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Economy Industry 33<br />

<strong>Indonesian</strong> <strong>Paint</strong> <strong>Market</strong>: Decorative <strong>Paint</strong> MArket Value<br />

By Competitor <strong>Market</strong> Share (Indonesia), 2008<br />

Others 27%<br />

Mowilex 4-5%<br />

Akzo (ICI)<br />

25-26%<br />

Jotun 2%<br />

Danapaints<br />

1-2%<br />

Avian 10%<br />

Pacific <strong>Paint</strong>s 5-6%<br />

Nippon 26-28%<br />

Source: <strong>Frost</strong> & Sullivan<br />

include expansion of output by paint<br />

manufacturers, consolidation of smaller<br />

players, higher quality and diversification<br />

of product functionalities, growing<br />

awareness of green products and the<br />

growth of ‘Point Of Sale Tinting’<br />

(POST).within the decorative paint<br />

market include expansion of output<br />

by paint manufacturers, consolidation<br />

of smaller players, higher quality and<br />

diversification of product functionalities,<br />

growing awareness of green products and<br />

the growth of ‘Point Of Sale Tinting’<br />

(POST).<br />

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POST, although currently still a<br />

relatively small segment, is projected<br />

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<br />

to witness high growth in the coming<br />

years compared to the traditional route<br />

of ready mix. <strong>Growth</strong> rate of tinting in<br />

Indonesia is high, as this is a relatively new<br />

distribution route. The larger prominent<br />

paint manufacturers are already laying<br />

their foundations through the addition<br />

of tinting machines in the market, in an<br />

effort to block out future competition via<br />

this channel. POST predominantly applies<br />

to premium segment products. Low tier<br />

products are not sold via this route, as the<br />

cost involved is too high. POST products<br />

are typically 10% higher in cost than the<br />

typical ready mix products. Approximately<br />

20% of sales in the premium category are<br />

via POST tinting.<br />

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|AT|<br />

This article was authored by: Sheila<br />

Senathirajah, Program Manager, Chemicals<br />

& Material Asia Pacific, <strong>Frost</strong> & Sullivan.<br />

<br />

<br />

For any enquiries or comments about this<br />

article please send to: feedback@asiantir.com<br />

<br />

feedback@asiantir.com<br />

JUNE 2010 | ASIAN TIGERS INVESTOR REPORT

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