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Chemical companies

Gaining Profitable Growth in China’s Chemical Market: Imperatives for International Chemical Companies

China’s chemical industry overview

Although the economic expansion in China has slowed down over the past few years, it still remains a key growth market for most global chemical companies. Industry experts believe that over the next decade, China will continue to be one of the major importers of commodity chemicals. Furthermore, international chemical companies have advanced and more sophisticated products that can support the further stages of China’s economic development. However, international companies in China’s chemical sector have new challenges coming their way. Companies in China are increasingly moving out of low-profit commodity segments towards more sophisticated sectors. They are also enjoying several home-player advantages in the highly competitive market. In this article, chemical industry experts at Infiniti Research provide an outline of the moves that international chemical companies must make in order to continue capturing profitable growth opportunities in China’s chemical market. International chemical companies that want to create a place for themselves in China’s chemical market must align their products and business models with China’s evolving needs, learn how to access the shifting demand, and strategize to expand and strengthen their base in this market.

Irrespective of the industry, entering a new market is highly challenging with several unforeseen risks that could prevent the company from sustaining in that market. Request a free proposal to know how you can partner with us to leverage our market entry solutions and bolster your business growth in a foreign market.

Chemical companies

 Adapt to the market’s changing needs

There will be a continued demand growth for chemicals in China. But the areas of opportunity in the country’s chemical market appear to be increasingly nuanced, due to which chemical companies must take measures to adapt and align their strategies accordingly. One approach to achieve this is by focusing on the company’s products that match up with China’s chemical industry needs and what the Chinese state is promoting. The chemical industry is a catalyst to promote growth in various strategic industries such as electric vehicles, new energy technologies, and civil aviation that the Chinese government wants to nurture growth globally. As such, this opens new windows of opportunity for international chemical companies to become China’s trusted partners in native innovations in industries that have government backing. International chemical companies can also work closely with government bodies in China to form product specifications based on the changing standards or rules in the region. This could prove to be a new growth driver for chemical companies.

Want to know more about the future of chemical manufacturing and the key factors that could alter the way chemical companies do business in the future? Request for more information from a chemical industry expert.

Manage stakeholders proactively

Chemical companies that want to sustain and grow their business in China’s chemical market must work and maintain positive relations with several stakeholders. This includes stakeholders across the country’s business and regulatory landscape. New plant launches and product approvals especially in regulated product categories require comprehensive rounds of approval from government authorities as well as state-run research institutions. Therefore, it is vital for international chemical companies to ensure proactive stakeholder management. Successful chemical companies are even going to the extent of hiring government-affairs teams to identify the key stakeholders in all areas that are related to their business operations in China. These teams understand stakeholder concerns and work on ways to address them in time so that hinderances to the company’s project can be avoided.

Choosing the right distribution partners

Businesses in China are generally heavily relationship-driven. As a result, it is vital for international chemical companies to have a local presence especially in new markets and business verticals. To gain a better foothold in China, chemical companies must focus on building a distribution partner network through which they can get to customers with ease and provide unique offerings in the highly competitive marketplace. Having the right distribution partners are critical as relationships, dependability and ethics vary sharply among different players in the market.

Get in touch with an expert to learn more about our solutions for chemical companies.

Global-Meetings-and-Events-Market_CMST31

Infiniti’s Marketing Strategy Helps A Renowned Organic Chemicals Manufacturer Analyze their Business Performance

Amid declining production and inventory rightsizing, the chemical industry witnessed an increased sales growth of 2.1% in 2016

The organic chemicals space is witnessing considerable growth with the rising industrialization and rapid urbanization. With the growing demand for organic chemicals among the end-user segments such as food and beverages, pharmaceuticals, and pesticides, the chemical industry at large is focusing on innovations to improve their production capabilities and enhance their overall marketing return on investment.  Additional factors such as the growing financial prosperity coupled with the rising disposable income levels are expected to have a positive impact on the growth of the organic chemicals manufacturing space. Stringent regulations and growing awareness regarding the adverse effect of organic chemicals on health and environment may hinder the growth of the chemical industry. Our experts at Infiniti provide strategic insights that help in gaining a better understanding of the chemical industry trends and the drivers influencing the demand for organic chemicals.

Here are some of the challenges faced by the companies in the organic chemicals space:

  • Increasing competition: Staying ahead of the competition becomes a challenge for the organic chemicals manufacturers with new players coming from non-traditional sectors such as energy, utilities, and mining. Moreover, companies operating in the chemical industry are reinventing themselves to become more agile and retain their market share in the industry.
  • Keep pace with the rapid regulatory changes: Today, the organic chemicals manufacturers have to meet regulations in terms of labeling, handling, and storage of the products. So, organizations need to invest extensively in research and development to ensure that they are compliant with the set regulatory standards.

For players looking to establish themselves as major organic chemicals manufacturers, marketing strategy helps outline a business plan to achieve the desired business goals. Companies in the organic chemicals space can leverage the use of marketing strategy to understand the current chemical industry trends and identify the competitors to improve the overall business performance.IR_RFP

The Business Challenge

  • The client- A renowned organic chemicals manufacturer

The client, a renowned organic chemicals manufacturer, wanted to better understand the chemical industry trends and the unique selling proposition to differentiate their products from the other suppliers of organic chemicals. The organic chemicals manufacturer also wanted to understand the 5Ps of the marketing mix regarding the product, price, place, promotion, and the people. Through a robust marketing strategy, the manufacturer wanted to keep the brand in mind to develop, assess, and devise an effective marketing plan.

Want to learn more about how our marketing strategy helped the client identify the chemical industry trends?

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Our Journey

To devise a robust marketing plan for the organic chemicals manufacturer, Infiniti’s marketing strategy experts carried out extensive research comprising interviews and discussions with prominent stakeholders in the chemical industry. Moreover, to identify the latest chemical industry trends, our experts compiled information from a wide array of reliable sources such as trade shows, company presentations, and industry forums.

The Solution Benefits and the Business Impact

The marketing strategy solution offered by Infiniti offered insights to help the client create a flexible strategy to respond to changes in the customer perception and demand. Moreover, the organic chemicals manufacturer was able to develop a SWOT analysis to understand the strengths and weakness of the companies operating in the organic chemicals space. Moreover, the client was able to target and position their products to the right target audience through the right channel.

The Future

In the near future, the chemical industry will witness considerable growth with the relentless growth in innovations. Moreover, due to technological advances, the industry at large will also witness a growing demand for organic chemicals in areas such as biotech and fuel cells.


A must-read case study for strategy specialists and decision makers looking to develop a better understanding of the applications of the chemical industry.

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