Report Akzo Nobel Deco China

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

Y. Winata

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



& Competitors

Decoration markets

Painting practice

Home residents

Competitors

http://www.huarun.com.cn/english/index.asp

http://www.sopel.com.cn/index.asp

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


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



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


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


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



& 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



More than 20.000

Family income per month in RMB

46%

37%

10%5% 2% Less than 3.000




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



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


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


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


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



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


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.


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


Conclusion

In 2nd and 3rd tier cities people more often buy ‘other’ brands than in 1st tier cities.


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


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


% of Total

Count


% 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


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


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


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?


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


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?


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.


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


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


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


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


1st tier cities2nd and 3rd tier cities


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.


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


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



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%


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


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%


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


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%


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


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


Other

North

East


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


Other

1st tier cities


1st tier cities 2nd and 3rd tier

cities


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?


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%


North

East


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?


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%


1st 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





Hypermarket

CMM

Small shop

Decoration company

Other


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


Where do people who DIY & BIY buy the paint?

Average Poor people Middle class


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


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


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


Conclusion:

Most people in 1st tier cities buy paint in hypermarkets. Most people in 2nd and 3rd tier cities buy paint in CMMs





Hypermarket

CMM

Small shop

Decoration company

Other


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


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%


Yes

No



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


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



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





Hypermarket

CMM

Small shop

Decoration company

Other


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


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


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


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


Where do people from 1st, 2nd and 3rd tier cities, who outsource the painting job and buy the paint themselves, buy the paint?


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%


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


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


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


1st tier cities 2nd and 3rd tier cities


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%





Hypermarket

CMM

Small shop

Decoration company

Other


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


Who do people that outsource the painting job and don’t buy the paint themselves, ask

to buy the paint for them?


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?


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%


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


Conclusion:

In 2nd and 3rd tier cities relatively more people ask a friend than in 1st tier cities


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%


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


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


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



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





Hypermarket

CMM

Small shop

Decoration company

Other


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


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 %





Hypermarket

CMM

Small shop

Decoration company

Other


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)






Hypermarket

CMM

Small shop

Decoration company

Other


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)






Hypermarket

CMM

Small shop

Decoration company

Other


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%





Hypermarket

CMM

Small shop

Decoration company

Other


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


North China





Hypermarket

CMM

Small shop

Decoration company

Other


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


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%


10% 9%





Hypermarket

CMM

Small shop

Decoration company

Other


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


1st tier cities; Shanghai & Beijing





Hypermarket

CMM

Small shop

Decoration company

Other


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 %


Overview most common processes in 1st, 2nd and 3rd tier cities

* of ous sample

Process 1st 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%


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?


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?


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



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


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


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



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

Date post:	15-May-2015
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