Oct 14 2010
Research and Markets has announced the addition of Frost & Sullivan's new report "Southern African Paints and Coatings Market" to their offering.
This service covers the Southern African paints and coatings market, examining drivers, restraints and challenges affecting growth. Following from these, the market growth for the total as well as individual segments is forecast. The base year is 2009 with forecasts running to 2016. The market is further divided according to product types. Detailed profiles have been supplied of the key market participants. Best practices have been identified by these key participants and have been analysed. Also, a company market share analysis has been supplied and discussed. A supply chain structure for each country segment has been analysed.
This research service titled Southern African Paints and Coatings Market provides a detailed overview of the Southern African paints and coatings market along with insights into the market drivers, restraints and industry challenges, and their impact on the future market demand for paints and coatings. In this research, Frost & Sullivan's expert analysts thoroughly examine the following products: decorative coatings, automotive and refinish coatings, industrial protective coatings, and other coatings. The countries covered in this research service are South Africa, Namibia, and Zambia and the end-users covered are construction, automotive, and do-it-yourself (DIY).
Thriving Construction and Automotive Sectors Drive the Southern African Paints and Coatings Market
The paints and coatings market is primarily driven by the construction sector. Although the construction industry slowed down drastically during 2008 and 2009 due to the economic crisis, it is now on the road to recovery. Namibia and Zambia are witnessing a rise in construction activities. The thriving building industry and the growing automotive sector are stepping-up the demand for decorative paints and automotive coatings in Southern Africa, says the analyst of this research. The decorative paints segment accounts for more than 50 per cent of the total paints and coatings market in Southern Africa, implying that the total market growth will significantly increase.
Due to the economic crisis, the construction industry saw losses since very few building projects were commissioned and the automotive sector declined as fewer vehicles were being sold. However, Southern Africa has many infrastructural opportunities and the government has taken initiatives to provide enhanced and greater infrastructure to the locals by commissioning these building projects themselves.
Educating Consumers on the Benefits of Purchasing Superior Quality Paints to Help Expand Market Share
The paints and coatings market in Southern Africa is highly fragmented along with low barriers to entry. Several small paint manufacturers are establishing themselves in the market, thus increasing the competition and range of brands in the market. This leaves the market with greater brand choices and takes away the potential sale of the initial, older brands, thereby reducing revenues of the existing market participants. However, importing large amounts of raw material increases the manufacturing costs of locally produced paints and coatings, making way for cheaper imports, added competition and price sensitivity, explains the analyst. The starting capital to manufacture decorative paints is low, easing market entry and increasing competition among local manufacturers.
The local manufacturers should establish good customer relations and offer a wide range of cost-effective products to successfully maintain and develop their market share. In an attempt to widen the market demand, manufacturers and distributors should educate consumers on the benefits of purchasing superior quality paints, concludes the analyst. Although quality paints cost more, they save the consumer from having to recoat more often and provide an aesthetic finish.