Opportunities and challenges of Chinese pharmaceutical packaging materials going overseas

There are several major producers of pharmaceutical packaging materials in the world, which basically monopolize the global pharmaceutical packaging material market, and each has a strong regional competitive advantage. Then China's pharmaceutical packaging materials go overseas, and even go to foreign high-end markets, what opportunities and challenges are there in the middle, let us take a look.

Global pharmaceutical packaging material production giant

In terms of countries, India, China, Germany, South Korea, and Mexico are the major exporters of pharmaceutical packaging materials. With their quality, price, and export time, they have a heavy share in the international market. Representative companies in these markets have their own distinct strategic plans. Among them, ACG World in India, the establishment of its global branches, has greatly improved the reach rate of customers. Amcor, which originated in Australia, has locked in high-end pharmaceutical customers through product innovation and performance upgrades. The expansion of its product categories has also greatly increased the breadth of potential customers.

Purchasing preferences of global customers

One thing that pharmaceutical customers around the world have in common is that they want to be able to purchase nearby. Whether his "nearest" is a factory or a trading company, customers tend to do business with people nearby, so that they can respond and solve problems quickly. But this proximity is not only limited to the same country, but also includes the same continent. For customers in Asia, more than 85% of the pharmaceutical packaging materials are purchased locally or in Asia and neighboring countries, and the transportation cycle is within 1-20 days. Most European customers will also look for suitable suppliers within the European Union or near the Americas.

When the nearby price advantage is no longer obvious, or the existing suppliers cannot meet the supply demand normally, they will also seek out new suppliers.

Opportunities for Chinese pharmaceutical packaging materials to go overseas

A few years ago, cross-border e-commerce became popular, called brand going overseas, and many C-end brands came out of this outlet. The pharmaceutical packaging industry, a completely 2B industry, mainly relies on product quality, service professionalism and price advantages when going overseas. The advent of the epidemic has caused fluctuations in the original supplier system of many pharmaceutical companies in 2021-2022. Many pharmaceutical companies are looking for new and stable sources of goods. This is the first wave of opportunities. The second wave of opportunities will appear in the second half of 2021. There is a domestic supply crisis, which is mainly due to the rising cost and short supply of raw materials. Foreign pharmaceutical companies that have stabilized their purchases in China have begun to look for new suppliers in the same region.

Challenges of Chinese pharmaceutical packaging materials going overseas

Opportunities and challenges coexist. Brands need to do some marketing and foreshadowing in the early stage of going overseas. If you have never been an overseas customer, you will not be able to go overseas. Only on the basis of certain customers and overseas markets can the advantages of the brand be brought into play. Therefore, the first challenge of going overseas is to establish a certain market share and basic brand awareness. The second challenge comes from continuing to expand the market share, that is, the further laying of marketing channels, whether to conquer a certain market first, or to blossom everywhere; whether to choose online channels or offline channels. The third challenge comes from price. It is difficult to develop a blue ocean market. How to compete in the red ocean? Pricing is important. Whether your new market is a high-end pharmaceutical factory, a mid-to-high-end pharmaceutical factory, or an ordinary market, then your The price is basically fixed in a certain range. The last one comes from products. Through product technology research and development, we can make products that meet the local market and fight differentiated competition.

In fact, the essence of brand going overseas is to make enterprises pay attention to the bargaining advantage brought by brand marketing. We also call it brand premium. Get out of the traditional OEM and ODM OEM factories and make your own corporate reputation and corporate label. It is hoped that China's pharmaceutical packaging industry can have a larger share in the global market.