Shandong Gaorui Chemical Co., Ltd.
Add：Nanshan Industrial Park, Qilu Chemical Industrial Zone, Linyi District, Zibo City, Shandong Province
Pyraclostrobin has become a hot spot in the agrochemical fungicide market
Referring to the focus of the agrochemical market in 2016, in addition to the exploration and debate on business models and crop solutions, pyraclostrobin is undoubtedly a hot spot in the fungicide market.
With the expiration of the compound patent of pyraclostrobin in China on June 20, 2015, the certificates of domestic enterprises have been issued, and the variety and category have increased dramatically. BASF's recent series of strategies and actions around pyraclostrobin have helped fuel the product to heat up again and become the focus of the industry.
For the mainstream brand enterprises that use pyraclostrobin as a strategic product of the company, how to face the upcoming "chaos" and win in chaos?
This is the time to test the wisdom of the company. There must be tactics, but also a strategy of category, so that you can not be confused. Don't always understand what experts say, “high prices always beat low prices” and “price competition must be low-level competition”. For agrochemical enterprises with excess capacity and documents, the current industry's gross profit margin is still higher than that of society. The average gross profit margin, and the threshold for entry is still low, to achieve the real integration and reshuffle of the industry, let the opponent withdraw, price competition is undoubtedly one of the effective direct means. Today's price competition is no longer a simple price tactics and price harassment, but a perpetual price strategy, putting the opponent to death and letting the opponent quietly quit.
However, how can we not determine the strategy of the brand or category of the company? How to achieve the brand separation among many homogenized products? In addition to the quality and category (this is the basis), how to use the target market and application technology Separate opponents?
Regarding the quality of pyraclostrobin series products, there are many disputes in the industry. From the crystal form, melting point and content standard of the original drug, to the process technology of key dosage forms, the advantages and disadvantages of various dosage forms have become The important quality of differentiated selling point refining is also an effective means for enterprises to create product differentiation, and it is also the basis for all marketing starting points.
In addition to the quality of the product, the division and differentiation of the category, the market operation can be divided by the target market, or the division of the application technology promotion direction. This is also a good marketing tool.
From the perspective of the target market, the main sales direction of pyraclostrobin is currently positioned in the southern region or high-end cash crops. This is also the basic market that BASF has laid down. This market is also very large.
According to relevant inferences, pyraclostrobin has become the world's largest fungicide in 2015. Pyraclostrobin series products, such as Kairun and Baitai, are popular in the Chinese market, and the growth rate of pyraclostrobin series in this market has basically maintained a high growth rate of 44% to 70% in the global market. On the other hand, pyraclostrobin has a rapid increase of more than 10%.
It is affirmative that pyraclostrobin has become the world's No. 1 biocide. Can pyraclostrobin be the largest sales fungicide in the Chinese market?
The answer is yes. Because the main sales of pyraclostrobin in the global market, 70% in South America, Asia only 3%, so the market for pyraclostrobin in the Chinese market is far from being developed, pyraclostrobin The future growth space is immeasurable. When can pyraclostrobin be a fungicide in the Chinese market? Where is the path and breakthrough point of pyraclostrobin in NO.1 in the Chinese market?
From the target market, pyraclostrobin has a global market share, with more than 40% of the market being mainly in dryland field crops and only 20% in fruit trees and vegetables. Therefore, pyraclostrobin is the next step in the market. The growth point is clear at a glance.
From the data of domestic fungicide application, at present, the use of fungicides in the domestic market accounts for only 6% of dryland field crops, while in South America it is close to 40%, so the space of pyraclostrobin on field crops huge.
Analysis of BASF, around corn, rice, wheat, peanuts, a large number of demonstrations and preparations for the first two years. From the corn market launched in 2015 to the rice market launched in 2016, we can see its good intentions around pyraclostrobin products. In fact, recalling the entire BASF operation method and BASF's positioning of the product, pyraclostrobin will inevitably become an epoch-making product.
Of course, since it is a large product and may be a fungicide for NO.1, pyraclostrobin must be placed on the shelf. If it is always believed that pyraclostrobin is a high-end product and is still positioned on high-end cash crops, the market space is limited.
With the localization of pyraclostrobin products, the decline in the price of the original drug, and the decline in cost, the cost of use will also drop sharply. In addition, the level of drug use in field crops has increased in recent years, and the marketing of pyraclostrobin has been promoted. Provide a broader market space. According to the global statistics, the current sales of pyraclostrobin series products exceeds 1 billion US dollars. A large number of versatile fungicides on the market, such as thiophanate-methyl, carbendazim, and triazoles, have total sales of 200 million to 600 million US dollars. Therefore, pyraclostrobin becomes a large single product and the direction is determined. How to become a large single product? The pyraclostrobin should be treated as the future carbendazim and thiophanate-methyl.
How big is the market for pyraclostrobin?
For some companies, it can be understood as large as the sea, not only the current similar methoxy acrylate products, but also the market replaced by pyraclostrobin, and some conventional protective fungicides are also the future. The target of pyraclostrobin can be replaced as large as the market of conventional chlorpyrifos and glyphosate, and the market space can be imagined for a certain enterprise.
For some companies, it may be difficult to accept pyraclostrobin as a conventional product. However, in order to become the largest single product in the Chinese market fungicide, pyraclostrobin must be on the civilian line. Pyraclostrobin may be an indispensable product in disease control. Of course, it may not be used alone, but mixed or compounded with other products. In fact, when the avermectin just entered the Chinese market, the price of the original drug was so high that it was 7-8 times the price of the original drug. With the saturation of the high-end cash crop market, avermectin has become a high-volume product, and it has gradually introduced into the Daejeon market, finding more space and becoming a regular large single product.
For a company, I personally have advocated and promoted the strategy of large single products.
If a company can make a single product with annual sales of more than 100 million yuan, even if the price is lower and the profit is thinner, he can find a good profit point, and can create a corporate personality and brand. Therefore, category focus is the development direction of the next industry. It is necessary to focus on the quantity of single items and focus on the categories, especially for enterprises with original drugs. The advantages will be more obvious.
My advice to such a company is: how to focus on the category, to create a personalized brand of pyraclostrobin, and make it a master of the company, if the pyraclostrobin series accounted for 70% of the company's sales % ~ 80%, if the amount of pyraclostrobin series can reach 200 million to 300 million yuan, this figure is not large for the entire pyraclostrobin market. Pyraclostrobin has become China's largest fungicide. In theory, the market capacity should reach more than 2 billion yuan. Everyone can see the traditional old enterprises that produce carbendazim and mancozeb. In recent years, sales have been stable and the profitability is very good. Because after the competition is eliminated, the remaining is king. The chaos, price war, disorderly competition, and widespread promotion of pyraclostrobin will be foreseeable next year. How to find your own way in a complex market environment is something that every company must consider.
From the perspective of competing products, pyraclostrobin has competition from similar methoxy acrylate fungicides in addition to competition from homogenized different manufacturers, different products and different dosage forms. Compared with similar methoxy acrylate products, such as azoxystrobin and trifloxystrobin, the advantages and advantages of pyraclostrobin can be seen.
The comprehensive advantages of pyraclostrobin are very obvious. In what ways is it more advantageous?
It is not difficult to find good market opportunities here. For example, pyraclostrobin and azoxystrobin are similar in terms of oomycetes, but in field, such as wheat powdery mildew, rust, rice sheath blight, pyraclostrobin is more than azoxystrobin It has advantages and is more promising; compared with sputum esters, it is more efficient than sputum esters for size plaque and sheath blight of corn. Moreover, in economic crops, pyraclostrobin is more sensitive to oomycetes than carbendazim. The slight difference in performance characteristics between competing products of these similar products can be the basis for the breakthrough and utilization of the selected crop market.
In fact, through in-depth study of these performance characteristics, you will understand why BASF is so persistent in the layout and development of the field crops, starting from 2015, first start wheat, corn, and 2016 rice and peanuts, BASF launched Daejeon in the national market. Market strategy, doing a lot of demonstrations and preparations in the early stage.
As far as my personal point of view is concerned, the target market for the main operations of pyraclostrobin in 2016 is definitely based on the rapid cutting-in and high-speed operation guidance, and still based on the basic economic crop market. Optimistic about the application direction of this product in the Daejeon market. Once the Daejeon market is launched, the market will be infinite, so companies should start to explore the application technology in the Daejeon market and the preparatory work for the Daejeon application market.
In addition, in the promotion of the target crop market, the application of technical guidance may require individualized exploration for different crops and different regions. The application dose of pyraclostrobin has been debated in the industry and there is no uniform standard. Some experts advocate low dose use. It may be worthwhile to look at BASF's relevant technical information. In fact, low doses are feasible in the prevention stage, but it is worth discussing in the specific situation of the Chinese market.