Koinè Global Consulting Pte. Ltd. Singapore

CASE 6 - European Fine Chemical Co.: opening of the Asian market searching contract manufacturing and distribution partners for specialty chemicals solvents in Asia; organizing business meeting and visits to selected partners; preparation and signature of the commercial agreements.

Client: a large European Corporation active on specialty chemicals business.

Project:  the client wanted to explore the Asia Pacific market, specifically China, to extend the current market presence both for its current product portfolio as well as to explore feedstock providers for the European business. Similarly the client wanted to have a complete overview of companies able to co-produce at competitive prices and quality. The project was to analyze the market for the selected product lines, approach local tollers for local co-manufacturing and find possible feedstock providers of selected quality products..

Features and constraints: the client had a little knowledge of the target market as well as little experience in export products beyond its traditional markets (Europe and USA) in a very competitive market for prices and quality. Critical was to explore the technology competence of the potential partners to ensure high quality standards (purity and consistency).

Development plan: In accordance with the client the project was approached stepwise in order to minimize expenses and maximize the results:

• Market analyses and segmentation: a first in-depth analysis was conducted to identify the market key players, their installed technologies, their ability to produce at the selected qualities and all the required data and information to position the candidates in the regional and global market (e.g. size, sales turnover, export rate, quality provided, key customers, etc. ). Critical was also to explore the level of technology complexity able to ensure high quality profile and consistency in the co-production of finished goods. The full set of information has given to the client the right perspective concerning the market players as well as the constraints in entering such a competitive market. Similarly, the same analysis was conducted to explore the access to the critical feedstock both for potential local co-production as well as for export to European facilities.
  
• Search of partners for tolling and distribution: according to the analysis result the client decided to enter in the next step via seeking for potential partners able to support the technology in co-producing its products as well as to support sales via a commercial and the technical support to the final customers. Koinè provided the screening of as many as 36 companies able to support the client. The screening has then been concluded shortlisting 5 companies for the final run of interviews and contacts.
  
• Business meetings organization: Koinè was requested to oganize and conduct along with the client's executives a business tour across several Chinese provinces to meet and visit the potential candidates’ facilities. Koinè provided the whole organization for the visit and the translation with a Mandarin speaking person also expert and able to assess SHE issues. Meetings have been organized in 6 different facilities to initiate sampling and partnership dialogues. The project has been concluded via special commercial agreements with some of the 5 players and at full client satisfaction.