How does the hottest global paint leader cope with

How does the global leader of coatings deal with China's "new normal"

how does the global leader of coatings deal with China's "new normal"

September 22, 2015

[China paint information] 2015, the centenary of paint, is also regarded as the most difficult year in the paint industry. According to the data, the overall growth rate of the coating industry in the first half of the year was only 0.9%, which was significantly lower than the slowing GDP growth for the first time; The month on month growth rate of output and output value showed a downward trend, especially the negative growth in April and may on a year-on-year basis; Industry enterprises have felt unprecedented pressure on sales growth. Most of the large-scale mainstream leading enterprises were flat or only achieved slight growth in the first half of the year. Some coating enterprises are the first to eat crabs on the road of exploring the development mode of the coating industry. The spirit of "daring to be the first in the world" is admirable. By analyzing and dissecting the transformation and upgrading path of these enterprises under the new normal, they try to provide reference ideas for more coating enterprises wandering in the depressed market environment, and welcome more coating colleagues to discuss and explore, Jointly promote the development and progress of China's coating industry

on July 21, AkzoNobel released the results of the second quarter of 2015 and the first half of the year. The results showed that in the first half of 2015, the sales volume of AkzoNobel was 7.54 billion euros, an increase of 6% year-on-year. What adjustments has AkzoNobel made to the current market environment? Why can the sales volume of decorative paint business in the second quarter still achieve growth in Asia when the growth rate of paint production and output value in China is declining month on month. The following summarizes its development and market actions in the past six months, hoping to understand the future development trend of the coating industry

AkzoNobel's revenue in the first half of 2015

on July 21, AkzoNobel released its performance report for the second quarter and the first half of 2015. The report shows that although the current market environment is full of challenges, AkzoNobel's three business areas still maintain a good level of profitability. The results show that in the first half of 2015, AkzoNobel's sales volume was 7.54 billion euros, an increase of 6% year-on-year; The net income attributable to shareholders was 491million euros, an increase of 47% year-on-year

performance in the first half of 2015 (million euros)

operating income in the second quarter reached 486 million euros, an increase of 38%. This is mainly due to performance improvement projects, cost reduction and restructuring expenses, business divestiture and favorable exchange rate factors. The sales volume in this quarter was 3.949 billion euros, an increase of 6% compared with the same period in 2014, mainly due to favorable exchange rate factors. Some of the growth was offset by business divestitures and sales declines in some regions. The successful divestiture of paper chemicals is in line with the company's global strategy of optimizing its portfolio. In July 2015, the three-year review of the icipensionfund (UK) was completed. The North American market has a positive development momentum, but the European market has not changed significantly. At the same time, some markets, including Russia, Brazil and China, are still full of challenges. In the second quarter, the return on sales rose by 12.3%, and the return on investment rose by 11.7%. AkzoNobel is making steady progress towards the 2015 goal

performance in the second quarter of 2015 (millions of euros)

according to the data released in the first half of the year, AkzoNobel's performance is stable. TonB ü chner, chief executive of AkzoNobel, said, "We are constantly achieving the goal of improving the company's performance. The new company positioning can enable us to fully grasp the opportunities for future performance growth of income quotient. The results of the second quarter show that the leadership focused on improving profitability and sustainable development has brought a positive impact on performance growth. Although the global economy is full of challenges, customer segmentation in various regions is different, and the market environment is complex, we are still moving towards We are making steady progress towards the 2015 performance goals. "

AkzoNobel said that the market situation in 2015 was generally affected by the following factors: the floating exchange rate, the positive development trend of the North American market, the lack of improvement in the European market, and the slowdown in growth in some countries, including Russia, Brazil and China. Some important measures taken by AkzoNobel in recent years have laid a solid foundation for the next step to improve performance

AkzoNobel and China

according to the information learned, AkzoNobel and China can be traced back to 1898. When China opened the door to the outside world, AkzoNobel joined the Chinese market. With the reform and opening up of China's foreign economy, AkzoNobel has gradually increased its investment in the Chinese market. As early as 2010, AkzoNobel announced that it would improve its business objectives in the Chinese market and strive to double its revenue in China in 2015 to $2billion

this move not only shows AkzoNobel's ambition to develop the Asian market, but also shows that there is great potential in the Chinese market

according to the data of AkzoNobel's semi annual report, in the field of decorative paint business, AkzoNobel maintained a steady profit growth in the first half of the year, with operating income rising by 25% and sales increasing by 6%. The increase in operating income is mainly attributed to the new operation mode, cost reduction, reduction of restructuring expenses, strict cost control and favorable exchange rate trend

in this regard, Lin Liangqi once said that AkzoNobel will pay more attention to excellent operation in the form of operation, and improve the overall efficiency by reducing costs and optimizing the channel value chain structure. In terms of cost, AkzoNobel has set up factories and production lines in China, strengthened e-commerce marketing, and paid more attention to profit growth while controlling product sales

AkzoNobel has acquired many companies in the past, which should be fully prepared for the restructuring of the company and adopt the organic growth mode of integrating internal resources, rather than the simple M & a growth extension; Personnel should be appropriately reduced to reduce restructuring expenses, so as to achieve cost control

at present, favorable monetary factors also contributed to a 6% increase in sales, while the sales of decorative paint business increased in Asia in the second quarter

data of AkzoNobel's decorative paint business in the second quarter and the first half of the year

in China, the demand for decorative paint is very huge, which undoubtedly provides a huge consumer market for AkzoNobel, which is mainly engaged in decorative paint. Malys Castella, the newly appointed Global CEO of AkzoNobel, said in an interview that he was optimistic about China's economic growth and that AkzoNobel's decorative paint business had a very bright performance in China

in the past six months, whether the frequent actions of AkzoNobel in China can be attributed to the formation of this brilliant performance

action 1. Sign a strategic cooperation agreement with Poly Real Estate

this year, AkzoNobel decorative paint business department announced that it officially signed a three-year procurement cooperation agreement with Poly Real Estate (Group) Co., Ltd., which will provide exterior wall solutions and coating products for Poly Real Estate. According to the agreement, AkzoNobel decorative paint will provide real stone paint, texture paint, rock color paint and other coating products and high-quality supporting services for Poly Real Estate's construction projects through a series of exterior wall coating solutions

the impact of the real estate market on the coating industry is self-evident. It goes without saying the data on AkzoNobel decorative paint when cooperating with Poly Real estate, a national first-class real estate development enterprise

action 2. AkzoNobel decorative paint layout western industry

there is a saying: invest in China to see the west, invest in the west to see Chengdu

the factory in Qionglai is not AkzoNobel's first decorative paint production base. Previously, AkzoNobel has set up production bases in Langfang, Hebei, Shanghai, Dongguan and other places in China. This settlement in Qionglai is AkzoNobel's first visit to Western China. Dr. linliangqi, President of AkzoNobel China and managing director of China and North Asia decorative paint business department, said: "the smooth construction of Chengdu Qionglai decorative paint factory will not only greatly increase the production capacity, provide strong support for our deep exploration of the western market, but also provide a vital guarantee for us to meet the diversified needs of the market and customers, achieve organic growth and excellent operation." Global coatings learned that AkzoNobel's existing production base covers East China, central China and South China. The Qionglai decorative paint production base established in the West will better improve AkzoNobel's layout in China and facilitate the development of the market in the northwest

action 3. Build an e-commerce platform

with the growing maturity of the purchase mode, coating enterprises have entered e-commerce. Recently, AkzoNobel decorative paint business department announced that its Dulux brand officially joined jd.com's self operated distribution system, becoming the first paint brand in China to reach this cooperation with jd.com. It is reported that the cooperation between AkzoNobel decorative paint business department and jd.com in self-supporting distribution service will significantly improve the delivery speed of Dulux products on jd.com's self-supporting platform, and bring double guarantees of quality and speed to consumers' coating purchase

on September 7, 2015, duluxpro, the flagship decorative paint brand of AkzoNobel group, announced the official public platform of duluxpro. As the most extensive online micro marketing platform in China today, "duluxpro" not only caters to the new needs of brand promotion in the current paint market through its brand official image, but also builds a new platform to maintain communication with customers and provide professional services anytime, anywhere

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AkzoNobel Dulux Beijing product promotion conference

this is also a new measure for AkzoNobel decorative paint business department to further optimize e-commerce services and improve the convenience of shopping for consumers. E-commerce is an important component of the current development of new urban forms, and it is also an important way to promote the upgrading and transformation of urban industry and economy. AkzoNobel complies with the development trend of e-commerce and will create a perfect e-commerce service system for new urbanization

it is noteworthy that:

by paying attention to AkzoNobel, it can be seen that in 2013, it suffered a loss of up to 2.169 billion yuan (about 17.9 billion yuan) (its financial report is expressed as "net income attributable to shareholders"). This is ah