KEY DRIVERS OF GROWTH IN SOUTH AFRICA’S REFINISH PAINT MARKET
Real Research has been monitoring the South African refinish market for the past decade focusing on market share, competitor movements, distribution gaps pricing, customer service, and most importantly end-user needs. The annual end-user survey highlights the key drivers’ brands must meet. The most recent study reveals some shifts in these drivers, such as price moving back to the top, increased demand for service and support, and a rise in new market entries, largely driven by global trade tariff events. Key drivers include:
1. Well-priced in the market (back to the top)
Price is always a significant consideration for end-users. The South African market is highly price-sensitive, and end-users often prioritise cost-effective options that provide good value for money. In fact, “well-priced in the market” is the key competitive advantage for brands aiming to capture market share. Brands that can balance quality with affordability will likely outperform their competitors.
2. Adhesion properties and great coverage
For professionals in the auto repair industry, the performance of the refinish paint is paramount. The paint must adhere well to surfaces and provide excellent coverage with fewer coats. These two drivers are critical for achieving a high-quality finish quickly and efficiently, especially in time-sensitive repair situations. These two attributes are highly valued by end users, as they directly impact the overall quality of the job and the time it takes to complete repairs.
3. Excellent customer service and support
Providing excellent customer service is essential for any business, but in the refinish sector, this goes beyond simply post repair delivery surveys. End-users expect prompt support, easy access to technical assistance, and quick resolution of any issues that arise during the repair process. A brand’s reputation for supporting its customers is crucial to establishing long-term relationships and fostering trust.
4. Local manufacturing advantage (new driver)
This driver has been expected. Local refinish manufacturing is increasingly valued by end-users, who are keen on supporting domestic industries and minimising dependency on imports. Local manufacturing offers several advantages, including shorter lead times, reduced shipping costs, and more competitive pricing. Additionally, locally produced refinish products are less likely to be subject to international trade tariffs, which can increase the cost of imported goods, which in turn gets pushed down to the customers.
5. Good levelling properties and easy polishing
For professionals working in automotive refinishing, achieving a smooth, flawless finish is essential. Good levelling properties ensure that the paint spreads evenly and doesn’t leave unsightly streaks or imperfections. In parallel, easy polishing is necessary to achieve a glossy, showroom-quality finish. Both of those factors contribute to the overall appearance and professionalism of the finished work, making them high-priority features for end users.
6. Colour matching and colour range
The ability to match paint colours precisely to the original finish of a vehicle is another non-negotiable expectation from end-users. Good colour matching and a wide range of colours are crucial for achieving seamless repairs and touch-ups. The demand for a wide variety of colours also allows end-users to cater to different customer preferences, which enhances their competitive edge in the marketplace.
7. Supply chain reliability (new driver)
A good supply chain and stock holding is essential to ensure that products are consistently available when needed, especially in high-demand situations. The ability to have stock on hand reduces lead times and can act as a buffer when global costs and trade barriers can change stock availability and costs overnight.
8. Fast drying time and sanding/buffing ease
Time is money in the refinish market, and end-users are looking for paints that dry quickly and are easy to work with. Fast hardness when dry ensures that the paint cures quickly, allowing professionals to proceed with sanding, buffing, and polishing without delays. Similarly, the ability to sand and buff easily contributes to faster, more efficient work processes, reducing overall turnaround times for repairs.
9. Brand reputation (new driver)
While brand reputation ranks lower in priority compared to some other drivers, it still plays an important role in the decision-making process. End-users tend to choose brands with proven reliability, trustworthiness, and a long-standing history of delivering quality products. Just remember, every brand has a born and die curve, meaning they need to reinvent themselves as time moves on.
10. Environmental friendliness (new driver)
Though environmental sustainability is an increasingly important consideration globally, it currently holds the least weight in the South African refinish market. Nevertheless, as global trends shift towards eco-consciousness, this driver may become more prominent in the future, particularly as regulations and younger customers/drivers’ preferences evolve.
Real Research is closely associated to the automotive and refinish market, having consulted with both premium and value refinish and decorative brands over the past 10 years. The primary automotive basket includes competitor multichannel mystery shopping, consumer insights, competitor analysis, pricing analysis, feasibility studies, market size/share analysis, CX, UX, VOC, NPS, CSI, geo-spatial analysis, dash-boarding, online surveys, DIY surveys, F2F deep interviews and specialized panels.
Justin can be reached on 082 773 2839 or justins@realresearch.co.za for more information on how market, customer and competitor intelligence can be used to grow, or maintain your brand or product.
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