Specialty Chemicals Industry Analysis
The specialty chemicals industry is far more competitive than it used to be probably a decade ago. Rapid globalization, lack of visibility into demand patterns, and sustainability issues are increasing challenges for specialty chemicals manufacturers and distributors. In order to succeed in the long-run, companies in the specialty chemical manufacturing industry will need to understand challenges coming their way and leverage strategic planning to overcome them.
Business Challenge
The client is a specialty chemical manufacturer and distributor based out of the United States
The client faced difficulties in keeping pace with the market transformation and adapting to the fast-changing marketplace. Also, with the entry of new players in the market, the client observed a steady decline in their sales rate, which further resulted in huge losses in their profit margins. As such, the company in the specialty chemicals industry realized the need to conduct a market intelligence analysis to understand the industry’s fluctuating dynamics, as well as the market trends and opportunities.
Furthermore, by leveraging Infiniti’s market intelligence solution, they wanted to tackle challenges such as:
Specialty chemicals industry challenge #1: Push for globalization
With foreign countries such as Germany and Canada offering lucrative opportunities for specialty chemical companies, the client wanted to conduct a market intelligence study to identify profitable opportunities in these regions. Also, they wanted to understand the capital investment for entering German and Canadian specialty chemicals industry.
Specialty chemicals industry challenge #2: Lack of visibility into demand patterns
The company faced challenges in forecasting the product demand with complete accuracy. As a result, they faced difficulties in managing inventory and planning their workforce. With Infiniti’s market intelligence solution, they wanted to identify factors affecting the specialty chemicals demand in the market. Furthermore, they wanted to efficiently forecast the product demand in advance and reduce issues related to supply-demand mismatch.
Specialty chemicals industry challenge #3: Pricing challenges
The rapid pace of change in raw material price, shipping rates, and tariffs made it difficult for the company to competitively price their products. Therefore, the company wanted to engage in strategic planning around their pricing structures.
Specialty chemicals industry challenge #4: Evolving regulatory requirements
With Infiniti’s market intelligence solution, the client wanted to keep up with the regulatory changes and ensure adherence to both processing requirements and product quality standards.
Solutions Offered
To help the client tackle the industry challenges, the experts at Infiniti Research conducted a comprehensive specialty chemicals industry analysis. This phase of the engagement helped the client to assess competition in the local market and understand the industry transformations.
Our market intelligence engagement also involved the German and Canadian specialty chemicals market intelligence study. This helped the client to pursue profitable opportunities in the Canadian and German specialty chemicals market. Also, the company in the specialty chemicals industry was able to evaluate the capital requirements for entering these regions.
Our experts also conducted a demand and supply analysis. This helped the client to efficiently forecast the product demand and maintain adequate stocks in-hand.
By conducting market scanning and monitoring analysis, our experts also helped the company in the specialty chemicals industry to identify changes in emerging regulations and better prepare for changes pertaining to industry regulation.
Results Obtained
The insights obtained from Infiniti’s market intelligence engagement helped the company in the specialty chemicals industry to reduce time to market and understand the factors affecting their business growth. Furthermore, the client was able to adapt to the fast-evolving marketplace, competitively price products, and lower risks of stockouts and over-stocks.
As a result, the company witnessed a huge increase in their sales rate. This subsequently helped the company in the specialty chemicals industry to enhance sales by 29% in one year.
