LONDON--(BUSINESS WIRE)--A well-known market intelligence company, Infiniti Research, has announced the completion of its latest article - Surviving in China’s Chemical Industry: A Guide for International Chemical Companies. This blog covers:
- An overview of the changing chemical market landscape in China
- Strategies for international players to survive in China’s competitive chemical industry
Although China’s chemical industry growth has receded, the region continues to remain extremely 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.
“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,” says a chemical industry expert at Infiniti Research.
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.
You may also like to read some of our recent articles on the chemical industry:
- US Chemical Market Analysis: Exploring Market Opportunities and Challenges – Infiniti’s Latest Success Story
- Increasing Market Share by 27% for a Specialty Chemicals Company | Infiniti’s Latest Competitive Intelligence Engagement
- Nurturing the Growth Momentum in the Agrochemical Industry
Attaining profitable growth in China’s chemical market
Prioritize 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. Companies must focus on products that match the domestic needs and that the Chinese state is promoting.
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.
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? To learn more about Infiniti’s Research’s market intelligence solutions, Request a FREE brochure.
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.
For more insights on our services for chemical industry companies. Get in touch with an industry expert
About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us