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pharma M&A

Capturing Value from Pharma M&A: Critical Considerations for Success

The pharmaceutical industry is one of the major sectors that is actively involved in huge mergers and acquisition (M&A) deals, both in terms of numbers of deals and the amount of money spent. Most companies in the sector, especially the big pharma consider pharma M&A as a major factor to bolster innovation and overall growth. A recent research by our pharma industry experts shows that revenues coming from innovations sourced outside of Big Pharma is currently stands at over 45%. Over the years, several large, game-changing deals have continuously and profoundly changed the competitive landscape of the sector, while smaller yet significant transactions remain an integral part of pharma industry operations.

Why Pharma M&A is a driver of strategic repositioning?

Pharma M&A has become a common practice for companies that have non-diverse pipelines or have top revenue drugs that are nearing patent expiration and subsequent generic erosion. According to industry experts at Infiniti Research, some of key reasons why companies favor pharma M&A include:

  • The critical size requirements across various market segments have increased exponentially over the years. At this rate, it becomes nearly impossible for a single company for companies to survive on their own. This made strategic pharma M&A a necessity for most companies
  • Large mergers in the pharma industry allow bundling of sub-critical businesses, and thereby change the culture and to build new platforms
  • Another motivation for pharma M&A is to capture annual cost synergies by scaling up

For more insights on our portfolio of services for companies in the pharma industry

Consideration for successful M&A

Achieving Successful Integration Post Pharma M&A

Approximately only 60% of pharma merger deals succeed in the long run. A successful merger is one wherein the resulting company achieves the strategic intentions driving the merger when the deal was initially formed. Mergers that fail often show traits including focusing more attention on back-office integration, cost control, and systems consolidation.

Creating business synergies

Revenue increases during pharma M&A can often more difficult to achieve and take longer than expected. During pharma mergers and acquisitions teams must develop strategies such as the degree to which the existing portfolios need to be rationalized, how teams can be used to increase efficiency, how salesforce can be consolidated to remove overlap, and how the projects of each of the brands can be enhanced.

Defining the integration strategy

The successful integration of two companies largely depends on having a consistent approach with strategic intent. Guiding principles, priorities, and governance must reflect the logic behind the merger. A reliable integration strategy must be efficient in articulating both financial and nonfinancial goals, as well as risk-mitigation strategies.

Request a free proposal for more insights on how we can support your pharma M&A efforts.

Logistics and supply chain

An Action Plan for Preparing Logistics and Supply Chain Recovery from the Coronavirus Impact

The coronavirus outbreak is a deep humanitarian crisis that is posing unprecedented challenges for business leaders and the economy as a whole. This article is intended to provide key insights to logistics and supply chain leaders grappling with responding to the existing crisis while ensuring employee safety, operational viability, and reviving their business from a historic supply-chain shock. A deep analysis of the ongoing situation by our industry experts suggests that several businesses can mobilize and set up rapid crisis management mechanisms to ensure business continuity. However, the typical focus of most of these efforts has been understood to be for the short-term. Logistics and supply chain leaders must also plan for the medium and long term in order to build resilience for the future.

Logistics and supply chain COVID-19 impact

Evaluate existing inventory at hand

At this stage, businesses must begin by estimating how much inventory is available in their value chain. This facilitates capacity planning for the long-run and also acts as a bridge to keep production running. Specific categories that must be considered include stock of finished goods in the warehouse, spare-parts inventory, inventory-in-transit, and blocked inventory that may be held for sales, QC, and testing.

Create logistics and supply chain transparency

Begin by determining components that are critical for operations. Also, have a clear idea of the components that are sourced from high-risk areas and lack ready substitutes. Supply chain risks related to these commodities can then analyzed to assess the risk of interruption from suppliers of tier-two and onward.   Manufacturing companies must engage with their key suppliers across tiers in an effort to form an agreement to monitor lead times and inventory levels and establish an effective recovery plan.

Estimate realistic end-consumer demands

A crisis such as the existing COVID-19 may cause an exponential increase or decrease in end-customer demand, making it increasingly difficult to gauge the fluctuations in demand harder.   Evaluating the underlying uncertainties in forecasts during short term and medium-term demand planning is essential.  Additionally, direct-to-consumer communication channels, market insights, and internal and external can prove to be invaluable sources of information in assessing the current state of demand among the customers’ customers. To prepare better for supply chain and logistics challenges related to the demand, manufacturers can consider integrating market intelligence into product-specific demand forecasting models, use advanced statistical forecasting tools to generate a realistic forecast for base demand, dynamic forecast monitoring to react quickly to inaccuracies.

Want more insights on how our advanced market intelligence services can help you with accurate demand planning and forecasting models to keep your business in control despite the ongoing crisis?

Health care innovation

Preparing for Health care Innovation: How Organizations can Capture Success

With the increased need for accountability, health care quality and patient-centered care, organizations in the sector are increasingly chasing innovation. Health care innovation is crucial to solving some critical challenges in patient care as well as operational efficiency. However, a recent survey by healthcare industry experts states that less than 30% of healthcare providers across the globe are mature in their ability to access, integrate, and analyze healthcare data from diverse sources.

Those still resorting to conventional methods of healthcare are in the threat of being left behind amidst transformations in the healthcare sector. Most of them see health care innovation as highly challenging to implement and often are unsure as to where they should begin. This article describes some key processes that can help organizations demystify the process of health care innovation and ensure a smooth transition.

Transforming health care delivery into a system that is more value-based and patient-centric will require a commitment to change, whether it’s a radical innovation, incremental innovation. Request a free proposal for insights on how your organization can prepare for health care innovation in the long run.

Invention and innovation are not the same

Many organizations often make the mistake of defining innovation as the use of novel technologies, processes or even business models. However, any new technology, at least in the early stages, can only be regarded as an invention. Although inventions are vital, only when these inventions rise to the widespread adoption to transform behavior and functioning of users or organizations can they be termed as innovations. If an invention is not successful in scaling progress at different levels in the organization, it does not become an innovation.

Innovations do not always require radical change

The size of innovation can vary from organization to organization. They can be either radical or even incremental. Health care innovation can be in the form of adopting a new approach to an existing service such as a material improvement on minimally invasive techniques or it can even mean offering a new service that redefines organizations’ existing processes. Continuous incremental healthcare innovation can help organizations learn whether the changes are favorable to their organization or not and adjust their course accordingly.

Radical innovation requires choreography

Several organizations dread radical health care innovation as they believe that this could turn the entire operations of their organization upside down and could cause inconvenience to some degree. This attitude can sometimes have catastrophic outcomes for healthcare companies. Choreographing radical innovation requires healthcare companies to be honest with themselves about their change management prowess. It also necessitates them to take steps to improve it if necessary. They must put into play a mechanism to assess and incorporate all the complementary strategies necessary to execute the

Learn more about our custom portfolio of services for healthcare organizations

Digital healthcare

Unique challenges plaguing Europe’s digital healthcare efforts

As the concept of digital healthcare goes global, healthcare stakeholders across geographies are evaluating new tools, while innovators are navigating pathways to implement advanced technologies into healthcare. Over the past decade, the European healthcare system has progressed leaps and bounds. However, the sector is bound by some major challenges including aging population, greater prevalence of chronic diseases, shortage of healthcare workers, and financial discrepancies of care. In order to put a strong fight against the increasing healthcare challenges, the European healthcare sector is now embracing digital innovations and new technologies now more than ever before. But what are the major roadblocks to successful implement digital healthcare technologies in Europe?

Addressing barriers to the full use of digital healthcare solutions in Europe requires a comprehensive action plan. Request a free proposal from our experts for more insights on how our solutions can help MedTech companies identify and tackle critical roadblocks with agility.

Digital healthcare challenges in Europe

Meeting regulatory requirements

The regulatory issues with digital health technologies are highly complicated. The EU is planning to roll out Medical Device Regulation in May and this is also said include regulations relating to digital health technologies. This could mean that out of several medical device that are surveyed, only a few may be compliant with the regulations by the time they go into effect. New medical device regulations that would come into effect this year would require strict and stronger clinical evidence for clinical technologies.

Highly fragmented market

The EU is creating increased regulations around MedTech. However, there are several hurdles to implementation on a country to country basis. MedTech startups in Europe build at a regional level before expanding. This is common trend in the US as well. However, the challenge here is that the systems are designed and developed for a local setting in the initial phase but launching the same system in another country could prove to be a tedious task the regulations and requirements across countries may vary. Setting up digital healthcare technology in a new EU country poses not just regulatory barriers but also logistical ones, such as infrastructure.

Finding funding for digital healthcare

Funding is another major challenge that digital healthcare innovators need to navigate in Europe. Seed-stage financing and early rounds should not be a challenge for digital healthcare startups in Europe because public funds can be sourced from countries like Germany and Portugal that make early-stage investments. There are also several venture capitalists across Europe that can also help with funding. Several US-based investors have been known to provide backing to Europe-grown startups. However, since Europe is a highly fragmented market, finding success across different countries in Europe may be challenging, making it difficult for digital health companies to find investors.

Want more insights on our solutions and how we can help businesses plan for digital healthcare challenges in Europe?

How International Specialty Chemical Companies Can Win Big in China

Even though China’s specialty chemical market has nearly doubled in size over the last decade, not many international specialty chemical companies have been successful in fulfilling their growth and profitability aspirations from this market. Foreign companies in the sector are facing major setbacks in terms of growth and market share in China. Our market research experts suggest that margins in specialty chemicals in China market for international companies are structurally lower than in other regions and also show wide variance between leaders and laggards. The highly fragmented specialty chemicals market in the region is dominated by overcapacity and intense competition.  Although some argue that the lower margins are a part of their global strategy to capture growth in China and establish a long-term presence in the country, there are evident signs that international companies are failing to keep up with the market’s growth.

Considering the fact that China’s specialty chemical market is witnessing steady growth, international specialty chemical companies operating in China must rethink their existing approach and strategies to avoid getting left behind.

Identifying the problem areas for specialty chemical companies in China

The performance shortfalls of international specialty chemical companies in China are fueled by a number of factors. This includes:

  • Insufficient tailoring of products to suit the Chinese market and counter offerings of Chinese competitors
  • Western companies have limited access to important potential customers (SOEs and fast-growing private organizations in second and third-tier cities)
  • Lack of in-depth market insight, insufficient relationship-building capabilities, and a lesser number of entrepreneurial Chinese top talent in key company positions
  • Increasing number of local Chinese competitors that are able to offer products and compete for high-end segments
  • Highly effective and entrepreneurial incentive structures by aggressive private entrepreneurs demonstrating capabilities to make investments at lower rates of capital expenditure
  • Rapid adoption of western technical-know-how and technologies by Chinese competitors, making it easier for them to offer highly competitive products

Infiniti’s market entry strategy has helped several global companies enter and establish themselves successfully in foreign markets. Planning to venture into new territory? Request a free proposal to know how our solutions can help your business.

How international specialty chemical companies can rethink their market strategy

International specialty chemical companies operating in China can learn from their past mistakes and strategize to reengineer their operations to thrive long-term in the country. Correctly positioning themselves in the market will prove crucial for specialty chemical companies over the next decade. Experts at Infiniti Research has listed below some steps that companies must consider making a part of their approach.

Build market and segment level insights

Specialty chemical companies must take into consideration China’s growth trajectory while evaluating specific segments for its growth potential in the country. Experts at Infiniti Research suggest that specialty chemical companies must consider adopting a granular approach that considers regional differences when assessing various specialty-chemical segments. Careful assessment of second and third-tier cities may also show signs of higher growth potential in the years to come.

Develop products tailored to the Chinese market

Designing products to meet the demands of Chinese customers at competitive price points is crucial to success for international specialty chemical companies in the long run. Providing more sophisticated products to Chinese customers would be crucial as local competitors are increasingly adopting western technologies to develop new and improved products. Specialty chemical companies must provide their local teams in China with maximum resource support and operational authority to launch products that are tailored to Chinese consumers.

Learn from past investment mistakes

Making the Chinese market a central part of your company’s long-term growth strategy and investment plans is pivotal in bringing success to your business operations in China. Prioritize on long-term goals and analyze the track record of international specialty chemical companies in China to learn from their previous errors.

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consumer engagement

Exploring New Horizons of Consumer Engagement in Healthcare: Key Touchpoints to Work On

As key stakeholders in the healthcare industry are working towards improving patient care and reducing the cost of care, experts at Infiniti Research identify three key touchpoints of consumer engagement in the patient journey to focus on to achieve this.

Consumer engagement in the healthcare industry continues to grow with the advancements in technology. From identifying and accessing new channels of care to monitoring and sharing healthcare data, consumers are now actively engaged with their healthcare and treatment decisions. Healthcare industry experts believe that consumer engagement in healthcare could be instrumental in achieving better patient outcomes and reducing costs. Patients who are well-informed and well involved in their treatment process are more likely to have better health outcomes and also incur lower costs comparatively.

According to experts at Infiniti Research, there are typically three key touchpoints in the consumer engagement with healthcare providers wherein their active interaction peaks: while the consumer searches for care, when they gain access new channels of healthcare such as digital tools and at-home testing, and while sharing personal health information with the providers. As life sciences and healthcare organizations continue to evolve, their strategies must also transform to accommodate the changing healthcare consumer expectations. In this article, we offer strategies for healthcare providers to enhance their key consumer engagement touchpoints.

Consumer engagement in healthcare can hold profound potential benefits for healthcare. Want more insights on strategies to capitalize on them better? Request a free proposal from our industry experts.

Enhancing consumer touchpoints in healthcare

Searching for healthcare and providers

One of the key points of consumer engagement in healthcare involves finding the right healthcare providers to cover their treatment needs. Some of the important factors that affect these decisions include physician’s availability in their health plan’s network, reputation, convenient hours, and the costs. Technology for scheduling and accessing lab tests online is another critical consideration especially for the younger generation of healthcare consumers. This indicates that healthcare consumers are laying increased focus on the quality ratings, convenience, cost, and accessibility of services.

Using new healthcare channels

Healthcare consumers are increasingly becoming open to new channels of treatment through digital tools and apps. Investing in digital tools and at-home diagnostic tests have the potential to enhance health outcomes through faster diagnosis, round-the-clock access to health coaching, and the ability to recognize mood and lifestyle changes that could affect adherence to a treatment plan. Thereby, the quality of patient care can be ensured with reduced hospitalization and treatment costs.

Tracking and sharing personal healthcare data

Relying on technology to track health and monitor fitness has become a prominent trend over the past decade. The data generated through wearable devices that capture health and fitness data can help significantly improve population health, advance clinical research, and enhance the performance of the device. Consumers are also becoming more willing to share this data with their personal doctors to improve their care. Sharing this data can help both providers and consumers be more proactive in their health management. However, today data often resides in multiple medical records across different providers. This makes the complete picture of a patient’s health unavailable to doctors, researchers, and the consumers themselves. Consequently, it becomes difficult for people to get the targeted care they need at the most critical times. Several companies have introduced applications to help consumers manage their data and collate medical records. But this may require interoperability between the various organizations that currently store consumers’ health data.

Learn more about our solutions that can help healthcare providers stay updated with the latest market trends, new healthcare industry challenges, and strategize for creating better care-giving facilities in the long run.  

Coronavirur Drug

The Coronavirus Ripple Effect: Analyzing the Challenges Impacting New Drug Development

As China accounts for roughly 40% of the global active pharmaceutical ingredients production, the outbreak of the novel coronavirus could potentially disrupt the drug supply and business of branded and generic drug manufacturers. Since the emergence of COVID-19, drug manufacturers are racing to speed the development of diagnostics for detecting the infectious agent and developing coronavirus drug to prevent the infection. However, the experts at WHO report that the coronavirus drug development process will take much longer as each step in the drug development pipeline faces potential challenges. This article outlines some critical factors impacting the new drug development for coronavirus.

With our expertise in offering new drug development services, we can help you to ease the coronavirus drug development process. RFP for more insights.

Challenges Impacting the New Coronavirus Drug Development

Lack of R&D and other testing constraints

Scientists and drug manufacturers are facing challenges in determining the characteristics of the current coronavirus, its epidemiology, and transmission patterns. While major pharma companies have been instrumental in isolating the novel coronavirus, the challenge lies in culturing the virus in the lab under secure and sterile conditions.

Drug trial slowed by lack of eligible recruits

The next challenge drugmakers face is developing and validating the right biological model for the virus. Clinical trials to test new coronavirus drugs are going more slowly than expected as pharma companies are struggling to recruit qualified patients.

Dependency on China for active pharmaceutical ingredients

For general pharma players depending on China for APIs, the continued outbreak may increase the risk of supply chain disruption. This could lead to slower growth of the new drugs in the short term. The suspended API production in China will further disrupt the distribution of drugs flowing from China to other nations, resulting in shortage of APIs for new drug development if the outbreak persists.

When it comes to the spiraling global coronavirus outbreak, scientists are still trying to find the new coronavirus drug for protection. Our healthcare market research experts can help you ease the coronavirus drug development process by helping you in identifying effective patient recruitment strategies for clinical trials and finding strategic contract manufacturing firms. Contact us here.

How Infiniti’s New Drug Development Strategy Can Help Pharma Companies Combat Coronavirus Drug Development Challenges?

We at Infiniti understand that recruiting qualified patients and tackling supply chain complexities are key objectives of pharma companies in effectively launching new drugs in the market. Here’s how our services can help you combat new drug development challenges for curing COVID-19.

Contract development and manufacturing

As coronavirus is spreading throughout the globe, the pharma companies are in the need to speed up the coronavirus drug development approach. Our experts can help you to identify the best contract development and manufacturing organizations to achieve strategic goals at various stages of the product lifecycle – from clinical research and approval to drug commercialization. Our research coverage includes outsourcing services, bio-processing platforms, and single-use technologies.

Patient recruitment research

Patient recruitment delays are remarkably common and costly. In fact, nearly 80 percent of patient recruitment timelines in clinical trials are not met and over 50 percent of the patients are not enrolled within the planned time frames, according to major pharma players. With our expertise in offering patient recruitment research services to over 50+ pharma companies, we can help you to devise a patient profiling model to create a profile of typical patients for each trial and reduce delays in bringing new drugs to the market.

Market research services

To achieve continued double-digit growth and mitigate risks in R&D and manufacturing, pharma companies must gather actionable intelligence into the market needs and determine the characteristics of the current coronavirus drug. By leveraging our existing database of physicians, HCPs (Health Care Personnel), and patients in the target countries, we can help you gather relevant insights to make your drug development process smoother.

Want to know how to stay prepared to tackle the deadly coronavirus impact on your industry? Request more info here!

Pharma R&D

Understanding the value of Pharma R&D in the New Era

The biopharmaceutical industry is currently growing at a breakneck speed. Furthermore, promising innovations in the pharma market such as gene therapy and cellular therapy coupled with the rising market demand mean that there are no signs of slowing down in the sector over the next few  years. As a result, pharma R&D investments have doubled over the last decade. Apart from increasingly being an innovation-driven sector, the focus in the pharma industry is now shifting towards achieving ‘agility’ in product development in an effort to meet customer demands effectively and shorten the time-to-market. Moreover, as pharma R&D is highly capital-intensive, a strong foundation of technical capabilities is imperative for players in the sector.  Over the past decade, Pharma R&D horizons have expanded as a wider range of players are pursuing innovative therapies and solutions by leveraging a broader set of technologies. The exponential growth in the data in the pharma sector can be channeled into the R& D space. Experts at Infiniti Research believe that data can help pharma R&D with several benefits, some of which are mentioned below.

Big pharma has immense potential to make pharma R&D a strong contributor to value creation. Want more insights on this from our industry experts? Request a free proposal

Deeper patient understanding and better diagnosis

A rich pool of patient data is available in the pharmaceutical industry in the form of genomic, proteomic, microbiome, and biomarker data. But channeling and using this data pool for making the right diagnosis and enhancing better patient care is vital. Effective pharma R&D will allow pharmaceutical organizations to develop significantly stronger and evidence-driven hypothesis of data. This will eventually give room for a discussion on the value that particular medicine might deliver to patients and payers.

Structuring better therapies

Lead identification and optimization can now be effectively done using the data available through drug libraries, formulation, and clinical pharmacological data sets.  Several drug developments companies have begun attempts to automate their drug design via machine learning. A thorough pharmaceutical R&D is essential to understand the viability of such projects and assessing techniques of practical implementation.

Attain cost effectiveness and safety

Safety and cost effectiveness of drugs are critical issues facing most pharma companies at present. Pharma R&D takes a deep-dive approach to understand even the minor details of drug and therapy development, helping companies gain a clear understanding of the safety and cost-related roadblocks that they can expect. Effective pharma R&D also prescribe the best practices and strategies through which pharma companies can improve the cost effectiveness and reduce the risks involved in drug and clinical therapy development.  

Pharmaceutical companies desperately need to bolster R&D innovation and efficiency to attain long-term success. Get in touch with an expert from Infiniti Research to know more on we can assist your business in this.

Chemical industry

Procurement Challenges in the Chemical Industry : What CPOs’ Must Strive to Combat

The global chemical industry currently represents one of the largest worldwide interacting sectors delivering essential materials to several major industries including pharmaceuticals, agriculture, manufacturing and construction, and automotive. This is an indicator of the fact that any major changes in the chemical industry could also significantly affect these related sectors. Procurement is an unceasing challenge for companies across various sectors, and procurement in the chemical industry is no exception. In fact, procurement challenges are particularly pronounced for chemical sector companies. Implementing sustainable solutions is the way forward for CPOs in chemical companies to effectively meet critical procurement challenges.

Based on insights gathered from our industry experts, we have listed below some of the top procurement challenges faced by CPOs in the chemical industry.

challenges faced by CPOs in chemical industry.

Competition is extremely fierce in the global chemical industry. Although the chemical sector offers immense potential, it also poses significant procurement-related operational challenges for players in this sector. Suppliers may find it difficult to distinguish themselves amidst the cost pressures and increasingly complex organizational relationships. Furthermore, shortened value chains arising due to vertical integration and portfolio consolidation also builds new risks for purchasers in the chemical industry.   

 Maintaining compliant, efficient, and effective processes that drive growth is paramount for success in the chemical industry. Ensuring supplier excellence is the key to achieving this. It can be done through robust sourcing and vendor evaluation processes. Another key challenge that most CPOs face in the chemical industry is the lack of skilled workforce, capabilities, and localization that would act as a high-performing business partner. The success of procurement in chemical companies are also weighed down by the absence of a concise digital strategy or systems to support procurement business targets.

If your company offers multiple products, you will know that there are multiple facets to each of the products you are offering. As such, any change in market trends can have a significant impact on each of these aspects. Keep abreast of the changing market trends by partnering with us.

How Infiniti’s procurement market intelligence can help CPOs combat these challenges

Chemical industryCreating a competitive advantage by overcoming critical procurement challenges in the chemical industry requires clear insights into the market changes and effective strategies on how the company can adapt. Here’s what Infiniti Research provides for procurement officers:

Category market intelligence

With advanced market intelligence techniques, experts at Infiniti Research help CPOs and other key decision makers in chemical organizations to analyze and understand best practices for category-specific strategies and sourcing of chemical ingredients as well as raw materials. Our techniques can also support companies in the chemical industry with in-depth market knowledge and price benchmarks to create a competitive edge over other market players.

Demand planning and management

Infiniti’s demand planning and management solutions help procurement in chemical companies by providing critical insights on cross-functional optimization strategies and also pin-pointing capabilities to identify key cost-saving opportunities for companies in the chemical industry.

Supplier risk management strategies

Our team of experienced risk-management experts offer specific supplier management and evaluation insights that help organizations in the chemical industry explore various supplier-related risks and improve their decision-making process during supplier selection. We also help chemical companies for undertaking specific supplier assessments.

Industry best practices and competitive benchmarking

Leveraging new business processes, organizational approaches, and technologies are now becoming imperative for chemical companies to stay ahead of their peers in the market. As attempting to improve all aspects of the business processes at once could prove to be unfruitful, chemical companies can leverage solutions such as industry best practices assessment to benchmark and implement the best practices for sourcing and product development. Our solutions can help companies to improve time to market, reduce costs, and respond appropriately to new product or service launches.

Don’t let unforeseen events hamstring your business growth! Learn how your business can leverage the right opportunities and level complex market challenges using our solutions.

chemical industry

Surviving in China’s Chemical Industry: A Guide for International Chemical Companies

Chemical industryAlthough China’s chemical industry growth has receded, the region continues to remain the most profitable for most global chemical companies. The colossal size of the chemical industry in China should not be blindly associated with the sector’s stability. The industry is in the midst of a profound rapid transformation due to stringent investment pools, stricter environmental laws by the government, and changing consumer-demand trends. Furthermore, increasing economic turbulence in the region since mid-2018, related to China’s economic slowdown and the turbulent US–China trade relations, adds new uncertainties in the chemical market dynamics.

China’s economy is currently moving to a new era of development. After the headlong market expansion in the early 2000s, the chemical market is now focused on consolidated and selective growth. As overcapacity in one of the existing challenges faced, companies looking to make fresh investments in the chemical industry are faced with a more selective appraisal from the Chinese authorities.  Moreover, intensifying competition from the local Chinese chemical market companies who are at advantage due to their lower production costs compared with imports and their greater ease in establishing relationships with key customers poses greater challenges for international chemical companies in China. As critical changes are underway in the chemical market in China, players will have to adopt a new set of strategies to survive and ensure continued growth.

Industrial policies and changing demands in China’s chemical industry is stirring new trends and growth opportunities for players. Request a free proposal for more insights on how your business can capitalize on them.

Attaining profitable growth in China’s chemical market

Chemical industryPrioritize products matching domestic requirements

China’s growth prospects in the future of chemical industry cannot be denied, but the changing chemical market dynamics make market opportunities more nuanced for international companies. This means that international chemical companies need to learn to adapt. One approach to achieve this is to focus on products that match the domestic needs and that the Chinese state is promoting. Chemicals are crucial enablers for strategic growth in industries that China prioritized to gain a major market at a global scale. This includes sectors such as electric vehicles, new energy technologies, and civil aviation among others. International chemical companies must aim to become China’s trusted partners in their innovation plans to bridge technological gaps and set environmental standards in sectors that have a major government backing.

Proactive stakeholder management

International companies that seek to establish their business in China’s chemical industry will need extensive approvals and support from several stakeholders both across the regulatory as well as the business landscape. Ergo, effective stakeholder management becomes vitals especially in the case of building new plants and new product introductions, especially in the regulated products category.  As China currently does not have a process to legitimize the proposed chemical industry investments in a community, the concerns of environmentalists and local communities can only be addressed through hands-on stakeholder management. International companies operating in China’s chemical industry have already set up dedicated teams to identify and manage all the key stakeholders affecting their business.

Our market research capabilities have helped several global players analyze new markets and identify critical growth opportunities before other players in the market with tailored and proactive solutions. Seeking similar engagements for your business? Get in touch our industry experts to know more about our solutions.

Re-engineering the existing go-to-market strategies

China’s business landscape is highly relationship driven. So, having a local presence in the country becomes important to capture value from new market opportunities. Companies must seek to establish a tailored distribution approach. Appropriate distribution partner network enables international players in the chemical industry to get closer to customers and also differentiate their products in the increasingly competitive chemical market in China.

Building strategic M&A partnerships

M&A partnerships are the strategic approach to grow more quickly and extensively in the chemical industry in China. This will enable chemical companies to gain organic growth through increased market access and also fill product or technology gaps. Several dynamic mid-sized chemical companies have emerged in China over the recent years. This could present attractive acquisition opportunities for international chemical companies. A dedicated business development team in China can help international players in the chemical industry better meet these motives.

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