Clear Strategy Makes Huarun Paints Step Forward Firmly
Year:2009 ISSUE:31
Click:212    DateTime:Nov.06,2009
Clear Strategy Makes Huarun Paints Step Forward Firmly   
--Three Points to Keep on Growing   

By Li Xi   
Since 2008, the economic crisis has attacked almost all industries around the world. As the real estate industry is in the center of this tornado, the building material industry is also influenced seriously with market going recessionary. In China, the market situation has been complicated and confusing. On one hand, in many industrial segments people keep saying the crisis is like a harsh winter; on another hand, strong companies still perform well, which makes investors feel positive. Guangdong Huarun Paints Chemical Co., Ltd. (Huarun Paints), who has had a good reputation in Chinese painting market for a long time, performed especially strongly from 2008 to 2009, and gained a huge share in niche markets. For instance, considering its advanced technology and market performance, Huarun Paints' wood paint products were awarded No.1 brand in the Chinese market by experts, core clients and end consumers.
   What helps Huarun Paints to be a winner during this harsh term? "Strategy management is necessary for Huarun Paints' growth, especially in harsh times," expressed Mr. Fang Xin, the vice general manager of Huarun Paints. "As the company purchased an advanced management system earlier, Huarun Paints has some experience in how to make its own strategy. We have a clear strategy which includes facets of market performance that guide us to move on. This strategy aims at the specific situation of the Chinese market - A. Focus on the 2nd and 3rd level local markets; B. Focus on major clients' needs; C. Focus on the business of emulsion paints. This strategy is Huarun Paints' clear response to the current market needs, combined with its development plan in the future."
   To develop the 2nd and 3rd levels of local markets, Huarun Paints strengthens especially on building and expanding its sales network. Unlike other paints companies, Huarun Paints naturally develops a strong penetration and controlling on sales network since its establishment. As China has tried to exploit its internal market needs recently, the 2nd and 3rd level markets will become a new Blue Sea which contains huge opportunities. Huarun Paints has built a comprehensive sales network and supplies customer services in major Chinese metropolitan areas such as Beijing, Shanghai, Guangzhou and other regional markets like northeastern and southern China. To satisfy different needs from diverse markets, Huarun Paints also invests more on R & D to develop different production lines and attract potential clients. For example, Huarun Paints develops the architectural paints with special functions such as warming or anti-humidity to adapt diverse climates. "Huarun Paints will continue to develop Chinese local markets and satisfy specific needs from different clients," says Mr. Fang.
   To develop the emulsion paints business, three famous brands owned by Huarun Paints, the Huarun, Idol and Pearl lines, all gain considerable share in their target markets, and perform very well. For example, Huarun Magic Paints specially aims at the interior decoration of children's rooms. It is gentle and brilliant in color, and strictly secured in quality. Magic Paints is a product Huarun Paints developed in cooperation with Disney, using images owned by Disney. Magic Paints is more lively and pleasant for children's room decoration, and it can promote the development of children's mentality.
   To attract majority clients, Huarun Paints formed strategic corporation relationship with big home-decoration companies besides offering the common consumers the spray painting services, based on its research on Chinese customers' needs.
    In the home-decoration market in Wuhan, Changsha, Kunming, etc., Huarun Paints built strategic partnerships with all the local famous home-decoration companies to supply them with Huarun Paints' wide range of painting products and services during home-decoration. The home-decoration companies are Huarun Paints' big clients, also Huarun Paints' creation on exploiting sales channel.
   Besides, Huarun Paints takes the advantage of its technology to build up long-term partnership with the world's leading chemical companies, such as BASF, Bayer, DuPont, etc, to ensure that Huarun Paints can always develop the newest technology and supply the finest products to the market and clients. In 2006, Valspar Corporation, the top global paints group made a strategic investment in Huarun Paints. With Valspar's join-in, Huarun Paints successfully achieved a strategic transformation and moved on to a comprehensive internationalization of its management, products and service, etc.
   Huarun Paints' consistent success comes from its clear and exact strategy, combining with great opportunities offered by the market environment. In the future, Huarun Paints will continue its strategy management and invest more on R & D to satisfy the Chinese market with better products and services.