What is the care of Chinese pesticide players?

1. Almost all local pesticide producers and dealers think that the 3 major factors of registration barrier, competition between Chinese enterprises and loan repayment have produced extremely great impacts on international commercial activities of Chinese enterprises. When overseas companies are doing business with Chinese enterprises, the price competition between Chinese enterprises is regarded to be the largest headache to them. Product registration is the first step for Chinese pesticides to get into the international market. Most countries have raised very high requirements on the registration Due to the low profit rate, however, Chinese pesticide enterprises can not make large-scale investments in overseas markets with high requirements on the registration. The high risk in long-term loan repayment also causes worries to many pesticide enterprises.

2. It is uncertain whether low cost will still be the major advantage of Chinese pesticide enterprises in future. Low cost has been the only advantage of Chinese pesticide enterprises to attract the attention of the international market and also posed a threat to multinationals. It will still play an important role in near future, but it should not be taken as the only factor for the success of Chinese pesticide enterprises. Chinese pesticide enterprises need to pay attention to other factors rather than only depend on low cost. What should be noted is that when enterprises have to make more inputs in human resources and product research and development they feel that their production cost is making a constant increase.

3. A big question for almost all domestic pesticide producers and dealers is what internationalized marketing strategy they should use. They all agree that it is already imperative for Chinese pesticide enterprises to pay more attention to effective strategies so as to gain a foothold in the global pesticide market. Chinese enterprises axe therefore requested to make an analysis to the environment and competition in the internationalized market and their own strength, weak points and opportunities and formulate detailed and careful plans.

Following measures in this respect are recommended:

Foster their own product brands; establish more customs clearance modes; further consolidate low cost advantage; provide commercial and technical services with higher added value; increase inputs in research and development; accelerate research and development of new products; increase inputs in the management of international human resources; attract more talents.