paint manufacturers that distribute their products nationally. Major producers of paint for the architectural coatings segment include Sherwin-Williams, Benjamin Moore, the Glidden unit of Imperial Chemicals, PPG
JANMAR COAÏNGS, INC. to7 Industries, Valspar Corporation, Grow Group, and Pratt & Lambert. These pro- ducers account for upward of 60 percent of sales in the architectural coatings segment. They market paint under their own brand names and for retailers un- der private, controlled, or store brand names. For example, Sherwin-Villiams markets the Sherwin-Williams brand and produces paint for Sears. About 50 percent of architectural coatings are sold under private, controlled, or store brands. Sears, Lowe's, 'Walmart, and Home Depot ate major marketers of these brands. In addition, hardware store groups such as True Yalue and Ace Hardware market their own paint brands. Specialty paint stores, lumberyards, and independent hardware stores that sell architectural paint and paint sundries have been able to compete in the paint business despite the presence of mass merchandisers (such as Sears) and home improvement centers (such as Lowe's and Home Depot). In- dustry sources estimate that specialty paint stores account for about 36 per- cent of paint and sundry sales; hardware stores and lumberyards account for 14 percent. Furthermore, specialty paint and hardware stores and lumberyards in nonmetropolitan areas have outdistanced mass merchandisers and home improvement centers as sources for paint and paint sundries. This is largely attributable to a lack of home improvement centers and mass-merchandiser distribution in these areas and paint store, hardware, and lumberyard customer relations and service. flowever, Walmart has been an effective competitor in many nonmetropolitan areas. Home centers (including wholesale home centers) and mass merchandisers (including membership clubs such as Sam's) represent the two most frequently patronized categories of retailers shopped by do-it-yourself painters for paint and sundry items. Specialty paint stores and lumberyards were the most fre- quently patronized retail stores by professional painters for paint products and sundry items. Architectural Coatings Purchase Behavior Approximately 50 percent of architectural coatings dollar sales are accounted for by do-it-yourselfer painters. Professional painter purchases account for 25 percent of dollar sales. The remainder of architectural coatings dollar sales result from government, export, and contractor sales. Almost 60 percent of annual architectural coatings sales are for interior paints. Exterior paint represents 38 percent of sales. Lacquers and all other applications make up the balance of sales. Slightly less than one in four households purchase interior house paint in any given year. The percentage of households purchasing exterior house paint is considerably less than that for interior paint.
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