Rainbow Chemical constructs"Rapid Market Access Platform"to develop international market

-Rainbow determined to enter overseas market after a painful self-examination caused by reduced profits
-Rainbow first benefited from “Rapid Market Access Platform”
-Innovation brought value to the “Platform” and made possible of sustainable development

Chinese agrochemical company Shandong Weifang Rainbow Chemical ("Rainbow”) constructed the “Rapid Market Access Platform” to develop international market and first benefited from it. In 2013, Rainbow’s export sales revenue reached $450 million, ranking No.3 in China agrochemical companies. The net profit after tax (NPAT) was around $50 million. It is expected that in 2014, Rainbow’s Sales Revenue and NPAT will be increased 20% compared with 2013.

The reduced profits caused by over production capacity in China agrochemical industry set up Rainbow into re-thinking. After realizing this situation, Rainbow determined to go abroad and extend the business into international market. In 2008, Rainbow first chose Argentina and Australia markets to do trial registration. After one and half year, Rainbow started to get registration approvals in Argentina. The export volume supported Rainbow with increased business turnover and much improved profits.

After getting more and more registration approvals, Rainbow began to reconsider its business position and soon realized that it would take lots of time for local market business. Meanwhile, Rainbow put forward the concept of “Rapid Market Access Platform”, which offered customers with complete services such as global registration, new products development, updated market information, competitive cost, high quality products, financial support, responsibility and reliability, etc.

During the process of building the platform, Rainbow changed its idea in registration strategy several times and successfully found its business way. There was more and more recognition of Rainbow service and value in the market. Such appropriate strategy brought Rainbow with huge business rewards. In 2012, Rainbow export value to Argentina reached $100 million, which was 9 times higher than 2009; the export value to Australia was $ 65 million, which was 6 times higher than 2009. With increased rewards and profits, Rainbow further enlarged investment in registration in more and more regions. Up to now, Rainbow has invested for such market access platform in more than 34 countries.

Although the concept of “Rapid Market Access Platform” enables Rainbow quick success in some important international markets, however, such a theory can be easily copied. Facing this situation, Rainbow found its own solution and made innovation as the core-competitiveness in the platform. For example, in Argentina, the government requested to re-collect packing bottles from farmers to protect environment, which caused inconveniences. Rainbow formulated Glyphosate WG and exported to Argentina as solution, which promoted the market to use Glyphosate WG to replace Glyphosate SL. Rainbow also designed and got patents for several products such as 2,4-D Choline, 2,4-D 80% SG, and Glyphosate Ammonium Salt WG, etc. Apart from product innovation, Rainbow also carried out many other new activities, for example, to adopt the market development experience from one country to another; to find solutions based on customers’ demand; to first register products and promote products into market based on research of crops during the field application. The innovation idea Rainbow carried out was not a fundamental, brand-new, nor cross-aging concept; but it was achievable, sustainable, realistic and matched Rainbow current status. This innovation theory and practice brought value for Rainbow’s growth.

Guided by such platform idea and supported by innovation as core-competitiveness in this platform, Rainbow kept thinking how to find suitable partners in different markets, regions and for different crops, in order to maximize the value of the platform. The cooperation can bring a win-win situation for customers and Rainbow, and created a broad space for Rainbow’s constant development.