What did we see at the 19th China International Coatings Exhibition?
Release date:
2014-12-10
The current coatings exhibition concluded successfully today in Guangzhou! Someone asked me, "As a veteran in the coatings industry, what did you gain from this year's event?" I simply replied with one word: "Awesome!" Just look at the sea of attendees yesterday and the day before—seeing every delegate arriving with joyful, beaming faces clearly shows that this year's coatings expo was an absolute success. In fact, I’ve attended every coatings exhibition over the past few years, and each one has left a unique impression on me. But this year, what struck me most was the remarkable rise of China’s indigenous coating material companies. They’re no longer content with mere imitation; instead, innovation has become the driving force behind the entire show. And just one day before the exhibition officially kicked off…
The current coatings exhibition concluded successfully today in Guangzhou! Someone asked me, "As a veteran in the coatings industry, what did you gain from this year's event?" I simply replied with one word: "Awesome!" Just look at the sea of attendees yesterday and the day before—seeing every delegate arriving with joyful, beaming faces, you can tell this year's coatings expo was an absolute success.
In fact, I’ve attended every coatings exhibition over the past few years, and each one has left a unique impression on me. What struck me most at this year’s expo was the remarkable rise of China’s indigenous coating material companies. These enterprises are no longer content with mere imitation—they’re embracing innovation, which has become the driving force behind the entire event.
The day before the expo kicked off, a grand gathering hosted by the renowned website Huicong.com brought together numerous coating material suppliers and executives from leading coating manufacturers. This prestigious event effectively ignited everyone’s enthusiasm for attending the show, setting the stage for an even more vibrant and collaborative atmosphere.
During the conference, we witnessed engineers spontaneously coming together to strengthen communication and foster partnerships, united in their shared vision of propelling China’s coatings industry to new heights. Notably, there was a heartwarming reunion of the “Coatings Xiangren” group—engineers who graduated from Xiangtan University in Hunan Province. Though Xiangtan University may not be widely recognized among China’s top universities, its alumni have built an impressive reputation as the “Xiangtan Coatings Army,” renowned throughout the Chinese coatings industry. Many iconic figures in the coatings world actually hail from this institution!
For instance, Chen Shousheng, the founder of Zhanchen Coatings, is an alumnus of Xiangtan University, as is Wang Daimin, the Technical General Manager of Jia Boli—a company that has become a major player in the industry. Then there’s Li Ang, the CEO of Jialeshi, another prominent name in the sector. Indeed, countless engineers who studied at Xiangtan University are now actively shaping the future of China’s coatings industry, whether they’re working with raw material suppliers or leading manufacturing firms.
Last night’s highlight was the “Coatings Wolf Pack—Engineers’ Gathering,” which took this spirit of collaboration to an exhilarating peak. Over 400 coating engineers, along with representatives from key raw material producers and select members of the media, came together from across the country. The energy was palpable as attendees passionately pledged to work hand-in-hand, determined to elevate China’s coatings industry to global prominence.
Now we return to the exhibition hall. Although companies like Bayer and BASF did not set up booths this year, the overall momentum of the show remains undiminished—and in fact, it’s even stronger than before. Throughout the event, three key trends in coating technology have been prominently featured: water-based solutions, radiation curing, and powder coatings.
In the past, Chinese本土 manufacturers were relatively weak in the resin production sector. Yet, if you visit today’s coatings exhibition, you’ll see that China’s resin manufacturing capabilities have grown remarkably strong—so much so that even Jiangsu Sanmu Group, a global giant in this field, no longer dominates the spotlight. Although carbon black isn’t used extensively in coatings, its exceptionally high profit margins have drawn many of China’s leading carbon black producers to shift their focus toward the coatings industry. After all, rubber-grade carbon black—which accounts for 90% of their sales volume—has seen no price increase in the past 20 years. Entering the lucrative coatings market has thus become a crucial strategy for these companies to boost their profitability.
What’s even more surprising is that we’ve observed numerous former traders transforming themselves into full-fledged manufacturers by leveraging contract manufacturing to build their own brands. Given the increasingly challenging environment for traditional trading businesses, this shift is not only inevitable but also a necessary survival move. Meanwhile, established manufacturers are also expanding: for instance, Bolier Resin and Huaxia Zhuzhi have both grown significantly in recent years.
Meanwhile, many other traders are undergoing their own transformations, moving away from a single-product focus. Take Daiquan Trading, for example, which has started diversifying beyond its previous reliance on BYK additives. And at the renowned Heshibi Chemical Group, even the company’s top executives—including the chairman himself—are actively supporting the group’s push into the coatings sector. Though coatings currently account for less than 15% of the group’s overall business, their determination to tap into this highly profitable market remains unwavering.
This coatings exhibition has drawn unprecedented attention from China's raw material manufacturers for coatings—so much so that many company owners, who rarely participate in trade shows, personally took to the stage to welcome their long-standing clients and promote their products. For instance, Qin Yisheng, Chairman of Tianyinde Group, and Liu Jun, General Manager of Yida Group, were both present. At the event, I had the opportunity to meet nearly all the CEOs, purchasing managers, and technical directors from the industry’s leading coating giants—including Aksu Nobel, Nippon Paint, Valspar, Heanpel, Jotun, as well as local heavyweight player Cabotli—and more. Despite coming from different backgrounds, they all shared a common goal: to source innovative new raw materials. Meanwhile, exhibitors found valuable opportunities to fine-tune and clarify the direction of their product development through meaningful interactions with these industry titans and other major coating producers.
Although foreign manufacturers haven’t brought many groundbreaking innovations this time, that doesn’t mean they’re overlooking this year’s coatings exhibition. Just take a look at the BYK booth, the Hemings booth—and then consider the booths of many Japanese companies. You’ll notice that the Chinese market remains their top priority for both attention and growth. What’s causing them concern, however, is the increasingly rapid pace of development among local Chinese firms, which is narrowing the gap between them in terms of marketing strategies and technological capabilities.
Before the Guangzhou International Coatings Exhibition this time, someone told me that the number of exhibitors had dropped by about 15% compared to previous years. However, what I observed was a significant improvement in the quality of participation—after all, the thriving growth and strength of any market depend not just on quantity, but more importantly, on quality.
During the exhibition, the president of the Architectural Coatings Division of a major coatings group excitedly declared, "China's coatings industry is the 'sunrise industry' among sunrise industries"—and frankly, he couldn’t have been more accurate! Compared to last year, your sales prices remained virtually unchanged, yet the average cost of raw materials you sourced actually fell by more than 10%. Naturally, Chinese coating manufacturers are thrilled with these favorable conditions.
In fact, one large coatings subsidiary under a prominent Zhejiang-based conglomerate is reporting "substantial profits" this year. When I shared this news with the group’s CEO, I quipped: "When you’re already sitting in such a promising industry, it’s nearly impossible not to turn a profit!"
Meanwhile, the coatings sector’s eye-catching performance and robust profitability are increasingly drawing "outsiders" into the fray. Just look at Wanhua Chemical’s bold moves, or take note of the ambitious plans being hatched by multi-billion-dollar chemical groups eager to make their mark. Clearly, next year promises to be an incredibly vibrant chapter for China’s coatings industry!
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