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B2B Paint & Coatings Industry. Abhiroop Gandhi, Max Hernandez-Toso, Yanqiu Hou, Andrew Jones, Lauren King . Overview of the Industry. “It would be hard to find a manufacturer in the United States that doesn't rely on the contribution of paints and coatings to add value to its own products.

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b2b paint coatings industry

B2B Paint & Coatings Industry

Abhiroop Gandhi, Max Hernandez-Toso, Yanqiu Hou, Andrew Jones, Lauren King

overview of the industry
Overview of the Industry
  • “It would be hard to find a manufacturer in the United States that doesn't rely on the contribution of paints and coatings to add value to its own products.
  • Sales of paints and coatings manufacturers in 1997 were $16.4 billion, an increase of 3.3 percent from the 1995 level of $15.9 billion.”

Source: National Paint & Coatings Association (NPCA)

classification of products
Classification of Products
  • Architectural coatings -- the products everyone knows as "paints" -- account for 37.2 percent of the industry's annual sales, or approximately $6.1

billion annually.

  • Industrial coatings make up another 35.4 percent, 5.8 billion. 17.6 percent, or nearly $2.9 billion, fall into a "special purpose" category.
  • The remaining 9.8 percent, or $1.6 billion, represent miscellaneous paint products.

Source: National Paint & Coatings Association (NPCA)

industry issues
Industry Issues
  • Heavy regulation by the EPA and other agencies
    • EPA proposes to append National emissions standards for hazardous air pollutants
    • 4 Compliance Assistance Centers for the paints and coatings industry established (NPCA news)
  • Anti-graffiti project
  • Old-lead paint (currently a law-suit pending)
  • Managing left-over paint and pollutants
value chain
Value Chain















End User

major players by categories
Major Players by Categories

Source: Paint & Coatings Industry Magazine

who are the customers
Who are the Customers?
  • Industry Service

ChemConnect brings together three user communities:

  • Suppliers of chemicals and plastics
  • Buyers who use chemicals, plastics in manufacturing operations
  • Intermediaries

Buyers and sellers from around the world, meet online, in real time, to conduct business.

Source: ChemConnect Inc. http://www.chemconnect.com

who are the customers cont d
Who are the Customers? (Cont’d)
  • Original Equipment Manufacturers
    • Wood, metal, and plastic finishers
    • Automotive companies
    • Aviation companies
  • After-Market Manufacturers

Eastman E-commerce Site Demo

Mission: “To be the world’s preferred chemical company, we are dedicated to creating superior value for customers demanding plastics, chemicals, and fibers, focusing on exceeding customer expectations while achieving our major improvement opportunities.”

The first chemical company in the world to offer online

e-commerce capabilities


Chemconnect Home Page

  • Offers personalized member accounts
industry service s operations
Industry Service’s Operations
  • Register for first users/Log on personal accounts for registered users.
  • Search database by application, property, name or trademark, etc.
  • 24/7 place and revise orders
  • Find the status of orders. Review order status, summary of purchases.
  • Track goods shipments.
  • Find supports from online customer help.
how do they attract business online
How Do They Attract Business Online?
  • Word of mouth
  • Media advertising
  • Direct mail
  • Corporate affiliation
  • Product catalog
  • Search engines
  • Links from associations, societies, etc.
primary value additions
Primary Value Additions
  • Customers will be able to access a broader, more competitive supply base with lower product prices, as well as benefit from increased efficiency in the procurement process.
  • Manufacturers will benefit from reduced marketing and selling costs, wider customer reach with greater visibility, improved inventory management and access to valuable information about buying trends.
  • Distributors will have exposure to a broader, more competitive supply base, lower sales and marketing costs through increased efficiency, and access to new customers.
why is eastman moving their business online
Why is Eastman Moving Their Business Online?
  • B2B E-commerce offers Eastman the opportunity to shape a new Internet marketplace, work with a strongly branded B2B technology company with vertical market expertise, and broaden its growing e-commerce platform.
  • "By creating an open and neutral Internet marketplace, online market will improve efficiency in the supply chain for Eastman and our suppliers, as well as for all buyers and suppliers of these products.”

Source: Eastman Chemical News Release 02/10/2000

how to lock in customers
How to Lock-in Customers
  • Host procurement solutions on site, and offer consultant services (Ex: logistics planning)
  • Customer services: online tutorials, consulting programs, etc.
  • Become more of a market aggregator to attract a larger audience
  • Personalized accounts
  • Free domain search for both guests and members
  • Newsgroups, updated news, articles