Before this round of real estate regulation, China’s annual real estate investment of about RMB 4 trillion and the total construction area of ​​more than 2 billion square meters contributed to the strong demand for the construction paint market. The architectural coatings accounted for more than 34% of the total output of paints and dominated the world. At present, many building materials industry markets in the downstream of the real estate have shrunk, but the paint market has not shrunk significantly, but has shifted its direction towards affordable housing and commercial real estate. In the direction of development, in some of the relatively affluent 234 cities, even the villa market has been opened.

Market displacement

Looking at the real estate market in the first half of 2011, the introduction of the “State of the Eight” and the policy biased the security housing market, the average chain price of commercial housing has significantly decreased, and the number of cities witnessing a chain increase has been decreasing, and the rapid rise in house prices has been effectively controlled. . In terms of affordable housing, the central government plans to build 6,300 units of protective housing, 3.3 million units and 5.8 million units respectively in 2008, 2009, and 2010. Last year, this figure rose sharply to 10 million units, an increase of 72.4% compared with 2010. This shows that in the next few years, affordable housing will become the strategic focus of the home furnishing industry.

Looking back at the second half of 2011, the property market policy will continue to focus on austerity. As the property market regulates the penetration of second-tier cities and fourth-tier cities, small and medium-sized cities will become a new competition for the home industry. Many home business owners believe that although the country intends to regulate real estate in small and medium-sized cities, compared with first-tier cities, second- and third-tier urban residents still have a rigid demand for housing. In addition, in some relatively affluent second- and fourth-tier cities, the villa real estate market is also quite prosperous. The second-tier and third-tier villa market will set off a new investment boom. Decoration and decoration and other home paint industries will also focus on small and medium-sized cities.

Good policy

China's building exterior wall decoration materials have long been dominated by tiles, mosaics, marble, curtain walls, and clay bricks, and paints account for only a small portion. In view of this, the relevant state departments have issued various measures to ensure the promotion and application of paint in exterior wall decoration. Recently, local governments are also promoting the application of exterior wall coatings. In particular, under the impact of the international economic downturn and the increasingly fierce competition in the domestic real estate market, developers have more stringent control over costs. However, this has become an excellent opportunity for the expansion of exterior paints.

In developed countries and regions in Europe and America, more than 80% of exterior wall decorations are painted. In the past 40 years, the Singapore Housing and Development Board has built 700,000 government flats and has hosted 86% of the population of Singapore. Every year, many overseas guests and tourists visit the Singapore government flats. They are all colorful and colorful. Most buildings that are decorated with architectural paint are stunning. According to the analysis, 80% of the high-rise building exterior decoration in Europe and the United States and other developed countries refused to use the brick, and use paint decoration, the main reason is that the tile is a kind of high energy consumption products, in the manufacturing process to waste a lot of land resources and consume A large amount of energy does not meet the development direction of environmental protection and energy conservation. The state generally restricts its use. In the use, the single color of the tile is not conducive to the improvement of the urban beautification function. What's more serious is that the adhesive of the tile and wall will be aged and damaged for a long time. Easily wounding people and other security risks, and increase the weight of the wall, not only seriously affect the appearance of the city, but also very difficult to repair. The use of glass curtain walls poses problems such as pollution and high costs.

The proportion of exterior wall coatings for architectural outer walls in China is so low that it is mainly determined by China’s national conditions. First of all, the quality of coatings in our country is on the low side. There is no high-performance coating on the market to suit the Chinese market. In 2 to 3 years, aging, discoloration, peeling, peeling, and chalking are serious. Affecting the decorative effect of the exterior wall, it has long been formed that the paint is a kind of low-cost decoration that is not suitable for the consumption concept of high-grade decorative exterior wall. Secondly, from the perspective of consumer psychology, China's external wall decoration pays attention to one-time investment. It generally requires the service life of exterior decoration materials for more than 10 years. The high-rise buildings require a design life of 15 to 20 years, plus China's serious environmental pollution, external wall decoration materials. The durability and anti-fouling requirements are even higher. Due to the fact that foreign countries do not consider the characteristics of serious environmental pollution, the paint design does not consider the durability and anti-fouling properties of the paint, resulting in the current Chinese market, whether foreign brands or Domestic brands have not yet appeared outside wall paint brands that can play a leading role.

At the same time, in order to reduce costs, the contractor desperately reduced the price of tenders, and artificially blocked many high-quality paints outside the door, while some counterfeit and counterfeit products relied on the “price advantage” to win the bid, plus the engineering tender. The "unspoken rules" have led to the death of local snakes, causing local brands to expel the non-normal phenomenon of the national large brand, the no-name brand to defeat the real brand, and the inferior paint to replace the high-quality paint.

If it is able to comply with the requirements of the Central Government, increase the transparency of bidding for painting projects, and adhere to the principle of openness, fairness, and fairness in the bidding process, and reject black-box operations, then high-quality external wall coatings must be able to overcome inferior quality. Exterior paints really take on the responsibility of beautifying homes.

The favorable macroeconomic conditions and strong market demand are just sufficient conditions for the industry to be good. In fact, even the most optimistic forecasters realize that the rapid increase in the past is gone forever. The paint market will return to the normal growth range from ultra-high growth. In this process, companies must start again in adjustments.

The so-called re-departure, that is to rediscover the blue ocean, open up new market opportunities, to meet the "after 80", "post 90" consumer demand, the introduction of more young products to become a corporate strategy. As one manager put it, “Now loading the houses are all after 70 after 80 and even after 90, they are more pursuing personalization, as companies should pay more attention to market segmentation.”

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