end industry caused by overcapacity, serious environmental damage and other side effects. 12th Five-Year planning late, we have entered quietly into the era of consumer upgrades. The most typical performance is that the world’s annual production of luxury goods, half or more than half, was bought by Chinese consumers. 2015, China’s overseas consumption amounted to 1 trillion and 200 billion yuan, continue to win the world’s luxury goods consumption, and become the world’s economic downturn in the most beautiful scenery. 1 trillion and 200 billion, equivalent to half of Shanghai, equivalent to 5 Shunde. If these 1 trillion and 200 billion overseas consumption stay at home, 2015 of China’s GDP growth will be 7%, rather than 6.9%.
Paint analyst Roger Karl said that although the economy down, but in the era of consumer upgrades, the purchasing power of high-end consumers in China has not been affected. At the same time, China’s consumer mainstream groups likes and dislikes, but also by the low-end quality and low price, to high-end high-quality, high prices have undergone metamorphosis, double mainstream consumption patterns are emerging. Jobs era, or tall on the Apple phone, Cook era has become arcade. With the release of Mate8 and P9, HUAWEI Mobile has become the first to be transformed into high-end domestic mobile phone brands. Besides paint, positioned in the high-end Fenlin paint, growth of 30% in 2015. It has already reached ten billion size of the state legislature, in 2015 also increased to two digits. Under big data, consumer spending has become an irreversible trend. Consumers who need high quality products and accept high prices are becoming mainstream consumer groups in the future, while mainstream consumers, who are in need of cheap quality, are beginning to decrease.
This is for the Chinese manufacturing enterprises to improve quality and efficiency, the Chinese manufacturing industry transformation and upgrading, providing a huge market demand. And this increasingly powerful market demand, is forcing enterprises to improve quality and efficiency, industry transformation and upgrading, to achieve consumption upgrades. Of course, the country is also using legislation and tax, project, finance and other levers, forced to eliminate backward production capacity, increase advanced production capacity, fill the gap in the industry, timely guidance of Chinese manufacturing, made to China wisdom upgrade. In the future coating market, industry concentration will be further improved. Market share will gradually focus on higher quality brands with higher price, high quality and high service. Of course, small and beautiful paint brands and local brands will still have room for survival, but only by the local brand into the national brand opportunities and space, once again compressed. Low quality low-end coatings and unlicensed and tax evasion black mills will gradually fade out or perfect invisibility in the supply side reform. And cheap, quality stability, brand influence paint, will be concentrated to the engineering coating channels.

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