Companies in this industry sell paint, coatings, wallpaper, and related supplies. Major companies include the retail divisions of paint manufacturers Sherwin-Williams, Benjamin Moore, and Kelly-Moore (all based in the US), as well as Farrow & Ball (UK), Inspirations Paint (Australia), and Nakashima Shokai (Japan).
The global market for paints and coatings is expected to reach $155 billion by 2020, which would represent a compound annual growth rate of 4%, according to BCC Research. Asia is expected to post significant gains, especially China and India.
The US paint and wallpaper store industry includes about 7,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
Home maintenance, home sales, and construction and remodeling trends drive demand. The profitability of individual companies depends on effective merchandising and marketing and the ability to establish relationships with contractors. Large companies have advantages in purchasing, distribution, finance, and marketing. Small companies can compete effectively by offering specialty products, providing superior customer service, or serving a local market. The US industry is concentrated: the top 50 companies account for about 75% of industry revenue.
Competition for paint and wallpaper stores includes home centers, hardware stores, mass merchandisers, and direct sellers.
Imports are less than 5% of the US paint market. Canada is the largest source of imports. Specialized retailers may import certain high-end wallpapers or finishing materials, such as lime plaster....