The global coating giant officially announced its delisting!How can foreign brands win the Chinese

Mondo Finance Updated on 2024-01-29

At the beginning of December 2023, BEHR Bose Bear, which has been in the Chinese market for 16 years, officially announced its withdrawal.

The aroma of wine is also afraid of deep alleys". It has been 16 years since Bose Bear entered the Chinese market, but it has always faltered in spreading the brand concept and product advantages. Compared with other imported brands entering the Chinese market, Bose Bear's marketing activities in China are almost negligible, and the brand awareness and popularity are insufficient.

Although Bose Bear has excellent product strength, there are obvious shortcomings in key areas such as marketing strategy and channel construction.

As one of the world's top 10 paint giants, why has BEHR failed to succeed in China's high-end market?After the home building materials industry has entered a new cycle of the stock market, the competition in the high-end coating segment is becoming increasingly intensified, and the requirements for brand power, product power, channel power, and service power are constantly improving. In this context, which brand will break through the encirclement and become the leader?

The withdrawal of Baise Bear from China has triggered a question in the industry about how the global paint giant can take root in China.

Some industry observers pointed out that unlike Bose Bear's choice of "independent operation" strategy, the German Alpina brand has in-depth strategic cooperation with its parent company DAW SE Group and Chinese building materials system service provider Oriental Yuhong, forming a strong alliance between giants, and has become a typical model case of global coating giants successfully cultivating in China's high-end paint market.

It is understood that Alpina was founded in 1909 and is a high-end paint brand under the DAW SE Group, Germany's largest paint manufacturer, and has 98% brand recognition in the German latex paint retail market.

With a history of more than 100 years, Alpina has always focused on the paint retail market, with technology and innovation at its core, adhering to the German tradition of "winning by quality", using advanced production processes and high-quality raw materials, which far exceed market standards in terms of durability, color and stability, and can maintain long-lasting beautiful and clean walls, reducing maintenance frequency and costs.

It is worth mentioning that Alpina uses a low VOC (volatile organic compound) formula with a VOC content of no more than 1 g L. Alpina, who adheres to the concept of sustainable development, has achieved the ultimate in environmental protection and health.

Alpina has passed a number of international authoritative certifications such as the German Blue Angel certification, the German TÜV Rheinland testing certification, the French indoor air testing A+ certification, and has passed the German FREI VON product environmental protection test, and has been recognized for its excellent quality in the evaluation of STIFTUNG Warentest, a well-known independent evaluation agency in Germany.

It is reported that the DAW SE Group introduced Alpina to China in 2015. In December 2016, DAW welcomed a strong partner in the Asia-Pacific market - Oriental Yuhong. The cooperation of the two giants is not only a fit of concept, but also a perfect integration of resources and advantages. Alpina brought its innovative technology and brand charm, and Oriental Yuhong contributed its deep strength in marketing, channels and services, and officially opened the era of "brand sailing" in 2017.

In the Chinese market, Alpina adheres to "German quality", and its full range of products, from interior hardcover coatings to artistic texture paints, to Kiev materials, bring consumers not only color and texture, but also the essence of century-old German craftsmanship, technology and environmental protection.

However, there is still an emotional bridge between Alpina and the target consumer.

In 2019, for the first time in the industry, Alpina put forward a new concept of "wall protection such as skin care", the core appeal is that Alpina's attitude towards the wall is just like the attitude of women to the first, exquisite, safe and environmentally friendly, and is committed to letting the wall enjoy skin-like systematic care, which captures the elements valued by the younger generation of consumers.

Through a series of marketing activities, Alpina continues to strengthen the emotional connection with modern young women, encouraging female consumers to have the courage to design, change, try different home living spaces, and create the life they want.

For the self-conscious, individualized young woman, Alpina is no longer a cold product, but a color magician who unleashes her personality and emotions. With her help, the home will be transformed into a space full of artistic and personal expression.

In the fierce competition in the high-end paint market, Alpina has skillfully established its unique position in the hearts of the younger generation of consumers, in which brand power and product power are the core, and the external attraction is derived from the emotional value it carries.

Affected by the new cycle of real estate, the home improvement field is undergoing a transformation and entering the stock era, and the demand for the renewal of old houses has become the driving force of the industry. This trend is also impacting the premium coatings market, where consumers expect more than just quality products, but integrated solutions. The rise of the "one-stop" model under the demand for renewal has further improved the technical and service threshold of the high-end paint market, challenging the all-round capabilities of international paint brands.

In the track of high-end imported coatings, Alpina took the lead in landing integrated solutions. Its renovation service system not only covers wall renovation, but also includes kitchen renovation, bathroom renovation, artistic background wall, waterproof plugging, etc. It is relying on the layout of the whole industry chain of Oriental Yuhong and the "one-stop" service ability of building materials system service providers.

In addition, relying on Oriental Yuhong's unique standardized construction technology training system and landing capabilities, Alpina has launched the German standard coating process, and has joined hands with a professional team to provide the original German-style home painting experience for China's high-end paint market, so as to achieve the best coating effect with wider applicability and professional construction guarantee.

Rigorous German-style craftsmanship and coating run through the whole process of rejuvenation service, and every step is meticulous to ensure quality and quantity. Remove and reinforce the loose and old walls, and paint the interface agents such as wall solids to increase the cohesion of the base layerLeveling and polishing the wall surface to make the wall surface smoother and more delicate;Brush the primer to improve the adhesion of the wall paint, increase the fullness of the wall paint, etc., and keep the color evenBrush the topcoat twice ......Let the walls enjoy skin-like systematic care.

From base treatment, wall painting to topcoat painting, with the blessing of Oriental Yuhong's standardized construction technology, the full color and unique texture of Alpina art paint can be fully displayed, thereby creating a unique and elegant artistic atmosphere.

In terms of channel resource integration, Alpina has effectively used the advantages of Oriental Yuhong's existing channel network and chain to achieve efficient and fast distribution services.

In addition, as the only company in China that has been designated to legally operate the Alpina brand, Oriental Yuhong has a wide range of channel networks to ensure the authenticity and reliability of products, improve the purchase experience and satisfaction of consumers, and thus establish a positive image of the Alpina brand in the market. Through the synergy of the first chain and channels, Alpina has a more stable layout in the Chinese market, and at the same time, it has also brought value-added brand effect to Oriental Yuhong.

Since the announcement of the "brand sailing" in September 2017, Alpina has entered the seventh year of growth in the Oriental Yuhong system, with the help of Oriental Yuhong's customer resources, channel advantages, marketing advantages, and service advantages, to achieve the rapid "running" of its own brand. According to the financial report of Oriental Yuhong, as of mid-2023, D&W Paint Retail has joined 2,200 dealer partners, and the terminal sales outlets have reached 250,000 companies, cooperating with about 200 leading home improvement companies and more than 4,600 home improvement companies in the region.

With the help of Oriental Yuhong's omni-channel resources, Alpina has embarked on a path of "foreign brand" rooted in the local market and sustainable development. Alpina, a "foreign brand" committed to developing China's high-end paint market, has established a close cooperative relationship with its strong domestic partner Oriental Yuhong, and jointly explores the Chinese market through its marketing insights, channel network, technical support and service capabilities.

Looking forward to the future, Dongfang Yuhong said that it will still uphold its German brand tonality and product quality experience, give full play to the advantages of German products in color and function, create a product concept of "parapet like skin care" and 2088 color system, and become a high-end paint brand in the domestic market that has a century-old paint background and meets the needs of young consumers.

Oriental Yuhong emphasized that it will further increase the synergy between the retail business of D&W and Oriental Yuhong Civil Construction Group. Enabled by the core capabilities of Dongfang Yuhong Civil Construction Group, such as channel network, first-class chain and integrated solution capabilities, Alpina, a "foreign brand", is expected to open up a unique high-growth path in China's high-end paint market.

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