more than 50,000. Unlike in most of the developed world,
there is a large number of small paint and hardware
shops that cater to the local population. There are no
company owned outlets or large retail formats for the
DIYer. However this is beginning to change as some have
been in operation as of 2007.
The distribution policy of Indian paint companies to
directly cater to most of these more than 25,000 shops is
unlike other industries where companies operate
through distributors. Each company has a large number
of depots to service these outlets and a large sales force
for this purpose.
A large number of shops have automated/manual dealer tinting systems. There are more than 20,000 in operation, probably the highest for any country. In contrast,
there are only approximately 7,000 tinting systems in
China for a market two and half times India’s size.
The high volumes of low cost distempers sold in India,
which amounts to approximately 200,000 tons per
annum at an average cost of Rs35 per kg ($0.88) at the
present rate. This is significantly lower priced than anything sold elsewhere in the world.
The high percentage of solvent-based alkyd enamels
sold in India. These have been largely replaced by water-based systems across the developed world.
Lastly, the absence of the DIY market, which constitutes between 25-50% of the decorative markets in the
West, is not present in India. Indians depend on the
skilled painter largely on account of lower labor costs,
greater necessary surface preparation and an inherent
laziness among the Indian consumer when it comes to
painting. Hence the range of products sold and the manner in which they are sold and used are very different in
India.
DECORATIVE TRENDS
Over the last few years, there have been a significant
number of new trends in the decorative coatings market.
Premium products have seen significant growth and
has been much higher than economy products. The sale of
premium and luxury emulsions, high-end exterior finishes and wood finishes like polyesters and polyurethanes
reflect a change in usage patterns of Indian customers
who are willing to spend more on superior products. This
phenomenon is seen across markets, in larger cities as
well as smaller towns. There is a continuous demand
from consumers for newer and better products. Although
a major part of the market continues to be highly price-sensitive.
There has been a higher growth of emulsion paints for
interiors vis-à-vis distempers. There is an increasing use
of economy emulsion in place of lower priced distempers.
Continuously looking for better products, more and more
consumers are switching to marginally higher-priced
emulsions where they get more durable and better-look-ing finishes in a wider range of colors.
India’s market has also seen a higher growth of exterior emulsions. Over the last ten years, exterior emulsions have gradually replaced cement paints largely on
account of longer life, better looks and ease of usage.
This trend is expected to continue with economy exterior emulsions replacing cement paints. The higher-grade
cement paints have been largely replaced by emulsions
and it is but a matter of time before cement paints on
the exteriors cease to be an easily accepted option.
Increased advertising by all leading paint companies
has educated consumers and made them aware of better
exterior products.
The higher growth of dark shades vis-à-vis whites and
pastels is a sign of changing décor styles and a willingness to experiment fuelled by examples shown by
Bollywood—India’s Film Industry—and television serials. This is coupled with easy availability of dark/accent
shades, which has in turn increased the usage of dark
shades in homes and commercial establishments across
India.
The increased involvement of the consumer in home
décor has fuelled the growth of bright and dark shades as
one-wall themes or borders. Consumers today are not just
open to change but look for change and search for options
or themes which differ from past experiences.
Painting and décor services are on the rise also. In
1999, Asian Paints in India launched a paint service
called Home Solutions based on consumer research,
which gave homeowners across many Indian cities the
option of having their homes painted by Asian Paints.
Although out-sourced, the company supervised and took
full responsibility for the service delivered. The company promised to deliver quality service in a fixed time
frame and the painting was given a one-year warranty.
Today a few other paint companies have launched similar services.
Theme walls have also become a popular element of the
Indian decorative coatings market. Led by Kid’s World
and Wall Fashions from Asian Paints and Disney from
Kansai Nerolac, more consumers are looking at painting
as a décor item in itself and are willing to spend a little
more to get something extra.
Special effects continue to gain in popularity too. Today
many paint companies are offering effect finishes.
Products from Jotun, Oikos, ICI’s Duette and Inspira,
Kansai’s Impressions, Berger’s Illusions and Asian
Paints’ Royale Play provide the consumer many more
options than simply painting his wall with a simple color.
Today there are a wide range of options from metallic to
stucco, ragging and combing which provide consumers
newer finishes and effects for their homes.
The Indian paint market is poised to grow at a steady
rate over the next decade fueled largely by a growing economy and changing consumer attitudes. Paint marketers
have to continually meet the needs of the changing Indian
consumer and regularly provide him with newer products
and services to meet his requirements. CW
