拓昂化学

Amid fierce competition in the Russian personal care market, a well-known daily chemical company faced a long-standing raw material supply dilemma: Ethylene glycol monostearate (EGMS) from European suppliers offered consistent quality but high prices, while Indian alternatives, while cost-effective, suffered from quality issues such as large batch fluctuations and inconsistent pearlescent effects. This dilemma left the company's shampoo and shower gel products facing an awkward position: insufficient competitiveness in the high-end market and limited price advantage in the mass market, severely hindering brand development.

In early 2021, the company established a strategic partnership with Topon Chemical through a global supply chain optimization project, fully replacing its existing supply chain with EGMS developed by our company. This decision yielded significant results within six months: production costs for its flagship shower gel product decreased by 18%, market share increased by 23%, and its premium shampoo, with its superior pearlescent effect and wash experience, successfully entered the high-end supermarket channel in Eastern Europe.

2.1 Breakthrough Product Performance Advantages

Through molecular structure optimization and process innovation, Topon Ethylene Glycol Stearate (EGMS) demonstrates multi-dimensional technological value in Russian skincare products:

Extreme Pearlescent Performance

Using low-temperature crystallization control technology, the product forms a regular lamellar structure in the body wash system. Compared to Indian products, the pearlescent intensity is enhanced and batch variability is reduced, allowing it to maintain a brilliant luster even in the dark-colored bottles commonly found in the Russian market.

Excellent Temperature Stability

Specially enhanced low-temperature tolerance addresses warehousing and transportation challenges during winter in Russia. Field tests have shown that Topon Ethylene Glycol Stearate (EGMS) maintains stable crystal structure, eliminating the roughness caused by crystal reagglomeration common in traditional products and significantly extending shelf life.

Balanced Multifunctionality

In addition to its pearlescent effect, it also provides viscosity adjustment and skin feel enhancement:

Can replace a portion of the primary surfactant in SLES shampoos

Reduces emulsifying wax usage by 30% in body wash applications

Final feel enhancement technology achieves a post-wash skin smoothness rating of 4.8/5.0

2.2 Reconstructing the Cost-Effectiveness Model

Through vertical industry chain integration, Topon Chemical has established a new cost structure for its Russian customers:

Cost Dimensions Topon Solution European Benchmark Indian Solution

Raw Material Purchase Price 22-25% Lower Benchmark 5-8% Lower

Comprehensive Usage 0.8-1.2% 1.0-1.5% 1.2-1.8%

Defective Product Rate 0.3% 0.5% 2.1%

Storage Requirements Ambient Temperature Storage Constant Temperature Warehouse Constant Temperature Warehouse

Process Energy Consumption 65°C Dispersion 70-75°C 70-75°C

Full-Cycle Cost Optimization

Through self-produced stearic acid raw materials and a continuous esterification process, we achieve a price advantage of over 25% over European products.

Building Supply Chain Resilience

Establishing port inventory dramatically reduces the risk of supply chain disruptions.

2.3 In-depth Localized Technical Support

Targeting the unique Russian market environment, Topon Chemicals has established a customized service system:

Pearlescence degradation caused by hard water

Low-temperature crystallization control technology

Local raw material compatibility solutions

Pasteurization compatibility

3.1 Leapfrog Product Enhancement

Breakthrough in Quality Stability

Test results for raw material batches show minimal variation, with no fluctuations in batch differences.

Innovative Sensory Experience

Blind consumer tests revealed:

87% of users preferred the pearlescent effect of Topon's solution.

Shower gel rinsing feels 35% less greasy.

Shampoo crystal clarity scores increased by 28%.

3.2 Market Restructuring

Cost Structure Transformation

While maintaining high-end product quality, the client achieved:

Lower costs for mass-market shower gels

Expanded gross profit margins for high-end shampoos

Market share expansion

Market share in the mass-market shower gel category increased from 17% to 23%.

High-end shampoo successfully entered high-end channels.

Exports to Kazakhstan and other customs union countries increased by 50%.

Brand Value Enhancement

Thanks to its stable product performance, the client was recognized as "Russia's Most Reliable Daily Chemical Brand" and added 40 B2B channel partners.

The successful implementation of Topon Chemical's ethylene glycol stearate (EGMS) solution demonstrates the commercial value of collaborative innovation through technological breakthroughs and cost optimization. We are committed to providing global customers with specialty chemical solutions that combine superior performance with significant economic benefits, helping our partners gain a competitive advantage in a changing market.