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BIG International Study Project China 2006
University of Groningen
Akzo Nobel Decorative Coatings China
Supervisor:
Wilfried Brouwer
Authors:
Dirk-Jan ter Horst
Emma Lok
Research Objective
To present Akzo Nobel an overview of the decorative coatings market in the greater Shanghai and Beijing area in order to help Akzo Nobel improve their strategic market
position in these areas;
The market parties of the demand and supply side
The relations between these market parties Trends and developments To provide Akzo Nobel with suggestions on how to influence these
market parties
Research Question
• What is the Chinese decisionmaking and buying process for paint like, which parties are involved and how are these interrelated?
• What are the specific needs of the different market parties for paint products and services?
Research Defining
• Retail market
• Interior wall paint
• High-end consumers Low-end consumers
• North China East China
• 1st tier cities 2nd & 3rd tier cities
Conceptual Model
Distribution
Beijing
Shanghai
DEMAND
SUPPLY
Comp. A
Comp. B
Comp. I
Comp. II
Akzo Nobel
Technology
Economy
Geography
Laws
Culture
Community
Politics
Demographics
Research methods
• Qualitative data;» Desk research; books, internet, weblogs, reports,
magazines, master theses» Interviews with all market parties and external
experts» Observation» Action research; acting like a consumer
• Quantitative data;» Desk research; internet, books, Chinese statistical
yearbook 2005» Questionnaires (home residents, painters & exit)» Facings in paint shops
Field research
• Interviewed/visitedEmployees of Akzo Nobel (8)Dutch EmbassyCoating associationExperts (6)Competitors (3)Hypermarkets (8)Salesmen in hypermarkets and small shops (8)Shopowners (8)Decoration companies (5)Painters (23)Home residents (534)
Some research pictures
Yi Shan Road
China
Decorative coatings market China
Supply and demand of paint in the deco coatings market Shanghai & Beijing
Relations between the parties in the deco coatings market in Shanghai and Beijing
Influences on the relations between these market parties
Developm
ents till2011
Research Overview
Background
---- The distribution of population and cities in China
GDP per capita in 1980---- The differentiation of regions by GDP per capita in China
GDP per capita in 1990---- The differentiation of regions by GDP per capita in China
GDP per capita in 2000
---- The differentiation of regions by GDP per capita in China
GDP per capita in different cities across China
Beijing GDP per capita (2004)
28 700 RMB.Expectation 2010: > 40000 RMBExpectation 2020: > 80000 RMB
1984-1994 1994-2004 2003 2004 2004-2008*
GDP (CAGR) 9,40% 8,30% 9,30% 9,50% 8%
* = Expected
China GDP Growth outlook
GDP growth in Shanghai area
2004 2003 2002
Districts GDP(billion) Rate of Increase(%)
GDP(billion) Rate of Increase(%)
GDP(billion) Rate of Increase(%)
Xu Hui 8,687 14,7 7,574 14,35 6,623 12,14
Bao Shan 26,597 22,5 20,621 23,1 15,054 15,2
Hong Kou 6,52 14,2 5,71 13,7 5,02 15,2
Pu Dong 178,979 16,4 150,388 17,5 125,116 16,7
Song Jiang 34,351 30,6 25,25 35,2 18,008 19,2
Su Zhou 345 17,6 280,2 18 208 14,5
Kun Shan 57 24,5 43,037 31,5 30,5 32,8
Demographics
Shanghai Beijing
Permanent population: 17.42 million (2004)
Permanent population: 14.93 million (2004)
Density: 2750 inhabitants per sq. km (2004)
Density: 888 inhabitants per sq. km (2004)
Ratio male-female: 96.62 Ratio male-female: 105.1
(Semi) illiterate: 6.54% (10.63% of all females)
(Semi) illiterate: 4.48%
Statistical Yearbook 2005, www.wikipedia.org
Distribution of age in Beijing and Shanghai
Distribution of age in Beijing and Shanghai (2005)
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
40,00%
45,00%
50,00%
0-17 18-34 35-59 60+
Beijing
Shanghai
•http://www.bjstats.gov.cn/sjfb/pcsj/rkpc/200607/t20060704_45118.htm, http://www.stats-sh.gov.cn/2003shtj/tjnj/nj06.htm?d1=2006tjnj/C0308.htm
Internet Usage China
Internet users year 2000: 22.5 million Internet users year 2005: 123 million CAGR 2000-2005: 40.5% Penetration rate Beijing (2005): 28.0% Penetration rate Shanghai (2005): 26.6 %
http://www.cnnic.net.cn, http://www.internetwrldstats.com/stats3.htm#asia
Decorative coatings market China
Characteristics of Coatings Industry in China
• The paint market has existed for less than 10 years
• Acceleration in development
• Company centralization
• Advance of technical development ability
• Build-up of brand consciousness
• The main distribution channels: CMMs and specialized
shops
• Moving from the east to the west
Size of decorative coatings market• In 2005 the general output increased 17.7% to 1.335 million tons
(Official) Asiacoat estimates 1.7 million tons
• The retail market size has possibly reached 1.0 million tons in 2005, growth rate is about 19%
• Expectation 2010: output will reach 2 million tons
• Architectural coatings take up a 50% output of all coatings in China
www.asiacoat.com, Coatingol.com(Chinese name:Tu Liao Zai Xian), www.coatingol.com/news/nwsview.asp?nsid=27481
Area Yangzi River Delta (around Shanghai)
Zhu River Delta
(around Guangzhou)
Bo sea area
(around Beijing)
Other area
Output 1146400 ton 833900 ton 612400 ton 388800 ton
Percentage 38.45% 27.97% 20.54% 13.04%
Trends on the decorative coatings market
• Demand will rise due to:1. Real estate market growth (broadening of cities)
2. Shorter redecoration cycles, because of improving living standards, despite improved quality
3. Government deregulation boosting home ownership by 30% a year
• Concentration of market top 8 market share grows • Desire for better-quality materials• Top and mid segment will relatively grow faster than
low segment.
1 =Annual Report on Paint & Coatings Industry (2005)
Market parties model 1
Manu-facturers:Akzo Nobel
& Competitors
Decoration markets
Painting practice
Home residents
Market parties model 1
Manu-facturers:Akzo Nobel
& Competitors
Decoration markets
Painting practice
Home residents
Active brand awareness
0%
10%
20%
30%
40%
50%
60%
70%
80% Nippon
ICI/Dulux
Hua Run
Goldfish
PPG/Master's brand
Dashi
Levis
IVY
Other
Nippon Paint (1)
• Founded in Japan in 1881• Number one coatings company in Asia• Biggest and oldest company in China (1993)• Innovative product breakthroughs (Colour Tinting System )• Biggest distribution network• Focus on protecting the environment• New generations of continuously upgraded products • Long range of products under the same brandname• Nippon sees ICI/Dulux as only competitor• High end: 15 %, Mid end: 50% and low end 35% of total sales
Nippon Paint (2)
Advertisement Transportation
First mover advantage Communication with retail shops
Distribution network Severe competition between agents
R&D amount of researchers is double
ICI/Dulux’s
Only known in Asia
Brand awareness
Strengths Weaknesses
ICI/Dulux (1)
• ICI/Dulux focuses only on mid and top segments
• In 2002 ICI/Dulux entered the Chinese market and introduced different colors
• ICI/Dulux had an explosive growth in sales because: They introduced paint which is better for people’s health They introduced 5 functions in paint They had USP and advertisement Good quality
ICI/Dulux (2)
International image Price competition due to overdistribution
Brand awareness Strong imitation brand: Dashi
Strong advertisement concepts
Distribution network
Strengths Weaknesses
Huarun (1)
• Huarun Company was established in 1991 (Beijing: 2002, Shanghai: end-2004)• Huarun focuses on main cities in provinces• Huarun is the only company paying attention to the safety of painters uniforms• Nationally Huarun has got 1000s of painters on their payment roll. In Shanghai this number is 150 • Not advertising, but service is their credo
• In Huarun shops only Huarun paint is sold• Huarun top segment brand is Idol Only brand on Chinese
market with 0% VOC, mid and top segment brand is Huarun • Small shops are Huarun’s main distribution channel• Distributors get professional training provided by the
company, because they need to be able to give service next
to selling paint
Huarun (2)
Cooperation with DuPont, BASF and
Bayer
Advertisement
Spray painting service and extra service in
shops
Domestic image
Chinese company
Strengths Weaknesses
SWOT Analysis Levis
International brand image
Leading coating company brand image
Government continues to open up and diversify the property market, so the home improvement market grows
Growth market with G8 only accounting for 30% MS
Middle class is upcoming and willing to decorate more often and requires better quality
Customers don’t know much about paint and its price
In second tier cities the big two brands are not that well established as they are in first tier cities
Home ownership rises more houseproudness
Low brand awareness
Distribution network no coverage
Poor service (information sharing, website, paint service)
Perceived quality
Money available for investment
Dominant players, Nippon and ICI, don’t want more competitors to enter, thus they will higher entry barriers, e.g. price war
Domestic brands like Huarun are also focusing on quality. Therefore the quality gap between domestic and foreign brands becomes smaller. Competition becomes tougher
More companies will probably increase their focus on marketing
Strengths
Weaknesses
Opportunities
Threats
Competitor pricesICI in B&Q
Super Clean Plus 198 RMB/ 5 L
Super MATT 5 in 1 238 RMB/5 L
2nd Generation 5 in 1 Emulsion 278 RMB/5 L
Gold 5 in 1 Emulsion 308 RMB/5 L
A953-65000 Diamond 5 in 1 338 RMB/5 L
All in One 378 RMB/5 L
NIPPON in B&Q ( Y/5 L)
EVERYDAY MATT, FRESH COLOURS 118
PERFORMANCE MATT, BEAUTIFUL COLOURS 158
SUPER RESISTANCE TO DIRTY (超强抗污 ?) 188
SUPER ELASTY 3 IN 1(超强弹性 3 合 1?) 208
LONG-LAST FRESH COLOR 5 IN 1(亮丽持久 5 合 1?) 228
GOLDEN 5 IN 1 318
ALL IN 1 368
CLEAN SMELL AND FULL EFFECT(净味全效 ?) 398
Huarun in B&Q
RESISTANT TO FIRE (水性膨胀型防火乳胶?)
72 RMB/4KG
SUPER CLASS (爱的馨之爱伏白特级内墙?) 209 RMB/7KG
PAINTING ESPECIALLY FOR SPRAY(润佳喷涂专用乳胶漆?)
186 RMB/5L
RESISTANT TO VIRUS 3 IN 1(居适安抗菌三合一内墙漆?)
186 RMB/5L
RESISTANT TO DIRTY 5 IN 1 (家适洁之抗污五合一?)
186 RMB/5L
SUPER MATT 10 IN 1 (居适雅十合一豪华哑光内墙?)
186 RMB/5L
Master’s in B&Q (RMB/ 1 GALLON)
46-2 222
46-1010 288
46-150 298
46-410 302
46-160 318
46-450 332
46-510 336
46-187 348
46-460 352
46-6 368
46-487 382
Levis Nippon ICI/Dulux Huarun
Customer focus
High end customer
Low, mid and high end
customers
Mid and high end customers
Mid and high end customers,
downtown residents
Strategic focus
1st tier cities 1st tier cities 1st tier cities 2nd tier cities, investing in
service, mouth-to-mouth adv.
Strengths Quality Colour, distribution network,
advertisement
Functionality, Quality and service
Distribution Hypermarkets CMMs and small
shops
Hypermarkets CMMs and small
shops
Hypermarkets CMMs and small
shops
Mainly small shops
Comparison of different brands
Market parties model 1
Manu facturers:Akzo Nobel
& Competitors
Decoration markets
Painting practice
Home residents
Model 1A
Con-struction material markets
Small specialized
shops
Hypermarkets
Decoration markets
Definition of decoration markets
• Hypermarkets are big shops or kind of malls where consumers can buy construction materials for their home improvement. There are many shelves with different types of paint, can sizes, colors and brands. A hypermarket is also called a Buy It Yourself market (BIY). Hypermarkets are mainly located in the big cities
• Construction Material Market are one or more streets with many specialized construction shops in the same neighbourhood. Usually CMM’s are located in suburbs of big cities and in smaller cities.
• Small (specialized) shops are small paint shops, usually located on a CMM, where you can buy one ore more paint brands.
Hypermarkets
Hypermarket chain: B & Q
• Worlds 3rd largest home improvement business has its headquarters in the UK
• B&Q is already China's biggest chain by sales.
• Steve Gilman, head of B&Q International, wants to have 75 stores in 30 Chinese cities by the end of 2008.
• B&Q wants to turn suppliers into partners. Nippon Paint makes B&Q own-label paint, which earns a margin of over 20% for the retailer, compared with 6% for an independent brand.
Facings B&Q BeijingBrand Type Shelves Price in RMB per 5 L
Nippon (11 ½ shelves) All in one (old) 1 ½
All in one (new) 1 398 (highest turnover,most expensive)
5 in 1 1
Everyday matt 1
Performance matt 1
Easy clean ½
3-1 elastic ½
Super matex 3
5 in 1 matt 1 228 (sells highest quantity)
Different paints (small cans) 1
ICI/Dulux (8 shelves) Set of 3 cans 1
All in one 1
Diamond 5 in 1 Dulux realife 1
5 in 1 Gold 1 308 (sells most)
2nd generation 5 in 1 1 278 (sells best in whole market)
5 in 1 Ultra mat 1
5 in 1 super clean plus 1 198
Duraguard (color lasts long 1
Facings B&Q Tianjin
Brand Type Shelves Price in RMB per 5 L
Nippon (2 shelves) Nippon 5 in 1 (new) ½ 228
Nippon 5 in 1 (old) ½ 228
Nippon (whole package) 1
ICI/Dulux (4 shelves) Dulux 5 in 1 1 318
Dulux divers 1
Dulux (whole package) 2 888/738 per 15 L
Home Mart
• Home Mart is a domestic retailer and the second largest in China
• All Home Marts have arranged the same prices with dealers
• Four years ago Levis introduced two special products in the mid-segment for Home Mart
• Nowadays people can buy Levis in 10 out of the 14 Home Mart hypermarkets in Shanghai
Facings Home Mart Beijing
Brand Type Shelves Price in RMB per 5L
Nippon (4 shelves) Odour-less all in one ½ 398
All in one ½ 368
Gold 5 in 1 ½ 318
New 2nd generation super 5 in 1
½ 249
Easy Clean ½ 198
S5000 interior wall emulsion ½ 168
All kinds of interior wall painting 1
ICI/Dulux (4 shelves) All in one ½ 378
Gold 5 in 1 ½ 308
All kinds of interior wall painting 1
2nd generation 5 in 1 emulsion 1 288
Super clean plus 1 208/4.45L
Levis (1 shelf) Extra low VOC interior wall paint
½ 342
Dampproof and resist dirty ½ 259.2
Orient Home
• Orient Home is one of China’s largest home improvement retailers, operating twenty-six chain stores (year 2004 stat.)
• By the end of year 2004, the annual sales volume had reached 3.3 billion RMB• The services of Orient Home include do-it-yourself, do-it-for-me and also support professional
customers • OrientHome gives a lowest price guarantee. • There is no link from the site of Orient Home to the Levis site, which is possible for Nippon and
Masters’ brand.
Brand Sales value in RMB per year
Levis 700,000 -800,000
Nippon 3,000,000
ICI/Dulux 3,700,000
An example of sales of Levis paint in Nanfang store
Orient Home’s margins on: Nippon:10%; Dulux 15%; Levis 18%
Orient Home’s margins on: Nippon:10%; Dulux 15%; Levis 18%
Facings Orient Home Beijing (1)
Brand Type Shelves Price in RMB per 5 L
Nippon (9 ½ shelves) Odour less 1 398
All in one 3 ½ 368 (718 for 10 L)
5 in 1 1 308
Super 5 in 1 2nd generation 1 276 (889 voor 18 L)
3 in 1 ½ 286
Matex M600 ½ 138
Multi purpose alkaline resistance wall sealer
½ 198
Colour creations ½ 219
High performance architectural coating
½ 275 (also small cans for 53)
Multi purpose wall sealer ½ 258
ICI/Dulux (8 ½ shelves) All in one 1 ½ 378
Gold 5 in 1 emulsion 1 ½ 309
Anti bacteria 5 in 1 ½ 299
Alkali resisting wall sealer ½ 426/10L
Ultra matt 5 in 1 emulsion 1 ½ 238
Facings Orient Home Beijing (2)ICI/Dulux 2nd generation 5 in 1
emulsion (old) ½ 239
Divers small cans; all in one, 2nd generation 5 in 1 emulsion, gold 5 in 1 emulsion, all in one anti bacteria
½ 0.89 liter: all in one (99), 2nd generation 5 in 1 emulsion (89), gold 5 in 1 emulsion (89), all in one anti bacteria (79)
Advanced wall painting (in Chinese)
½ 148
Super clean plus 1 198
2nd generation 5 in 1 emulsion (new)
½ 289
Huarun (2 shelves) Red 1 288
Bue ½ 238
Yellow ½ 169
Levis (1 shelf) Divers: Silk decor, Mat decor, Euro decor, Coloriginals silk decor, coloriginals mat décor, Levis gold, Deco clean, Acry Levis satin, Laque satin lak, Sikkens
1 Silk decor (299), Mat décor (239), Euro décor (269), Levis gold 0.75 liter (349), 0.25 liter (149),Deco clean (328), Acry Levis satin (329), Laque satin lak (259), Sikkens (2 cans for 660)
Facings Easy Home BeijingBrand Type Shelves Price in RMB per 5 L
Nippon (8 shelves) All in one (old) 2
3 in 1 1
Matex M600 1
2nd generation 5 in 1 1
Color creations 1
Wall sealer 1
Different paints (small cans) 1
ICI/Dulux (9 shelves) All in one (old) 2
All in one (new) 1
Superclean 1
2nd generation 5 in 1 (old) 1 398 (gold), 238 (matt)
2nd generation 5 in 1 (new) 2
Divers small cans 1 Most expensive small can is 120
Divers 5L cans 1
Huarun (2 shelves) 3 types 2
Levis (2 shelves) Deco clean, Euro decor, satin lack, Levis Gold paint (small can), Levis matt deco, deco cover, deco clean
2 Gold can 388/0.75L, Matt deco 240, Deco clean 286, Deco cover 265, 328 (new), Euro decor 268
Facings conclusions
• MS Nippon in hypermarkets: 49.5/156 = +/- 32%• MS ICI/Dulux in hypermarkets = 46.5/156 = +/- 30%• MS Huarun in hypermarkets = 4/156 = +/- 3%• Levis in hypermarkets = 4/156 = +/- 3%• Other brands = 52/156 = +/- 33% • Nippon and ICI/Dulux are represented most on
promotion shelves• In most shops Nippon has at least as many shelves
as ICI/Dulux. However, in B&Q Tianjin Dulux has got more shelves
Salesmen in hypermarkets
• 75% are employed by manufacturer
• Nippon and ICI/Dulux train their sales employees
• Salesmen influence consumers in two areas: Amount, brand and type of paint Design/decoration company or painter
• Salary and bonuses for salesmen of ICI/Dulux and Nippon are higher than for Levis salesmen
In-shop promotion
• Billboards• Promotion stands (outside)• Samples• Information books • Certificate of good quality, safety, environmental
friendliness • Interactive computer designing machine
Advertisement in hypermarkets
Orient Home Beijing
Information book of Nippon
Future challenges for hypermarkets
•A big challenge facing B&Q, and its rivals in China, is that most customers are not doing the painting themselves. “Chinese DIY is still really BIY—buy it yourself,” admits Mr Wei (B&Q).
•Government policy is to build homes that are more finished, so B&Q needs to turn DIY into more of a hobby and the Chinese into a nation of home improvers, like the Americans and British.
Construction Material Markets
• Mainly located in suburbs and smaller cities• More popular in smaller cities than in bigger cities• More fake products than in hypermarkets• Lower perceived quality of paint compared to
hypermarkets• Packages are bigger (18 or 20 liters or bigger)• Supplied directly by paint manufacturers or by a
dealer/wholesaler
CMM in Suzhou
Consumers of a CMM
• About 65% is sold to the pro-market: decoration companies and painters. They want to build a long-term relationship with a shop manager and get about 10% -20% discount.
• About 35% is sold to home residents
Trends & Future
• Until 1997 CMM sales were growing. After 1997 MS of CMMs decreased because of the introduction of the western concept of hypermarkets
• More and more people prefer hypermarkets, because they are afraid of fake products and bad quality, allthough prices in CMMs are lower
• Hypermarkets are located closer to people’s homes. • In future the percentage of design/deco companies
and painters who buy paint on CMM’s will grow • Shopowners think their sales will increase with 20%
because of all the construction projects. • CMM’s will upgrade their image
Combination with hypermarket
Small (specialized) shops
• Nippon, ICI/Dulux and Huarun have mono shops, shops where only one brand is sold.
• Sales of small shops decrease because:• People want a wider range of products because
they want to compare prices and products• People want the service and the guarantee of
hypermarkets
Market parties model 1
Manufacturers:
Akzo Nobel &
Competitors
Decoration markets
Painting practice
Home residents
Model 1B
Deco companies
Painters
Workers
Design companies
Painting practice
Definitions of painting practices
• Design and Decoration companies can be contacted by home residents to paint their homes. These companies can also offer other decorating activities.
• Painters are people who are responsible for the painting job and these people have the experience and training for this work. Painters can be employees of a design/decoration company or can work for a specific paint brand.
• Workers are people from the street who offer their services, the painting job is one of these services. These people have some experience in painting. Usually these workers are not educated and sometimes they are illiterate.
Categorizing design & decoration companies
1) Design company
2) Middle class decoration company
3) Lower class decoration company
Based on:
•The amount of designers•The quality & price of the designers•The amount and the quality of the employees (workers) in the database of the company
Design companies
• A design company can be contacted by a company, the government or by (rich) home residents
• Design companies have a lot of trained and experienced designer employees and usually they design the whole house. The painting job is just a small part of it
• The paint is always supplied by the design company
Low and middle class decoration company
• A decoration company is mainly working for home residents
• Sometimes they do more decorating jobs, sometimes only the painting job (which alone is not really profitable)
• Sometimes people buy the paint themselves, sometimes the company supplies the paint
• What kind of decoration company one chooses depends on what the consumer wants to pay for the job
• Lower class companies have no certificate from the government
Location
• Design and decoration companies are located in big cities
• Almost all hypermarkets have a decoration centre located in the hypermarket
Categorization of consumers of a design/decoration company
1. Families with an income > 90 000 yuan
per year go to a design company
2. Families with an income between 50 000 and
90 000 yuan per year go to a middle class decoration company
3. Families with an income < 50 000 yuan per year go to a lower class decoration company or ask a worker from the street
3 options for consumers
1. HR design/decoration company company is responsible for painting job and supply of paint
2. HR design/decoration company for advice HR buys paint himself company is responsible for painting job
3. HR buys paint design/decoration company company responsible for painting job
Painters
• Most painters are employees of design/decoration companies or of a specific paint brand. There are no specialized paint companies
• Huarun offers a free painting job if you buy wooden paintings, facial wall paintings or if a consumer buys more than two cans of paint
• Huarun has 1000 paint employees, including 150 in Shanghai. The painters of Huarun uses the more expensive paintspray method
• Nippon offers also a free painting job if a consumer buys a specific type of paint, the 3 in 1 paint.
Results interviews workers
• Most workers work alone• In smaller cities more people go to a worker than in the big cities • Consumers can find them on the streets of CMMs• First place they buy paint is CMM, second place is hypermarket• They buy the paint at these places because of the guarantee on quality and low
prices• Nippon and ICI/Dulux are the most popular brands to work with• They buy these brands because of their image and because the home residents
ask for it• The home resident decides (almost) always which brand to use• It is possible for a home resident to bring their own paint• Most workers said that in 50 -75% of the cases their advice will be followed up• The workers think that home residents ask them to do the painting job because
the result is better and they are not skilled to do it themselves• In most cases these workers use a paint brush and a paint roller • High season for interior paint is July till September • April till June is off-season
Results workers; Most important characteristics of paint
1. Quality
2. Brand Image
3. Price
4. Color assortment
Market parties model 1
Manu-facturers:Akzo Nobel
& Competitors
Decoration markets
Painting practice
Home residents
Respondent profile
Survey data
020406080
100120140160180200220240260280300
Male Female
Gender
0
50
100
150
200
250
18-30 31-40 41-50 50+
Age
City of residence
149
179
29
32
57
5525
Beijing
Shanghai
Kunshan
Suzhou
Sijiazhuang
Tianjin
Other
Distribution of age in various regions
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
Younger than30
Between 31-40
Between 41-50
Older than 50
North
East
Family income in sample
Distribution of income in different cities
0,0%10,0%20,0%30,0%40,0%50,0%60,0%70,0%80,0%
Beijing
Shang
hai
Kunsh
an
Suzhou
Sijiazh
uang
Tianjin
Other
Less than 3.000
Between 3.001 and6.000
Between 6.001 and10.000
Between 10.001 and20.000
More than 20.000
Family income per month in RMB
46%
37%
10%5% 2% Less than 3.000
Between 3.001 and6.000
Between 6.001 and10.000
Between 10.001 and20.000
More than 20.000
Results
How often do people in China paint the interior of their houses?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
Morethan
once in2 years
Once in2 – 3years
Once in4 – 6years
Once in7 – 10years
Lessthan
once in10 years
Average
Poor people
Middle class people
Rich people
Conclusion
Most people paint their walls once in 2 – 6 years
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
AverageMore than once in 2 years 16,2% 13,0% - 19,4% 19,6% 14,5% - 24,7% 11,9% 7,7% - 16,1% 14,3% 2,3% - 26,3%
Poor peopleOnce in 2 – 3 years 26,9% 23,0% - 30,8% 23,5% 18,0% - 29% 28,6% 22,7% - 34,5% 34,3% 18,0% - 50,6%
Middle class people
Once in 4 – 6 years 31,3% 27,3% - 35,3% 25,2% 19,6% - 30,8% 38,8% 32,5% - 45,1% 28,6% 13,1%-44,1%
Rich peopleOnce in 7 –10 years 13,2% 10,3% - 16,1% 14,4% 9,9% - 18,9% 12,3% 8,0% - 16,6% 11,4% 1,0% - 22,3%
Less than once in 10 years 12,4% 9,5% - 15,3% 17,4% 12,5% - 22,3% 8,4% 4,8% - 12,0% 11,4% 1,0% - 22,3%
How often do people from North and East China paint the interior of
their houses?How often do people from the North and East of China paint the
interior of their houses?
0,0%5,0%
10,0%15,0%20,0%25,0%
30,0%35,0%
More thanonce in 2
years
Once in 2 – 3years
Once in 4 – 6years
Once in 7 – 10years
Less thanonce in 10
years
North China
East China
Conclusion
1. Most people paint their walls once in 2 – 6 years
2. People from North China paint their houses relatively more often within 2 years than people from East China
Respondents 95% reliability Respondents 95% reliability
North China More than once in 2 years 21,9% 16,8% - 27,0% 8,7% 5,0% - 12,3%
East China Once in 2 – 3 years 26,3% 20,9% - 31,7% 28,6% 22,8% - 34,4%
Once in 4 – 6 years 31,1% 25,4% - 36,8% 31,2% 25,2% - 37,2%
Once in 7 – 10 years 10,4% 6,6% - 14,1% 16,5% 11,7% - 21,3%
Less than once in 10 years 10,4% 6,6% - 14,1% 15,2% 10,6% - 19,8%
How often do people in China paint the interior of their houses in 1st, 2nd and
3rd tier cities?
Resp. 95% reliability Resp. 95% reliability
1st tier citiesMore than once in 2
years 14,9% 11,0% - 18,8% 18,1%12,6% - 23,6%
2nd & 3rd tier cities Once in 2 - 3 years 25,6% 20,8% - 30,4% 28,3%21,9% - 34,7%
Once in 4-6 years 33,9% 28,7% - 39,11% 27,7%21,3% - 34,1%
Once in 7 - 10 years 13,6% 9,8% - 17,4% 12,2%7,5% - 16,9%
Less than once in 10
years 12,3% 8,7% - 15,9% 12,8% 8,0% - 17,6%
Comparison of how many times people piant in 1st tier cities and 2nd an 3rd tier cities
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
Morethan
once in2 years
Once in2 - 3years
Once in4-6
years
Once in7 - 10years
Lessthan
once in10 years
1st tier cities
2nd & 3rd tier cities
Conclusion
There is no big difference in times painting in 1st, 2nd and 3rd tier cities
Comparison on times painting of people with different ages
How often do people younger and older than 40 years paint?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
Morethan
once in 2years
Once in2 - 3years
Once in4-6 years
Once in7 - 10years
Lessthan
once in10 years
Younger than 40
Older than 40
Resp. 95% reliability Resp. 95% reliability
Younger than 40
More than once in 2 years 21,3% 16,6% - 25,9% 6,9% 2,9% - 10,8%
Older than 40 Once in 2 - 3 years 29,5% 24,9% - 34,7% 22,3% 15,8% - 28,8%
Once in 4-6 years 29,8% 24,6% - 35,0% 34,3% 26,9% - 41,7%
Once in 7 - 10 years 10,6% 7,1% - 14,2% 17,7% 11,7% - 23,7%
Less than once in 10
years 8,8% 5,6% - 12,0% 18,9% 12,7% - 25,0%
Conclusion
1. Relatively more ‘young people’ paint the interior of their houses more than once in two years
2. Relatively more ‘older people’ paint their houses less than once in 10 years
How much money do people spend on painting the interior of their houses in RMB?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
0-20
0
200-
500
500-
1000
1000
-200
0
2000
-500
0
5000
-10.0
00
10.00
0-20
.000
Mor
e than
20.0
00
Average
Poor people
Middle class people
Rich people
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average 0-200 RMB 4,7% 2,8% - 6,6% 10,6% 6,5% - 14,7% 0,0% 0,0% 0,0% 0,0%
Poor people 200-500 RMB 14,2% 11,1% - 17,3% 20,3% 14,9% - 25,7% 9,7% 5,8% - 13,6% 0,0% 0,0%
Middle class people 500-1 000 RMB 23,7% 19,9% - 27,4% 27,2% 21,3% - 33,1% 24,2% 18,6% - 29,8% 3,1% 0% - 9%
Rich people 1 000-2 000 RMB 26,3% 22,4% - 30,3% 22,1% 16,6% - 27,6% 28,6% 22,7% - 34,5% 37,5% 21,4% - 53,5%
2 000-5 000 RMB 19,1% 15,6% - 22,6% 14,7% 10.0% - 19,5% 21,1% 15,8% - 26,4% 28,1% 13,2% - 43,0%
5 000-10 000 RMB 8,2% 5,9% - 10,7% 3,7% 1,1% - 6,2% 11,5% 7,3% - 15,7% 18,8% 5,8% - 31,7%
10 000-20 000 RMB 2,1% 0,8% - 3,3% 0,5% 0% -1,4% 2,2% 0,2% - 4,1% 12,5% 1,5% - 23,5%
More than 20 000 RMB 1,6% 0,6% - 2,8% 0,9% 0% - 2,2% 2,6% 0,5% - 4,7% 0,0% 0,0%
Conclusion
1. On average richer people spend more money on painting the interior of their houses.
2. At least 45% of all people in North and East China spend more than 1000 RMB on painting the interior of their houses.
How much money do people spend on painting the interior of their houses in RMB?
How much money do people spend on painting the interior of their houses North and East China?
How much money do people spend on painting the interior of their houses in various regions?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%
0-20
0
200-
500
500-
1000
1000
-200
0
2000
-500
0
5000
-10.0
00
10.00
0-20
.000
Mor
e than
20.0
00
North
East
Resp. 95% reliability Resp. 95% reliability
North 0-200 RMB 5,7% 2,6% - 8,7% 3,5%1,1% - 5,9%
East 200-500 RMB 16,2% 11,4% - 20,9% 11,4%7,3% - 15,5%
500-1 000 RMB 26,2% 20,5% - 31,9% 21,9%16,6% - 27,3%
1 000-2 000 RMB 26,6% 20,9% - 32,4% 27,2%21,4% - 33,0%
2 000-5 000 RMB 16,2% 11,3% - 20,9% 23,2%17,8% - 28,7%
5 000-10 000 RMB 6,6% 3,3% - 9,8% 9,2%5,5% - 13,0%
10 000-20 000 RMB 1,3% 0,0% - 2,8% 2,2%0,3% - 4,1%
More than 20 000 RMB 1,3% 0,0% - 2,8% 1,3% 0,0% - 2,8%
Conclusion
There are no big differences between North and East China with regard to the amount of money people spend on painting the interior of their houses
How much money do people spend on painting the interior of their houses in 1st, 2nd
and 3rd tier cities?Comparison between expenditures on painting
interior houses in 1st tier and 2nd & 3rd tier cities
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%
0-20
0
200-
500
500-
1000
1000
-200
0
2000
-500
0
5000
-10.0
00
10.00
0-20
.000
Mor
e than
20.0
00
1st tier cities
2nd & 3rd tier cities
Resp. 95% reliability Resp. 95% reliability
1st tier cities 0-200 RMB 3,0% 1,1% - 4,9% 7,7%3,8% - 11,6%
2nd & 3rd tier cities 200-500 RMB 10,7% 7,2% - 14,2% 19,9%14,1 - 25,7%
500-1 000 RMB 23,0% 18,2% - 27,8% 24,3%18,0% - 30,5%
1 000-2 000 RMB 28,7% 23,6% - 33,8% 22,7%16,6% - 28,8%
2 000-5 000 RMB 21,3% 16,7% - 25,9% 16,0%10,7% - 21,3%
5 000-10 000 RMB 9,0% 5,7% - 12,2% 7,2%3,4% - 11,0%
10 000-20 000 RMB 2,3% 0,6% - 4,0% 1,7%0% - 3,6%
More than 20 000 RMB 2,0% 0,4% - 3,6% 0,6% 0% - 1,7%
Conclusion
There are no big differences between 1st, 2nd and 3rd tier cities with regard to the amount of money people spend on painting the interior of their houses
Which brands do people buy?
Who buys which brand?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
Levis Nippon ICI/Dulux Huarun Other
Average
Poor people
Middle class
Rich people
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average Levis 0,6% 0% - 1,4% 1,2% 0% -2,9% 0,0% 0,0% 0,0% 0,0%
Poor people Nippon 57,2% 51,8% - 62,5% 55,6% 47,9% - 63,2% 55,6% 47,5% - 63,7% 75% 55,0% - 95,0%
Middle class ICI/Dulux 20,1% 15,8% - 24,4% 16,0% 10,4% - 21,7% 25,7% 18,6% - 32,8% 15% 0% - 31,5%
Rich people Huarun 4,2% 2,0% - 6,3% 5,6% 2,0% - 9,1% 2,8% 0,1% - 5,5% 5% 0% -15,1%
Other 18,0% 13,8% - 22,1% 21,6% 15,2% - 27,9% 16,0% 10,0% - 22,0% 5% 0% - 15,1%
Conclusion
There are no big differences between rich and poor if it comes to deciding what brand to buy.
Which brands do people from North and East China buy?
Which brands do people from North and East China buy?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Levis Nippon ICI/Dulux Huarun Other
North
East
Conclusion
There are no big differences between North and East if it comes to deciding what brand to buy.
Resp. 95% reliability Resp. 95% reliability
North Levis 0,0% 0,0% 0,6% 0% -1,8%
East Nippon 54,1% 45,9% - 62,3% 62,4% 54,4% - 70,4%
ICI/Dulux 21,4% 14,7% - 28,1% 19,7% 13,1% - 26,3%
Huarun 4,4% 1,0% - 7,7% 3,8% 0,1% - 7,0%
Other 20,1% 13,5% - 26,7% 13,4% 7,7% - 19,2%
Which brands do people from 1st, 2nd and 3rd tier cities buy?
Comparison of what brand people buy in 1st and 2nd & 3rd tier cities
0,0%10,0%20,0%30,0%40,0%50,0%60,0%70,0%
Levis
Nippo
n
ICI/D
ulux
Huarun
Other
1st tier cities
2nd & 3rd tier cities
Conclusion
In 2nd and 3rd tier cities people more often buy ‘other’ brands than in 1st tier cities.
Resp. 80% reliability Resp. 80% reliability
1st tier cities Levis 0,5% 0% - 1,1% 0,0% 0,0%
2nd & 3rd tier cities Nippon 57,9% 53,5% - 62,4% 56,2% 50,6% - 61,7%
ICI/Dulux 23,3% 19,5% - 27,1% 15,4% 11,3% - 19,4%
Huarun 3,5% 1,8% - 5,1% 5,4% 2,8% - 7,9%
Other 14,9% 11-7% - 18,1% 23,1% 18,3% - 27,8%
Would people paint more often if paint was cheaper?
0,0%
10,0%20,0%
30,0%40,0%
50,0%60,0%
70,0%80,0%
90,0%
Yes No
Average
Poor people
Middle class
Rich people
Average Poor people Middle class Rich people
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Yes 27,7% 23,7% - 31,8% 33,6% 27,2 - 40,0% 23,9% 18,2% - 29,7% 17,1% 3,9% - 30,3%
No 72,3% 68,2% - 76,3% 66,4% 60,0% - 72,8% 76,1% 70,3% - 81,8% 82,9% 69,7% - 96,1%
Conclusion
Most people wouldn’t paint more often if paint was cheaper
Would people paint more often if paint was cheaper?
* Chi square = 0.014, Cramer’s V = 0,108
Painted * Rentedorboughthouse Crosstabulation
116 214 330
71,2% 59,9% 63,5%
22,3% 41,2% 63,5%
47 143 190
28,8% 40,1% 36,5%
9,0% 27,5% 36,5%
163 357 520
100,0% 100,0% 100,0%
31,3% 68,7% 100,0%
Count
% withinRentedorboughthouse
% of Total
Count
% withinRentedorboughthouse
% of Total
Count
% withinRentedorboughthouse
% of Total
Yes
No
Painted
Total
Rented Bought
Rented or boughthouse
Total
Relationship between bought houses and painted when surrendered
How many times do people that live in rented or bought houses paint
their house?How many times do people who live in rented and
bought houses paint their house?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
More thanonce in 2
years
Between 2-3 years
Between 4-6 years
Between 7-10 years
Less thanonce in 10
years
Rented
Bought
Resp. 95% reliability Resp. 95% reliability
Rented More than once in 2 years 27,7% 20,7% - 34,7% 10,7% 7,5% - 13,9%
Bought Between 2-3 years 34,2% 26,7% - 41,7% 23,5% 19,1% - 27,9%
Between 4-6 years 21,9% 15,4% - 28,5% 36,2% 31,2% - 41,2%
Between 7-10 years 7,7% 3,5% - 11,4% 15,4% 11,6% - 19,1%
Less than once in 10 years 8,4% 4,0% - 12,8% 14,2% 10,6% - 17,8%
Conclusion
1. People who live in rented houses paint their house far more often than people who live in bought houses
2. At least 61,9% of all people who live in a rented house paint their house more than once in 3 years
3. Maximum 41,8% of all people who live in a bought house paint their house more than once in 3 years
What are the rented/bought ratio’s in Beijing and Shanghai?
Do people in Beijing and Shanghai rent or buy a house?
0,0%10,0%20,0%30,0%40,0%50,0%60,0%70,0%80,0%90,0%
Beijing Shanghai
Rented
Bought
Beijing Shanghai
Resp. 95% reliability Resp. 95% reliability
Rented 55,1% 47.1% - 63,1% 19,4% 13,5% - 25,3%
Bought 44,9% 36,9% - 52,9% 80,6% 74,7% - 86,5%
Conclusion
1. Relatively, more people have a bought house in Shanghai
Paint deciding, buying and doing process
What is the first thing you do after you have decided to paint your house?
What was the first thing you did after deciding to paint your house?
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%You went to a deco marketand asked a salesman foradvice You called a design company
You called a painter
You called anintermediairy/worker
You asked a friend for advice(33%)
You searched on the internetfor more information
Other
Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability
Average
You went to a deco market and asked a
salesman for advice 16,3% 13,1% - 19,4% 18,1% 13,2% - 23,0% 16,3% 13,2% - 19,3% 8,6% 2,5% - 14,6%
Poor people
You called a design company 14,4% 11,4% - 17,4% 11,0% 8,4% - 13,6% 17,1% 14,0% - 20,2% 22,9% 13,8% - 32,0%
Middle class You called a painter 10,6% 8,0% - 13,2% 10,5% 8,0% - 13,1% 11,3% 8,6% - 13,9% 11,4% 4,5% - 18,3%
Rich people
You called an intermediairy/worker 1,1% 0% - 2,0% 1,7% 0,6% - 2,7% 0,8% 0% - 1,6% 0,0% 0,0%
You asked a friend for
advice (33%) 33,0% 29,0% - 37,0% 38,0% 34,0% - 42,0% 29,2% 25,4% - 32,9% 25,7% 16,2% - 35,2%
You searched on the internet for more
information 16,3% 13,1% - 19,4% 13,1% 10,3% - 15,8% 15,8% 12,8% - 18,9% 25,7% 16,2% - 35,2%
Other 8,3% 5,9% - 10,7% 7,6% 5,3% - 9,8% 9,6% 7,1% - 12,0% 5,7% 0,7% - 10,7%
Conclusion
Rich people more often look on the internet for information on painting after deciding to paint their house than poor people
What is the first thing people in North and East China do after they have decided to paint their
house?
Resp. 80% reliability Resp. 80% reliability
NorthYou went to a deco market and
asked a salesman for advice 17,0% 14% - 20,0% 16,3% 13,2% - 19,4%
East You called a design company 17,0% 14,0% - 20,0% 10,5% 7,9% - 13,0%
You called a painter 10,0% 7,6% - 12,4% 9,6% 7,1% - 12,1%
You called an intermediairy/worker 1,2% 0,3% - 2,0% 0,8% 0% - 1,6%
You asked a friend for advice (33%) 32,8% 29,1% - 36,6% 34,3% 30,3% - 28,3%
You searched on the internet for
more information 16,2% 13,3% - 19,2% 17,2% 14,0% - 20,3%
Other 5,8% 3,9% - 7,7% 11,3% 8,7% - 13,9%
Conclusion
1. People from the North more often call a designer for information on painting after deciding to paint their house than people from East China
2. Most people ask their friends’ advice first
What is the first thing people in North and East China do after deciding to paint their houses?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
You
wen
t to
ade
co m
arke
tan
d as
ked
a
You
cal
led
apa
inte
r
You
ask
ed a
frie
nd f
or a
dvic
e(3
3%) Oth
er
North
East
What is the first thing people from 1st, 2nd and 3rd tier cities do after they have decided to paint their
house? What is the first thing people from 1st, 2nd and 3rd tier cities do after they have decided to paint their
house?
0,0%10,0%20,0%30,0%40,0%
You
wen
t to
ade
co m
arke
t
You
cal
led
apa
inte
r
You
ask
ed a
frie
nd f
or
Oth
er
1st tier cities
2nd & 3rd tier cities
1st tier citiesYou went to a deco market and asked a salesman for advice 17,8% 15,1% - 20,6% 14,1%
11,0% - 17,3%
2nd & 3rd tier cities You called a design company 10,5% 8,3% - 12,6% 20,2%16,5% - 23,9%
You called a painter 9,5% 7,4% - 11,6% 12,6%9,6% - 15,7%
You called an intermediairy/worker 0,6% 0% - 1,2% 1,5%0,4% - 2,6%
You asked a friend for advice (33%) 33,8% 30,4% - 37,2% 32,3%28,1% - 36,6%
You searched on the internet for more information 16,3% 13,7% - 18,9% 16,2% 12,8% - 19,5%
Other 11,4% 9,1% - 13,7% 3,0% 1,4% - 4,6%
Conclusion
1. In 2nd and 3rd tier cities people more often call a design company as the first thing to do after deciding to paint their house
Where do you look for information before you have made the decision on what type of paint
you are going to buy?
Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability
Average
I did not search for more information 11,6% 9,4% - 13,8% 12,2% 9,0% - 15,4% 11,8% 8,5% - 15,2% 10,0% 1,2% - 18,8%
Poor people I read magazines 13,3% 11,0% - 15,6% 11,6% 8,5% - 14,8% 15,1% 11,4% - 18,9% 5,0% 0% - 11,4%
Middle clas
sI searched on the
Internet 35,9% 32,6% - 29,1% 27,3% 23,0% - 31,7% 44,1% 38,9% - 49,2% 30,0% 16,5% - 43,5%
Rich peopleI watched TV
programs 25,1% 22,2% - 28,1% 31,4% 26,9% - 35,9% 19,1% 15,0% - 23,2% 30,0% 16,5% - 43,5%
Others 14,1% 11,8% - 16,5% 17,4% 13,7% - 21,1% 9,9% 6,7% - 13,0% 25,0% 12,2% - 37,8%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
50,0%
I did notsearch for
moreinformation
I readmagazines
I searchedon theInternet
I watchedTV
programs
Others
Average
Poor people
Middle class
Rich people
Conclusion
1. Most people look on the internet for painting information
Where do people from North and East China look for information before they have made the decision on what type of paint they are
going to buy?Where do people in North and East China find
look for information on painting
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
I did notsearch for
moreinformation
I readmagazines
I searchedon theInternet
I watchedTV
programs
Other
North Resp.
East Resp.
Resp. 80% reliability Resp. 80% reliability
North I did not search for more information 7,7% 5,0% - 10,5% 14,4% 10,8% - 18,0%
East I read magazines 15,5% 11,7% - 19,2% 12,0% 8,7% - 15,3%
I searched on the Internet 38,7% 33,7% - 43,6% 34,1% 29,3% - 39,0%
I watched TV programs 22,6% 18,4% - 26,9% 26,9% 22,4% - 31,5%
Other 15,5% 11,8% - 19,2% 12,6% 9,1% - 16,0%
Conclusion
1. In East China people more often don’t look for information after deciding to paint their house than people in Northern China
2. Most people get their information from internet and TV
Where do people from 1st, 2nd and 3rd tier cities look for information before they have made the decision on what type of paint they are
going to buy?Is there a difference between people from 1st, 2nd
and 3rd tier cities with regard to gathering information on paint?
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
I d
id n
ot
se
arc
h fo
r
mo
re
info
rma
tio
n
I se
arc
he
d
on
th
e
Inte
rne
t
Oth
er
1st tier cities
2nd and 3rd tier cities
Resp. 80% reliability Resp. 80% reliability
1st tier citiesI did not search for more information 12,8% 9,9% - 15,8% 9,8% 6,4% - 13,3%
2nd and 3rd tier cities I read magazines 17,0% 13,6% - 20,3% 7,6% 4,5% - 10,6%
I searched on the Internet 33,5% 29,3% - 37,7% 40,9% 35,3% - 46,5%
I watched TV programs 25,7% 21,8% - 29,6% 22,7% 17,9% - 27,5%
Other 11,0% 8,2% - 13,8% 18,9% 14,4% - 23,4%
Conclusion
1. In 1st tier cities more people read magazines to find information on painting than in 2nd and 3rd tier cities
Which information do BIY people think is most important?
Which information do BIY people think is most important?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%50,0%
None Magazines Internet TVprograms
Other
Average
Poor people
Middle class
Rich people
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average None 12,1% 8,6% - 15,5% 12,7% 7,6% - 17,7% 12,2% 6,9% - 17,5% 10,0% 0% - 23,1%
Poor people Magazines 13,3% 9,7% - 16,9% 10,8% 6,1% - 15,6% 15,6% 9,8% - 21,5% 5,0% 0% - 14,6%
Middle class Internet 36,3% 31,2% - 41,4% 28,3% 21,5% - 35,2% 44,9% 36,9% - 52,9% 30,0% 9,9% - 50,0%
Rich peopleTV programs 25,1% 20,5% - 29,7% 31,9% 24,8% - 39,0% 18,4% 12,1% - 24,6% 30,0% 9,9% - 50,0%
Other 13,3% 9,7% - 16,9% 16,3% 10,7% - 21,9% 8,8% 4,2% - 13,4% 25,0% 6,0% - 44,0%
Conclusion
1. Internet and TV are the most important sources for information on paint
2. Relatively more poor people think information from TV is most important compared to middle class people
3. Relatively more middle class people think information from internet is most important compared to poor people
Which information do BIY people from North and East China think is most important?
Which information do BIY people from North and East China think is most important?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
None Magazines Internet TVprograms
Other
North
East
North East
Resp. 80% reliability Resp. 80% reliability
None 7,7% 5,0% - 10,5% 14,5% 10,8% - 18,1%
Magazines 15,5% 11,8% - 19,2% 12,0% 8,7% - 15,4%
Internet 38,7% 33,7% - 43,6% 34,3% 29,5% - 39,2%
TV programs 22,6% 18,4% - 26,9% 27,1% 22,6% - 31,7%
Other 15,5% 11,8% - 19,2% 12,0% 8,7% - 15,4%
Conclusion
1. In North China internet is a relatively more valuable source of information on paint than in East China.
Which information do BIY people from 1st, 2nd and 3rd tier cities think is most
important?
Which information do BIY people from 1st, 2nd and 3rd tier cities think is most important?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
None
Mag
azine
s
Inte
rnet
TV pro
gram
s
Other
1st tier cities
2nd and 3rd tier cities
1st tier cities2nd and 3rd tier cities
Resp. 90% reliability Resp. 90% reliability
None 12,9% 9,2% - 16,6% 9,8% 5,6% - 14,1%
Magazines 17,1% 12,9% - 21,3% 7,6% 3,8% - 11,4%
Internet 33,6% 28,4% - 38,9% 40,9% 33,9% - 47,9%
TV programs 25,8% 20,9% - 30,7% 22,7% 16,7% - 28,7%
Other 10,6% 7,2% - 14,0% 18,9% 13,3% - 24,5%
Conclusion
1. Internet is the most important source of information in 2nd and 3rd tier cities.
2. Magazines play an important role as source of information on paint in 1st tier cities
Whose advice do BIY people think is most important?
Conclusion
1. A friend’s advice is most important for a lot of BIY people
2. At least 27% of all BIY people think that a designer’s and/or painter’s advice is most important
3. In the sample there are some differences, but for the whole population we don’t see big differences in relationships of income with importance of advice with regard to paint
Which advice do BIY people think is most important?
0,0%
5,0%10,0%
15,0%
20,0%25,0%
30,0%
35,0%40,0%
45,0%
Nobody Friend Designer Painter Salesmanof a paint
shop
Other
Average Resp.
Poor people Resp.
Middle class Resp.
Rich people Resp.
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average Nobody 14,7% 10,9% - 18,4% 14,4% 9,1% - 19,7% 13,5% 8,0% - 19,0% 30,0% 9,9% - 50,1%
Poor people Friend 37,2% 32,1% - 42,3% 37,1% 29,8% - 44,5% 38,5% 30,7% - 46,4% 30,0% 9,9% - 50,1%
Middle class Designer 16,7% 12,8% - 20,7% 12,6% 7,5% - 17,6% 22,3% 15,6% - 29,0% 10,0% 0% - 23,1%
Rich people Painter 18,5% 14,4% - 22,6% 19,8% 13,7% - 25,8% 15,5% 9,7% - 21,4% 15,0% 0% - 30,7%
Salesman of a paint shop 7,6% 4,8% - 10,4% 9,6% 5,1% - 14,0% 7,4% 3,2% - 11,7% 0,0% 0,0%
Other 5,3% 2,9% - 7,7% 6,6% 2,8% - 10,3% 2,7% 0% - 5,3% 15,0% 0% - 30,7%
Whose advice do BIY people from North and East China think is most important?
Which advice do BIY people think is most important in North and East China?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
Nob
ody
Frie
nd
Des
igne
r
Pai
nter
Sal
esm
anof
a p
aint
shop Oth
er
North
East
Resp. 90% reliability Resp. 90% reliability
North Nobody 9,0% 5,3% - 12,6% 19,3% 14,1% - 24,4%
East Friend 38,3% 32,1% - 44,5% 36,0% 29,8% - 42,2%
Designer 19,8% 14,7% - 24,8% 15,5% 10,8% - 20,2%
Painter 19,8% 14,7% - 24,8% 18,0% 13,0% - 23,0%
Salesman of a paint shop 8,4% 4,9% - 11,9% 5,6% 2,6% - 8,6%
Other 4,8% 2,1% - 7,5% 5,6% 2,6% - 8,6%
Conclusion
1. There are no big differences between North and East China with regard to whose advice BIY people find most important
2. In East China more people don’t need advice when buying paint than in North China
Whose advice do BIY people from 1st, 2nd and 3rd tier cities think is most important?
Whose advice is most important to BIY people in 1st, 2nd and 3rd tier cities?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
No
bo
dy
Fri
en
d
De
sig
ne
r
Pa
inte
r
Sa
lesm
an
of a
pa
int
sho
p
Oth
er
1st tier cities
2nd & 3rd tier cities
Resp. 95% reliability Resp. 95% reliability
1st tier cities Nobody 15,7% 10,9% - 20,6% 10,5% 5,3% - 15,7%
2nd & 3rd tier cities Friend 35,2% 28,8% - 41,6% 41,4% 33,0% - 49,7%
Designer 15,7% 10,9% - 20,6% 21,1% 14,1% - 28,0%
Painter 19,4% 14,2% - 24,7% 16,5% 10,2% - 22,9%
Salesman of a paint shop 8,3% 4,6% - 12,0% 6,0% 2,0% - 10,1%
Other 5,6% 2,5% - 8,6% 4,5% 0,1% - 8,0%
Conclusion
1. There are no big differences between 1st, 2nd and 3rd tier cities with regard to whose advice BIY people find most important
Whose advice do DIY people think is most important?
Whose advice do DIY people think is most important?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
Nobod
y
Friend
Desig
ner
Painte
r
Salesm
an o
f a p
aint
sho
p
Other
Average
Poor people
Middle class
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average Nobody 13,8% 7,9% - 19,8% 14,1% 6,0% - 22,2% 13,3% 6,0% - 20,5%
Poor people Friend 30,0% 22,1% - 37,9% 26,8% 16,5% - 37,1% 34,9% 24,7% - 45,2%
Middle class Designer 22,3% 15,2% - 29,5% 18,3% 9,3% - 27,3% 25,3% 15,9% - 34,7%
Painter 23,8% 16,5% - 31,2% 28,2% 17,7% - 38,6% 16,9% 8,8% - 24,9%
Salesman of a paint shop 7,7% 3,1% - 12,3% 9,9% 2,9% - 16,8% 8,4% 2,5% - 14,4%
Other 2,3% 0% - 4,9% 2,8% 0% - 6,7% 1,2% 0% -3,6%* Not enough respondents in high income segment
Conclusion
1. At least 31,7% thinks a designer’s or painter’s advice is most important
2. A friend’s advice is very important
Whose advice do DIY people in North and East China think is most important?
Conclusion
1. People from East China more often don’t feel the need for other people’s advice
2. In North China at least 51,1% think that a designer’s or painter’s advice is most important
3. In East China at least 34,5% think that a designer’s or painter’s advice is most important
Whose advice do DIY people in North and East China think is most important?
0,00%5,00%
10,00%15,00%20,00%25,00%30,00%35,00%40,00%
Nobod
y
Friend
Desig
ner
Painte
r
Salesm
an o
f a p
aint
sho
p
Other
North
East
North East
Resp. 90% reliability Resp. 90% reliability
Nobody 7,0% 3,1% - 10,9% 19,0% 12,0% - 26,1%
Friend 35,7% 28,3% - 43,0% 36,9% 28,2% - 45,6%
Designer 23,5% 17,0% - 30,0% 15,5% 9,0% - 22,0%
Painter 22,6% 16,2% - 29,0% 19,0% 12,0% - 26,1%
Salesman of a paint shop 7,8% 3,7% - 11,9% 6,0% 1,7% - 10,2%
Other 3,5% 0,7% - 6,3% 3,6% 0,2% - 6,9%
Whose advice do DIY people from 1st, 2nd and 3rd tier cities think is most important?
Conclusion
1. There are no big differences between DIY people from 1st, 2nd and 3rd tier cities with regard to whose advice they find most important
Whose advice do DIY people think in 1st, 2nd and 3rd tier cities is most important?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
Nobody Friend Designer Painter Salesmanof a paint
shop
Other
1st tier cities2nd and 3rd tier cities
Resp. 95% reliability Resp. 95% reliability
1st tier cities Nobody 16,5% 10,8% - 22,1% 11,6% 5,9% - 17,3%
2nd and 3rd tier cities Friend 32,3% 25,2% - 39,5% 39,7% 31,0% - 48,4%
Designer 17,1% 11,3% - 22,8% 20,7% 13,4% - 27,9%
Painter 21,3% 15,1% - 27,6% 17,4% 10,6% - 24,1%
Salesman of a paint shop 7,9% 3,8% - 12,1% 6,6% 2,2% - 11,0%
Other 4,9% 1,6% - 8,2% 4,1% 0,6% - 7,7%
Why do people choose for a certain paint brand?
Why do people choose for a paint brand?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
Price Brandimage
Origin Quality Specificcolor ofneed
Other
Average
Poor people
Middle class
Rich people
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average Price 8,5% 5,5% - 11,5% 10,8% 5,9% - 15,6% 6,2% 2,2% - 10,1% 10,0% 0% - 23,1%
Poor people Brand image 36,9% 31,7% - 42,1% 39,2% 31,6% - 46,9% 34,5% 26,7% - 42,2% 35,0% 14,1% - 55,9%
Middle class Origin 7,3% 4,5% - 10,0% 8,2% 3,9% - 12,5% 6,2% 2,3% - 10,1% 10,0% 0% - 23,1%
Rich people Quality 36,0% 30,8% - 41,1% 33,5% 26,2% - 40,9% 40,0% 32,0% - 48,0% 20,0% 2,5% - 37,5%
Specific color of need 1,8% 0,4% - 3,2% 1,3% 0% - 3% 2,1% 0% - 4,4% 5,0% 0% - 14,6%
Other 9,7% 6,5% - 12,9% 7,0% 3% - 1,1% 11,0% 5,9% - 16,1% 20,0% 2,5% - 37,5%
Conclusion
1. Brand image and quality are the most important factors for people when they buy paint
Why do people from North and East China choose for a certain paint brand?
Conclusion
1. Brand image is in North China more often the decisive factor for buying paint
2. A specific color is in North China more often the decisive factor for buying paint
Is there a difference in why people from North and East China choose for a paint brand?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
Price Brandimage
Origin Quality Specificcolor ofneed
Other
North
East
Resp. 90% reliability Resp. 90% reliability
North Price 5,1% 2,2% - 8,0% 11,6% 7,4% - 15,8%
East Brand image 45,2% 38,7% - 51,8% 30,3% 24,2% - 36,4%
Origin 6,4% 3,2% - 9,6% 9,0% 5,2% - 12,8%
Quality 28,7% 22,7% - 34,6% 40,6% 34,2% - 47,1%
Specific color of need 14,6% 10,0% - 19,3% 3,2% 0,8% - 5,6%
Other 0,0% 0,0% 5,2% 2,2% - 8,1%
Why do people from 1st, 2nd and 3rd tier cities choose for a certain paint brand?
Conclusion
1. There are no big differences between 1st, 2nd and 3rd tier cities regarding the decisive factor to buy paint
Is there a difference in why people from 1st, 2nd and 3rd tier cities choose for a paint brand?
0,00%5,00%
10,00%15,00%20,00%25,00%30,00%35,00%40,00%45,00%
Price Brandimage
Origin Quality Specificcolor ofneed
Other
1st tier cities
2nd and 3rd tier cities
1st tier cities 2nd and 3rd tier
cities
Resp. 90% reliability Resp. 90% reliability
Price 9,5% 6,1% - 13,0% 7,0% 3,3% - 10,7%
Brand image 40,7% 35,0% - 46,4% 31,0% 24,3% - 37,7%
Origin 7,0% 4,1% - 10,0% 7,8% 3,9% - 11,6%
Quality 33,7% 28,2% - 39,2% 38,8% 31,7% - 45,8%
Specific color of need 1,0% 0% - 2,2% 3,1% 0,6% - 5,6%
Other 8,0% 4,8% - 11,2% 12,4% 7,6% - 17,2%
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
41%
12%
4%
39%
4%
Yes No58%42%
Hypermarket
CMM
Small shop
Decoration company
Other
42%
35%
12%
7%
4%
Painter
Decoration company
Designer
Friend
4%
45%
5%
15%
31%
Other
BIY
Total: 30 % Total: 41 % Total: 29 %
Who does the painting job?
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average DIY & BIY 30,1% 26,2% - 34,0% 34,2% 28,1% - 40,3% 30,0% 24,2% - 35,8% 11,0% 0,6% - 21,4%
Poor peopleOutsourcing 69,9% 66,0 % - 73,8% 65,8% 59,7% - 71,9% 70,0% 64,2% - 75,8% 89,0% 78,6% - 99,4%
Middle class
Rich people
Who does the painting job?
0,0%10,0%20,0%30,0%40,0%50,0%60,0%70,0%80,0%90,0%
100,0%
DIY & BIY Outsourcing
Average
Poor people
Middle class
Rich people
Conclusion
1. On average people outsource the painting job 66,0 – 73,8%
2. Rich people outsource the painting job relatively more often than poor and middle class people
Who does the painting job in North and East China?
Who does the paint job in North and East China?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
DIY & BIY Outsourcing
North
East
Resp. 95% reliability Resp. 95% reliability
North DIY & BIY 32,9% 27,1% - 38,7% 28,4% 22,6% - 34,2%
East Outsourcing 67,1% 61,3% - 72,9% 71,6% 65,8% - 77,4%
Conclusion
1. There is no big difference between people North and East China with regard to the level of outsourcing the painting job
Who does the painting job in 1st, 2nd and 3rd tier cities?
Resp. 95% reliability Resp. 95% reliability
1st tier cities DIY & BIY 31,2% 26,1% - 36,3% 30,0% 23,1% - 36,9%
2nd and 3rd tier citiesOutsourcin
g 68,8% 63,7% - 73,9% 70,0% 63,1% - 76,9 %
Who does the painting job in 1st tier and 2nd & 3rd tier cities?
0,0%10,0%
20,0%30,0%40,0%
50,0%60,0%
70,0%80,0%
DIY & BIY Outsourcing
1st tier cities
2nd and 3rd tier cities
Conclusion
1. There is no big difference between people from 1st, 2nd and 3rd tier cities with regard to the level of outsourcing the painting job
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
41%
12%
4%
39%
4%
Yes No58%42%
Hypermarket
CMM
Small shop
Decoration company
Other
42%
35%
12%
7%
4%
Painter
Decoration company
Designer
Friend
4%
45%
5%
15%
31%
Other
BIY
Total: 30 % Total: 41 % Total: 29 %
Where do people who DIY & BIY buy the paint?
Average Poor people Middle class
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Hypermarket 40,9% 31,7% - 50,1% 35,9% 24,1% - 47,7% 46,3% 34,4 - 58,2%
CMM 39,1% 30% - 48,2% 40,6% 28,6% - 52,6% 35,8% 24,3% - 47,3%
Decoration Company 4,5% 0,6% - 8,4% 4,7% 0% - 9,9% 6,0% 0,3% - 11,7%
Small shop 11,8% 5,8% - 17,8% 12,5% 4,4% - 20,6% 10,4% 3,1% - 17,7%
Other 3,6% 0,1% - 7,1% 6,3% 0,3% - 12,3% 1,5% 0% - 4,4%
* Not enough respondents in high income segment
Where do people who DIY & BIY buy the paint?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%50,0%
Average Poor people Middle class
Hypermarket
CMM
Decoration Company
Small shop
Other
Conclusion:
Most people buy paint in hypermarkets and on CMMs
Where do people who DIY & BIY in North and East China buy the paint?
Where do people in North and East China who DIY and BIY buy the paint?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
North East
Hypermarket
CMM
Decoration Company
Small shop
Other
Resp. 95% reliability Resp. 95% reliability
North Hypermarket 36,8% 27,1% - 46,5% 38,5% 27,7% - 49,3%
East CMM 43,2% 33,2% - 53,2% 41,0% 30,1% - 51,9%
Decoration Company 7,4% 2,1% - 12,7% 5,1% 0,2% - 10%
Small shop 6,3% 1,4% - 11,2% 12,8% 5,4% - 20,2%
Other 6,3% 1,4% - 11,2% 2,6% 0% - 6,1%
Conclusion:
Most people buy in CMM and hypermarket
Where do DIY & BIY people in 1st, 2nd and 3rd tier cities buy the paint?
1st tier cities 2nd and
3rd tier cities
Resp. 95% reliability Resp. 95% reliability
Hypermarket 59,9% 51,7% - 68,1% 24,4% 15,3% - 33,5%
CMM 22,6% 15,6% - 29,6% 57,0% 46,5% - 67,5%
Decoration Company 5,8% 2% - 9,7% 5,8% 0,9% - 10,7%
Small shop 8,8% 4,1% - 13,5% 10,5% 4% - 17%
Other 2,9% 0% - 5,7% 2,3% 0% - 5,5%
Where do DIY & BIY people in 1st, 2nd and 3rd tier cities buy the paint?
0,0%10,0%20,0%30,0%40,0%50,0%60,0%70,0%
Hyp
erm
arke
t
CM
M
Dec
orat
ion
Com
pany
Sm
all s
hop
Oth
er
1st tier cities
2nd and 3rd tier cities
Conclusion:
Most people in 1st tier cities buy paint in hypermarkets. Most people in 2nd and 3rd tier cities buy paint in CMMs
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
41%
12%
4%
39%
4%
Yes No58%42%
Hypermarket
CMM
Small shop
Decoration company
Other
42%
35%
12%
7%
4%
Painter
Decoration company
Designer
Friend
4%
45%
5%
15%
31%
Other
BIY
Total: 30 % Total: 41 % Total: 29 %
Do people who outsource the painting job buy the paint themselves?
Do people who outsource the paint job buy the paint themselves?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Average Poor people Middle class Rich people
Yes
No
Average Poor people Middle class Rich people
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Yes 58,4% 53,3% - 63,5% 62,5% 54,8 % - 70,2% 56,4% 49,0% - 63,8% 54,5% 37,5% - 71,5%
No 41,6% 36,5% - 46,7% 37,5% 29,8% - 45,2% 43,6% 36,2% - 51% 45,5% 28,5% - 62,5%
Conclusion:
Most people who outsource the painting job buy the paint themselves despite of the differences in income
Do people in the North and the East of China who outsource the painting job buy the paint
themselves?
North East
Resp. 95% reliability Resp. 95% reliability
Yes 61,2% 54,5% - 68,0% 63,1% 56,2% - 70,0%
No 38,8% 32% - 45,5% 36,9% 30% - 43,8%
Do people in the North and the East of China who outsource the paint job buy the paint themselves?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Yes No
North
East
Conclusion:
Most people in North and East China who outsource the painting job, buy the paint themselves
Do people in 1st, 2nd and 3rd tier cities who outsource the painting job buy the paint
themselves?
Do people in 1st, 2nd and 3rd tier cities who outsource the paint job, buy the paint themselves?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Yes No
1st tier cities
2nd and 3rd tier cities
Resp. 95% reliability Resp. 95% reliability
1st tier cities Yes 63,2% 57,4% - 69,0% 63,4% 56,0% - 70,8%
2nd and 3rd tier cities No 36,8% 31,0% - 42,6% 36,6% 44% - 29,2%
Conclusion:
Most people in 1st, 2nd and 3rd tier cities who outsource the painting job, buy the paint themselves
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
41%
12%
4%
39%
4%
Yes No58%42%
Hypermarket
CMM
Small shop
Decoration company
Other
42%
35%
12%
7%
4%
Painter
Decoration company
Designer
Friend
4%
45%
5%
15%
31%
Other
BIY
Total: 30 % Total: 41 % Total: 29 %
Where do people who outsource but buy the paint themselves, buy the paint?
Where do people who outsource, but buy the paint themselves, buy the paint?
0,0%10,0%20,0%30,0%40,0%50,0%60,0%
Hyp
erm
arke
t
CM
M
Dec
orat
ion
Com
pany
Sm
all s
hop
Oth
er
Average
Poor people
Middle class
Rich people
Conclusion:
Most people buy the paint in hypermarkets and CMMs
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average Hypermarket 42,4% 35,0% - 49,8% 39,2% 28,4% - 50,0% 46,4% 35,7% - 57,1% 50,0% 26,9% - 73,1%
Poor people CMM 34,9% 27,8% - 42,0% 35,4% 24,9% - 46,0% 33,3% 23,2% - 43,4% 38,9% 16,4% - 61,4%
Middle class Decoration Company 7,0% 3,2% - 10,8% 7,6% 1,8% - 13,4% 6,0% 0,9% - 11,1% 5,6% 0% - 16,2%
Rich people Small shop 11,6% 6,8% - 16,4% 15,2% 7,3% -- 23,1% 8,3% 2,4% - 14,2% 5,6% 0% - 16,2%
Other 4,1% 1,1% - 7,1% 2,5% 0% - 5,9% 6,0% 0,9% - 11,1% 0,0% 0%
Where do people from North and East China, who outsource the painting job and buy the
paint themselves, buy the paint?Where do people from North and East China, who
outsource the painting job and buy the paint themselves, buy the paint?
0,0%10,0%20,0%30,0%40,0%50,0%
Hyp
erm
arke
t
CM
M
Dec
orat
ion
Com
pany
Sm
all s
hop
Oth
er
North
East
Conclusion:
Most people buy the paint in hypermarkets and CMMs. More people in East China buy paint in the hypermarket
Resp. 80% reliability Resp. 80% reliability
North Hypermarket 30,1% 24,3% - 35,9% 42,9% 36,7% -49,1%
East CMM 46,6% 40,3% - 52,9% 37,1% 31,1% - 43,1%
Decoration Company 8,7% 5,1% - 12,3% 7,6% 4,3% - 10,9%
Small shop 9,7% 6,0% - 13,4% 10,5% 6,7% - 14,3%
Other 4,9% 2,2% - 7,6% 1,9% 0,2% - 3,6%
Where do people who outsource the paint job and buy the paint themselves, live in a 1st, 2nd or 3rd tier
city, buy the paint?
0,0%10,0%20,0%30,0%40,0%50,0%60,0%
Hyp
erm
arke
t
CM
M
Dec
orat
ion
Com
pany
Sm
all s
hop
Oth
er
1st tier cities
2nd and 3rd tier cities
Where do people from 1st, 2nd and 3rd tier cities, who outsource the painting job and buy the paint themselves, buy the paint?
Resp. 80% reliability Resp. 80% reliability
1st tier cities Hypermarket 53,8% 48,5% - 59,1% 25,6% 19,7% - 31,5%
2nd and 3rd tier cities CMM 26,2% 19,0% - 33,4% 53,3% 46,6% - 60,0%
Decoration Company 6,9% 4,2% - 9,6% 5,6% 2,5% - 8,7%
Small shop 11,0% 7,7% - 14,3% 10,0% 5,9% - 14,1%
Other 2,1% 0,6% -3,6% 5,6% 2,5% - 8,7%
Conclusion:
1. In 1st tier cities relatively more people buy in hypermarkets than in 2nd or 3rd tier cities
2. In 2nd and 3rd tier cities relatively more people buy on CMMs than in 1st tier cities
Notes • People who BIY and outsource the painting job have two options to
do:
1) Go immediately to a design/decoration company or contact a painter or worker and ask for advice
2) Go immediately to a hypermarket, CMM or small shop and contact a painter/design/deco company later
• When consumers choose option 1, they will get a note with a brand name to buy on it, in 60-70% of the cases. From this percentage 10% will change brand in the shop after persuading by the salesman.
• In case of option 1, salesmen ánd deco companies have a strong influence on the consumers’ choice.
• In case of option 2, only salesmen have influence but more than in option 1.
How many people buy paint they need for decorating their own house themselves?
How many people buy paint they need for decorating their house themselves?
0,0%10,0%20,0%
30,0%40,0%50,0%60,0%
70,0%80,0%
Yes No
Average
Poor people
Middle class
Rich people
Average Poor people Middle classRich people
Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability
Yes 66,0% 63,3% - 68,7% 71,1% 67,2% - 75,0% 62,6% 58,4% - 66,8% 54,3% 43,2% - 65,4%
No 34,0% 31,2% - 36,7% 28,9% 25,0% - 32,8% 37,4% 33,2% - 41,6% 45,7% 34,6% - 56,8%
Conclusion
1. Relatively, less middle class and rich people buy paint they need for decorating their house themselves
How many people in North and East China buy paint they need for decorating their own
house themselves?
Conclusion
1. There are no big differences between North and East China regarding the amount of people that but paint they need for decorating their house themselves
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
Yes No
North
East
North East
Resp. 80% reliability Resp. 80% reliability
Yes 64,6% 60,6% - 68,6% 67,9% 63,9% - 71,9%
No 35,4% 31,4% - 39,4% 32,1% 28,1% - 36,1%
How many people in 1st, 2nd and 3rd tier cities buy paint they need for decorating their own
house themselves?
Conclusion
1. There are no big differences between 1st, 2nd and 3rd tier cities regarding the amount of people that but paint they need for decorating their house themselves
How many people in 1st, 2nd and 3rd tier cities buy paint they need for decorating their own house
themselves?
0,00%
20,00%
40,00%
60,00%
80,00%
Yes No
1st tier cities
2nd and 3rd tier cities
1st tier cities 2nd and 3rd tier cities
Resp. 80% reliability Resp. 80% reliability
Yes 66,8% 62,9% - 70,7% 64,5% 60,4% - 68,6%
No 31,2% 27,4% - 35,0% 35,5% 31,4% - 39,6%
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
41%
12%
4%
39%
4%
Yes No58%42%
Hypermarket
CMM
Small shop
Decoration company
Other
42%
35%
12%
7%
4%
Painter
Decoration company
Designer
Friend
4%
45%
5%
15%
31%
Other
BIY
Total: 30 % Total: 41 % Total: 29 %
Who do people that outsource the painting job and don’t buy the paint themselves, ask
to buy the paint for them?
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average Painter 30,8% 23,2% - 38,4% 37,5% 24,8% - 50,2% 27,6% 18,2% - 37,0% 5,9% 0% - 17%
Poor people Friend 14,7% 8,9% - 20,5% 14,3% 5,1% - 23,5% 23,0% 14,2% - 31,8% 11,8% 0% - 27,1%
Middle class Designer 5,6% 1,8% - 9,4% 8,9% 1,4% - 16,4% 4,6% 0,2% - 9,0% 11,8% 0% - 27,1%
Rich people
Decoration Company 45,5% 37,3% - 53,7% 35,7% 23,2% - 48,3% 42,5% 32,1% - 52,9% 52,9% 29,2% - 76,6%
Other 3,5% 0,5% - 6,5% 3,6% 0% - 8,5% 2,3% 0% - 5,4% 17,6% 0% - 35,7%
Who do people that outsource the painting job and don’t buy the paint themselves, ask to buy the paint
for them?
0,0%10,0%20,0%30,0%40,0%50,0%60,0%
Pai
nter
Frie
nd
Des
igne
r
Dec
orat
ion
Com
pany
Oth
er
Average
Poor people
Middle class
Rich people
Conclusion:
Most people in this case ask a decoration company or a painter to buy the paint for them
Who do people from North and East China that outsource the painting job and don’t buy the paint themselves, ask to buy the paint for
them?
Resp. 95% reliability Resp. 95% reliability
North Painter 25,0% 16,5% - 33,5% 35,0% 24,5% - 45,5%
East Friend 26,0% 17,4% - 34,6% 20,0% 11,2% - 28,8%
Designer 7,0% 2,0% - 12,0% 6,3% 1,0% - 11,6%
Decoration Company 37,0% 27,5% - 46,5% 35,0% 24,5% - 45,5%
Other 5,0% 0,7 - 9,3% 3,8% 0% - 8,0%
Who do people in North and East China who outsource the paint job and don't buy the paint
themselves ask to buy paint for them?
0,0%
10,0%
20,0%
30,0%
40,0%
Painter Friend Designer DecorationCompany
Other
North
East
Conclusion:
There are no big differences between North and East China who to ask to buy paint for you
Who do people from 1st, 2nd and 3rd tier cities that outsource the painting job and don’t buy the paint themselves, ask to buy the paint for
them?Who do peope who live in 1st, 2nd and 3rd tier cities, who outsource the paint job and don't buy the paint
themselves ask to buy the paint for them?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
Pai
nter
Frie
nd
Des
igne
r
Dec
orat
ion
Com
pany
Oth
er
1st tier cities
2nd and 3rd tier cities
Conclusion:
In 2nd and 3rd tier cities relatively more people ask a friend than in 1st tier cities
Resp. 80% reliability Resp. 80% reliability
1st tier cities Painter 29,1% 22,5% - 35,7% 25,0% 20,7% - 29,3%
2nd and 3rd tier cities Friend 22,8% 16,7% - 28,9% 33,9% 29,2% - 38,6%
Designer 10,1% 5,8% - 14,4% 5,4% 3,2% -7,6%
Decoration Company 32,9% 26,1% - 39,7% 28,0% 23,6% - 32,4%
Other 5,1% 1,9% - 8,3% 7,7% 5,1% - 10,3%
Why do people outsource the painting job?
Why do people outsource the paint job?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%
No time Don't likepainting
I don't haveskills
Finished morequickly
It's cheap Guarantee onresult
Average
Poor people
Middle class
Rich people
Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability Resp. 80% reliability
Average No time 17,1% 14,7% - 19,6% 9,4% 6,7% - 12,1% 23,3% 19,1% - 27,5% 38,5% 25,8% - 51,0%
Poor people
Don't like painting 3,6% 2,4% - 4,8% 2,0% 0,7% - 3,3% 4,5% 2,5% - 6,6% 3,8% 0% - 8,8%
Middle class
I don't have skills 30,0% 27,0% - 32,9% 35,1% 30,7% - 39,6% 26,1% 21,7% - 30,5% 19,2% 9,0% - 29,4%
Rich peopleFinished more
quickly 9,9% 08,0% - 11,8% 10,4% 7,6% - 13,2% 10,2% 7,2% - 13,2% 3,8% 0% - 8,8%
It's cheap 3,1% 2,0% - 4,3% 4,0% 2,2% - 5,8% 2,8% 1,2% - 4,5% 0,0% 0,0%
Guarantee on
result 36,2% 33,1% - 39,3% 39,1% 34,6% - 43,6% 33,0% 28,3% - 37,6% 34,6% 22,3% - 46,9%
Conclusion
1. At least 33.1% of all people outsources the painting job because of a guarantee on result.
2. Relatively poor people more often give the reason ‘no skills’ than middle class and rich people
3. The reason why middle class and rich people outsource the painting job more often is ‘no time’ compared to poor people
Why do people from North and East China outsource the painting job?
Why do people from North and East China outsource the paint job?
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
40,00%
45,00%
No time Don't likepainting
I don't have skills Finished morequickly
It's cheap Guarantee onresult
North
East
Resp. 80% reliability Resp. 80% reliability
North No time 16,3% 12,7% - 19,8% 18,2% 14,6% - 21,8%
East Don't like painting 2,1% 0,7% - 3,5% 4,5% 2,6% - 6,5%
I don't have skills 25,8% 21,6% - 30,0% 34,3% 29,9% - 38,8%
Finished more quickly 11,6% 8,5% - 14,6% 8,1% 5,5% - 10,6%
It's cheap 5,8% 3,6% - 8,0% 1,0% 0% - 1,9%
Guarantee on result 38,4% 33,8% - 43,1% 33,8% 29,4% - 38,3%
Conclusion
1. There are no big differences between North and East China when it comes to the reason of outsourcing the painting job
Why do people from 1st, 2nd and 3rd tier cities outsource the painting job?
Why do people from 1st, 2nd and 3rd tier cities outsource the paint job?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%
No tim
e
Don't l
ike p
aintin
g
I don
't hav
e sk
ills
Finish
ed m
ore
quick
ly
It's c
heap
Guara
ntee
on re
sult
1st tier cities
2nd and 3rd tier cities
Resp. 80% reliability Resp. 80% reliability
1st tier cities No time 20,6% 17,3% - 23,9% 11,8% 8,3% - 15,2%
2nd and 3rd tier cities Don't like painting 4,3% 2,6% - 5,9% 2,6% 0,1% - 4,3%
I don't have skills 28,8% 25,1% - 32,5% 32,0% 27,1% - 37,0%
Finished more quickly 8,6% 6,3% - 10,9% 12,4% 8,9% - 15,9%
It's cheap 2,3% 1,1% - 3,6% 4,6% 2,3% - 6,8%
Guarantee on result 35,4% 31,5% - 39,3% 36,6% 31,5% - 41,7%
Conclusion
1. In 1st tier cities ‘no time’ more often is the reason to outsource than in 2nd and 3rd tier cities
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
41%
12%
4%
39%
4%
Yes No58%42%
Hypermarket
CMM
Small shop
Decoration company
Other
42%
35%
12%
7%
4%
Painter
Decoration company
Designer
Friend
4%
45%
5%
15%
31%
Other
BIY
Total: 30 % Total: 41 % Total: 29 %
Most common processes* of our sample
1) Outsourcing BIY Hypermarket = 17 %
2) Outsourcing BIY CMM = 14 %
3) Outsourcing Outsourcing buying Decoration company = 13 %
4) DIY & BIY Hypermarket = 12 %
5) DIY & BIY CMM = 12 %
6) Outsourcing Outsourcing buying Painter = 9 %
7) Outsourcing Outsourcing buying Friend = 4 %
+
Total 81 %
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 34% 66%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
36%
12%
5%
41%
6%
Yes No58%42%
Hypermarket
CMM
Small shop
Decoration company
Other
39%
35%
15%
8%
2%
Painter
Decoration company
Designer
Friend
4%
36%
9%
14%
37%
Other
BIY
Poor people
(income < 3000 RMB)
Total: 34 % Total: 42 % Total: 24 %
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
49%
10%
5%
32%
4%
Yes No62%38%
Hypermarket
CMM
Small shop
Decoration company
Other
49%
33%
9%
5%
4%
Painter
Decoration company
Designer
Friend
5%
34%
6%
29%
26%
Other
BIY
Middle class
(income:3 000 – 10 000 RMB)
Total: 30 % Total: 43 % Total: 27 %
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 11% 89%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
53%
0%
7%
40%
0%
Yes No51%49%
Hypermarket
CMM
Small shop
Decoration company
Other
38%
50%
6%
6%
0%
Painter
Decoration company
Designer
Friend
8%
50%
13%
21%
8%
Other
BIY
Rich people
(income > 10 000 RMB)
Total: 11 % Total: 45% Total: 44 %
Overview most common processes for different income segments
* of our sample
Process Rich people
Middle class
Poor people
DIY & BIY Hypermarket 6% 15% 12%
DIY & BIY CMM 4% 10% 14%
Outsourcing BIY Hypermarket 17% 21% 16%
Outsourcing BIY CMM 22% 14% 15%
Outsourcing Outsourcing buying painter
4% 7% 9%
Outsourcing Outsourcing buying friend
9% 8% 3%
Outsourcing Outsourcing buying Decoration company
22% 9% 9%
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 33% 67%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
37%
6%
8%
43%
6%
Yes No61%39%
Hypermarket
CMM
Small shop
Decoration company
Other
30%
46%
10%
9%
5%
Painter
Decoration company
Designer
Friend
5%
37%
7%
26%
25%
Other
BIY
Total: 33 % Total: 41 % Total: 26 %
North China
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 28% 72%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
38%
13%
5%
41%
3%
Yes No63%37%
Hypermarket
CMM
Small shop
Decoration company
Other
43%
37%
10%
8%
2%
Painter
Decoration company
Designer
Friend
4%
35%
6%
20%
35%
Other
BIY
Total: 28 % Total: 45 % Total: 27 %
East China
Overview most common processes in North and East China
* of our sample
Process North China
East China
DIY & BIY Hypermarket 12% 11%
DIY & BIY CMM 14% 11%
Outsourcing BIY Hypermarket 12% 19%
Outsourcing BIY CMM 19% 17%
Outsourcing Outsourcing buying painter 6% 9%
Outsourcing Outsourcing buying friend 7% 5%
Outsourcing Outsourcing buying Decoration company
10% 9%
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 31% 69%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
50%
14%
4%
28%
4%
Yes No63%37%
Hypermarket
CMM
Small shop
Decoration company
Other
52%
28%
11%
6%
3%
Painter
Decoration company
Designer
Friend
6%
38%
8%
25%
23%
Other
BIY
Total: 31 % Total: 43 % Total: 26 %
1st tier cities; Shanghai & Beijing
Who did the painting job?
Where did you buy the paint? Did you buy the paint yourself?
Yourself, friends or familyDIY & BIY
Outsourcing/somebody else 30% 70%
Hypermarket
CMM
Small shop
Decoration company
Other
Where did you buy the paint? Who else bought the paint?
20%
8%
9%
58%
5%
Yes No64%36%
Hypermarket
CMM
Small shop
Decoration company
Other
26%
52%
9%
8%
5%
Painter
Decoration company
Designer
Friend
5%
34%
11%
18%
32%
Other
BIY
Total: 30 % Total: 45% Total: 25 %
2nd & 3rd tier cities
Overview most common processes in 1st, 2nd and 3rd tier cities
* of ous sample
Process 1st tier cities
2nd & 3rd tier cities
DIY & BIY Hypermarket 16% 6%
DIY & BIY CMM 9% 17%
Outsourcing BIY Hypermarket 22% 12%
Outsourcing BIY CMM 12% 23%
Outsourcing Outsourcing buying painter 6% 8%
Outsourcing Outsourcing buying Decoration company
10% 9%
Overview DIY and BIY
Do It Yourself (DIY) Buy It Yourself (BIY)
Poor people 34% 28,1%- 40,3%**
71%67,2% - 75,0%*
Middle class 30%24,2% - 35,8**
63%58,4% - 66,8%*
Rich people 11%0,6% - 21,4%**
54%43,2% - 65,4%*
North China 33%27,1% - 38,7%**
64,4%58,5% - 70,3%**
East China 28%22,6% - 34,2%**
67,1%61,3% - 72,9%**
1st tier cities 31%26,1% - 36,3%**
66,8%61,6% - 72,0%**
2nd & 3rd tier cities 30%23,1% - 36,9%**
64,5%57,8% - 71,2%**
* Tested on 80% reliability ** Tested on 95% reliability
In which hypermarket do people buy paint?
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average B&Q 64,0% 55,6% - 72,4% 64,3% 53,9% - 74,7% 62,7% 50,4% - 75,0%
Poor people Home Mart 8,8% 3,8% - 13,8% 8,9% 2,7% - 15,1% 8,5% 1,4% - 15,6%
Middle class Oriental Home 1,6% 0% - 3,8% 1,8% 0,0% - 4,7% 1,7% 0,0% - 5,0%
Leroy Merlin 12,0% 6,3% - 17,7% 16,1% 8,1% - 24,1% 6,8% 0,3% - 13,2%
Other hypermarket 13,6% 7,6% - 19,6% 8,9% 2,7% - 15,1% 20,3% 10,0% - 30,6%
In which hypermarket do people buy paint?
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
B&Q Home Mart Oriental Home Leroy Merlin Otherhypermarket
Average
Poor people
Middle class
Conclusion
1. At least 55,6% of all people that buy paint in a hypermarket buys it at B&Q
2. There is no big relationship between income and hypermarkets where people buy paint.
* Not enough respondents in high income segment
In which hypermarket do people from North and East China buy paint?
Resp. 95% reliability Resp. 95% reliability
1st tier cities B&Q 39,6% 25,4% - 53,4% 79,5% 70,2% - 88,8%
2nd and 3rd tier cities Home Mart 4,2% 0,0% - 9,9% 11,5% 4,2% - 18,8%
Oriental Home 4,2% 0,0% - 9,9% 1,3% 0% - 3,9%
Leroy Merlin 29,2% 16,3% - 42,1% 0% 0%
Other hypermarket 22,9% 11,0% - 34,8% 6,4% 0,8% - 12,0%
Conclusion
1. In East China relatively more people go to B&Q to buy paint compared to North China.
2. In North China at least 16,3% go to Leroy Merlin to buy paint
In which hypermarket do people from North and East China buy paint?
0,00%10,00%20,00%30,00%40,00%50,00%60,00%70,00%80,00%90,00%
B&Q Home Mart Oriental Home Leroy Merlin Otherhypermarket
North
East
In which hypermarket do people from 1st, 2nd and 3rd tier cities buy paint?
In which hypermarket do people from 1st, 2nd and 3rd tier cities buy paint?
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
80,00%
B&Q
Home
Mar
t
Orient
al Hom
e
Lero
y Mer
lin
Other
hyp
erm
arke
t
1st tier cities
2nd and 3rd tier cities
Resp. 95% reliability Resp. 95% reliability
1st tier cities B&Q 63,20% 53,5% - 72,3% 69,0% 52,2% - 85,8%
2nd and 3rd tier cities Home Mart 11,60% 5,2% - 18,0% 0,0% 0,0%
Oriental Home 1,10% 0,0% - 3,1% 3,4% 0,0% - 10,0%
Leroy Merlin 1,10% 0,0% - 3,1% 3,4% 0,0% - 10,0%
Other hypermarket 9,50% 3,6% - 15,4% 24,1% 8,5% - 39,7%
Conclusion
1. There are no big differences between 1st, 2nd and 3rd tier cities with regard to in which hypermarket people buy paint
Which advantage makes you buy paint on the internet?
Which advantage makes you buy paint on the internet?
0,0%5,0%
10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%50,0%
Cheape
r
Delivere
d at h
ome
Paym
ent s
afet
y
Mor
e ch
oice
Man
ufac
ture
r is
fam
ous
Never
Average
Poor people
Middle class
Rich people
Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability Resp. 95% reliability
Average Cheaper 15,4% 11,5% - 19,2% 15,1% 9,6% - 20,5% 16,8% 10,7% - 22,9% 10,0% 0% - 23,1%
Poor people
Delivered at home 15,7% 11,8% - 19,6% 15,7% 10,1% - 21,2% 15,4% 9,5% - 21,3% 20,0% 2,4% - 37,5%
Middle class
Payment safety 10,9% 7,6% - 14,3% 10,2% 5,6% - 14,9% 13,3% 7,7% - 18,9% 5,0% 0,0% - 14,6%
Rich people More choice 8,3% 5,3% - 11,2% 7,8% 3,7% - 11,9% 9,1% 4,4% - 13,8% 5,0% 0,0% - 14,6%
Manufacturer is famous 16,9% 12,9% - 20,9% 16,9% 11,2% - 22,6% 16,8% 10,7% - 22,9% 15,0% 0,0% - 30,6%
Never 32,8% 27,8% - 37,8% 34,3% 27,1% - 41,6% 28,7% 21,3% - 36,1% 45,0% 23,2% - 66,8%
Conclusion
1. There is not a strong relationship between income and buying paint on the internet
Which advantage makes people in North and East China buy paint on the internet?
Which advantage makes people in North and East China buy paint on the internet?
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
Cheaper Delivered athome
Paymentsafety
More choice Manufactureris famous
Never
North
East
Resp. 80% reliability Resp. 80% reliability
North Cheaper 12,7% 9,2% - 16,1% 18,0% 14,0% - 22,0%
East Delivered at home 13,9% 10,3% - 17,6% 18,0% 14,0% - 22,0%
Payment safety 13,3% 9,7% - 16,9% 9,3% 6,3% - 12,3%
More choice 6,3% 3,8% -8,9% 11,2% 7,9% - 14,5%
Manufacturer is famous 16,5% 12,6% - 20,3% 16,1% 12,3% - 20,0%
Never 37,3% 32,3% -42,4% 27,3% 22,7% - 32,0%
Conclusion
1. Relatively less people in North China are willing to buy paint on the internet in the future
Which advantage makes people from 1st, 2nd and 3rd tier cities buy paint on the internet?
Conclusion
1. Relatively more people from 1st tier cities should buy paint on the internet if it was cheaper than in 2nd and 3rd tier cities
Which advantage makes people from 1st, 2nd and 3rd tier cities buy paint on the internet?
0,00%5,00%
10,00%15,00%20,00%25,00%30,00%35,00%40,00%45,00%
1st tier cities
2nd and 3rd tier cities
Resp. 90% reliability Resp. 90% reliability
1st tier cities Cheaper 18,75% 14,3% - 23,2% 9,52% 5,2% - 13,8%
2nd and 3rd tier cities Delivered at home 18,27% 13,9% - 22,7% 11,11% 6,5% - 15,7%
Payment safety 9,62% 6,3% - 13,0% 13,49% 8,5% - 18,5%
More choice 8,17% 5,0% - 11,3% 8,73% 4,6% - 12,9%
Manufacturer is famous 15,87% 11,7% - 20,0% 18,25% 12,6% - 23,9%
Never 29,33% 24,1% - 34,5% 38,89% 31,7% - 46,0%
What do people regard as the most important characteristic of paint?
n Respondents 95% reliability
Long lasting 60 17,4% 13,4% - 21,4
Long lasting color 8 2,3% 0,7% - 3,9%
Water and humidity resistant 5 1,4% 0,2% - 2,6%
Cover small cracks 1 0,3% 0% - 0,1%
Good covering 3 0,9% 0% - 1,9%
Easy to apply 8 2,3% 0,7% - 3,9%
Dry quickly 3 0,9% 0% - 1,9%
Insulate well 11 3,2% 1,3% - 5,1%
Safety and environmentally friendly 218 63,2% 58,1% - 68,3%
Easy to clean 8 2,3% 0,7% - 3,9%
Good smell 16 4,6% 2,4% - 6,8%
Resistant to viruses and diseases 4 1,2% 0% - 2,3%
Conclusion:1) Safety and environmental friendly2) Long lasting3) Good smell
Home residents’ suggestions
0
50
100
150
200
250
Improve quality
Environmental friendly
Improve safety/health
Lower price
More colors
Easy to clean/ can barecleaning
Long lasting (color)
More advertisement
After sales service
Water resistant
Other interesting suggestions from home residents
• Less fake products (control it!)• Guarantee on quality• Education• Use-by date• Don’t exaggarate commercials• Recycling cans• User manual• Various packages• Delivery of paint• Work on reputation• More options to buy on internet• Paint that is dirt resistant• Quickly drying paint• Just call after buying• Promote quality/price ratio of product• Combine all the strong points of other brands
Conclusions home residents in general
• Some families have one or two children, they like drawing on the wall, if it is easy to erase, it is good.
• In china people think painting is an one-time investment and only paint walls when they move in and it is inevitable necessary. People do not change paint often
• Women in Shanghai decide to paint, they also decide the color• Because people move a lot, they paint a lot • The main problems salesmen hear from customers are about the adhesive
ability and bubbling • People believe in government/experts. Professor in environmental field is
reliable. • Many people don’t know how much they paid for the painting, because it’s just a
small part of the whole decoration package. Price is therefore less important. • Painting budget is not a big problem, since it’s just a small fraction of total
decoration costs • People don’t know much about the specifics of paints• Brandname Levis, Akzo Nobel is confusing
• Relatively most people ask their friends’ advice first• Relatively most people get their information from internet and TV• At least 31,7% thinks a designer’s or painter’s advice is most important• At least 27% of all BIY people think that a designer’s and/or painter’s advice is
most important • Brand image and quality are the most important factors for people when they
buy paint• On average people outsource the painting job 66,0 – 73,8%• Most people buy in hypermarket and CMMs• At least 33.1% of all people outsources the painting job because of a guarantee
on result.• At least 55,6% of all people that buy paint in a hypermarket buys it at B&Q.• Relatively most people who outsource the painting job buy the paint themselves
despite of the differences in income• Relatively most people who outsource and don’t buy the paint themselves ask a
decoration company or a painter to buy the paint for them
Conclusions home residents in general
Conclusion; differences between the three different income segments
• Rich people more often look on the internet for information on painting after deciding to paint their house than poor people
• Relatively more poor people think information from TV is most important compared to middle class people
• Poor people buy paint more often themselves than middle class and rich people
• Rich people outsource the painting job relatively more often than poor and middle class people
• Rich people influence upcoming middle class in buying behaviour• Relatively poor people more often give the reason ‘no skills’ than
middle class and rich people when they outsource the painting job• The reason why middle class and rich people outsource the
painting job more often is ‘no time’ compared to poor people
Conclusion; differences between North and East China
• People in North China are younger on average• People from the North more often call a designer for information on painting after deciding
to paint their house than people from East China• In North China internet is a relatively more valuable source of information on paint than in
East China. • In East China people more often don’t look for information after deciding to paint their
house than people in North China• In East China more people don’t need advice when buying paint than in North China• In North China at least 51,1% think that a designer’s or painter’s advice is most important• In East China at least 34,5% think that a designer’s or painter’s advice is most important• Brand image is in North China more often the decisive factor for buying paint• A specific color is in North China more often the decisive factor for buying paint• Most people buy the paint in hypermarkets and CMMs. Relatively more people in East
China buy paint in the hypermarket• The climate differs between North and East China. In East China one needs water resistant
paint, it’s very humid• People in Shanghai have higher requirements for quality of paints and colors than Beijing• In East China relatively more people go to B&Q to buy paint compared to North China.• In North China at least 16,3% go to Leroy Merlin to buy paint
Conclusions difference 1st, 2nd and 3rd tier cities
• In 2nd and 3rd tier cities people more often call a design company as the first thing to do after deciding to paint their house
• In 1st tier cities more people read magazines to find information on painting than in 2nd and 3rd tier cities
• Internet is the most important source of information in 2nd and 3rd tier cities.• Magazines play an important role as source of information on paint in 1st tier
cities• In ist tier cities the biggest sales channel is ‘hypermarkets’. In 2nd and 3rd tier
cities this is ‘ÇMM’. • In 2nd and 3rd tier cities relatively most people ask a friend for advice• In 2nd and 3rd tier cities consumers are less exposed to information such as
advertisement and internet, so they may be less mature and painters may have greater influence
• Rural markets are immature and chaotic compared to city when painters recommend to home residents a particular low quality brand, which cost is very low, they get money from shop owners
• In 1st tier cities ‘no time’ more often is the reason to outsource than in 2nd and 3rd tier cities
Research findings: 2nd & 3rd tier cities
Suzhou• People’s knowledge about paint is low • In Shanghai de market is centered, in Suzhou the market is fragmented
Tian Jin• In Tian Jin people are not so interested in buying paint on the internet. • In Tian Jin there are relatively more local brands than in Beijing• Most people just know Nippon and Huarun.• In Tian Jin people care less about environment and health, but focus more
on prices
Sijiazhuang• Key point is that people think painting is a boring job and they wish to
change, but they don’t have enough time. Therefore they hire someone.• There is a painting factory in Sijiazhuang named Golden Fish. Therefore a
lot of people trust this brand. A lot of families use this brand.• People in Sijiazhuang focus on quality --> environmental friendly and safety
for health. They don’t care about the price very much.
Conclusions for the paint product
• Quality, environmental friendly, health & safety are the most important characteristics of paint for the Chinese consumers
• There is tendency to use light colors like white.
• Most people prefer matt over shiny paint
• People ask for smaller cans
Suggestions to Akzo Nobel (1)• Improve brand awareness by investing in advertisement
TV screens on train stations, supermarkets etc. Advertisement on buses Offer small presents with Levis logo on the streets Offer other products when they buy Levis paint Advertisement in decoration magazines Use a theme in all advertisements
• Combine project and retail market• Expand distribution network
Acquire other paint manufacturers/decoration companies Carrefour B&Q
• Education/ communication Home residents Painters Salesmen Shop owners
• Painting staff Guarantee on quality• Relations with government/experts
Spending money on charity Provide public services Support education Support an ‘independent’ research of an expert in the field
Suggestions to Akzo Nobel (2)
• After sales service Service shops Call people after they have bought paint
• Internet Website improvement Advertisement Links on websites hypermarkets, decoration companies etc. Search engines like Google and Baidu etc.
• Agreements with decoration and design companies Decoration centers of hypermarkets Other decoration and design companies
• Improve quality perception Adapt sales channels Develop a unique concept (different from 5 in 1) Emphasize that Levis can be applied in one time painting Remark international image of Akzo Nobel Put Akzo Nobel logo on cans Special logo which guarantees quality, safety and environmental friendly paint (independent
institute) Show good looking certificates on strategic points in hypermarkets
• Further research Rich people Possibilities to acquire other companies
Thank you
List of sources (1)Employees of Akzo Nobel (The Netherlands)• Peter de Groot, Marketing Director International • Arie van de Nadort, Manager MIPS• Thierry Techer, Marketing Director Decorative Coatings Europe • Patrice Vekemans, Marketing Director Retail Europe Employees of Akzo Nobel (China)• Frank Jiang, Area Distribution Manager East China• Jack Luo• Sherry Song, Product ManagerExternal experts:• Arie van der Steenhoven, retired employee of DSM • Fons Tuinstra, author and journalistEmployees University of Groningen:• Mr. Henstra, supervising professor• Ms. Oortwijn, supervising professor• Xue Fei• Prof. Karsten• Prof. Sorge• Han ZhangOrganisations/government• Mr. Zhu, Coatingsassociation China (Shanghai)
List of sources (2)
Competitors•Mr. Li, employee of Nippon, responsible for detailmarket •Mr. Sun, ex-employee of Nippon, manager of technical service department•Qiu Tong, employee of Huarun Hypermarkets•Mr. Wang, employee of Easyhome (Beijing, Fengtai district) •Mr. Yuan, the paintmanager of an Home Mart (Shanghai)•Mr. Zhu, salesman of Levis in an Home Mart (Shanghai) •Sales employees of B&Q (Shanghai & Beijing)•Sales employees of Orient Home (Beijing)•Sales employees of Home Mart (Shanghai and Beijing)CMM’s•Qi Mingxi, shopowner of a big shop on Jiuxing CMM•3 Shopowners of a CMM & Hypermarket combination•4 Shopowners CMM SuzhouDecoration Companies•Mr. Lin, employee of decoration company, specialized in the paint spray-method•Mr. Xu, employee of decoration company
List of sources (3)
Translators Fudan University• Zhang Huan• Xue Tao• Minrui Yang
Translators Peking University• Li Yuqin• Lin Hong• Su Xiaohong
List of sources (4)
• www.cnnic.net.cn/en/index/0O/index.htm• www.internetworldstats.com/stats3.htm#asia• www.huarun-paint.com• www.nippon.com• www.ici.com• www.worldbank.com• www.levispaint.com.cn• www.minbuza.nl• www.rics.org • www.gardiner.com• www.onri.nl• www.cia.gov/cia/publications/factbook/geos/ch.html• www.evd.nl• www.hollandinchina.nl• www.homemart.com• www.bnq.com.cn• www.orienthome.com• http://www.bjstats.gov.cn/sjfb/pcsj/rkpc/200607/t20060704_45118.htm• http://www.stats-sh.gov.cn/2003shtj/tjnj/nj06.htm?d1=2006tjnj/C0308.htm• Statistical Yearbook 2005• McKinsey report• National Statistics bureau of China; Asia Dvelopment Bank; World Bank; Morgan Stanley; China government goal from the 16th
Communist Party Congress given by Jiang Zemin• KPMG report• http://www.cnnic.net.cn, • http://www.internetwrldstats.com/stats3.htm#asia• www.asiacoat.com, Coatingol.com(Chinese name:Tu Liao Zai Xian).• www.coatingol.com/news/nwsview.asp?nsid=27481
• Annual Report on Paint & Coatings Industry (2005)• Lovinghome Forum(Chinese name:Ai Jia Lun Tan).• http://bbs.525j.com.cn/forums/31719/ShowPost.aspx
Conclusion of research
• Representatives of Akzo Nobel
• Attention for consumers
• Market information about the process directly from consumers