Most industries have been influenced by the global economic slowdown in recent years, and chemical industry needs to overcome the challenge in such circumstances. According to 2017 Chemicals Trends reported by PricewaterhouseCoopers (PwC), “Chemical industry sales growth increased an anemic 2.1 percent in 2016 as the sector faced declining industrial production and broad inventory rightsizing by many of its customers. Chemicals companies that sell petroleum-based products often fell short of these industry averages because lower oil prices led to sharp top-line declines, sometimes in the range of 30 to 40 percent”. The statistics is shown as follows:
The Fourth Industrial Revolution combines advanced technologies in innovative ways. Chemical industry needs some new power to assist its development as well. Global chemical mergers and acquisitions (M&A) activity has become a trend. Companies look for acquisitions to deliver growth and greater shareholder value. Besides strengthening core competencies, increasing numbers of companies begin to take advantages of the e-commerce to develop. Because e-commerce helps the companies grow and scale easily to meet market demand; reduce cost of transactions; get more chances to reach customers; and expand sales channels at home and abroad. It’s time for the chemical companies to expand their business through e-commerce.
Some leading companies have leveraged online strategies for years to accelerate their growth. Chemical companies try their best to use e-commerce, most of which establish their official website to showcase their brand and service; some build enterprise resources planning (ERP) connections with their customers; and some open online shops on the e-platform to access to new markets.
The White Paper of Digital Transformation Initiative Chemistry and Advanced Materials Industry mentioned that “more than 70% of B2B buyers said they would purchase more online if it were easier and more convenient to do so”. Undoubtedly, it’s an inevitable trend for chemical companies to combine with e-commerce. B2B is the main business mode used by most chemical companies. JumoreGlobal would like to share some business solutions of B2B e-commerce so that you can choose the suitable ones for your own company.
- Independent operation
Independent operation means to build a company’s own website on which products or services could be sold. Some large enterprises like BASF and Bayer choose this mode in the primary developing phase of e-commerce. They are powerful enough to input abundant resources on the site. And cost will be saved through independent operation. Besides, ERP system is always connected with the site.
- Use third-party e-commerce platforms
Using third-party e-commerce platforms is apt to most chemical companies because the e-ecommerce platforms will provide all-around and cost-effective services. They help the suppliers to promote products and brand, find potential business partners, provide services of logistics, and even give professional suggestions on e-commerce business operation. Most companies choose to open an online shop on the e-commerce platforms when they would like to broaden the online business.
- Joint-venture operation
Large-scale companies organize other SMEs in chemical industry to jointly operated online business. The companies cooperate in the global B2B e-commerce market, aiming to get chances to communicate with each other effectively, distribute resources reasonably and realize a common development.
Chemical companies apply multiple modes to initiate their e-commerce business. It’s vital to enhance the companies’ competency, cooperate with powerful business partners and choose a reliable e-commerce platform. JumoreGlobal is a world leading B2B cross-border e-commerce platform for commodities, goods and services. JumoreChemical, one of the sub platforms of JumoreGlobal, offers suppliers the tools necessary to reach a global audience for their products, and helps buyers find products and suppliers quickly and efficiently. JumoreChemical is willing to assist the chemical companies on their business and will share more information with them continuously.