BOPP film: Who are high margin customers?
Dr. Navneet Kumar
Vice President - International Business | Driving Growth in Global Sales, Marketing & Business Development | Strategic Market Expansion | Empowering Cross-Functional Teams | Revenue Growth & Brand Building
In the last 5 years average CAGR growth in global consumption of BOPP Film (Bi-oriented polypropylene films) has averaged 6.2%, which is around double the average global GDP growth. This huge BOPP film demand is served by BOPP manufacturers around the globe.
The interesting point here is; who is serving the high margin customers and who are these high margin customers. Why different customers are ready to pay higher price than others for the similar product. The answer is simple to understand but difficult to implement. Many of us are doing price selling rather than value selling which is not a good idea for business development.
Let’s be little more specific
Customers with higher difficulty Level
It is like a computer game; if we are in level 1 then game is easier and at later stage it is more difficult.
Level 1: Easy and well known destinations like Jebel Ali port
Level 5: Little difficult....like Lusaka port
It can be experienced that higher difficulty level will give you more margin.
Customers with good technical knowledge
If the customer is discussing more about the product; it’s a win. Off-course prices is still a deciding factor but knowledgeable customers always demand specific features and then convert into more profitable for them. Some customers only do comparison with your price and cheapest available in the market. Such cases can be easy selling but not the value selling.
Customers with high margin application
It is little tricky to find out such customers but sometimes can be a good idea. For example if we are selling untreated non heat sealable BOPP film like release liner, then it may be a good idea to search tattoo manufacturers.
Small/Mid size BOPP customers
Big customers are always updated about the market behaviour and are hard negotiators. On the other hand small or mid size customers don’t follow BOPP raw material movement so closely. More mid size customers than one big customer may be a better choice.
Gentleman BOPP Customers
Actually I was not able to find appropriate term for this category and therefore call these “Gentleman” customers. These customers are mainly found in exports region little far from crowded cities. It is difficult to find them as they are weak in speaking English, normally don’t have their company website, not popular over internet professional network and have mid size regular demand. Generally these are listed in local yellow pages, local directories and in member list of few packaging associations.
Above points may not be thumb rules and are pen down as per the opinion of the Author. Author Mr. Navneet Kumar will be happy to receive your comments on the same at contact@navneetkumar.com .
CMD at Pragati Corporation |Innovating Specialty Lamination & Thermal Films | Leading Offset and Digital Print Solutions | Investor in Startups
9yAgree,well deal with daimonds not onions. Well said
Global BD Champion- Flexible Packaging|| Start Up Enthusiast|| Growth Catalyst
9yWow....very well articulated and well expressed. Having said that I agree to disagree for one point ....how could you fit so called "Gentleman" customers in 80:20 portfolio and moreover in the era where pie size is more or less stagnant and pie hunters are increasingly whopping day in and day out than I am afraid that these so called gentleman customers will remain gentleman for a very long period of time. and another point which really is excellent that value selling Instead of price selling is need of hour. Because if many are doing price selling only which can be stopped after a certain extend than where is loyalty factor.....in this scenario we need to do value selling for differentiating ourselves from the herd and can attain better margin as well.
Auf der Suche nach einer Gelegenheit im Bereich Int'l Sales & Marketing in Deutschland, der Schweiz und Österreich
9yVery well articulated…Increasing population and its rising demand of food is the main reason behind the growth story of BOPP film demand globally which is growing with 6.2% over last 5 years. All the producers are choosing this method of flexible packaging to enhance the life span of food items over any other available methods of packaging which are turning to be costly methods now a days. There is a lot of room for innovation in developing new products of BOPP film in time to come & to open new segments as new markets. To know the growth potential of BOPP film industry it could be compared with the investment & growth of the Agricultural sector of a country, as the BOPP film industry is an auxiliary industry and its growth mostly depends on the production of food products. Looking at the wastages of food across the globe which is around 30% of the total food produced (which got wasted during production & its supply chain), which is leading the producers to save food by packing it to enhance its life span and to reduce the wastages. Demand of BOPP film will further rise steadily as we would be adding another more than 1 billion people in next 15-17 years on our planet, they’ll need food and we will need the BOPP film to pack it.
Managing Director at Friendship Packaging Nigeria Ltd.
9yalso can add customer service oriented customers who does believes too much in after sales and service which can also add to your value margin.
Sr. Manager - ✔️Exports Business ✔️Development
9yGood One ... ! but the term Long term Loyal customer is missing .....whom supplier has supported time to time during Price Fluctuation + Quality + Sales Support who generally do not want to try the others..! These are medium Quantity customer mostly end users.