Coatings industry develops dual-channel operations

In the coatings industry, there's a well-known saying: "Get the channel, and you get the world." This is the result of years of practical experience. For painters, expanding and maintaining their own sales channels has always been a key challenge.

In recent years, as the first and second-tier coatings markets become increasingly saturated and the market space shrinks, the third and fourth-tier markets have emerged as a new opportunity for leading paint manufacturers to expand their distribution networks. These lower-tier markets are now seen as a crucial area for future growth.

Paint sales typically fall into two categories: direct-operated stores and dealer-run stores. Each has its own strengths and weaknesses. Direct-operated stores offer better control and allow for faster communication of brand messages directly from headquarters to consumers. On the other hand, dealer and distributor networks help scale brand presence more effectively. As a result, the third- and fourth-tier markets are often dominated by agents and distributors. From a business model perspective, direct and dealer stores operate in parallel, representing a comprehensive approach to market expansion.

Additionally, paint sales are divided into offline and online channels. Offline sales provide direct interaction with customers, allowing businesses to gather real-time feedback and market insights. However, the reach is limited. Online sales, on the other hand, offer cost-efficiency and broader access, with fewer geographical constraints. Combining both channels can create a powerful synergy that drives steady growth in the paint market.

Whether it's choosing between direct or dealer sales, or balancing online and offline strategies, adopting a dual-channel operation has become a growing trend in the coatings industry. This approach not only helps manufacturers reach more consumers but also brings unexpected benefits and value to end users. It's a strategy that’s shaping the future of the paint business, offering flexibility, efficiency, and long-term sustainability.