In 2021, the real estate industry, which has experienced "three red lines" and "two centralized land supply", will end the "high leverage, high reserves, and high turnover" model of 20 years. Some housing enterprises thundered, the capital pressure intensified, transmitted to the upstream painting enterprises, construction engineering companies, dealers are difficult to collect money, resulting in a longer payment cycle of painting enterprises.
At the same time, the prices of major raw materials have continued to rise since the beginning of the year, resulting in a sharp increase in the operating costs of enterprises, and the paint and coating industry is facing great challenges, and the industry situation is full of uncertainty. How to survive and develop in the midst of change? How do I find increments in a limited space? It is a difficult problem that every enterprise needs to think about today.
Zhao Lina, chairman of Nanchang Zhongyi Decoration Engineering Co., Ltd., and Xiong Weifeng, general manager
The solution idea of Zhao Lina, chairman of Nanchang Zhongyi Decoration Engineering Co., Ltd., and Xiong Weifeng, general manager, is to maintain a high degree of sensitivity and adapt to changes in the face of a changeable market. Develop different marketing plans for different periods and remain competitive at all times. Only by respecting the market, respecting the law, and insisting on doing a good job can we seize market share.
As soon as he withdrew from the tedious company affairs, Xiong Weifeng immediately came to shake hands with us who visited. Mrs. Zhao Lina came a little later, with a smart and delicate short hair, a loose green suit with a V-neck white lining, beautiful and dignified. Sitting together in front of the wooden tea table, our conversation unfolded in the flow of hot tea cups. Here's a transcript of the conversation:
Choice is more important than effort
Sino-foreign Coatings Network: How do you see the current situation in the real estate industry?
Xiong Weifeng: At present, the real estate market has indeed reached a more difficult time. A big thunderstorm is like the first domino to fall, followed by a series of housing companies have fallen. But that's just the beginning, and I think there will be more downfall next year.
Xiong Weifeng, chairman and general manager of Nanchang Zhongyi Decoration Engineering Co., Ltd
Previously, there was a lot of disorderly development in the real estate market. The expansion of the "high debt, high leverage, high turnover, low cost" model is not a benign development for an industry.
In the case of our painting, we usually take the form of capital advances when we work with real estate companies. At present, housing enterprises are affected by the "three red lines" policy, and the pressure on funds has intensified, which has been transmitted to the painting company, resulting in a longer payment cycle and a sharp increase in operating pressure, facing great challenges.
Chinese and foreign coating network: Please introduce the basic situation of your company.
Xiong Weifeng: Nanchang Zhongyi Decoration Engineering Co., Ltd. was founded in 2003, has been in the painting industry for 19 years, is engaged in exterior wall painting design, engineering painting as one of the high-quality painting company. From the beginning of the development of several people so far, the company has a professional, efficient excellent management team, and has a group of skilled and strong painting team. The company has established long-term strategic cooperative relations with five enterprises in the top 30 real estate companies. At present, nearly 40 construction sites are under construction, and the painted area completed every year reaches 3 million square meters, ranking the forefront of the industry in the Nanchang market.
Nanchang Zhongyi Decoration Engineering Co., Ltd
At present, the company mainly operates two major brands of Yashi and Sankeshu. The main categories are exterior wall paint and exterior wall integrated panels, and these two brands currently occupy more than 50% of the market share in jiangxi's painting engineering market.
We are a painting company that has been operating for nearly 20 years, and if a company wants to achieve super long development, I think that it is only by passing tricks with a master that can quickly become a master. Now is an era of win-win cooperation. No company or individual can do it alone. We need to grow, and the biggest way is to learn. In this learning process, we must use the method of taking its essence and removing its dross to identify better learning methods and better learning objects, so that we can get more empowerment in the cooperative brand. Therefore, choice is more important than effort.
Sino-foreign coatings network: In terms of choosing brand cooperation, what kind of considerations do you have?
Xiong Weifeng: In terms of choosing cooperation, we have integrated three considerations.
First, the innovation of the brand. Products have a life cycle, especially in the coating industry. Real estate residential buildings are mentioning 3.0, 4.0 residential upgrades, I believe that as a large proportion of the housing composition of the exterior paint must keep up with this upgrade change. In 2017, the Ministry of Housing and Urban-Rural Development mentioned in the "Notice on Printing and Distributing the 13th Five-Year Plan for the Development of the Construction Industry" that the encouragement policy for the delivery of full decoration of new buildings was formulated, and the proportion of finished products delivered for new residential buildings was increased, and it was proposed that by 2020, the area of newly started fully renovated finished residential buildings would reach 30%. According to this document, it means that the market for interior coatings will also reach an explosive period. Based on this, Yashi's redefinition of interior painting in 2020 also reflects the excellent performance of brand innovation and market acumen.
Zhao Lina, chairman of Nanchang Zhongyi Decoration Engineering Co., Ltd., and Xiong Weifeng, general manager, were interviewed by Sino-foreign paint network
Second, the equality of cooperation between brand companies. Many times we hope to cooperate with big brands, so that in cooperation, we can get great improvement. However, when the market is not good, after we help the brand expand the territory and open up the situation in the local market, all kinds of harsh conditions and various unequal terms and policies come out, which will seriously hit our enthusiasm and lead to the replacement of some brands.
Third, the comprehensive strength of the brand company. In the future painting market, there will certainly not be too many brands, which is an industry that requires a lot of investment. After the real estate is more and more strictly regulated by the national policy, it is more beneficial to consumers in terms of construction materials, construction quality and after-sales maintenance. Painting integrates real estate, decoration, building materials, supervision, transportation and other links, without sufficient strength is difficult to have further development. This means that in the future, the painting industry must be the survival of the fittest, the world in which the strong live, and the value of large enterprises and large brands will be more prominent.
Excellent engineering quality is a weapon to win the market
Sino-foreign coatings network: What changes do you think have been in retail, engineering, and home improvement channels in recent years?
Zhao Lina: I summarize this change as: branding, health, personalization, specialization.
Zhao Lina, chairman of Nanchang Zhongyi Decoration Engineering Co., Ltd
The so-called branding is a large investment and output, and the strengthening of branding can completely dominate the choice of consumers on products, so I believe that large companies should still be a focus in the future in the field of product publicity.
Health is from the perspective of product research and development, the future consumers for the health of the living environment must be the top priority, then how to develop healthier coating products, but also the competitive advantage of the coating market.
Personalization refers to the field of home decoration and public environment decoration, people will be less and less interested in the performance of products that are too uniform, so the personalized pursuit of eyeballs will get a lot of market space.
Specialization means that in the next 20 years, we have been educating the development of this market from the paint that we brush casually, from latex paint to health paint, to the diversity of colors, to the matching of colors and furniture, and the scenes in TV dramas and movies. The so-called specialization, that is, the collocation of these products, the collocation of colors, will be a professional company professional designer to help consumers complete, rather than a decade ago casually brushed the state.
Chinese and foreign coating network: What elements and advantages do you think painting companies need to have to win the recognition of customers and consumers?
Zhao Lina: As a brand dealer in front of customers, the elements and advantages we have are to treat every quotation, construction and quality with integrity. Now there is no industry profiteering, honest treatment of all customers, is the magic weapon to win market recognition. And our strong construction team, professional management team, reasonable price, excellent construction team, excellent project quality makes us win the market.
Practice internal strength, increase efficiency, and profits
Chinese and foreign coating network: how should the coating company expand its business channels and improve and enhance the company's profitability space?
Zhao Lina: Paint production is really getting harder and harder. In this increasingly difficult situation, our living space and our idea of broadening business channels determine our way out in the new situation. First of all, a change of thinking is inevitable. The only constant in this world is change. Market information is ever-changing, we need to always maintain the sensitivity of the market, to respond to market changes, adapt to changes, while formulating marketing programs for each different period, always maintain the excellent competitiveness of the market. In recent years, the entire volume of the market will not increase greatly, we are nothing more than to improve our own competitiveness, such as quality, price to strive for the share of this inherent market.
In terms of improving and increasing profit margins, we have done the following:
(1) Do a good job in worker skills training, improve workers' work efficiency, and avoid slacking off.
(2) Formulate a more perfect and scientific construction plan to reduce material loss and eliminate rework due to quality.
(3) The accuracy of cost accounting has changed from extensive cost accounting to the current cost actuarial model. This piece includes the cost of capital use, the receipt and payment plan, the transportation of production materials, storage, the reasonable arrangement of orders, etc., and carries out the overall operation with the concept of a large system, so that you can practice internal strength, increase efficiency, and profit.
Actively embrace innovation and change
Sino-foreign coating network: Yashi released the cultural system of sustainable development of the new era of youth at the 20th anniversary celebration, and since then it has established an "ecological circle" culture. As a member of the Private Board of Yashi S100, how do you view Yashi's "ecosystem" culture? How do you start from yourself and actively embrace these innovations and reforms?
Zhao Lina: Mr. Yashi Li Jinzhong has always been an excellent entrepreneur that I respect very much, and he has not only maintained a very keen sense of market smell, but also led Yashi to continuously improve with a far-sighted attitude. The proposed ecosystem culture in 2020 is also in line with the new direction of the current development status of the economic market. This is a value platform established by brands and distributors through various stakeholders to maximize ecological value and strive for co-evolution.
For an industry, the exchange of industry information, the sharing of industry resources, and the sharing of successful cases are all nutrients for the benign development of this ecosystem. Discerning entrepreneurs know how to channel this force and gather these free resources to serve the enterprise. A complete ecosystem should include consumers, suppliers, distributors, collaborators, and even certain competitors, so that it is a real business ecosystem. From my own point of view, I am very much in recognition of this business ecosystem culture, we are not simply to enjoy the benefits of the ecosystem, but need to make their own contribution to the overall development of the entire ecosystem. Maintain the symbiotic relationship of the ecological circle and maintain the prosperity of the ecological circle. This is also my positive embodiment of this ecological circle culture.
Sino-foreign coatings network: What are your plans and goals for the future?
Xiong Weifeng: We are a full-solution provider for painting engineering, which is not necessarily strong, but it is definitely strong. Only professionals will get more market recognition and cope with more changeable market changes. Our company's long-term strategic goal and planning is to base ourselves on Jiangxi, solid internal strength, and go to the whole country. (Chinese and foreign coating network)