Why do Chemical Companies Need Online Brand Protection?

In this digital age, business customers increasingly search online and initiate contact with manufacturers, sellers, and distributors via digital channels such as websites, and eCommerce platforms.

They do not only research online but proceed to procure materials and products. Digitalization is becoming more common across B2B industries, with the chemical industry being no exception.

The ongoing COVID-19 pandemic has accelerated the online trend.

Digitalization processes do not mean that the industry’s business model is instantly changing. Relationships are still important, yet chemical companies are not immune to technological changes. As the chemical market’s digital evolution progresses, digital solutions are increasingly needed.

Chemical companies can seize the opportunities that come with online B2B, while proactively facing the threats it poses.

The chemical industry

The chemical industry is vast and global. Chemical products are in everything. They go into an incredible variety of products, such as pharmaceuticals, cosmetics, animal nutrition, construction, electronic components, consumables, and more.

B2B chemical products, such as polymers, fibers and elastomers, agrochemicals, paints and coatings, solvents, and numerous others, are used in products. Many of these chemicals do not only make the products better, but affect issues of safety, health, and functionality.

Unlike fake fashion, for example, counterfeit chemical products that go into manufacturing can affect end customers. The importance of chemicals puts a burden on buyers to find reliable suppliers and makes the fight against counterfeits even more crucial.

B2B chemical companies sell industrial products in a complex process that includes product development, production, quality control, procurement, approval, payment, and distribution. The complex sales process is not easy to move online. Therefore, most chemical companies still rely on direct sales and distribution partners. Most, however, complement their marketing and sales with digital presence across online channels.

 

Is Your Brand protected? Contact us for a Free Demo:

Schedule Demo

 

 

Chemicals B2B buyers

Digital changes are happening.

Today’s chemicals B2B buyers are increasingly comfortable procuring chemical products online, even when an average order can amount to 50K dollars and more. More buyers are millennials and younger generations that are used to technology. They may even feel more comfortable knowing they can rely on digital systems to track their order and payment.

Also, as more and more people move to online purchases in their personal lives, they look for ‘the Amazon experience’ in their professional lives.

This trend has been enhanced by the Coronavirus pandemic, pushing B2B buyers to interact with suppliers via online channels and looking for the same customer experience.

 

Chemical B2B marketplaces

Online B2B can facilitate the various aspects of the complex sales, supply chain, logistics, and distribution of chemical products. As for trade, it takes place primarily between businesses, making e-commerce significant in the industry.

Chemical B2B marketplaces are growing around the world, and they are expected to keep on thriving and offer chemical products in different segments of the chemical industry, including general applications, specialty chemicals, and commodity base chemicals that are especially suitable for online marketplaces.

A few examples of marketplaces are ChemConnect, CheMondis, 1866.com in China (sister website of Alibaba.com), and Knowde in the U.S. Offering your products on a marketplace can grow sales, but it can also damage your reputation and market price. When counterfeiters and illegitimate sellers use your brand, you need to be ready to meet the new challenges.

As B2B online sales grow, companies create their online presence through online brand awareness, customer experience, brand value and reputation. To position themselves, brands apply brand building strategies, brand marketing tools, digital services, online presence across channels, and networking. When successful, they build real value.

Chemical companies & B2B brand abuse

A strong brand matters.

Companies like Evonik, DOW, Celanese, Eastman, and many others create value through product innovation and solutions. They have acquired reputation across territories and sell a wide variety of products to other businesses that rely on them.

With so many innovations, products, and markets, B2B chemical companies become the target of intellectual property infringements. Online threats include brand abuse by illegitimate sellers and counterfeiters. They can imitate your legitimate brand and ignore your intellectual property rights, such as trademarks. They may also be free-riding on your intellectual property rights, such as protected images, names, and terms.

Unscrupulous sellers often use the same online platforms and marketing tools as the original brands. They open shops, use search engine optimization, and promote their products and services. And they have a competitive advantage since they do not incur R&D costs, do not comply with regulations, and have no quality standards and brand-building expenses.

When a brand has created value, there will be those who try to use it for their gain. Counterfeiters recognize the value of your brand and use your name on poor-quality products, damaging your revenue and reputation. The ease of copying a listing and selling counterfeits as legitimate products online motivates counterfeiters. They are also attracted to the high profits and relatively low risks.

Counterfeits can harm your revenue in more than one way. They take away sales, they can drive prices down, and when unsuspecting customers receive poor-quality products, they associate them with your brand. Evonik, for example, is a supplier of specialist feed additives.

Back in 2018, a customer bought a product alleged to be made by Evonik from an online shop. Luckily, he suspected that the product was not legitimate and contacted Evonik. The product turned out to be a fake.

Online B2B can be used to create superior customer experience and customer service that gives chemical companies a competitive edge. In some segments, customer experience can be as important as other factors such as price.

Customer experience should not be affected by illegitimate sellers that leave it up to you to correct. On the contrary, online trade should simplify and streamline customer experience at every step of the transaction.

Wiser brand protection for chemical companies

The chemical business is complex. It is regulated, contract-based, and has traditionally relied on direct sales.

With digitization come new challenges. As chemical manufacturers and buyers move online, B2B companies are increasingly affected by counterfeits.

We promote zero tolerance to counterfeits and illicit sellers by offering a service that combines innovative technology, advanced tools, actionable data, and expert analysis.

Wiser Market is a leading online brand protection agency. We offer an automatic solution for IP infringement detection and removal. Our advanced system scans online channels, and after detection and analysis, we remove illegal products and content from marketplaces, websites, and apps, protecting your company from IP infringements.

Our technology offers a solution that is flexible, scalable, and can be tailored to your brand’s needs.

It’s time to optimize your online presence across all channels and protect your chemical brand online with an advanced solution that offers 360° protection.

 

Want to protect Your Brand? Contact us for a Free Demo: