Sinochem Xinwangxun "Last year, 90% of the company's distributors failed to complete the dealership contract signed in 2011, making our sales work and contract signing this year very passive." As Shandong Pentium Paint Co., Ltd. Hebei market regional sales business manager Liu Jing told reporters in this way, “So our company’s annual sales to dealers this year has only 5% increments.” Compared to Pentium Paint, the dealers originally set a 20% sales growth rate for distributors every year. The goal has shrunk by as much as 15%, which is even beyond the reach of dealers. "It is this 5% increase, some dealers are not willing to sign contracts." Liu Jing smiled. It can be seen that 2012 sales of paint are full of thorns.

This situation is more than a Pentium paint industry. Ji Wei, manager of Jiangsu Jiren Paint Co., Ltd. also told reporters that the sales target set by his company is the same as sales in 2011. In addition, Shandong Lehua Group, Shandong Qilu Paint Co., Ltd., Shandong Lunan Paint Co., Ltd., and Shandong Liandi Paint Co., Ltd. all conservatively set product sales growth targets below 10% for 2012.

“This is closely related to the deterioration of the market environment over the past six months. Many companies did not complete sales growth targets last year,” said Sun Hongyuan, chairman of Qilu Paint. The reporter found that in 2011, the sales of paint companies such as Lehua Group, Qilu Paint, Pentium Paint, and Jiangsu Jiren Paint Co., Ltd. and Hebei Chenhong Paint Co., Ltd. did not reach the sales target of 10% growth. Among them, there are also two companies with negative growth for the first time. Compared with the golden period when many paint companies increased their sales by about 30% in 2010, the sales revenue of paint companies in 2011 was reduced to an unprecedented freezing point. This made it impossible for paint companies to perform the “Great Leap Forward” in 2012 sales.

"The main problem is that the environment is not good. First of all, the state has energetically regulated real estate. Real estate around the country has stopped construction due to capital shortages, which has led to a drastic reduction in the use of interior and exterior wall coatings. This has caused paint companies to face unprecedented difficulties. Secondly, coatings The manufacturing industry in the downstream is weak, construction of large-scale projects is delayed, and the use of paint is greatly reduced.” Sun Hongyuan thinks this way.

Qu Shigang, marketing director of Pentium Lacquer, believes that the sales targets set in previous years are too high and the distributors are overwhelmed. The current goal is reasonable and feasible. “Before 2010, strong market demand was the unprecedented golden growth period for coating companies. Sales volume has doubled. Coating companies have resisted the competition of paint brands in the same industry and they have launched incentives such as incentive cars for dealers. Sales tasks or incentives, or mandatory assessments, have increased by 30%, and the market environment was good at that time. Most dealers could achieve such growth targets, said Mr. Gu Shigang. However, although this kind of strong-spending task makes sales data very beautiful, the effect is destructive, which increases the pressure on dealers. Once the market environment deteriorates, dealers will be overwhelmed.

Han Yingxin, the manager of Shanxi Taiyuan Aite Paint Co., which used to be the main painter of Pentium paints, is a typical example of being “sold by sales”. In 2009, Han Yingxin sold Pentium paint for 3 million yuan to serve as the business manager of its area. According to the Pentium Paint Marketing Plan, the company required Han Yingxin to achieve a 30% growth in sales in 2010. “If you want to complete 30% growth, you can only reduce the sales price to the county and township level customers by 3% on the basis of the manufacturer's price. However, if you want to do business, you have to make profits. If the profit is less than 10%, you cannot To do that, I had to choose to give up Pentium paint.” Han Yingxin said.

In order to achieve the sales target, various paint companies have adopted rebates and other incentive measures in succession, but such practices have produced many unintended consequences. "Chain goods" is one of them. In order to complete the sales task and get a 3% rebate at the end of the year, many paint distributors with sales of more than 5 million yuan are selling goods at low prices outside their own distribution areas. For example, Pentium paint industry provides 23% discount to the first-tier dealers in Shandong Province, and Shandong Wuqiao, Dongguang and other places in Shandong province are close to Dezhou dealers. To neighboring Hebei and other places for "chain goods", so Texas dealers have 3% of the profit margin and 3% of the end of the rebate; and getting goods Hebei dealer purchase price is the factory price is floating 20%, if Sales down the floor, the last took over the dealer even appeared "dry compensation" situation. "Everyone is going to engage in 'chain goods', no one really wants to engage in market sales, and lacks the final link to consumers. This is a big blow to paint brands," said Mr. Gu.

In addition, some paint companies' behaviors of “big bullies” also make dealers quite quibbled. According to Dai Maozhen, manager of Shandong Liandi Paint Co., Ltd., some paint companies have started to greatly reduce their product quality, service, dealers, and clerk incentives. Some paint companies canceled unconditional returns, and some paint companies deducted 30% of the "losses" and so on. “All of these have reduced the sales of paint companies. In fact, if companies really want to win the market, they still have to take a long-term view and use the strong product quality and the attitude of caring for dealers to be the real winner.” Dai Maozhen said.