Our Markets
Decorative Paint Markets
The regional markets for decorative paint are at different stages of growth and maturity, and our strategy at ICI Paints has reflected this.
Paint markets tend to be fragmented, with a large number of country-specific competitors. Obtaining competitive advantage across the region requires leveraging marketing and manufacturing capabilities and transferring best practice in innovation, purchasing, marketing and channel development.
The Asia region is one of generally high growth. The key focus of the business is to maintain accelerated, profitable growth, with particular focus on China, India, Indonesia, Thailand and Vietnam.
The European region has some large mature markets and a number of developing growth markets in Eastern and Central Europe. ICI Paints has a leading position in the UK, with strong brands underpinned by a focus on innovation. There is significant brand equity with 'Dulux', 'Hammerite', 'Cuprinol' and 'Polycell'.
The focus of the European business is on improvement of product range, expansion in developing markets, reduction of the cost-base and the improvement of operational efficiency and profitability of the Continental European operations.
The Latin American business has strong positions in Brazil, Argentina and Uruguay where brand strength is maintained through capability in marketing and a focus on innovation.
North American markets are generally mature and ICI has a significant presence in both trade and retail channels. In trade markets, the strategy is to establish insights into end user needs that can create competitive advantages, and in securing distribution density within metropolitan areas. In the retail business, the route to market is highly consolidated with a few major retailers controlling around 80% of distribution.
ICI Paints has a significant relationship in this market with The Home Depot, a leading retailer.
Since the beginning of 2008 ICI has been part of the Akzo Nobel group, whose Coatings business is the world leader. It embraces most of the markets in both consumer and industrial applications for paints and coatings.
We are focusing on growth in the emerging markets of Asia, Eastern and Central Europe, and South and Central America through autonomous development and acquisitions. We will also continue to enhance our presence in the mature markets through selected acquisitions.
Our ambition is to remain the biggest coatings company in the world and also a leader in all our product markets and the key geographic regions. We intend to participate in the consolidation of the coatings industry, which we believe is inevitable as our supplier and customer bases strengthen globally.
Our global scale allows us to further develop our leading positions in technology. We are progressively increasing our investments in R&D towards 3.5% of revenues. Our increasing innovation efforts will allow better differentiation of our activities in the highly competitive markets in which we operate. We are also using our scale in purchasing of raw materials to secure our margins. Our medium-term financial target is 25% ROI.
Technology and Innovation
"Technology and innovation have been important factors in the growth of ICI Paints, and that is set to continue now ICI is a part of Akzo Nobel. Success is enhanced by being first to the market with innovative, value-adding products and services that meet market needs. ICI Paints has benefited technologically from the colloid, polymer and particle related science base and research carried out by other parts of the ICI Group.Akzo Nobel committed to developing innovative products and cutting-edge technologies, with a heavy emphasis on sustainability."
Products and Services
ICI Paints has launched many new and innovative products and services to strengthen its brands across all key markets. Some examples are:
'Cuprinol Sprayable', an award winning water-based spray system for fence treatment;
UK Trade 'Sterishield', a revolutionary new water-based hygiene paint utilising a silver bactericide;
UK Trade 'Metalshield', giving eight-year protection for ferrous and non-ferrous metals in a simple system requiring fewer coats than competitive systems;
This Old House range in the USA - a premium exterior paint building on ICI's exterior coating formulation expertise;
'Hammerite' direct-to-galvanised-metal paint in Brazil; 
'Dulux' Supergloss 5-in-1, launched in India, offering 300 glossy, clean colours, with long-life, anti-yellowing and good coverage properties.
