Since 2011, almost all coating companies have faced rising pressures such as raw material costs, labor costs, energy costs, transportation costs, management costs, and borrowing costs. At the same time, the regulation of the national real estate market has affected the decline in transaction volume in the real estate market, and has also affected the demand for related coatings. In addition, after more than ten years of rapid development of China's coatings, the homogenization of the market is serious. The Chinese coating companies in 2011 are facing difficulties!
In the face of the crisis, paint companies have also resorted to all the solutions to promote the "open source and reduce expenditure" to release the pressure generated by the crisis. The author believes that in the face of crisis, open source is more important than throttling, and paint companies can not “throttle†but must “open sourceâ€.
In the face of crisis, the “open source†of paint companies is more important than “throttlingâ€
Open source creates more value
This increased cost can create value. The more the “anti-doers†move, the higher the overall cost is and the lower the cost will be.
The survival of paint companies requires the market. If you want to survive better, you need a bigger market. If you want a bigger market, you need more investment. Enterprises want to get a bigger market to do two things: first, maintain the existing market; second, open up new markets. In order to maintain the original market, in the crisis era, coating companies must not make any efforts to support distributors. In terms of channels, advertisements, and product offers, we must give distributors maximum support. We must also organize training to increase the dealers' operating capabilities and jointly handle the difficulties. If paint companies “throttling†dealers at this time, the loyalty of dealers will be reduced, and they may even lose the dealer forever.
In order to open up new markets, first of all, the overall quality of products must be excellent, and investment companies in the development of new products cannot be paralyzed. Secondly, enterprises should be able to open up their investment strategy, and they must have maximum support in terms of channels, advertising, and product incentives, and dealers will naturally be actively involved in profitable activities. Third, to develop the market, excellent market developers are indispensable. Drucker pointed out that the biggest opportunity for improving economic performance is the enthusiasm and effectiveness of employees. How can employees' wages and benefits be “throttled†with enthusiasm and effectiveness?
In 1993, the economic crisis spread in the United States, and Harrison Textile Company was turned into a flame due to a major fire. 3000 employees pessimistically returned home waiting for the company to declare bankruptcy. However, the notice they received was to continue to pay one month's wages. One month later, the company decided to send another monthly salary. The employees were extremely grateful. They had come to the company to clean up the rubble, scrub the machine, and contact the source of the interruption. Three months later, the company reactivated. Now, Harrison has become the largest textile company in the United States with branch offices in more than 60 countries around the world. This case illustrates that the paint companies never reluctant to spend money on the most valuable talents and employees.
Do not negate "throttling"
The idea of ​​cost control is not wrong, but there are costs that you can't control. Can you cut corners and shoddy? Can you reduce the salary to your employees? Can you control the price of power delivery? This is where companies have the most tangled costs. Paint companies have only one way to “cut costsâ€, which means maximizing cost effectiveness or reducing waste. Enterprises need investment in the affirmative, but to ensure that the investment is in the right place, do not waste a penny. Any company has waste problems. Who can use all resources to the fullest extent. Who can make everyone create value every minute. Who can make the company operate efficiently and accurately?
In the face of crisis, paint companies should not only look at how bad the external environment is, but also how high their costs are. They should think more about the development of enterprises. In my opinion, “throttle†is more like a company cutting its own “fat meat†to feed itself. Although these "meats" should really be cut off, but how can a paint company can cut it to eat without affecting health? How long can you eat? If a paint company wants to grow healthily, it must eat enough food. If you want to eat full, you must have a market. If you want a market, you must actively go for “open sourceâ€. Paint companies can not "throttle", but they must "open source". If they can do both, it is of course the best policy!
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