After curtain wall, automotive, construction and other fields, this article is the fourth research article on the application field of powder coatings by Qu Coatings. This article mainly focuses on the application of powder coatings in the electrical industry.

The electrical industry is the largest single market for thermosetting powder coatings, accounting for approximately one-third of the sales share of all powder coatings. As the largest single market for powder coatings, what will happen to the electrical industry in 2020? What opportunities and challenges will powder coatings face? In this regard, the editorial department of Qu Paint has conducted professional research on the electrical industry, and now shares the research results with all paint professionals, hoping to explore and join hands with you to welcome a better 2020.

Before looking ahead to the electrical appliance industry in 2020, we need to first review 2019, which mainly focused on the home appliance industry. According to data monitoring from the National Home Appliance Industry Information Center, as of September 2019, the overall domestic retail sales of China's home appliance industry (including color TVs, refrigerators, freezers, washing machines, kitchen and bathroom appliances, and some small appliances) reached 587 billion yuan in the first three quarters, with a year-on-year growth rate of -2.7%. The entire home appliance market was immersed in a tragic situation. It can be seen that after decades of rapid development, the home appliance industry has entered a cruel stage of stock market from an incremental market.

For the changes in the home appliance industry, some companies that produce powder coatings in this industry have begun to fall into a pessimistic mood and cannot extricate themselves. They often ask: Is there still a way out for the already highly saturated home appliance market? What kind of choices should upstream industries make?

In this regard, Xiaoqu believes that whether an industry still has a way out depends not on the market or competitors, but on the enterprise itself. Whether it can reposition and coordinate itself in the current ever-changing business landscape, and achieve transformation and change under the precise grasp of user needs. For example, the launched“ One person share; Home appliances (single person electric rice cooker, single person cooking soybean milk cup, etc.), follow the pace of the times to launch smart home appliances, etc.

How should upstream industries adapt to changing circumstances? We need to observe the changes in the enterprise. When the Qu Paint research team focused on enterprises, they found that the revenue of listed companies in the home appliance industry continued to maintain a growth rate higher than the industry, and their operating cash flow significantly increased. Meanwhile, the quality of industry assets is also continuously improving. The proportion of industry-specific currencies increased by 7.6pct from 29.3% in Q3 2014 to 36.9% in Q3 2019, while total borrowings decreased by 2.4pct from 15.0% in 2017 to 12.6%. So, it can be seen that leading enterprises in the home appliance industry are constantly building industry barriers in terms of production capacity, product research and development, and brand layout, and the industry concentration will continue to increase.

Opportunities and Challenges of Powder Coatings

By reviewing the turbulent year of 2019 in the home appliance industry, it is clear that 2020 will be a year of mixed risks and opportunities, including for powder coatings.

In the past few years, powder coatings have been widely used in the home appliance industry due to their excellent appearance, necessary wear resistance, chemical resistance, temperature cycling resistance, and resistance to damage to devices. Such as the front and side panels used for stoves and refrigerators, the top and cover of washing machines, dryers, air conditioners, water heaters, dishwashing racks, freezers, and microwave ovens. The enamel used in many washing and drying equipment has also been replaced by powder coating.

Behind the remarkable achievements of powder coatings in the electrical industry over the past few years, it is the tireless research, innovation, and service provided by numerous powder coating professionals. In 2020, with the changes in the home appliance consumer market, the powder coating market will surely keep up with the pace.