The development speed of the coating industry in the past two years has been astonishing: in the early stages of the crisis, the overall market environment led to sales stagnation, raw material prices fell by nearly half, and the development of powder coatings fell to the bottom. At the end of 2008, the country introduced a national policy of investing four trillion yuan. In 2009, with the expansion of national infrastructure, the relocation of household appliances to rural areas, and the rapid recovery of the real estate market, the powder coating industry achieved a slow recovery after the financial crisis.

Entering 2010, China's powder coating industry experienced waves of coldness. The decline in exports in 2009 directly led to a continuous decline in demand for powder coating products. On the contrary, the continuously rising raw material prices, transportation costs, and the limited room for price increase in the powder coating market have formed a sharp contrast. Under the combined pressure of upstream and downstream, powder coating companies have significantly reduced their profit margins, and even some companies have experienced losses.

In China, powder coatings are mainly used in five major fields: automotive industry, shipbuilding industry, pipeline industry, thermal sensitive materials, and construction. With the upgrading of the powder coating market in recent years, such as the continuous expansion of spraying technology and application markets, the gap between the technology of Chinese powder coating enterprises and international brands has become evident. The upgraded powder coating market has blocked enterprises with insufficient technological capabilities and backward research and development from the high-end market, or ended the era of numerous small and medium-sized powder coating enterprises, becoming a competition among various brand products.

The characteristics of domestic powder coating factories are: wide distribution, low product quality, weak research and development technology, and no independent brand. Generally, the formula used is improved and then put into production. According to Coatings Network, the powder coating market in China is unevenly distributed, with pipeline anti-corrosion and environmental protection in the northern market, and home appliance enterprises concentrated in the southern market, especially in Shunde. The above two points determine whether China's powder coating market will usher in an integrated development trend. The integrated powder coating industry will achieve effective layout and will not change market characteristics or the direction of enterprise development due to integration.

The powder coating industry in China, which has experienced the baptism of the financial crisis, is also full of obstacles in its future development. The shadow of the financial crisis affecting Europe, America and other regions will not disappear in the short term. Foreign powder coating brands are turning their attention to China and exploring the Chinese market. AkzoNobel's sixth powder coating factory in China has recently started production in Wuhan. Foreign companies have a good brand awareness, stable product performance, and strong research and development capabilities. In the face of huge advantages, the Chinese powder coating market has opened its arms and occupied the high-end powder coating market in China. On the other hand, domestic powder coating factories generally occupy the mid to low end market of powder coatings with the characteristics of low product quality and low price.

Advantages of integration: Concentrate advantageous enterprises and enhance research and development capabilities

The integrated powder coating industry can leverage the advantages of enterprises themselves. In my personal opinion, there are two directions for the integration of powder coatings: one is the integration of technology-based enterprises, mainly enterprises with technological advantages. After integration, they can establish their own powder coating research and development centers in China, combine with the actual markets in various parts of China, invest in the research and development of new products, occupy the high-end powder market, and compete with foreign brands. On the other hand, it is the integration of product types, such as concentrating several enterprises to produce a certain category of powder coating products after integration, ensuring good product quality, and ensuring market supply.