In 2013, behind the weak performance of the coatings industry, strong enterprises secretly performed a battle to seize the top brand in the coatings industry segment in the coming year; in 2014, coatings companies may face the test of "reducing haze and eradicating pollution", and some small coatings companies that maintain the old ways will face the risk of reshuffle or self-elimination; in the first year of the Third Plenary Session of the 18th CPC Central Committee, the upgrading and development of industrialization, informatization, urbanization and agricultural modernization will surely bring huge market space for the coatings industry in the application field of industrial coatings with outstanding environmental protection and high quality functions.

A complete analysis of the three major development trends of my country's coatings industry in 2014

1. A review of the domestic coatings industry in 2013 reveals a curious 28 phenomenon.

Most common solvent-based coatings companies are scrambling to maintain business with their existing customer base. This "revealing" of their true potential has driven down actual transaction prices. Coupled with the squeeze on sales expenses, net profits have been declining year by year, forcing some daring companies to resort to cutting corners, with devastating consequences. Coupled with public awareness of environmental health, many of these companies are gradually being abandoned by consumers.

Strong coatings companies are cleverly capitalizing on public health demands and national environmental pressures. By leveraging industry-university-research partnerships, they are developing environmentally friendly and functional products, or pursuing specialized development. This has created an undercurrent within the industry, vying for dominance in niche brands in 2014. These companies, committed to creating and providing scarce resources, are poised to gain greater market recognition. These well-prepared companies are poised to become the primary profit generators in the coatings industry in 2014.

2. In 2014, coatings companies may face a major test: "Reducing smog and eradicating pollution."

Currently, the situation regarding smog control is pressing, with pollution sources being increasingly targeted. The central government has repeatedly emphasized the need to wage a people's war in 2014 to "reduce smog and eradicate pollution." This is a crucial issue for the coatings industry.

In 2014, the coatings industry may face a need for regulation, and companies will embark on a wave of transformation and upgrading, including the need to further align coatings standards with international standards. As this threshold is reached, some small coatings companies that maintain outdated practices may face the risk of a shakeout or self-elimination.

As for the entire coatings industry, reforms are needed to promote China's transformation from a major coatings producer to a powerful coatings producer. Many underlying issues must be addressed, including strengthening support policies and regulations for private coatings companies, which account for 65-85% of the industry. These include improving necessary industrial and commercial registration and review mechanisms, standardizing and unifying designated testing mechanisms, establishing necessary coatings sales licensing mechanisms, and supporting tax incentives for green and environmentally friendly coatings. Under the umbrella of coordinated administrative law enforcement and judicial governance, efforts should be made to cultivate a truly national coatings quintessence. I have elaborated on this in my blog post "Interpreting the Future Development Direction of my country's Coatings."

III. The development of the "Four Modernizations" will provide a huge market space for industrial coatings.

On December 3rd, the Political Bureau of the CPC Central Committee, in its 2014 economic work report, emphasized the need to promote new progress in the development of strategic emerging industries, promote the transformation and upgrading of traditional industries, promote the integrated development of the service and manufacturing industries, and vigorously promote industrial transformation and upgrading. We must adhere to green, low-carbon, and clean development, focusing on environmental governance, ecological protection, energy conservation, and emission reduction. We must pursue a new type of urbanization and steadily advance the development of a strong maritime nation. We must also ensure effective housing security and regulate the real estate market.

Coatings for equipment, electronic information equipment, transportation infrastructure related to urbanization, public facilities, medical equipment, green building coatings, agricultural machinery related to agricultural modernization, and new energy vehicle coatings will create enormous market demand. This has two major implications for the coatings industry:

First, as consumers prioritize health and environmental protection, polluting coatings are gradually being marginalized in architectural coatings, with a trend toward environmentally friendly, high-quality, and multifunctional branded coatings.

Second, demand for industrial coatings driven by industrialization, informatization, urbanization, and agricultural modernization will become a key focus for the coatings industry in 2014.