Over the next five years, chemical suppliers are planning to invest 5% of their revenue on digitization.
The recent years have witnessed a considerable demand for powder coatings, owing to the growing technological advancements and the increasing demand for applications such as appliances, automotive, and construction. Since powder coatings are a type of volatile organic compound and solvent-free, prominent companies are preferring such coatings over liquid coatings. Additional benefits associated with the product such as superior durability, scratch resistance, gloss retention, and resistance to chalking are augmenting the demand for powder coatings among the end-user segments. The growth of the powder coatings space can be attributed to factors such as growing population, increasing disposable incomes, and favorable government regulations.
Let’s look at some of the key chemical industry trends that are influencing the demand for powder coatings:
- Growing demand among the end-user segments: Over the years, the consumer goods industry has witnessed the highest demand for powder coatings, owing to the consistent and flexible finish offered by this product. Also, the rising demand for commodities such as washing machines, freezer cabinet, and microwave oven is likely to stimulate the adoption of the powder coatings space.
- Rising economies: The rising demand for powder coatings can be attributed to the increasing demand for consumables among economies such as India, Brazil, and China. The industry will also witness a growing demand for powder coatings in the Asia-pacific region.
- Accelerating automotive production: The global automotive production has increased considerably over the last couple of decades, which will subsequently increase the consumption of powder coatings. The rising automotive production coupled with the growing OEM market will drive the usage of powder coatings over the years.
Such factors coupled with the rising demand from end-use industries will spur the adoption of powder coatings. Over the next couple of years, chemical suppliers will face the need to confront the relentless needs of the customers while increasing their business performance. Since customers remain the pillar for the sustenance of any organization, implementing a customer segmentation solution will help companies target their most desirable audiences and improve their overall service efficiency.
Client Overview and the Business Challenge
- The client- A powder coatings supplier
A renowned chemical supplier wanted to profile the most suitable customer segments and divide the customers into groups to adequately redefine their marketing campaigns. The chemical supplier wanted to leverage the use of customer segmentation solutions to gain a deeper understanding of the customers’ preferences and needs when it comes to powder coatings.
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The customer segmentation experts at Infiniti carried out extensive research comprising interviews and discussions with prominent stakeholders in the chemical industry to identify the key differentiators. To stay a step ahead of the competitors, the chemical industry experts also compiled information from reliable sources such as trade shows, trade industry databases, and company presentations.
The Solution Benefit and the Business Impact
Implementing a customer segmentation solution helped the powder coatings supplier to gain adequate insights into the latest chemical industry trends and segregate customers into measurable segments based on their needs, behaviors, and demographics. The chemical supplier was able to establish and maintain better relationships with the end-users and identify the most profitable segments to adjust their marketing budgets accordingly. In addition, the customer segmentation solution also helped the chemical supplier create and communicate targeted marketing messages that resonates with a specific group of customers.
Digitization will drive a tremendous wave of innovations in the chemical industry. Moreover, additional technological advances in terms of the Internet of Things, machine learning, and blockchain technology will further stimulate the growth of the chemical industry and intensify the level of competition among chemical suppliers.