Platform Business Models – Are Investments Justified?

Platform Business Models – Are Investments Justified?Can traditional process-based firms do asset light business? Is there a possibility to get into platform model of business as a replacement or an augmentation to existing source of revenue without increasing the operating cost too much? More than 60% of the Fortune 500 companies employ platform-based business models for their operations (most of them are consumer focused software system based B2C organizations) and the trend has quickly shifted to B2B companies in the recent past who wish to be closer to their final consumers. The issue is of commercialization of the innovation model …

Food Condiments in China: Three Opportunities

Food Condiments in China: Three OpportunitiesDuring China’s COVID-19 lockdowns (when restaurants did not operate and home cooking became the only choice), the demand for condiments experienced a surge in attention. But generally, as daily necessities, the consumption of condiment by both businesses and consumers is unlikely to be affected by economic fluctuations and will remain strong. It is estimated that China’s condiment market will reach 513 billion yuan in 2022 and 788 billion yuan in 2025 (CAGR of 9%). Given the vast size of the country, the market for condiments is huge, but also more fragmented compared with developed countries. …

Quo Vadis Biodegradable Plastics Industry In China?

Quo Vadis Biodegradable Plastics Industry in China?Environmental Background This year in May, the Ministry of Ecology and Environment released a brief report on environmental status-quo of China’s marine ecosystems. It concluded that the environmental performances are generally good, with medium- to low-level floating garbage of ~3.6 kg/km2 on average, while the water quality of estuaries and bays is less than satisfactory, with 21 thousand km2 of sea area of inferior water quality. Plastic is the main pollutant, accounting for 93%, 83% and 76% of floating, beach and submarine debris.China’s Anti-plastic Regulations To deal with ‘white pollution’, China issued a nation-wide …

China’s Oil Refining Industry: From Quantity to Quality

China’s Oil Refining Industry: From Quantity to QualityAfter a period of rapid development, China’s refining industry is moving into a high-quality development stage towards a healthier industrial structure, supported and guided by favorable government policies. Total capacity is expected to reach ca. 1 billion tons by 2025.Market Dynamics Starting from 1978, China’s oil refining industry experienced four major development stages: After an early stage, the scale of SOE’s refining capacity expanded rapidly in the 2020s due to rising demand and extensive new construction (esp. Sinopec and PetroChina). Afterwards, the industry developed steadily, and so-called Teapot refineries entered the picture as …

China Toy Market: Targeting „Kidults“

China Toy Market – Targeting „Kidults“A New Concept for Toys When talking about toys in the Chinese market, they no longer are exclusive targeted at infants or children, and go beyond the traditional categories such as puzzles, plush and dolls. A new concept of toy is on the rise, called trendy toy (or artistic toy). Trendy toys have become increasingly popular, especially among young Chinese consumers aged 15 to 25, the so-called generation Z or “Kidults”. According to research by the Chinese Academy of Social Science, the trendy toy industry in China had reached a sales volume of 30 billion …

Indian Solid Waste Management Industry needs Technology Push

Indian Solid Waste Management Industry needs Technology PushSolid waste generation and key concerns in India Increase in urbanization and per capita income has significantly led to a rise in municipal solid waste generation in India. Overall solid waste generation in the country can be estimated at 152 million tons per annum, wherein EAC estimates construction & solid waste at 175 million tons accounting for 61% of the total waste generated. Municipal solid waste contributes 31% to the total waste with 90 million tons, and the rest contributed by four other segments including Plastic waste (9.5 mio TPA), Hazardous waste (8.0 …

Smart Transformation: Manufacturing Execution System

Smart Transformation: Manufacturing Execution SystemMES and Database Application A new era of Industry 4.0 has been making quiet but substantial strides in China. Local businesses in the traditional manufacturing and industrial sectors are becoming increasingly agile at adopting IIoT (Industrial Internet of Things), AIoT (Artificial Intelligence of Things) and their respective innovative applications to enhance performance, optimize productivity, and counter global labor shortage. Through automated and smart production solutions, manufacturers can provide a safer, more efficient, and user-friendly work environment. To extensively employ smart production processes, companies are seen to introduce domestically developed database management software and digital solutions that …

China’s EV OEMs – Spotlight BYD

China’s EV OEMs – Spotlight BYDOutranking VW, Mercedes-Benz, and BMW At the beginning of April 2022, Elon Musk, founder of Tesla, became the richest man in the world with a net worth of USD 219 billion, signaling a new chapter in the New Energy Vehicle era. Valued at over USD 1 trillion, Tesla is the world’s leading automotive company, and many credited its success to Musk’s business foresight and the company’s technology. It has also been voiced that Tesla is becoming increasingly dependent on China, a massive eco-industrial hotbed providing Tesla’s much needed supply chain, manufacturing capability, and consumer market. …

Boom for Electric Vehicles in India

Boom for Electric Vehicles in IndiaThe government of India has signaled the beginning of a new era of mobility with the introduction of supporting policies and targets for incentives, localization and relevant infrastructure. An increasing demand for environment-friendly and sustainable solutions coupled with continual government thrust is driving space for e-mobility in India.Key rationales underlining the need for an electric vehicle push in India are as follows: Import dependency on fossil fuels: Huge import bill (import dependency- 84% for crude oil, 45% for LNG), primarily arising due to mobility sector, driving need for sustainable solutions Rising emissions – air pollution …

China’s PCR Market – A Localization Case Study

China’s PCR Market – A Localization Case StudyThe demand for PCR equipment has surged in China in recent years, mainly including ordinary PCR (1st generation PCR) and quantitative real-time PCR (2nd generation PCR, also called qPCR). In August 2018, African swine fever emerged in China and spread rapidly across the country, thus high demand for pig testing drove demand for PCR instruments. With the outbreak of COVID-19 in 2020, China has begun to establish a large amount of PCR laboratories, and the market demand for PCR instruments has experienced a new round of explosive growth. In the whole year of …

Direct-to-Consumer (DTC) – The Next Trend for Consumer Goods

Direct-To-Consumer (DTC) – The Next Trend For Consumer GoodsDTC: A new Sales Model for Consumer Goods Brands DTC, direct-to-consumer, refers to a business model in which brands directly sell to consumers without intermediary channels. With the help of the internet, brands establish direct connections with consumers and can directly interact with them along the entire lifecycle from marketing to service. DTC brands are not simple e-commerce companies, even though e-commerce is a popular channel they choose to be closer to consumers. Brands are able to obtain real-time and efficient consumer feedback through internet platforms, so as to acquire consumer insights …