The current challenges facing China's paint industry are multifaceted and deeply rooted. According to Yue Wangkun, Secretary-General of the China National Coatings Industry Association, after visiting several companies, he observed a number of critical issues: low profit margins, weak profitability, product homogenization, and an impending survival crisis. These problems stem from various systemic shortcomings. Firstly, many Chinese coating companies lack a global and integrated strategic vision. They remain focused on domestic markets and short-term gains, with limited investment in long-term development or cultural and theoretical frameworks that could support sustainable growth. This myopic approach hinders their ability to compete internationally. Secondly, intellectual property protection is weak, and technological research is fragmented. There is insufficient investment in R&D, leading to a shortage of core technologies. Research into advanced materials, fundamental science, and applied technologies lacks the necessary support from both government and private sectors, making it difficult for companies to innovate. Thirdly, there is a lag in strategic awareness regarding decision-making, information management, intellectual property, and standards. Intangible assets such as brand value and innovation are not given enough attention, which limits the industry’s potential for growth. Fourthly, risk awareness is lacking. Companies often make blind investments without proper risk assessments, and they fail to develop effective crisis management systems. When legal or trade disputes arise, they are unprepared to defend themselves. Fifthly, market integrity is compromised due to insufficient regulation. Issues like false advertising, counterfeiting, and trademark infringement are common, increasing competition costs and eroding consumer trust. Sixthly, the industry struggles with slow market responsiveness. Many companies fail to track market trends, analyze changes, or understand national policies and international regulations. This lack of awareness leads to poor decision-making and missed opportunities. Seventhly, resource waste is significant. In technology development, basic materials and applied experiments are underfunded. Production processes often result in excess capacity, low-quality products, and environmental concerns. Additionally, packaging waste and inefficient information management further strain resources. To address these challenges, Yue Wangkun emphasizes the need for strategic vision, innovative thinking, and differentiated competitiveness. Companies must focus on understanding the evolving market and developing unique value propositions. The paint market is shifting toward more specialized, artistic, and technologically advanced products, and companies must adapt accordingly. He highlights that while many firms focus only on protective functions, the decorative aspect is equally important. Companies should explore new ways to enhance aesthetic appeal, drawing inspiration from foreign examples where natural elements and artistic techniques are used to create visually striking finishes. Ultimately, the paint industry needs to view its products as both science and art, aiming for higher levels of creativity and quality. Innovation must be embedded in every aspect of the business—from R&D and production to marketing and customer service. By focusing on value rather than just cost, companies can build lasting competitive advantages and achieve sustainable growth in an increasingly complex market.

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