The “pitfall” that left the deepest impression during nearly a month of reflection and planning on pesticide products and the market.
Release Date:
2018-09-30
“Golden September, Silver October” is a common phrase in the real estate and automotive industries, referring to the peak sales season for homes and cars in September and October. Applying this concept to the strategic planning of agrochemical companies is equally apt: with pesticide sales heavily influenced by seasonal trends, by September the year’s overall sales trajectory is largely set, while the marketing department quietly begins laying the groundwork for the following year—designing new products, refining existing ones, setting targets for key offerings, revising and procuring packaging materials, analyzing the current year’s data and conducting post‑mortems on product performance, and finalizing winter‑storage production schedules. The author typically starts product planning and strategizing the marketing approach in early September, comparing one…
“Golden September, Silver October” is a common phrase in the real estate and automobile industries, referring to the peak sales seasons for homes and cars in September and October each year; and when this expression is applied to… Pesticide The company’s strategic planning is also highly aligned, with distinct seasonal variations. Pesticide By September, the year’s sales performance is largely set, and the next year’s product and market strategies quietly take shape within the marketing department—covering product planning, product refinements, setting targets for key offerings, revising and procuring packaging materials, conducting year‑end data analysis and post‑mortems on existing products, and finalizing winter‑stock production schedules. The author began product planning and mapping out the marketing strategy in early September; comparing this to a year earlier reveals significant shifts—some of which could even be described as “sudden transformations.”
Nearly one month of Pesticide The “pitfalls” that left the deepest impression during product and market thinking and planning.
Below, I’ll share my insights into the most significant pitfalls I’ve encountered over the past month in product and market strategy—and how to avoid them—along with my takeaways. I’d also welcome your feedback!
As September begins, for most… Pesticide For the company, the big picture is already set, and planning for 2019 has become the top priority. In the planning process, we often rely on past experience to envision future growth, setting next year’s targets based on how well we performed in the previous year. After five years of strategic planning, I’ve consistently followed this approach, and it has generally worked without major deviations. However, when drafting our 2019 plans for market strategy, products, channels, and customers, we were forced to rethink our assumptions: if we continued to design according to past practices, 2019 would likely bring numerous challenges—most notably, a host of unforeseen pitfalls.
The author will walk you through each one, examining what “pitfalls” we absolutely need to watch out for in 2019.
Safety and environmental protection are a “deep chasm”—we can only build a bridge over it; we cannot go around it.
As a sinkhole, it is, by definition, not the work of ordinary human effort; rather, it is the result of natural processes—and one that is surely well known to all. Its defining characteristic is this: it simply lies there—visible to the eye, yet impossible to bypass. Once you fall in, you lose your sense of direction, and climbing out proves exceedingly difficult. Consider, for instance, one of the top‑ten enterprises in Jiangsu this year.
Why is safety and environmental protection considered a “black hole”?
In 2017, ecological civilization was enshrined in the Constitution, and the 19th National Congress elevated environmental protection to an unprecedented strategic priority. From a institutional perspective, the revised Environmental Protection Law has been implemented, an environmental tax has been introduced, and environmental inspections have achieved full coverage and become routine; laws and regulations across the water, solid waste, and air sectors are being rapidly refined. From an industry standpoint, the environmental protection market is experiencing unprecedented growth, with the sector regarded as a new pillar of the national economy. From the standpoint of the country’s development philosophy, high‑quality economic growth is gradually replacing the “GDP‑only” approach.
Resolutely winning the battle to protect blue skies, making concerted efforts to safeguard clear waters, and steadily advancing the campaign to protect clean soil have become guiding principles for comprehensively strengthening ecological and environmental protection. In February 2015, the Ministry of Agriculture issued the “Plan to Achieve by 2020”... Pesticide The Action Plan for Zero Growth in Usage proposes that, by 2020, China aims to… Pesticide Total usage has achieved zero growth; in 2015, China’s strictest environmental protection law was implemented, in 2016 the Central Environmental Inspection Teams were deployed to 15 provinces, and by 2017 environmental protection had been fully extended nationwide. In terms of policies and regulations, measures targeting highly polluting and high‑intensity… Pesticide Small and medium-sized enterprises are exerting pressure, and in the future, a “winner-takes-all” dynamic will become the norm; during the 13th Five-Year Plan period, increased industry concentration will be the prevailing trend. Meanwhile, 2018 marked the year when provincial-level environmental inspections erupted, with wave after wave of increasingly stringent and comprehensive environmental enforcement sweeping across the sector.
Many provinces across the country have already begun phasing out or closing chemical industrial parks, and the “green” standards for those remaining are set to become even stricter. Companies that fail to meet these requirements will face scrutiny, while those already operating within designated parks will be subject to intensified environmental inspections. According to incomplete statistics, by the end of 2018 the number of chemical industrial parks is expected to decline to approximately 480. As national environmental enforcement intensifies and the regulatory crackdown deepens, this trend will have a series of impacts on chemical enterprises located in these parks.
Meanwhile, local authorities have launched initiatives to standardize chemical industrial parks. The construction of new chemical parks has been prohibited, and these measures, implemented on a large scale nationwide, are affecting the majority of chemical enterprises. Major chemical-producing provinces such as Guangdong, Jiangsu, and Shandong have even introduced stricter standards to promote the high-quality development of the chemical industry. As a result, a situation has emerged… Pesticide Enterprises that fail to join the industrial park are in violation of the law; those that do join face strict oversight and a ban on approving new chemical projects. Meanwhile, enterprises that have not yet entered the park are barred from doing so, creating a closed-loop situation in which no new chemical parks are being added.
The policy mandates a 50% reduction in the discharge of the three wastes, Pesticide Product yield increased by 5%, and the resource utilization rate of by-products improved by 50%. Pesticide The waste disposal rate has reached 50%, and a combination of factors—including policies, various environmental protection measures, and supply-and-demand dynamics—has further accelerated this trend. Pesticide Supply-side reform in the industry promotes the development of large-scale, competitive enterprises. Pesticide Enterprises are being driven step by step into a “bottomless pit” from which they cannot escape. On top of that… Pesticide With the stringent regulation of registration certificates, many enterprises are left to fend for themselves.
For sinkholes that are safe and environmentally friendly, companies may only build bridges but must not illegally bypass regulations; in other words, environmental protection will inevitably drive progress. Pesticide New Industry Transformation: As China’s supply-side reform deepens, policy measures—centered on environmental inspections—have exerted a profound impact on the agrochemical sector. The market’s supply‑demand balance has gradually shifted toward healthier dynamics, while raw material prices have experienced significant volatility. A large number of small, unregulated, and polluting enterprises that fail to meet environmental standards have been forced to suspend or curtail production, while well‑regulated producers with robust environmental compliance and advanced technologies have seen their market share and profit margins expand.
From around the world Pesticide From an industry perspective, the consolidation that began in 2016 had reshaped the landscape by 2018, resulting in a three‑way competitive structure in the global agrochemical sector; China… Pesticide Industry consolidation is also intensifying and accelerating, with transactions totaling tens of billions emerging in 2017. Pesticide Enterprise. Overall, the entire… Pesticide The industry has been on a tortuous yet upward trajectory, driven by both external forces and internal factors.
Ultimately, through the sinkhole, the situation has unfolded as follows: Pesticide The number of active‑ingredient manufacturers has decreased by 30%, and sales exceed RMB 5 billion. Pesticide There are five manufacturing enterprises, each with sales exceeding RMB 2 billion. Pesticide There are 30 manufacturing enterprises, and efforts are being made to cultivate two to three large enterprise groups with annual sales exceeding RMB 10 billion and strong international competitiveness.
Which companies will be able to cross the bridge and become part of that 70% that doesn’t get left behind? Which ones will seize the opportunity to grow rapidly into enterprises with revenues exceeding RMB 2 billion, or even surpassing RMB 5 billion? And who will be fortunate enough to shape the future? Pesticide The industry’s hundred-billion‑yuan leader? In my view, 2019 will mark a turning point.
The new regulations are an inescapable “pitfall”; they must be complied with and cannot be crossed.
This pit, like a sinkhole, is such that once you fall in, there’s no way out—whether it was the handling of a certain Jiangxi-based enterprise in June and July, or the recent case involving biological entities… Pesticide The results of the random inspections all underscore a zero-tolerance policy toward law‑violating enterprises under the new regulations, particularly with regard to the widespread practice of illegally adding third‑party ingredients.
So in Pesticide Under the new policy, how can enterprises ensure compliant operations?
First, Pesticide Changes in the management system:
A department of the Ministry of Agriculture and Rural Affairs is responsible. Pesticide supervisory and administrative work; other relevant departments of people’s governments at or above the county level shall, within the scope of their respective duties, be responsible for related matters. Pesticide Supervisory and management work. May enter. Pesticide On-site inspections may be conducted at premises engaged in production, operation, or use; evidence‑gathering inspections of product quality, contracts, invoices, and accounting records may be carried out; and illegally produced, operated, or used items may be sealed or seized. Pesticide , premises, tools, equipment, raw materials, etc.; will Pesticide Supervisory and administrative funding is included in the budget of the local government; in streamlining administration and delegating power, the Ministry of Agriculture and Rural Affairs has adopted a series of measures to strengthen… Pesticide In terms of oversight and management, enterprises should identify and address managerial vulnerabilities across procurement, production, R&D, sales, and other functions, and implement proactive improvements. Self‑management by the enterprise does not mean that functional departments have abdicated their responsibilities; rather, it entails greater oversight following the delegation of authority, thereby raising the cost of non‑compliance for the enterprise.
Secondly, Pesticide Production aspect:
1) Cancel Pesticide Approval is granted on a fixed‑site basis, with production licenses issued on a one‑enterprise‑one‑license basis. For active‑ingredient manufacturers, the scope of production is limited to the standard product varieties; for formulation manufacturers, the dosage form must be clearly indicated.
2) Production of counterfeit or substandard products Pesticide Any entity engaging in unlicensed contract manufacturing, lending its license, or employing personnel who do not meet the required qualifications shall have its production license revoked. This significantly streamlines the procedures for obtaining and maintaining production permits. Manufacturing enterprises are obligated to ensure product quality and conduct thorough factory‑outgoing inspections; failure to do so will result in the revocation of their license, thereby affecting the certification status of all their products.
Finally, clarify. Pesticide The regulations on operations have been established. Pesticide Operating threshold:
1) County-level agricultural authorities are responsible for issuing and managing. Pesticide Business license;
2) Pesticide Operator requirements: at least 56 hours of training at a specialized educational institution; a business premises of no less than 30 square meters and a warehouse of no less than 50 square meters, separated from other goods and areas; a computer system equipped with traceable electronic identification codes and electronic records; and a temporary storage facility for waste collection. This may enable one-third of… Pesticide The operator cannot obtain new Pesticide It ensures compliance with business qualifications while also facilitating management and purifying the market.
During the sales process, substandard… Pesticide and fake Pesticide The determination has also been revised:
1. Any of the following circumstances shall be deemed substandard: Pesticide :
1) Does not comply Pesticide Product quality standards;
2) Contaminated with harmful substances that may cause phytotoxicity or other adverse effects.
3) Exceeds Pesticide of the warranty period Pesticide , according to poor quality Pesticide Processing.
2. Any of the following circumstances shall be deemed fraudulent: Pesticide :
1) With non- Pesticide Impersonate Pesticide ;
2) In this way Pesticide Impersonating another species Pesticide ;
3) Pesticide The types of active ingredients contained and Pesticide The active ingredients listed on the label and in the package insert do not match;
4) Disabled Pesticide , without having obtained in accordance with the law Pesticide Produced or imported with a registration certificate Pesticide , as well as those without labels Pesticide According to the hypothesis Pesticide Processing.
There are two pitfalls that businesses must be aware of: one is that “even products past their expiration date are classified as substandard.” Pesticide ”, the other is “ Pesticide The types of active ingredients contained and Pesticide “The active ingredients listed on the label and in the package insert do not match.” As for market inventory… Pesticide Enterprises must remain vigilant and rigorously manage inventory overstocking. It is therefore recommended to conduct regular audits of market‑available products that have exceeded their shelf life, ensuring timely disposal and preventive measures are in place. At the same time, strict quality control is essential, with rigorous inspection of raw materials and finished products, and the implementation of robust cross‑contamination prevention protocols during production line changes.
These “pitfalls” will not appear on main thoroughfares; they will only surface on rough, narrow paths and shortcuts—tailored specifically for businesses that fail to comply with the rules. In 2019, the new regulations must be strictly observed and enforced, with no room for even the slightest deviation.
Market growth is a “hallucinogenic pit” that numbs the nerves—best viewed from afar, not approached up close.
When setting next year’s sales targets and marketing plans, once you become confused, you can no longer make accurate decisions. Many… Pesticide In 2018, companies achieved sales growth—some even posting record-breaking results. But have you ever stopped to consider why? Among the many drivers of this growth, what share can be attributed to pricing? And have you ever analyzed the extent of the increase in product sales?
Take glufosinate as an example: in 2017, the author estimated the market size at around 28,000 tons and boldly projected that by 2018, the market would grow by at least 20% to 35,000 tons—a rather unsubstantiated, speculative forecast. Yet when product planning began in September, a simple calculation revealed that the category’s market capacity in 2018 should not exceed 29,000 tons. You might argue that many companies’ glufosinate sales are increasing—but what’s growing is revenue; how many firms can actually point to rising sales volumes? And how much did glufosinate formulation prices rise in 2018? A 10% glufosinate aqueous solution is unlikely to fall below 8%, while a 200 g/L glufosinate aqueous formulation saw price hikes of no less than 15%.
Will there still be price advantages in 2019?
Therefore, when setting 2019 product targets, it is essential to factor in the impact of 2018 formulation price increases on target attainment. Based on forecasts of market dynamics for 2019, establish sales objectives rather than relying on 2018’s baseline conditions, which could lead to overly optimistic projections. Additionally, when developing product marketing plans and strategies, consider whether your portfolio is in a category‑expansion phase or a capacity‑competition phase.
Product managers, marketing directors, and other decision-makers who craft strategies must step outside the usual mindset to gain a broader market perspective and let data guide their choices. They should avoid relying on gut feelings or wishful thinking, and certainly steer clear of unfounded speculation. Instead, they should foster open, collaborative discussions that pool collective wisdom, enabling synthesis, identification, informed judgment, and forward‑looking forecasting. Such dialogues can take the form of informal exchanges among a small group of trusted peers—where everyone feels free to speak their mind—or structured, two‑way conversations where participants share insights and perspectives. However, these sessions must not devolve into one‑sided monologues; otherwise, they risk descending into chaos or becoming nothing more than a single voice dominating the discussion.
The package‑product dividend is a “straightforward pit” that everyone wants to jump into—something you can only imitate, not replicate.
“A straight‑down pit” is something you can see right in front of you, within easy reach. When there’s “treasure” at the bottom, many people will leap in—no amount of warning can stop them.
There was already such a pit in 2019!
Which product was the hottest in 2017? And which one will be both popular and trending in 2018? I’d wager that over 80% of industry professionals would immediately answer, “yunleshou”—a brand with a long history that has surged back into the spotlight in the past two years. Pesticide Bundled offerings! On the question of whether bundled products constitute a distinct category, I’ve never been able to convince myself—my view has always been that bundling isn’t a standalone category and can’t be approached simply through conventional product‑centric thinking. Looking back at 2018, how many truly successful bundled products can you name? Count them up, and you’ll find only “yunbaokai.” That’s why I maintain that bundled products don’t enjoy a “golden age”; they’re a straight‑up pitfall—if you stick with it, you may end up in an even deeper one. This year, there have been plenty of similar offerings, but they’re all mere imitations—capturing the surface without getting to the essence. No product has managed to replicate “yunbaokai’s” success; just do the math: is there any that has surpassed 100 million in sales? Not really. How about one that topped 50 million? Not a chance. In fact, not a single product has even reached 1% of “yunbaokai’s” sales volume.
In 2019, don’t keep jumping headfirst into this “dead end”—especially product managers. Your real job is to stay focused on delivering a well‑positioned product that truly fits your company’s needs.
A package deal isn’t a straight-up pit of treasure—it’s a real pit full of quicksand!
Marketing planning has turned into a series of “sand pits”—you can only jump over them, not step on them.
When products and services become Pesticide What is the standard offering for corporate training, and what exactly is marketing planning? Where does the future of marketing planning lie? Does that mean we no longer need marketing planning at all?
Influenced by “Boss Qiao,” everyone today is fixated on the product. Imbued with the spirit of craftsmanship, product managers often find themselves reverting to the positioning strategies of a decade ago: emphasizing active‑ingredient superiority, patented processes, imported additives, proprietary formulations, and optimal ingredient ratios. Yet an over‑focus on the product can cause one to overlook the other three pillars of the 4Ps, leading to a vicious cycle of price‑driven competition. Of course, price is undeniably at the root of it all—talk about anything without addressing price is mere posturing—but reducing everything to price alone borders on gangsterism. Beyond price, there’s so much more; when only low cost remains, what’s left to talk about in terms of service?
When it comes to service, it often boils down to people—the “people” in the sense of manpower. Does delivering excellent service necessarily mean having a large workforce? Qingyuan Nongguan, which has experienced rapid growth in recent years, offers a clear answer: service is underpinned by technology; having enough staff is sufficient, but only when those staff are truly skilled and professional.
There are still many “sand traps” in marketing planning, such as:
The “speed trap”: in an era where the fast fish eat the slow fish, you must seize the moment. Under a 100-point execution framework, an 80-point plan will suffice; trying to implement a 100-point plan by piggybacking on someone else’s efforts is unlikely to yield good results.
“Insight-driven decision‑making”: The timeliness of market forecasting and policy formulation hinges on whether those crafting marketing strategies or product policies can leverage market insights to design initiatives that truly captivate customers. Should the approach be a first‑mover strategy, or a late‑comer one? A first‑mover strategy rests on accurate market anticipation and predictive analysis; interpreting competitors’ reactions is crucial, and swift communication of information and policy is paramount. It is essential to avoid the trap of “moving first but arriving last,” and instead strive for a position where you act later yet reach your audience sooner.
“The beauty of imperfection”: there is no such thing as a perfect product, nor a flawless plan. The only products that never draw complaints are lab‑test samples, and marketing strategies or product policies that satisfy everyone exist only in the classroom.
The “misjudgment trap”: the 2018 status quo serves as the basis for strategy formulation, while 2019’s forecasts and projections underpin strategic planning. It is not enough to focus solely on the current situation without making forward-looking predictions. Marketing professionals must go out into the field, understand customer needs, and keenly sense market shifts—only then can they avoid misjudgments.
Before developing a marketing plan—especially when crafting a product strategy—it’s essential to clearly determine whether the product is channel‑driven or brand‑driven, and whether it requires channel partnerships or significant advertising investment.
Making market plans with your eyes closed is fraught with pitfalls; you need clear vision, not blind recklessness.
How often do the company’s general manager, marketing director, market director, head of marketing, and product managers go out into the field? Does every decision made by the company follow this process:
Conduct market research, engage with customers, analyze user needs, gather internal information, hold brainstorming sessions with sales representatives, select relevant regional managers and a subset of sales representatives for topic‑specific discussions, and finally distill and synthesize the findings into a formal proposal, which is reviewed and approved by company management.
When crafting your market strategy, do you tend to generalize from limited evidence, extrapolate from minor trends to broader ones, or infer the whole from a part—perhaps even conjuring market shifts out of thin air and sitting behind your spacious desk with an air of unwavering confidence?
The architects, implementers, and overseers of market planning must keep a keen eye and maintain clear-headedness in their work; they must “lend me a pair of discerning eyes, so I may see this chaotic world with perfect clarity and precision!”
The new product will become a “time gap” that’s hard to bridge—patience is key; there’s no need to rush.
Back in 2017, the author already argued: Don’t fixate solely on new products and end up short-sighted, sacrificing long-term value for immediate gains.
By 2019, influenced by the new… Pesticide Due to the impact of the Management Regulations, there will be very few new products. Moreover, within a few years following the implementation of the three concentration tiers, the number of homogenized products will decline by 50%. In the future, product registration certificates will become increasingly scarce, and many existing registered products will gradually be withdrawn from the market.
Under the new regulations, the number of testing facilities has been sharply reduced—only 26 passed inspection in 2018. Going forward, scheduling tests will become increasingly challenging, test criteria will be further refined, and compliance requirements will grow ever more stringent. Obtaining product certification has become significantly more difficult, making it impossible to rely on new products to drive sales; instead, companies should focus on their existing product lines and work to scale them up.
This gap can only be closed over time; no single company can accelerate progress or leapfrog it. Once the product registration window has passed, catching up becomes extremely difficult. Therefore, product managers, marketing directors, market executives, R&D personnel, and other relevant stakeholders must approach product registration with an open, proactive mindset and a forward-looking perspective—avoiding the trap of building a product in isolation. Product registration is “once missed, never recoverable”; there’s no way to make up for it.
Having laid out so many pitfalls, some may not actually be traps, and others might still be undiscovered—please feel free to point out any inaccuracies.
In the 2019 market plan, I’m confident that everyone will be able to spot and recognize… Pesticide The pitfalls that the industry has dug for corporate growth can all be overcome in 2019, allowing companies to seize opportunities and achieve leapfrog expansion!
Source: Pesticide Market Information
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