Technology oriented coating enterprises should pay attention to brand reputation

In the past thirty years, the growth of China's manufacturing industry has mainly relied on two factors: cost and scale. In the early stages of economic development, China achieved rapid development due to its low labor costs and small scale. Under the current impact of the internet, the advantages of cost and scale are no longer so prominent. So how should current paint companies face this dual pressure?

 

Cost increase, transformation and upgrading are imperative

 

Cost is the value category of commodity economy and a component of commodity value. People need to expend certain resources in order to carry out production and business activities or achieve certain goals, and the monetary expression and objectification of the resources expended are called costs. And with the continuous development of the commodity economy, the connotation and extension of the cost concept are constantly changing and developing.

 

The issue of rising costs has been a concern for enterprises since 2015. Previously, China had the advantage of cheap labor worldwide, but with the development of China's social economy, this advantage has also disappeared. Now, coating companies are facing the dual pressure of rising raw materials and labor, and many small and medium-sized coating companies are overwhelmed and have closed down. Cost pressure may continue in 2016, and coating companies need to prepare for transformation and upgrading in advance.

 

Taking Technology as the Leader to Enhance Brand Awareness

 

Economy of scale refers to the economy in which the Unit cost of an enterprise decreases due to the improvement of production specialization and other reasons, thus forming an economy in which the long-term average cost of an enterprise decreases with the increase of output.

 

Economies of scale, also known as "economies of scale", refer to the trend of long-term average costs decreasing due to the expansion of production capacity at a certain level of technology, i.e. the long-term cost curve shows a downward trend. Scale refers to the batch size of production, which can be divided into two situations: one is the change in production batch size when the production equipment conditions remain unchanged, that is, the production capacity remains unchanged; the other is the change in production batch size when the production equipment conditions change, that is, the production capacity changes.

 

So in the situation where the scale advantage is gradually losing, coating companies should choose to improve their production equipment conditions, improve their production technology, produce products that meet consumer needs, and allow consumers to enjoy the differentiation brought by the products. Secondly, paint companies should also enhance their brand awareness. In this brand like paint market, brand reputation is quite important.

 

In short, paint companies should not only improve their own technology, achieve economies of scale, reduce production costs, but also focus on brand marketing activities.