Alliance experts first did an initial market scan and concluded that the market for Plastinovo in the USA is good. The increasing amount of brands in the sector, leads to more opportunities for small and specialized companies further in the value chain. This combined with the increased customs tariffs for products from China gives it the right momentum to enter the US market for a company like Plastinovo. This makes a lot of US companies search for alternative sources.
Being geographically close to the US gives big advantages compared to the Far-East. Logistic advantages are shorter lead times, smaller minimum orders and lower transport costs. Another advantage is that there is no time-zone difference. However, the key issue is the trust in the supply of quality products and manufacturing conditions in terms of environmental and social responsibilities. With short flight distances and cultural similarity, audits can be executed easier and more frequently.
The growing importance of e-commerce has led to opportunities for small and medium sized companies. The use of internet has resulted in a further fragmentation of the society in various life-style groups. While same-minded people can easily find, meet and support each other online, the demand of matching niche products is increasing. Thousands of online shops have created and fulfilled this specialized demand. The cosmetics sector is leading in this trend. Where the old known brands are losing space, smaller brands come up. The big cosmetic firms buy the most successful new brands, in order to keep their market share.
While new brands are looking for differentiation to the competition, this is sought in the product itself, and most of all in the story behind the product. Selection of the right packaging is a possibility to tell this story. However, with the smaller numbers concerned, they still need a standardized number of alternatives to keep the manufacturing prices low.
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