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Analysis of Rainbow's "Rapid Market Access Platform" business model
Aug. 19, 2014
Rainbow Agro
ChinaFollow
China
After 13 years of development, Chinese agrichemical company Rainbow’s sales revenue has reached US$450 million in 2013. In the first half of 2014, their sales revenue was some $290 million and was estimated to reach some $550 million for the whole year. Since the start of market exploration initiatives in Argentina and Australia in 2008, Rainbow has gradually entered the international market. Recently, they also invested in the construction of a factory in Panama.
After years of exploring and developing its presence in the international market, Rainbow has progressively built up a clear market strategy: invest in the building of a "Rapid Market Access Platform," with strategic market partners enjoying a win-win situation, and continue market-driven innovation to protect and deliver added value for this platform and their market partners. In brief, the strategy can be summarized into three key elements: Platform, Partner, Innovation.
Platform
Rainbow has already invested in building the Rapid Market Access Platform in 37 countries in Latin America, Asia-Pacific, Africa and East Europe and still plans to enter more countries in the near future. The most important characteristic of their platform is its ability to provide complete and comprehensive services, which enables their market partners to quickly enter the targeted agchem market. Such services mainly comprise global registrations with a complete portfolio, new product development based on market research, competitive costs with high-quality supply, and financial support. The core foundation supporting this platform is the reservation of product registration in advance to help market partners launch products directly. Rainbow currently has more than 1,300 registrations in 37 countries, and more than 3,500 applications are under evaluation, while still more product registrations are being prepared.
Partner
During the development of the international market, Rainbow recognized their limitations in localization. For example, they did not have an experienced team for the local market and had inadequate experience with local distribution channels and brand construction. The solution to these difficulties was to find the right market partner for their platform. Through careful screening and negotiation to find such partners, the company aims to realize complementary advantages and achieve a win-win situation for cooperation.
Innovation
Rainbow realized that innovation should be the foundation for enhancing attractiveness and maintaining the value of their platform. As a generic agrochemical company, Rainbow put forward the concept of “continuous market-driven innovation.” The company's innovation efforts mainly focus on upgrading the formulation of main active ingredients with patent protection; product customization based on market demand and market research; and quick, advanced registration and introduction of potential products into new markets. Rainbow enhanced its platform’s attractiveness through such continuous innovation and provided more added value and benefits protection to their market partners. The market's added value and long-term interests enabled Rainbow to successfully transform from a pure agrochemical plant to a market-driven company.
Rainbow’s logo states, “Innovation changes the future,” and indeed, it is innovation that has changed the future of Rainbow.
Source: AgroNews
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