Although China's phosphate fertilizer products have entered a period of surplus, China is the largest country in global demand for fertilizers. Under the current background of economic globalization, any powerful foreign manufacturer and trader will not give up this market. After China's fertilizer distribution market is opened to the outside world, foreign companies will flock to it. According to relevant statistics, since December 2006, nearly 100 foreign companies have entered the Chinese distribution market with their advantages in brand, capital, management, and service, further exacerbating the competitive situation of domestic phosphate and compound fertilizer brands.
There will be competition for cooperation. Competition and cooperation are inseparable overall. Through competition in cooperation and cooperation in competition, coexistence and co-prosperity are realized and development is achieved together. The cooperative development model has broadened the company's sales channels and achieved a win-win development.
As a leader in domestic chemical fertilizer sales, Luxi Chemical has taken a solid step in the development of competitive cooperation. In 2010, Luxi Chemical confirmed the breakthrough in trade and achieved the magnificent goal of Luxi Chemical's sales revenue of over one billion yuan. Guided by this policy, Luxi Chemical actively seeks strategic cooperation, expands sales channels, determines the transition from production and sales to trade circulation, and formulates a three-step strategy for trade operations. Through the co-opetition strategy, Luxi Chemical has successively reached strategic cooperation framework with Hubei Woyu, Nanjing Toyota Agricultural Production Co., Ltd., and Sichuan Gaoyu Chemical Co., Ltd., on urea, monoammonium phosphate, superphosphate, compound fertilizer, etc. The cooperation agreement was reached on the distribution of advantageous products, the communication of market information, the exchange of visits of senior management, international joint bidding, and brand network distribution. Through the above operations, the initial three-step strategy for the deployment of the “Upstream Resources†trade strategy has been completed.
"Strategic deployment of upstream resources" will provide Luxi Chemical with a richer and more differentiated product structure. At the same time of trade operation, Luxi Chemical actively expanded its network channels, integrated existing network distribution resources, and transformed the existing sales network of Luxi's monopoly into the distribution network of Luxi Chemical's chemical trade to meet the customer's demand for product differentiation. It has increased market share and also provided a powerful online distribution channel for trade operations. Trade operations and online distribution complement each other, trade operations satisfy channel distribution needs, and channel distribution support trade operations.
Luxi Chemical integrates network resources, and gradually transforms from production and sales enterprises to trade-oriented companies with the help of competition and cooperation. With the development of chemical trade in Luxi and the expansion of sales network, an agricultural material industry sells billion-dollar circulating aircraft carriers. It is slowly setting sail.
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