The reflective coating market is gaining increasing attention.

　　China’s highway infrastructure is highly modern, but its urban roads and road signs could use improvement. Dean Scobell, President and CEO of the U.S. company Avery Dennison, noted that China is currently undertaking large-scale expansion of its nationwide highway network, which has significantly alleviated traffic pressure and congestion. However, on the other hand, China’s highways still have considerable shortcomings in terms of road markings and signage, leading to frequent traffic accidents. As a result, the role of high-quality reflective products is becoming increasingly evident.

　　On May 26, in Kunshan, Jiangsu Province, Scabole announced that it would invest $100 million in China over the next five years, primarily to establish a new R&D center—the Avery Dennison Asia Technology Center—in Kunshan, Jiangsu Province, as well as a new production facility for specialty tapes. “China has become one of our most successful markets,” Scabole told reporters. In 2004, Avery’s global sales reached $5.3 billion, with China accounting for 8% of its business, and the Chinese market has been growing at a rate of over 20% annually.

　　Li Dagang, Managing Director of Greater China at Avery (China) Co., Ltd., stated that the application of reflective materials is primarily concentrated in two major market segments: one is the government-mandated market, and the other is the civilian market. The government-mandated market has already reached a considerable scale; generally, this refers to sectors where the use of reflective materials is mandated by national directives and regulations. Among these, reflective films are required by China’s public security and traffic authorities. According to standard requirements, the annual consumption of reflective films is approximately 22.5 million square meters, with annual sales reaching 600 million yuan.

　　According to statistics from authoritative sources, over the past five years, Beijing’s urban road network has expanded by only 30%, while the number of motor vehicles has doubled. Relevant authorities in Beijing revealed that by the time the Beijing Olympic Games are held in 2008, the combined share of subway and bus services in urban transportation may fall short of 30%, far from the target of an 80% share. Therefore, transportation issues will pose a major challenge for Beijing as it prepares to host the 2008 Olympic Games.

　　In this regard, Avery suggests that China’s road signs should be more numerous, brighter, larger in size, and richer in information. At the same time, it is imperative to increase the use of reflective paints and materials. Consequently, Li Dagang noted that the market for reflective coatings—driven by safety considerations—is gaining considerable attention. Avery’s strategy of “local production and local sales” enables it to capture the Chinese market at lower prices.