China丨Zhejiang Xinnong Chemical: Overseas business of Zinc thiazole formulation is still in its infancy

On Sept 20 at an institution investigation, Xinnong expressed that overseas formulations business is the company’s strategic layout. Now, focusing on the Zinc thiazole which is invented by Xinnong, the company is making steady progress with Southeast Asia as the key market. What’s more, Xinnong has successively signed product supply agreement with Basf Indonesia and Basf Cambodia, which means the strategic layout of overseas marketing business for the formulation of Zinc thiazole has a good start. They also showed Xinnong will continue to improve itself and explore the reproducible overseas marketing experience. Currently, Xinnong’s expansion of overseas formulations business is still in the initial stage, so, the composition of the company's operating performance won’t be influenced significantly in the short-run.

When referring to the product structure and future development planning, Xinnong said that it adheres to the strategy of focusing on differentiation competition, taking the formulation business as the leader, and constantly improving the integrated competitive advantages of the intermediate, technicals and formulations industry chain. At present, the main products of the company include: the technicals and formulations products of Zinc thiazole, Pyraclostrobin, Chlorpyrifos, Triazophos and intermediate products of N-(1-Ethylpropyl)-3, 4-Dimethylbenzenamine, 1,3-Cyclohexanedione, Phenylhydrazine and Phenylhydrazine hydrochloride, and Diethyl chlorothiophosphate. In the future, the company will accelerate the development and introduction of green pesticides and biological products, and continue to meet the needs of target users.

As for the construction of marketing channel, Xinnong pointed out that the company adopts dealer model commonly used in the agrochemical industry. The channel level of this model is relatively flat, with only two levels at present, namely "reseller-retailer". The company focuses on 6+1 core crops, and constantly improves and optimizes the channel construction according to the brand strategy and the target market corresponding to the core crops. At present, Xinnong has formed a marketing network covering more than 20 provinces in China. Now, the company has more than 200 marketing personnel, but Xinnong plans to further increase investment, improve the quantity and quality of marketing team.

When it comes to R&D system, Xinnong expressed that in order to further integrate R&D resources, the company established Xinnong Biotechnology in Jan 2020, which is committed to the research and application of synthetic research and development, formulations research and development, biotesting technology and biopesticides. In June 2021, the company launched its first biological formulations "New Nongya", which started the company's new journey from independent research and development, cooperative research and development to technical marketing in the field of biological formulations. At present, the company has completed the establishment of biopesticide research and development team, and the introduction of a number of high-end research talents in the field of biopesticide, moreover, related research and development projects are actively advancing.