Nippon Paint M&A Tide

According to industry sources, the reporter disclosed that Nippon China is currently actively planning to acquire domestic furniture wood lacquer enterprises. In fact, this acquisition strategy is gradually practicing and advancing. Recently, paint electrician Liang Shidong broke the news that Nippon Paint had acquired the famous wood lacquer brand Ou Long paint and signed it before the end of the month. According to internal sources, the state's acquisition is only for the Oulong paint brand, does not include the factory, the specific issues have yet to be confirmed.

In fact, the reporter also noticed that Nippon China had been arranging the furniture wood lacquer market in China very early on and also had contact with many furniture lacquer companies in China, such as Clivia, and the acquisition of the wood lacquer brand—European lacquer It is also one of its strategic acquisitions. “It is very likely that in the future it will acquire furniture wood lacquer companies in China,” said the industry insider.

According to Xiaobian, OPEL is the brand of DGL Camel, and Dejia Long Camel Coating Co., Ltd. is a combination of Dejia Long and Hong Kong Camel Paint Chemical Co., Ltd. Dejia Long is a wholly-owned subsidiary of the Australian Dulux Group, which produces and sells brands including Auron, Lan Wei, Sharp and Eclat. Its European dragon brand occupies a major place in China's decorative wood lacquer market and continues to grow rapidly. In 1997, OPEL OULONG paint was introduced to the Shanghai market in China. Soon after its launch, its wood lacquer products became very popular. A series of environmentally-friendly paint products launched later brought a lasting new experience to home wood and wall decoration. It still maintains its leading position in the Shanghai woodware market. Today, OPEL Oulong paint products have been distributed to more than 440 cities in China, with a large number of loyal customers.

From the above point of view, Oulong paint has a good market, but there are insiders said that Nippon Paint is not worth buying Oulong paint. In Ben Wang's view, Nippon Paint's acquisition of Ou Long paint also has its development strategy to consider: First, the performance of Ou Long paint brand in the Chinese market is basically able to meet the development conditions of Nippon; second, Nippon Furniture China Wood lacquer has always been a short board and has performed generally in the Chinese market. It is difficult to compete with domestic national furniture wood lacquer enterprises.

It is reported that a large number of domestic domestic furniture wood lacquer enterprises have emerged in the domestic market, including Garbo, Dabao Chemical, Hongchang Chemical, Bardez, Zhanchen, Changrunfa, Mei Tushi, Huilong, Hualong, Clivia, Digital Color, etc., domestic ethnic paint companies account for about one-fifth of the total in the wood coatings market for home furnishings, and wood furniture coatings account for about one-half of the total sales, so for the moment, The local private paint companies are the absolute main force in the field of wood coatings; in addition, Nippon Steel is also strongly under pressure from foreign companies such as Valspar-Huarun, AkzoNobel and Dulux. Although Nippon Steel has been focused on wood coatings in recent years, it has not been able to achieve a major breakthrough.

In contrast, Nippon China has a strong position in the field of architectural coatings, especially latex paints in the Chinese market. It is understood that Nippon China had sales of about 8 billion yuan in 2012, of which the architectural paint market accounted for more than 70%, and the furniture wood paint market share was relatively small.

From the above analysis, why does Nippon China have a strong position in the field of architectural coatings, while furniture wood coatings and industrial paints are developing slowly and have a low market share? Among them, it is necessary to trace the parent company of Nippon China and the original management system.

It is understood that Singapore is a country where trade and finance are the mainstay of the economy. The parent company of Nippon China Group, which is located in it, is also affected, resulting in its strong market operating capabilities and poor technological development capabilities. The latex paint market needs a strong operating capacity, and the technical requirements for the products are not high enough to allow Nippons to display its strong market operating capabilities. However, technical strengths such as industrial paints are required to be relatively high and marketing capabilities are relatively demanding. In the lower market, Nippon can only rely on the technical support of the Japanese paint company. When the Japanese paint company lacks support, the defect of Nippon's technical ability is exposed, which results in the development speed of Nippon Paint in the industrial paint field. Slowly, at the same time, Nippon's introduction of new latex paint products mostly stems from the needs of marketing rather than product improvement.

In addition, although Nippon set up the "Furniture Paint Project" department for the Chinese furniture coating market, it is still in its initial stage of operation. More importantly, due to Lippo's lack of long-term accumulation of operating experience, the brand image is positioned in latex paint, which affects the development of Nippon Paint Co., Ltd., in which the market share of furniture wood paint is less typical. illustration.

"For the Chinese market in the future, I think that architectural coatings will become increasingly difficult to do. On the contrary, the furniture wood paint market still maintains a relatively high growth rate." This is Zhong Zhonglin, president of Nippon China, recently visited Huilong Coatings in Heshan. The statement made by the managing director Chen Huiting was not difficult to see that Nippon China has a long-term consideration in actively planning the furniture wood lacquer, which is to speed up the Chinese layout of furniture wood lacquer market.

According to industry sources, the reporter disclosed that last year, Nippon China introduced Guo Wei, who was known as “the first person in China’s paint industry professional manager”. At that time, Guo Wei did not take immediate responsibility, but spent nearly three months in the country. All over the market survey of furniture wood lacquer, "This is actually to prepare for the Nippon furniture paint market layout." The industry said.

From Zhong Zhonglin’s prediction of the future coating market and the various practical actions taken by Nippon, it is not difficult to see that Nippon wants to share a share of the furniture woodware market in China. However, in the opinion of Ben Wang reporter, in the face of the strength of the domestic national paint companies in the furniture wood paint market, Nippon wants to establish an independent furniture wood lacquer factory. It is obviously unrealistic and will consume a lot of capital, so the acquisition has become the most Best choice.

Nowadays, Nippon intends to have full expansion of the Chinese market with a view to reaching its target of 30 billion yuan by 2015. Among them is not only the acquisition of Oulong paint, but also other domestic wood furniture companies with better growth. For Nippon China's expansion in the furniture wood lacquer market, domestic national paint companies should pay attention and adopt appropriate strategies to deal with them.