Protective coatings market in Europe, an early start, after years of development has now entered a mature stage, the market growth slowed down, the current competition, focus on product innovation and technological progress. U.S. growth consulting company Frost & Sullivan recently conducted a detailed analysis on this.
Protective Coating is mainly used to make metal or concrete structures such as the surface from wear and tear, extreme temperatures, high humidity and moisture, fumes, fungi, and other adverse environmental impacts, as well as isolated, including acids, alkalis and solvents, including chemicals. Protective coating is mainly used for oil and gas exploration, power generation, industrial, infrastructure construction (roads and bridges), water and sewage treatment, shopping malls and office buildings, manufacturing and other fields. In Europe, building renovation or about the total amount of protective coating 75% ~ 80%.
v the European market leading manufacturer of protective coatings are Akzo Nobel, PPG Ameron (PPG's acquisition of Asia and the United States set up after the new company Dragon), Sigma Coatings, Jordan Corporation, Denmark for the elderly (HEMPEL) Group and American History Tonko Group (Carboline).
Unequal development in the highly competitive
Protective coatings market in Europe is not very different from the two regional markets - Western Europe and Eastern Europe Markets. Western Europe has developed relatively mature, relatively low market growth, and even in some years negative growth. In early 2009, Western Europe, sales of protective coatings market, a decrease of 5% ~ 7%.
In view of development opportunities for the local market and that competition tends to reduce the fierce, protective coatings manufacturers in Western Europe will be looking to invest in emerging markets, focusing on new growth opportunities in global markets. Protective coatings market in Eastern Europe is in contrast to, whether it is sales, or sales of protective coatings are rapidly growing. The market in the ascendant not only paint manufacturer to bring more development opportunities, but also to enhance its profitability.
Users benefit from industry consolidation
Overall, the European protective coatings market oversupply. Affected by the global financial crisis, the majority of end-users launched a new deferred maintenance projects, the market demand for smaller, the resulting protective coating industry in Europe is entering a consolidation phase. Large firms have growth potential through the acquisition of small companies, so that it can rapidly improve the industrial chain. Compared with the past few years, the European paint and coatings industry, 2009 and 2010 the annual number of mergers and acquisitions may be reduced, but this trend does not stop.
Raw material suppliers in the paint industry plays a key role. European coatings industry, a large shortage of raw material suppliers 5, industry concentration is relatively high. Raw material suppliers is not only a strong voice and some of the raw material suppliers through forward integration into the coating formula industry, which the manufacturer of traditional paint poses a serious threat. ?
With the increase in industry concentration, reduce the number of paint manufacturers, competition, the focus gradually shifted to product quality and price of Bipin, the end-users will therefore benefit, they are more likely to buy better quality at lower prices products.
Increased market access barriers?
Protective coatings market in Europe has matured, more and more intense competition. Large multinational paint company growing through mergers and acquisitions, but also facing the European market, the challenge of declining profits. At the same time, a considerable number of small and medium-sized paint manufacturers are out of the market. Increased competition and a decline in product prices will increase the market access threshold, thereby limiting the protective coating wishing to enter new market entrants.
The European market in the concentration of protective coatings are also very different. Depending on the application of different industries and regional markets, protective coatings market concentration from 55% to 85% range. Western Europe than Eastern Europe. But on the whole, large-scale cross-protective coatings manufacturer determined the existence of concentration in this market higher.
Multi-strategy to enhance competitiveness?
In response to the fierce market competition, protective coatings manufacturer usually adopt the following strategies to enhance their competitiveness.
Product price reduction strategy: the European market for the very strict environmental protection laws and regulations, large-scale paint manufacturers invested heavily in the development of environmentally friendly water-soluble and high-solid coating. At the same time, due to the environmental friendly solvent-based paints, even if the business strategy of taking a sale, buyers willing to buy these products do not have much. Affected by this restriction, coatings manufacturers have to find another solution.
Product segmentation strategy: As the application environment of the different needs of different industries also need to paint formula mix according to practical circumstances. Paint manufacturer's primary task is to use high-performance products to meet specific service requirements. To this end, protective coating resistant to weathering, chalking, color, clear, full gloss, while waterproof, corrosion resistance, wear and heat performance. Large-scale building maintenance works on the paint dry time and the applicability of the more demanding. In order to ensure a leading market position, large multinational companies have invested heavily in R & D in order to stay ahead of product performance.
Flat channel strategy: in 2009, as demand for building maintenance projects a decrease in European demand for protective coatings market fell by 3 to 4 percentage points. Paint manufacturers have to reduce the cost of distribution channels, improve production efficiency and end-user demand for more attention to timely collect user feedback to improve service.