The paints and coatings Industry is facing major trouble after the increase of the consumer market shift towards the Economy Paints. It is known as downgrading. Consumers prefer cheaper options. The premium segment and decorative paints come in less use. The big paint companies are shifting their focus towards reducing their prices. Otherwise, survival will become hard in the competitive market. There are several new competitors in the market making the game even more difficult to survive.

Coatings Industry Reduced Price Impacts The Revenue

Coatings Industry Price Reduction Impacts The Revenue

The coatings and Paints Industry is working on maintaining their incomes and profits along with the demand in the industry. As the consumer market is shifting towards the economy of paints, it results in the consumers buying less of the premium quality paints and the decorative paints industry is facing downgrading. Simple paint is in trend now where a light colour combination attracts the consumer market.

So what includes the economy paint? Well, economy paint is a lower quality paint than premium paint. It is cheaper than the premium paint. Because of its low price and quality, it is not washable. It easily gets peeled off or picked up in humid weather conditions. Thus, areas with more exposure to water such as kitchen, bathroom, and outdoors are not suitable for such paints. Why is this happening? The economy’s shift can be because of the increasing prices and less affordability of the people. There are so many segments that cannot afford the premium paints.

Thus, there are economic paints are taking on the market. It shows that people are less willing to spend higher on the paint. It is not the only reason for the decorative paint industry to suffer. Another major reason is increasing competition. The incoming of Birla Opus in the paint industry has an impact on the industry. They have a reduced market share. Apart from that, big giants like Asian Paints and Berger Paints reduced their paint prices. It is especially important to maintain the interest of the people in the company. Asian Paints reduced by 4% prices. While Berger Paints reduced 4-4.5% resources.

Other competitors like Kansai Nerolac Paints also re-priced their products. The paint industry is facing difficulty in profit and revenue maintenance. However, there is a benefit to the consumers as they have more variety. Also, the new competitors increase the capacity of the production. We hope you get enough details about the paint industry’s decreasing prices and other stats above.

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