Premium strategy
Jotun’s carefully executed strategy in China has helped the company expand in the highly
competitive premium decorative paints market.
While Jotun is recognised as a leading provider of
performance coatings in China, the company has struggled
to compete with low-cost competitors in the decorative paints
market. In 2018, the company decided to focus exclusively
on the premium interior retail market. Now selling through
dealers operating about 90 shops in first and second-tier
cities, retail sales in China recorded a growth rate of 35 per
cent in 2021.
TARGETING HIGH-END CONSUMERS
Growth in the premium paint market has been driven by
the rise of young, urban professionals who are increasingly
interested in contemporary home décor and are willing to
pay for quality. Because these consumers perceive locally
produced paints as being inferior, many insist on buying
imported brands from the US and Europe – especially
Scandinavia. To target this market, Jotun developed the Nordic
Shop Concept, carefully designed shops with beautiful paint
samples and comfortable seating areas where visitors can
select colours, feel different finishes and find inspiration.
34 I Jotun Group Report 2021
Jotun also partnered with carefully selected dealers who
already network with designers, influencers and home
decoration companies, and were willing to “buy in” to the Jotun
system. While most paint in China is sold at small hardware
shops or building supply stores, Jotun encouraged dealers to
open Nordic Shops at high-end home decoration malls where
consumers go shopping for the latest design concepts.
DEALER SUPPORT
In addition to providing the design and renovation of the
Nordic Shop concept, Jotun supports dealers with shop staff
training, marketing materials and business guidance through
the Jotun Dealer Profitability Programme, which helps dealers
focus resources to maximise profit. The company also supplies
dealers with both imported products from Norway and
locally produced premium paints, sold under the LADY brand.
Finally, Jotun develops content to be shared on social media
platforms, collaborates with key opinion leaders to influence
consumers and hosts annual launch events to celebrate
Jotun’s Global Colour Trends. While Jotun remains a relatively
small player in the Chinese decorative paints market, its
growth in the premium segment represents an important first
step in the company’s plans to expand the business.
Our business / Jotun Decorative Paints