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The following article was published in our article directory on September 15, 2010.
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Coatings Market in Southern Africa Competition Intense

Article Category: Marketing

Author Name: Amanda xzh

Is in a growth period in southern Africa began to paint the current competitive market, but with the economic recovery, there will be many new market opportunities. U.S. growth consulting company Frost & Sullivan recently completed for the southern African market, an analysis of paint to make optimistic forecasts, and detailed analysis of the various types of coatings market for growth.

Southern Africa, including South Africa, Namibia and Zambia, the three countries. Among them, South Africa holds a market share of 92.9%, while the market share between the two countries were only 1.6% and 5.5%. 2009, paint the entire southern African region the size of the market reached 603 million U.S. dollars, of which the first place in the architectural coatings accounted for approximately 57.3% of the market, ranking second and third place in the industrial protective coatings and automotive refinish the influence of far far, and building materials.

First half of 2009, the region's coatings market as the financial crisis, part of the building were urgently called for the suspension of the entire coatings market slowdown; in the second half, as the economy recovers, paint market conditions have improved . However, due to the threshold of the industry is not high, a large number of small companies into the market, making competition more intense. In addition, imports of raw materials as raw materials account for more than 80% of the total, the costs of manufacturing greatly enhanced, in this case, has been completed painting of imported cars more competitive in price, resulting in a substantial decline in local sales of automotive coatings.

But generally speaking, with the recovery of the construction industry, market share of the region's largest construction industry this tended to paint prosperity in the growing momentum of the overall coatings market. As the financial crisis is over, had been halted in some private and government investment in infrastructure projects re-started, directly contributed to the growth of architectural coatings. It also reflects the entire southern African region is in a good stage of development, giving investors some confidence and a stable economic environment to ensure that consumers have the ability to purchase decorative coatings. The presence of imported products and the improvement of scientific and technological content, so that coating has not only applied to low-end market, is to develop high-end, expanding the market size, increase the profits of manufacturers. Meanwhile, with the southern African countries to increase investment in the automotive industry and the tariff reduction will increase the demand for cars, which is conducive to the prosperity of coatings market. Frost & Sullivan expects the entire southern African region in 2016 coatings market revenue will reach 765 million U.S. dollars.

The report also detailed analysis of the characteristics of coatings market in the region. First, the coatings market in general because of the financial crisis has slowed growth and will continue for a period to around 2013, growth will accelerate slightly, to 2016 years ago in the region after the coatings market growth will be higher speed and stability . Second, imports from low cost producing countries will affect the paint and coatings in southern Africa, local paint and coatings industry. Again, the region's overall paint market capacity is far from saturated, there are still large room for growth. In addition, very little paint in southern Africa exports, strong dependence on imports. South Africa because the state is relatively large, abundant resources, dependence on imports is much smaller than the other two countries.

At present, the Pula Scandinavia (Plascon) coatings in southern Africa is the absolute market leader in architectural coatings and industrial protection in respect of the leading paint, coatings market in southern Africa as a whole occupy 47.2% share. Dulux companies followed, because of its good brand in the region has gained overall market share of 17%. As Africa's largest paint company CHEMSPEC Group's performance is relatively good, the market share of 11%. The remaining one quarter of the market divided by the number of small companies.

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