Analysis of PVP industry barriers to entry in 2013

Executive summary: PVP products have a wide range of applications. PVP manufacturers have a wide distribution of customer groups. A strong sales network is one of the keys to ensuring the success of PVP companies. PVP products are generally used as additives or auxiliaries in downstream industries. Although their usage is not large, they have a great impact on the quality of downstream products. Therefore, downstream customers have relatively high quality requirements for PVP products, and require stable supply of PVP, and generally do not easily replace supply. Business. This industry characteristic determines that it takes a long time for a PVP manufacturer to develop a customer, thus forming a barrier to entry into the industry.

The main barriers to entering the PVP industry include technical barriers, policy barriers, and sales channel barriers.

1. Technical barriers Production of PVP requires the mastery of a large number of production technologies, such as NVP monomer purification technology, PVP polymer residue reduction technology, PVP polymer drying technology. The application of these technologies has stringent operating conditions, especially the production of high-end PVP products such as cosmetics, food and pharmaceutical grades. The requirements are more stringent. The long production process flow of PVP products and the production conditions of each link will have an impact on the final product quality. For example, the choice of initiator, polymerization temperature, polymerization time and other factors in the polymerization process conditions have a decisive influence on the structure and molecular weight of the polymerization product. PVP has a wide variety of products. Each product has special process conditions, which greatly increases the complexity of the process in the production of PVP products. Therefore, it takes a long time of technical accumulation to master the process conditions in the production process of PVP.

2. Policy Barriers Since the products of the PVP industry are closely related to people's lives and health, the production of PVP products has been subject to stricter government management. China implements a licensing system for the production of pharmaceutical products, and pharmaceutical product manufacturers must obtain pharmaceutical production licenses and drug registration approvals issued by the drug regulatory authority. In order to strengthen the quality management of pharmaceutical companies and ensure that the people's medications are safe and effective, the State requires that all pharmaceutical production must comply with GMP requirements. This has greatly increased the industry entry barrier. In addition, currently, PVP major consumer economies generally have strict market access standards for PVP products, such as the European Pharmacopoeia, the United States Pharmacopoeia, the United States FCC, and the FAO/WHO Food Chemical Additives Regulations, etc., which force companies to participate in products through legislation. Certification, production companies with the specified conditions are allowed to carry out production and sales. At the same time, due to the complex production process of PVP products and the difficulty of quality control, new entrants in the PVP industry must accumulate certain production experience to meet the requirements of product quality. In order to obtain market access certification for consumer countries of PVP products, it usually takes longer for manufacturers to complete initial tests and intermediate tests.

Therefore, obtaining relevant production and business licenses and market access certification for consumer countries is a barrier to entering the industry.

3, sales channel barriers PVP products have a wide range of applications, PVP manufacturers have a wide distribution of customer groups, a strong sales network is one of the elements to ensure the success of PVP companies. PVP products are generally used as additives or auxiliaries in downstream industries. Although their usage is not large, they have a great impact on the quality of downstream products. Therefore, downstream customers have relatively high quality requirements for PVP products, and require stable supply of PVP, and generally do not easily replace supply. Business. This industry characteristic determines that it takes a long time for a PVP manufacturer to develop a customer, thus forming a barrier to entry into the industry.