In 2015, the Chinese government issued the Water Pollution Prevention and Control Action Plan as it focusses on improving the level of environmental pollution in the nation. However, as reported earlier by Daxue Consulting, four-fifths of groundwater was contaminated in 2016, meaning it is unfit for drinking or daily use. To a great extent, industrial and agricultural industries cause the contamination. Thus, the need for wastewater treatment in China is high. Clement Mougenot, Head of Research at Daxue Consulting, points out: “The challenge in such industries is to truly understand the government’s positioning on openness to foreign involvement and foreign technologies. The key is to have the right people, the right network, and the right partner to connect with the local government which you need for approval, and finally, enables to reach out in China.”
Daxue Consulting’s client, a global water- and wastewater-treatment company, employing more than 15,000 people globally, offers a broad range of recognized branded technology. The firm’s objective was, as already being present in the Chinese market, to grow its sales in China. Therefore, the client contacted Daxue’s research team to assess the need for wastewater treatment in China, respectively current key dynamics, stakeholders, and contacts within the market.
Daxue Consulting started the project with an in-depth desk research by applying Big Data analysis to gain an understanding of the market drivers, trends, market players, key geographic areas, and the government’s influence on wastewater treatment in China.
The consultants also conducted so-called smart calls and in-depth interviews with domestic market players and market insiders, such as local wastewater treatment plants and related third parties like technology or solution provider. This step enabled the research team to gain an overview of the solutions they offer, the level of technology, requirements concerning installations, and to identify potential target groups (B2B). The research team also obtained valuable insights into the purchasing journey, such as the bidding process, requirements with regards to payment, and key decision-making criteria.
As the last step, Daxue Consulting communicated with governmental authorities to investigate the potential of a B2G (Business to Government) collaboration in state projects with a high need for wastewater treatment in China. The research team also obtained up-to-date information concerning specifications, regulations, and constraints to the Chinese market.
After the cross-correlated analysis, Daxue Consulting presented the final deliverables. It included a comprehensive report on the estimated market size due to new installations, market drivers and restraints, market players’ profiles, and an analysis of decision factors. Daxue’s research team gave recommendations which B2B client to target and which region to prioritize. Also, the consultants suggested which kind of business model with regards to sales strategy, marketing, and operations, to apply and informed the client what requirements to expect. Additionally, the consultants prepared a list and detailed description of current new build target assets and state projects with the need for wastewater treatment in China. The list included the type, place, size, and owner, which the team ranked according to priority for the client’s sales team.