Low-end paint market needs planning and guidance

The low-end Chinese paint market is full of many domestic companies. What kind of phenomenon is behind this kind of competition? Is this competition conducive to the development of the low-end market?

Analysts say that the low-end Chinese paint market is already over-saturated. If you do not conduct an industry plan then in the future, it can be said that there will be a large number of small companies forced to go bankrupt or suffer mergers with other large companies because a market is limited. So it is impossible to integrate into too many companies. Then in this situation you squeeze me, I squeeze you, and finally the poor companies will certainly disappear in the market. Therefore, the future of oversaturation is the result of the collapse of a large number of enterprises. To make efforts to change the current low-end market, we must rely on the relevant departments to guide the transition of small and medium-sized SMEs that are not well-equipped, or to withdraw from the paint market to attack other industries.

The paint market needs to be planned and guided in the future

A typical feature of China's low-end market is that it depends on price competition. That is to say, everyone is not a product of quality and service, but rather than the product price, the lower the price, the greater the advantage in the low-end market. Because this kind of excessive price competition makes low-end paint companies get less and less profits, disorderly competition will eventually destroy the low-end market companies. Finally, if there is a major crisis in the entire low-end market, it will give foreign companies a major opportunity. If foreign companies take the opportunity to start acquisition stations to annex small-scale Chinese enterprises, then rectification or auction will make China's low-end market quickly occupied. Then the entire domestic paint companies will show signs of collapse, and foreign companies, especially German paint giants, will have a smoother road to achieve hegemony in China.

The future of China's paint low-end market is very bleak. If the industry does not have a leading organization to make practical plans and guidelines, it will be all businesses in the industry if prices do not need to compete. In fact, why did this pattern of random competition emerge? It is because the pace of development of Chinese companies is too rapid and they are not focused on quality and service. They want to make a foreboding on prices, but their profits are shrinking. Therefore, only reform and planning can save China's low-end market. Way.