Polyurethane Coatings Remain Dominant in the Chinese Wood Coatings Markets

Mumbai, Maharashtra, India

A growing domestic demand for wood furniture along with the spurt in wood furniture exports are likely to positively impact the growth of the Chinese wood coatings markets. The Chinese furniture association estimates furniture exports at $13 billion for 2005, with a year-on-year growth rate of 37 percent, and a closer examination of Chinese furniture exports reveals wood furniture to be dominant. Similarly, wood furniture accounts for a significant proportion of a rapidly expanding domestic market, promising healthy demand for wood coatings.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Chinese Wood Coatings Markets, reveals that revenues in this market totaled $1.68 billion in 2005 and can reach $3.58 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Chinese Wood Coatings Markets, then send an e-mail to Shwetha Thomas/ Nimisha Iyer, Corporate Communications, at sthomas@frost.com/ niyer@frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"In addition to the growing demand for wood furniture, the rapid development of the Chinese real estate market is also likely to drive the demand for wood coatings in China," notes Frost & Sullivan Research Analyst Louise Zhao. "Increasing urbanization of urban and metropolitan areas is giving rise to new commercial, residential and entertainment-related constructions that will require wood coatings for their furniture and interior decoration needs."

With a market share of 60 percent in 2005, polyurethane (PU) coatings account for a predominant share of the domestic market for wood coatings. While these coatings expect to maintain, and even increase its market share over the forecast period, nitro cellulose (NC) coatings dominated the coatings used for wood furniture exported to the United States. Despite being in nascent stage of development, water-based coatings are seen to hold tremendous growth potential for the future.

With respect to the market challenges, participants in the Chinese wood coatings markets are likely to be restrained by the imposition of rigorous new regulations, especially in relation to environment protection. These include the ISO 9001 international quality system certification, ISO 14001 international environment management certification, China Compulsory Certification (CCC) and China Environmental Labeling Certification. Enterprises, which do not fulfill these criteria, are bound to be phased out, and many small and mid-sized participants are particularly challenged in ensuring compliance with these regulations.

"Besides this, rising raw material costs are also likely to pose challenges for market participants," says Zhao. "Due to the competitive nature of the market, market participants are often forced to absorb the cost increase instead of passing them on to their clients, thereby reducing margins."

In order to overcome these challenges, companies must focus on delivering quality products, and also ensure a complete distribution channel with wide geographic coverage. Marketing strategies need to be flexible and dynamic, with sufficient importance given to brand building, promotion and advertisement. This apart, establishing sales alliance with major furniture manufacturers and even their importers could also prove to be very beneficial for the participants in strengthening their market presence.

Chinese Wood Coatings Markets is part of the Chemicals & Materials Subscription. It provides a comprehensive analysis of the Chinese wood coatings market. It also provides a brief overview of the Chinese furniture industry. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following markets/applications/technologies: PU coatings, NC coatings, PE coatings, and others (UV/water-based coatings, AC coatings). Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

Chinese Wood Coatings Market
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Shwetha Thomas, Corporate Communications, Frost & Sullivan, + 91 (022) 4001 3429 sthomas@frost.com

Nimisha Iyer, Corporate Communications, Frost & Sullivan, + 91 (022) 2832 4713 niyer@frost.com

Source: Frost & Sullivan (Business Wire India)

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