In recent years, with the vigorous development of independent science and technology, national enterprises have continued to grow and become the backbone of promoting the development of the industry. In the field of coatings, 3Trees is such a clear banner. In 2023, in the context of the overall downturn in the industry, 3Trees still delivered a brilliant annual report: revenue exceeded 12 billion yuan, a year-on-year increase of 10%, and operating cash flow increased by 47%, demonstrating the strong resilience of the development of this national coating.
The rise of 3Trees against the trend is not only due to its accurate judgment of the development trend of the industry, but also to a wise and courageous helmsman. He is Hong Jie, chairman of 3Trees.
Hong Jie, who was born in Putian, Fujian, dared to resign from the "golden rice bowl" at the age of 27 and go to the sea to do business. At the beginning of the business, Hong Jie suffered a fiasco and was on the verge of bankruptcy. However, with his dedication to the chemical industry, he soon made a comeback and developed a best-selling white rubber product. In 2002, Hong Jie saw the opportunity of China's real estate market reform and decisively entered the paint industry, starting the legend of 3Trees.
At that time, the domestic paint market was almost monopolized by foreign giants, and with the rise of national paint brands represented by 3Trees, the industry pattern was gradually broken.
In the paint industry, the centralized procurement of real estate developers is an important sales model. At a time when many Tu enterprises are still closely tied to the real estate business, 3Trees has put forward the strategy of "de-real estate", vigorously expanding small B and retail channels, and taking the lead in getting rid of its dependence on real estate. In 2023, 3Trees' direct sales revenue will be RMB2.06 billion, of which the proportion of real estate direct sales business has dropped to a very low level, while the number of small B channel customers continues to increase, and the proportion of retail business in the company's revenue continues to increase. With the rapid development of the beautiful rural market, 3Trees has achieved a compound growth rate of more than 60% for eight consecutive years, creating a new growth engine.
Today, 3Trees has laid nearly 200,000 sales outlets across the country, and its channel tentacles have penetrated deep into counties and townships, providing consumers with high-quality and convenient coating services. This deep-rooted channel network not only allows 3Trees to seize the opportunity in the era of stock housing, but also lays a solid foundation for its product innovation and brand upgrading.
In fact, in order for national brands to achieve corner overtaking, innovation drive is indispensable. Over the years, 3Trees has always regarded innovation as the primary driving force for development, and its R&D investment has increased year after year. Today, with its strong technology accumulation, on the basis of consolidating its leading position in the architectural coatings industry, 3Trees has also achieved multi-point flowering in the fields of new energy vehicles, photovoltaics, wind power, etc., and the added value of its products has been continuously improved.
(The wind power tower adopts the special anti-corrosion supporting system for wind power)
In the post-real estate era, the paint industry is facing a new round of reshuffle, the market concentration is increasing, and small and medium-sized enterprises will accelerate their clearance. With the continuous penetration of the company in the small B and retail markets, as well as the continuous enrichment of its high-end product matrix, 3Trees is expected to further consolidate its leading position in the industry and achieve new leapfrog growth.
After 20 years of high-speed and high-quality development, 3Trees has become the No. 1 brand of national coatings, surpassing the century-old process of the world's old coating enterprises. In 2023, 3Trees was successfully selected into the list of the top 20 global coatings, becoming the only Chinese company on the list. Hong Jie said in the interview that this year will be fully deployed foreign markets, especially in Southeast Asia, the Middle East, Africa, Russia and other countries and regions, with the "Belt and Road" to go out, the national paint to a broader global market.
(Source: official website of China Coating Industry Association)
The big waves wash the sand, and the heroes show themselves. Standing at the starting point of the new era, the development resilience of the coating industry still exists and has broad prospects. With the strong support of national policies, I believe that 3Trees and other outstanding enterprises will take advantage of the rise of national brands to go further and further on the road of "self-reliance and self-improvement in science and technology", and paint a magnificent picture of China's high-quality economic development with "Tu" as the pen!