On the occasion of the tenth anniversary of Kain Chemical, our founder and CEO, Chairman Li Junwei, accepted an in-depth interview with the Minggu Chamber of Commerce. During the interview, Mr. Li briefly described the development history of Kain Chemical, as well as some views and development plans for the chemical Internet industry. The following is a review of the highlights of this interview:
What is the current situation and business model of the company?
Since its inception, Kain Chemical has been a company that produces raw materials for international first-line brands. It specializes in agent and distribution of well-known foreign brand chemical raw materials and fine chemicals. It owns the U.S. , Japan, Germany, South Korea and many other well-known chemical companies, involving products including pigments, dyes, various additives, modifiers, etc. As the leader of modern manufacturing industry, the chemical industry must undergo Internet+ transformation. After the rise of the industrial Internet, we took advantage of the trend and began to transform into the vertical field of chemical raw materials Internet platform, and joined Alibaba very early. Our vision is to become JD.com in the chemical industry, making high-quality raw materials available at just one click. What we do is a B2B3.0 supply chain integrated service model, JD.com in the chemical industry plus offline services.
“Minggu Chamber of Commerce” January 2019 issue
How do you view the chemical Internet industry?
What are the development prospects?
At present, the domestic chemical product trading market is gradually developing towards standardization, specialization and scale. In the Internet era, compared with other industries, the chemical industry has the following characteristics that are suitable for the development of e-commerce: First, the industrial chain is long, there are many types of products, and the products of the entire industry are highly related. Second, the industry is relatively mature, with clear product categories, high degree of standardization, and easy description; third, chemical transactions are often concentrated among enterprises, and the intermediate process is relatively simple. These characteristics determine that the chemical industry is very suitable for the development of e-commerce. We are optimistic that the Internet + chemical commodity market will promote the transformation and upgrading of the industry and will also become an important pillar of the future development of China’s economy.
What problems are there now?
Based on actual experience, we conclude that the degree of informatization in the chemical industry is not high. Many small and medium-sized enterprises are in the initial stage of informatization and do not understand the Internet+ environment. If you are not familiar with online marketing, online promotion and other operating models, you will not be able to use new technologies such as big data analysis and cloud computing technology to make money. Because of these problems, I was certified as an Alibaba e-commerce (domestic trade) Internet marketer a few years ago, and I can also help customers do Internet+ business.
“Minggu Chamber of Commerce” January 2019 issue
What are the competitive advantages of Kain Chemical?
Our competitiveness is mainly reflected in the industrial chain service layout, innovation team and our understanding of the industry. Industrial chain services: We have always focused on one thing, which is to build an ecological service platform for the chemical supply chain. Based on the operational differences between B2B, B2C, and C2C, as well as trade pain points, we provide customers with one-stop Internet service solutions. As long as goods are bought and sold on the platform, services including customs declaration and inspection, warehousing, and logistics can be provided.
Innovation team: We have always been a startup company and have always maintained entrepreneurial passion. The founders and partners along the way still maintain the original mentality of starting a business. Moreover, our personnel are diverse and have strong comprehensive capabilities. It has both the experience of traditional brick-and-mortar enterprises and Internet genes. The important thing is that everyone agrees very much with what Kain Chemical is doing. We work in the same direction and do something meaningful and valuable together. This is the characteristic of our team.
Kaiyin Chemical Founder CEO-Chairman Li Junwei
How would you rate the performance of Kain Chemical?
If 10 is a perfect score, give it a 7. We are still in the stage of providing basic services to everyone. At present, it can only be said that it has barely passed the level and solved the basic problems, but it is still far, far away from the vision and goal.
The biggest challenge in doing B2B is to provide services. Supply chain services are a very complex process and require communication with physical merchants such as traders, logistics companies, and factory processing. Negotiations also need to address the needs of related service parties. This requires us to be deeply involved in the front line, quickly learn and grasp the actual needs of the industry, and rely on services to win the market. In the future, we will continue to improve our services, and all aspects from user ordering, product design, production and manufacturing to logistics and distribution must be completed on the platform. Fortunately, we have still adhered to our original intention.
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