Recently, the construction and building materials sector has experienced considerable growth, and the market’s confidence in the procyclical sector has gradually recovered. The price increase of the waterproofing industry and the market outlook have become the focus.
Currently, the waterproofing industry is facing many pressures. The reduction of engineering projects has put pressure on industry operations. Fierce involution and low-price competition are common. The price war in the Northeast region is fierce, and the national market is no exception.
As a brand with a good reputation, Keshun has adjusted its brand positioning and operation strategy to get rid of the dilemma of low-price competition.
On the one hand, it turned to high-end project layout to tap high-value demand; on the other hand, it focused on developing high-quality agent resources, strengthening channel competitiveness, and decided to slightly increase the price of waterproof materials to protect brand value and profit margins and achieve differentiated development.
Since the industry proposed anti-involution in June and July 2025, some companies have started to increase prices.
We are currently in the off-season for the industry around the Spring Festival, with few market projects and fierce competition.
The company bucked the trend and raised prices because industry involution had led to prices being too low and profits being significantly compressed. It wanted to use price increases to match its brand positioning and complete rebranding.
However, the prices of leading brands that are comparable to the company’s strength have remained the same, and some small brands have reduced prices. The company faces greater market resistance in raising prices.
Dealers’ acceptance of price increases has gradually shifted from resistance to acceptance.
Although they recognized the company’s brand influence and product quality, their profit-seeking nature made them resist price increases at first, and some e-commerce companies reacted strongly.
However, through long-term customer relationship maintenance and product quality advantages, dealers gradually accepted it.
It will take time for the price increase to be transmitted to the downstream. Dealers will suffer losses if they do not transmit it, and payment methods can be coordinated.
At present, the profit margins of various industries are declining, dealers’ profits are thinning, and the priority of payment collection is the first. In the past two years, the payment cycle has become longer, the payment terms have become worse, and the difficulty of downstream payment collection has increased.
At the beginning of 2026, dealers will start the annual budget formulation work. The company’s budget indicators for dealers do not set growth targets, but only require them to be the same as or even slightly lower than in 2025. Some regional customers can only maintain their original business levels.
Assessment requirements have also been relaxed, reflecting lower expectations for the completion of sales targets under the market environment and more emphasis on stable business advancement.
The market supply and demand pattern in 2026 is judged to be both opportunities and challenges.
The overall market size is shrinking, and companies need to seize market share to hedge against profit pressure.
The industry’s supply clearing has emerged. Some small and medium-sized brands have withdrawn. Competition among top brands has become fierce, creating a pattern of clearing out the tail and full competition at the top.
The company adopts a differentiated price strategy linked to the dealer’s credit period. The shorter the dealer’s credit period, the faster the payment, and the lower the purchase price; under the credit sales model, the purchase price can go up.
Prices are generally rising, but implementation needs to be measured in conjunction with payment collections, as the two influence each other.
The market speculates that the planned price increase is 5 points, and about half of it has actually been implemented, but the overall price upward trend is clear.
At present, the prices of waterproof coatings have basically increased across the board, with coil materials rising slightly.
This price increase will only be implemented in some regions, and whether it will be rolled out nationwide in the future will need to be evaluated based on the implementation effects and market feedback.
Downstream customers’ acceptance of price increases is gradually increasing. The first reason is that some small businesses have been eliminated and the range of options has narrowed. The second reason is that brand recognition is high and brand advantages have weakened price sensitivity.
Although price competition among small businesses has intensified, the company remains optimistic about price increases. The core support is the increased brand awareness of end customers and its own brand strength.
The structure of downstream customers in the industry has changed, and the proportion of real estate customers has decreased significantly. Municipal and public construction projects have become an important source, but the repayment status is not good.
The company adjusts sales target assessment requirements based on market prospects, and balances customer payment pressure through differentiated price strategies. Customers with strong financial strength and quick payment will receive lower prices, and vice versa.
