by JOO Hyeyoung KOMOTO Yumiko BECHADE Bertrand
2 of 19 The Paint Market The U.S. Paint Market • It is considered to be a maturing industry . • Industry sales in 1995 were estimated to be slightly over $13 billion • Divided into three segments: Architectural Coatings (43%), paints, varnishes, and lacquers (residential, commercial, and institutional structures) Original Equipment Manufacturing (OEM) coatings (35%) for durable goods (industrial specifications) Special Purpose Coatings (22%) for special applications or environmental conditions 43 % 35 % 22 %
3 of 19 The Paint Market The Architectural Paint Industry #1 • The sales : $10 billion (w/ sundries). Mature Market. • Sluggish growth rate measured in dollars can be traced back to a slowing growth rate in volume (new material, quality, substitutes products) • Increasing demand for painting accessories (brushes and rollers). These sales account for $4.5 billion • The US paint manufacturers are under growth pressure to reduce emissions of VOC’s and solvents. Gov Regulations
4 of 19 The Paint Market The Architectural Paint Industry #2 Architectural coating $ Sales: Do-it-Yourselfers ( 50% ) Professional painters ( 25% ) The rest goes to the Gov, export, and various commercial uses 50 % 25 % 25 % Three types of distributors Mass merchendisers (50%) Special paint stores (36%) Hardware store & lumberyard (14%)
5 of 19 Jones Blair Company The Market • Maturity -- increasing competition • Mass merchandisers dominate DFW market (50%), where JBC does not compete •
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