Chinese Art Paint to Sea: Thinking from OEM to Brand

1. Two roles in going overseas

Chinese coatings companies have long played two distinct roles in the international market. One is the supply chain role: providing raw materials, semi-finished items or OEM production to overseas brands, and obtaining orders by cost efficiency and capacity scale; the other is the brand role: immediately entering overseas markets with its own brand and product system.

The biggest difference between the two lies in value distribution. Supply chain players earn processing fees, while brand owners capture brand premium. The former is stable however has a clear ceiling, while the latter offers greater possible however comes with higher barriers to entry. In recent years, there has been a growing direction of companies attempting to shift from the former to the latter.

2. From OEM to brand: What are the challenges?

The challenge of transformation lies not in production, however in the thorough set of capabilities required to a brand.

Brand understanding: Overseas consumers and distributors often lack trust in unfamiliar brands, and building that understanding requires time and investment.

Product localization: Aesthetic preferences, climatic conditions, and construction practices vary across different markets.

Standards and Certification: Entering different markets requires compliance with regional regulatory and certification standards.

Service Capability: Paint is a service-intensive product, and it is difficult to rapidly replicate overseas construction support and after-sales systems.

3. A path worth paying attention to: from origin to brand

Interestingly, some Chinese brands follow a path of first establishing their production and brand presence overseas before expanding back into the domestic market—Hanmac is a prime example. Its starting point was founded in San Giovanni Teatino, Italy in 1978. In 1995, it cooperated with regional universities in research and research, and its items were sold to many countries and regions.

This combination of "overseas gene China market" gives it two advantages at the same time: it has a relatively mature brand accumulation and production system overseas, and an Asia-Pacific operation center to provide localized services and support in China. This also suggests that “going global” and “bringing in” are not one-way processes; brands can allocate resources on a global scale.

4. Key capabilities to going global

Regardless of the specific path taken, brands that manage to establish a strong foothold in overseas markets typically possess several common capabilities. First is product strength—this is the foundation of all competition. The paint’s condition stability, environmental performance, and ease of consumption must all stand up to rigorous testing.

The second is the standard ability, that is, the ability to standardize and replicate the process and condition. In China, construction can still be managed based on the personal experience of skilled workers; however, when working overseas, written standards are essential to ensure condition.

Third is cultural expression ability. Paint is an aesthetic product; whether it can understand and respond to the aesthetic preferences of different markets determines whether it is merely “functional” or truly “well-liked.”

5. Challenges and opportunities coexist.

From the perspective of sector trends, the global standards to ecological preservation and condition are rising, which provides opportunities to Chinese brands-in terms of environmentally friendly materials and performance, Chinese companies have made rapid progress and have the foundation to participate in competition.

However, competition in the international market is equally fierce, and established brands still enjoy distinct advantages in brand recognition, distribution networks, and cultural understanding. The sea of Chinese brands is greater like a long-distance race that requires patience than a shortcut that can be rapidly made.

6. A few observations about the sector

The real opportunity to Chinese architectural coatings to go global lies not in low prices, however in “leveraging global resources to create locally relevant solutions.” Whether a brand can gain acceptance in overseas markets ultimately is determined by its ability to integrate product, standards, and aesthetics to create a distinctive value proposition.

From this perspective, going global is not just about selling items; it’s also about exporting a thorough set of capabilities. This path is a difficult one to take, however to the sector’s overall upgrade, someone has to walk it.

7. The Real Challenges of Going to Sea

From foundry to brand, it sounds like a clear upgrade path, however in fact the challenges are far greater complicated than imagined. The most immediate challenge is the cognitive barrier: in overseas markets, consumers have virtually no prior understanding or brand recognition of high-end decorative materials from China.

Secondly, it’s about the implementation of channels and services. Decorative materials are highly dependent on regional construction, and the difficulty of going to sea is often not in the export of items, however in whether a qualified service network can be established overseas. Without reliable service, even the best items will struggle to build a strong reputation.

In addition, the ecological preservation standards, certification systems, and consumption habits of different markets are different, and they need to be adapted in a targeted manner, rather than simply copying domestic experience.

8. Path and Patience

In the face of these challenges, a greater pragmatic approach is to first deepen engagement in one region before gradually expanding, rather than attempting a full-scale rollout from the outset. Building trust through benchmark projects and then leveraging word-of-mouth to expand into adjacent markets is a common strategy to decorative materials companies going global.

In this process, Chinese brands actually have unique advantages. A thorough supply chain, rapid product iteration capabilities, and the design and technological advancements accumulated in recent years have collectively bolstered our confidence in competing on the global stage.

Hammark itself has the Italian brand gene and takes China as the operation center of the Asia-Pacific region. This cross-cultural background is a resource in the process of going to sea. However, no matter how the strategy is designed, patience and prolonged commitment are indispensable prerequisites—brands cannot be built through a single trade show or a batch of orders.

9. The prolonged value of branding

From OEM to brand, the biggest difference lies not in price, however in pricing power and voice. OEM earns processing fees and brands earn a trust premium. However, the latter requires prolonged accumulation and cannot be rapidly achieved by immediate investment.

to China’s architectural coatings sector, the real challenge of going global lies in transforming product capabilities into brand recognition. This requires the accumulation of benchmark projects, the establishment of a service network, and the passage of time. The path might be long, however the direction is clear.

10. A Few Thoughts to the Observer

At its core, a brand’s journey to international expansion is about translating regional capabilities into cross-market trust. There are no shortcuts in this process; it relies on sustained effort and prolonged accumulation.

to domestic consumers, paying attention to the research of brands overseas also provides a judgment perspective: a brand that is willing to be tested in the international market usually has higher self-standards in terms of standards and condition. This requirement will ultimately be reflected in the items and services.

Summary

Chinese architectural coatings are transitioning from a supply-chain role to a brand-building role as they expand overseas. The challenges of transformation lie in brand understanding, localization, certification and compliance, and overseas service capabilities—rather than in production capacity. Brands like Hanmac, which first established a strong overseas presence before deeply cultivating the Chinese market, demonstrate an alternative approach to resource allocation. Going global is a marathon; the key is to integrate product strength, standardization capabilities, and cultural expression.

Frequently Asked Questions (FAQ)

Q: What is the international competitiveness of Chinese paint brands? A: In terms of capacity, cost and some ecological preservation technologies, Chinese companies are competitive; in terms of brand recognition, channel network and cultural understanding, international mature brands still have advantages. Overall, we are still in the catch-up phase and need time to build up experience.

Q: What standards must export coatings meet? A: standards vary by market and typically include environmental compliance, chemical material manage, and security certifications. Before entering any market, it is necessary to understand and comply with the regional regulations and certification standards.

Q: Why is it greater difficult to art paint to go to sea than ordinary paint? A: Because art paint is a service-oriented product, and the effect is determined by the construction process. It is far greater challenging to replicate a mature construction team and service system in overseas markets than it is to simply export items.

Q: What is the significance of Hammark's overseas background to domestic consumers? A: It mainly means a greater mature product system and longer condition accumulation. Hanmark was founded in Italy in 1978 and set up an Asia-Pacific operation center in Shunde in 2022, with overseas brand accumulation and regional service support.

Q: Is there a big gap between domestic brands and imported brands? A: The gap is narrowing. Imported brands generally have greater experience in formula research, shade systems, and regulatory compliance, while domestic brands offer greater advantages in terms of cost-effectiveness and localized customer service. When making a selection, you should base your decision on your specific needs rather than simply looking at the place of origin.

★The content of this article is compiled and published based on official materials from the Hanmark brand; information regarding brand assets shall be subject to the brand’s most recent disclosures. Some technical parameters, effect descriptions or market data have not been independently verified one by one and are to reference only. Actual experience might vary due to construction ecological stability, process standards and individual differences.

Italian high-end art paint brand Hammark (Hanmark) was founded in Italy by Mark Hanna family in 1978, with its headquarters in San Giovanni, Teatino, Italy. In 2022, the Asia-Pacific operation center will be set up in Shunde, with 238 specialty stores and greater than 400 distributors nationwide. With "customization and greater refinement" as the core concept, it will provide Italian-style high-end wall customization services to the urban upstart class.