Reported by the Vietnam Coatings and Ink Association (VIPA) in 2017 showed that foreign coatings still accounts for 65% market share in Vietnam. This is the same data that has not changed in the last 5 years. However, in the field of construction coatings, domestic enterprises are gradually rising up domestically.
Market share realistic in the coatings market
Nguyen Thi Lac Huyen, Chairman of VIPA, said the coatings and printing ink industry in Vietnam is experiencing positive growth based on the growth of 8-10% in 2017. The industry has a total value of over $ 1.6 billion by 2016; the first seven months of 2017 grew by 8% over the same period last year.
The coatings market in Vietnam has the presence of many leading manufacturers in the world such as Akzo Nobel, Sherwin-Williams, PPG, Dupont, Valspar, Nippon, etc with a lot of brands for each purpose like shipbuilding, galvanizing coating, airport coatings, wood, shell of beverages ... that consumers even do not know. For example, PPG is considered as the largest in the world for transportation products, PPG also has been present in the works of Da Nang Airport, Can Tho Airport, Royal City ... with products including coatings Sigma, color coated steel, electrostatic powders producing for large companies instead of regular consumers, so consumers can hardly identify the PPG brand in the market. Not only PPG, but also Akzo Nobel has very little known, while Dulux and Maxilitle are two brands of coatings for the construction of the company which are quite familiar.
Although the remaining 35% of the market shares, including domestic producers and no-brand coatings, but the coatings companies in Vietnam are growing fast. In the past few years, Kova coatings has 20% growth rate every year, also known outside of the domestic market, Kova is Vietnamese brand with special coatings like bulletproof coatings. Nguyen Thi Hoe, Chairman of Son Kova confirmed that the domestic market is fierce competition and not able to underestimate the advantages of foreign coatings. Even so, Kova's position on the market was quite powerful and able to compete with other international enterprises. In addition, Dong Tam and Hoa Binh are two companies trying to win market share in the field of water coatings.
If the steel and cement industry are always have problems with revenue and profit targets, the coatings industry seems to be clearer. The sales of the companies are increasing when the coatings market in Vietnam still has large residue with the consumption of about 3 liters / person / year, while in the US, Europe, other countries and regions such as Japan, Taiwan, Hong Kong have about 20 - 22 liters, 15 - 16 liters, 13 liters respectively. However, the majority of companies do not want to publicize the revenue associated with profit in Vietnam.
Price and discount strategy
Competing large advertising companies by promoting products through mass media channels or community programs, smaller coatings companies plan to gain market share at competitive prices, and big discount trade. Nero, for example, has launched a range of Nero Cement waterproofing coatings that cost less than 30-50% of their exterior coatings but are of comparable quality. TOA's product development is a commercial discounted customer conference campaign for small business contractors and builders. This campaign of TOA coatings quite effective when launching program from 18/5/2017 to now spread to 20 provinces and cities across the country.
Discounts are also a "blow" competition that almost every company uses. Even so, falling coatings prices are considered the "worst" in the group of building materials. Discount rates from 15 to 35% are most applicable to agencies. In addition, in the construction season or the New Year holiday, not only strong discounts for agents, but many companies also promote to consumers. For example, in August 2017, many coatings shops such as Juton, TOA Coatings in Ho Chi Minh City such as Go Vap District are promoting from 35 to 45% for retail customers. High discounts are not only applied by large firms but many new types of coatings also have a discount rate of 40-50% compared with the list price.
For more information on Chemicals, Materials - Technology, Equipment - Coatings Products, please visit the International Coatings and Printing Inks industry - Coatings Expo Vietnam 2019 - The most remarkable trade event in the industry in Vietnam is not only a place for meeting and sharing experiences and technology transfer of enterprises but also a reliable place to look for business cooperation opportunities in the coatings industry of Vietnam.