Japan's Pursuit of High-Margin Markets Fine Chemicals

Chemicals has been occupying an important position inof the market.
the Japanese chemical industry. As the country mostFine chemical industry belongs to niche markets, such
of the fine chemicals market is already saturated, theas industry characteristics determine the firm size do
Japanese fine chemicals producers are to itsnot necessarily require much. Japan has many small
development focus to high-margin products, whileand medium sized manufacturer of fine chemicals,
growing the raw material cost pressures, globalizationwhile small, but its own proprietary technology and a lot
of its business. In addition, they also strive to developof them in the global fine chemical industry played a
new products to meet the automotive and electronickey role. In recent years, the Japanese fine chemical
materials, such as fast-growing areas of marketmanufacturers are developing high-margin products in
demand and new product development process toorder to open up the world's fastest growing niche
focus on environmental and safety issues.market.
Widely ReboundThe Highly Competitive Field of osmetic
Since 2007, the Japanese fine chemicals marketIn 2007, Japan launched a number of new hair care,
demand to remain strong momentum of growth. Forwhen the market size of 1,800 billion yen, products
example, the cosmetics market sales in the past twoinclude a wide range of shampoo, hair dye and
years, 1.5 trillion yen mark for the first time, paint marketconditioner. Because cosmetics manufacturers
sales for three consecutive years more than 700 billionincreased advertising investment, market competition is
yen mark. As the precious metals and other rawbecoming increasingly fierce.
materials cost increases, the catalyst market, salesSimilarly, the Japanese cosmetics market competition
increased from 2005 to � 300,000,000,000 tobecomes increasingly fierce. Japanese skin care
grow to 2007 of 5,000 million yen, ranking third in theproducts market is already saturated, but the
Japanese fine chemicals market, second only tocosmetics market is still the most important
cosmetics and paints.component. Whitening products and anti-aging products
However, over the same period there are also someare the backbone of the Japanese skin care products
fine chemicals underperforming. Agricultural chemicals,market, in which the Japanese men's cosmetics
such as Japan's saturated market, the recent show,market is growing steadily.
the industry sales in 2007 fell 1.6%, fell to �Focuses on Developing New Markets Coatings
319,300,000,000. In addition, the Japanese market, salesVarnish and paint has three main functions, namely:
of synthetic dye manufacturing operations due to theprotection of basic materials to give a good
impact of the transfer to China, but also fell in 1991appearance and special performance by improving
one-third of � 115,400,000,000. Japan, however,product value. In addition to protecting steel, wood and
the prospects for synthetic dye industry is still relativelyplastic substrates, the new type of varnish and paint
optimistic, because the Japanese manufacturers foundthere are other features, such as antifouling,
in the availability of electronic information materialsdeodorizing, sterilizing and heat insulation. Varnish and
widely used in areas such as special coloring agent.paint manufacturers are using these new features
To develop the fastest growing niche marketspeed up the opening up of new markets.
The level of technological development capability willVarnish and paint market, most worth mentioning is the
determine the success or failure of developing growthinsulation coating. Insulation coatings help to reduce the
markets. Fine chemicals growth markets includingheat island effect, and can improve the efficiency of
automotive, electronic information, environmentalair conditioners. In addition, the thermal insulation
protection and new energy fields. Growth in the globalcoatings are increasingly being used as factories,
market, Japanese companies will continue to play aapartment and residential roofing materials, the
leading role, accounting for semiconductor and liquidJapanese manufacturers, therefore expanding the
crystal display high-tech materials such as lion's shareproductive capacity of thermal insulation coatings.