Jiuyi Chemical Trading Network (www.9echem.com) has made great achievements since its establishment half a year ago, and has taken an important first step in the chemical industry—especially the vertical e-commerce field of polyurethane raw materials. “Jiuyi” relies on the investor’s parent company’s professional background in the chemical industry for more than ten years. The compound growth rate of the platform since its launch is close to 300%, and the monthly transaction volume has exceeded 2,000 tons. The later transactions are still optimistic.
As the country’s first Internet + spot electronic trading platform for the polyurethane industry, it has achieved such impressive results within half a year of its establishment. Tiantian Chemical Network has the honor to interview Mr. Li Lin, the co-founder and vice president of Jiuyi.com, In-depth interviews and exchanges were conducted on issues such as the establishment background, operating conditions and development planning of Jiuyi.com.
Q: Tiantian Chemical Industry Network
L: Li Lin, Vice President of Jiuyi Chemical Trading Network, is mainly responsible for the operation of Jiuyi Chemical Trading Network
Q1: What is the background and opportunity for the establishment of Jiuyi.com?
L: We learned that the annual purchase and sales transaction volume of chemical companies across the country exceeds 12 trillion yuan, and the e-commerce market is very large. With the vigorous development of domestic industrial product e-commerce platforms, the petrochemical industry frequently connects to the “Internet +” “It has become a trend. Internet transactions will become an important path for enterprises to resolve excess capacity, manage innovation, and transform and upgrade. Although most companies currently only use the platform to promote products, or understand industry information and market prices, online transactions for raw material procurement and product sales are not yet popular, and some involve how to ensure the safety, quality, and timeliness of hazardous chemicals, customer transactions, etc. Issues such as how the information will be kept private remain to be resolved.
The birth of Jiuyi sales platform is mainly based on the professional background of the investor’s parent company in the polyurethane industry for more than ten years, combining “Tiantian Chemical Network” and PUdaily The resources of the two platforms, which have served customers in the polyurethane industry for many years, are integrated to provide a reliable online transaction service platform for customers in the chemical industry, especially in the polyurethane industry, to reduce intermediate links and save procurement costs. With the in-depth contact and communication with customers, we found that polyurethane customers also have a strong demand for online transactions. In fact, as early as 2007, the team had already had the idea of building a polyurethane e-commerce platform, but considering that the market environment, national policies and other external factors were not mature at that time, we could only wait for the opportunity through internal tracking.
In 2014, thanks to the country’s strong support for the Internet + traditional industries, chemical bulk commodity trading platforms sprung up like mushrooms. After full discussion and analysis and long-term preparations within our team, we believe that the time to establish a polyurethane trading platform is ripe. After the whole year of preparation and preliminary design in 2015, Jiuyi.com was finally officially launched on January 1, 2016, providing services to customers in the polyurethane industry.
Q2: What is the current sales performance of Jiuyi.com?
L: Unlike some other trading platforms, which mainly focus on matching transactions, Jiuyi has been engaged in online trading since its establishment. Currently, all transactions on the website are in cash. As of last month, the compound growth rate of transactions in the past six months is close to 300%, and the current monthly transaction volume has exceeded 2,000 tons. With the introduction of new products in the later period, it is believed that there will be a greater leap in transaction volume.
Q3: As an Internet + chemical enterprise, what is the current competitive environment in this market? What do you think are the advantages of Jiuyi.com?
L: The overall volume of the chemical industry is very large, and the current situation is overcapacity. There are already many e-commerce platforms focusing on the chemical industry, but everyone is on the same starting line. It is complicated, everyone is in the exploratory stage, and a mature business model has not yet been formed. We are currently concentrating our main strength on the vertical e-commerce field of polyurethane, and there is no obvious competitor in the polyurethane industry. The advantages of Jiuyi.com mainly lie in the concentrated combination of information resources, customer resources and industry influence: Jiuyi.com owns Tiantian Chemical Network and PUdaily information platform resources, and more than ten years of polyurethane industry data accumulation, covering more than 100,000 registered users in 193 countries and regions. In addition, we have formed a solid strategic cooperative relationship with more than 50 associations, enterprises and research institutions such as China Polyurethane Industry Association, China Association of Automobile Manufacturers, and Indian Polyurethane Association.
Q4: What do you think is the bottleneck of the current development of Jiuyi.com, and how to solve it?
L: Personally, I think that the current development bottleneck of Jiuyi.com has the following three points. First, polyurethane is a traditional chemical industry, and market participants have become accustomed to trade operations. Suppliers and downstream users still need to improve their awareness of the Internet; Second, there is still a certain monopoly in the polyurethane industry, and some suppliers believe that the actual transactions announced on the website may affect their profits; third, the polyurethane industry has a large trade volume,The amount of trade involved is high, and users have concerns about the security of payment methods.
I think customer habits are a process of cultivation. Compared with other electronic trading platforms, customers’ dependence on the Internet gradually increases over time. In addition, with the gradual transparency of the polyurethane industry, more and more suppliers will realize the convenience of the online trading platform. In terms of payment security, Jiuyi currently adopts two modes of third-party supervision platform and Jiuyi account, which can provide customers with safe and efficient payment methods.
Q5: What is your plan for the future development of Jiuyi.com? What are the future development goals?
L: Jiuyi.com will spend 2-3 years focusing on the subdivision of polyurethane, and will continue to improve in terms of transaction model, payment model and profit model. Our main service targets are small and medium-sized buyers who lack bargaining power, financial product support, and product technology support and guidance. In response to these situations, the Ninth Council has the following plans:
First, Jiuyi.com will set up an expert consultant team to help small and medium-sized customers solve problems in the actual production process and help them improve their competitiveness; second, we will also launch supply chain financial services. Help small and medium-sized customers solve financing difficulties; third, we will also use big data analysis to reduce chemical transportation costs, and truly reduce procurement expenses for downstream customers; fourth, Jiuyi plans to use PUdaily‘s customer resource advantage, develop overseas markets, help domestic customers develop foreign trade export business, fifth, launch product forward transactions at the right time .
Jiuyi plans to raise funds and go public in the future, and advance to other vertical e-commerce fields of chemical bulk commodities.
Q6: For chemical B2B, do you think now is a very good market explosion period?
L: I think it is an important opportunity and a rare development opportunity. Now that administrative measures are being withdrawn, monopoly is weakening, and some products have serious overcapacity, which has led to fierce competition for various brand products and thin profits. It is not easy to sell, and e-commerce platforms can play a role at this time. From the perspective of e-commerce, surplus is not necessarily a bad thing, and downstream enterprises will have more room for choice and bargaining space if there is a surplus of products.
We believe that the next time should belong to the era of mobile Internet. In the future, as long as you tap on your mobile phone, you will buy the goods and pay for them. The future opportunity of B2B lies in vertical e-commerce, because the market is too big, the future market is not to be as big as possible, but to be as professional as possible. Take MDI as an example. If we set up a national layout according to the basic grades of each manufacturer to facilitate the purchase of downstream customers, then a product will have tens of billions of sales a year. In this way, the competitive advantage will come out, so as long as you do it with your heart, the future market will be huge.
Q7: What is the plan of Jiuyi.com to participate in the polyurethane exhibition in early August? What related activities will there be?
L: From August 2nd to 4th, Jiuyi Chemical Trading Network will participate in the 14th China International Polyurethane Exhibition, booth number 502. At that time, it will also discuss the development of the industry with industry professionals through the Polyurethane Annual Conference. Welcome All colleagues come to guide us.
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Mr. Li Lin is currently the vice president of 9E Chemical Trading Network, and is mainly responsible for the operation of 9E Chemical Trading Network.
Mr. Li Lin has a rich background in the chemical industry and experience in the Internet industry. Mr. Li Lin joined Tiantian Chemical Network in 2006, and served successively as sales manager, sales director, and general manager of the Chinese business department; in January 2016, he was appointed as the vice president of Jiuyi Chemical Trading Network, and participated in the establishment and leadership of the 9E Chemical Trading Network platform and Team building and responsible for the daily operation of the website. Mr. Li Lin has unique insights into chemical industry + Internet, and has led the 9E team to achieve half a year spot sales of more than 500 million in just half a year.
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