Specialist
Former Deputy Director at Nippon Paint (China) Co Ltd
Agenda
- Automotive coatings market growth trends and demand dynamics
- China’s automotive coatings market concentration and key player analysis, including Nippon Paint (TYO: 4612) and Skshu Paint (SHA: 603737)
- Nippon Paint’s automotive coatings sales strategies, plus distributor management and distributors’ sales models and networks
- Automotive coatings product upgrade direction
Questions
1.
Today, our topic focuses on Nippon Paint and the whole automotive coatings market in China. First, let’s look at the industry and relevant policies. A report shows that currently, about 49% of all produced coatings in China are environmentally friendly types, 8% less than the proportion specified in the 13th Five-Year Plan, namely 57%, and even far less than the percentage in developed countries. What do you think of the impact of stricter environmental protection policies on the coatings industry and businesses?
2.
You have talked about some coating segments such as automotive, architectural and aerospace coatings so could you please give a detailed introduction of all coating segments including their respective market size and the growth dynamics in recent two years?
3.
You have mentioned that the sales growth rate in the auto industry won’t be high. Could you please further illustrate and compare the specific coating consumption amount among different kinds of vehicles, for example, commercial and passenger ones, fuel and new energy ones or JV-made and domestically made ones?
4.
How many coatings are respectively needed to paint a passenger vehicle and a commercial vehicle? How much money will this cost?
5.
The sales of automotive coatings may remain stable in 2020. In your opinion, what are the future growth points in this segment?
6.
In your opinion, only the manufacturing technique changing from spraying to printing is a revolutionary transformation so, the coating type changing from solvent-based ones to water-based ones isn’t revolutionary, is it?
7.
Why will the tightened environmental protection regulation concentrate the market demand to multinational companies instead of domestic ones?
8.
What do you think of the application of functional nano-coatings, especially self-cleaning coatings in the automobile market?
9.
What do you think is the core competency in the coatings industry? Could you make a comprehensive comparison of domestic and foreign companies regarding brand positioning, product categories, pricing systems, product quality and sales networks?
10.
As you mentioned, the market size of automotive coatings will at most remain the same as it is currently, and it may shrink due to revolutionary technologies. Under the circumstance, do you think domestic companies will still enter the field of aerospace coatings and automotive coatings which has a high technological barrier?
11.
Are the automotive coatings sold directly to auto factories or through distributors? What are the characteristics of the sales networks and sales models of automotive coatings?
12.
Nippon Paint put its focus in architectural coatings market in China which accounted for most of its sales revenue. What is your estimation about Nippon Paint’s revenue in China in 2019 and its revenue structure? What is your opinion on its revenue in 2020 and its future growth rate in each market segment?
