Competitive advantages from the use of biotechnological methods

For 25 years the post-Soviet period the number of large domestic companies – manufacturers of cosmetic products has increased considerably. Natural increased competition for domestic manufacturers of cosmetics among themselves and with foreign colleagues, have led to a General decline in margins in the industry.

Classic of political economy David Ricardo two hundred years ago showed a logical increasing competition, the trend towards reducing the economic profits of each of the sellers .

How can a cosmetics company in a highly competitive market and economic downturn to maintain an acceptable rate of return?

The answer is extremely simple – needs some competitive advantage – unlike other market participants.

Competitive advantage (English. competitive advantage) – economic category, indicating the existence of an economic subject of unique characteristics that distinguish it from other similar entities in the market .

The uniqueness of the product allows you to gain a competitive advantage and increase profits even during the economic crisis.

Of course, you can go on putitonline unique brand or original packaging. But competitors can do the same!

High quality? Effectiveness? Security? But this is the industry standards!

Probably the only competitive advantage is a unique, patented component that competitors can’t replicate.

This path went Finnish company Lumene, which has released a series of products based on biotechnological cloudberries.

Really, why the company uses biotechnological exactly cloudberries? Of course, according to Lumene and VTT research center, who developed this technology, cell culture cloudberry contains about ten times more antioxidants than organic berries. But you can use extract.

I think the answer is obvious: the uniqueness of products provides a competitive advantage!

Biotechnological production of vegetable raw materials allows to obtain biomass of unique plants, including brought in the Red Book, and, very importantly, provides an opportunity to protect vegetable ingredients patent. Thus the raw materials will be sterile, containing a high concentration of active compounds, and its production will depend on weather and political conditions!

But why grow a vegetable raw material by biotechnological methods? It is expensive, and the plants in the field and grow well!

The fact is that to obtain plant material with the desired properties and in sufficient quantity is difficult. The task is complicated by climatic conditions (the yield varies from year to year or, for example, it is difficult to quickly grow subtropical plants in the required amount in a temperate climate). Environmental pollution leads to the appearance in plant extracts and other raw materials are undesirable and even dangerous compounds such as lead. Another problem is the inability to quickly grow the plant because often the beneficial properties of plants depend on the phase of its growth. Also, a large number of plants that are the source of important plant metabolites, represent a rare and endangered species. Chemical the receive these metabolites are also difficult, as plant metabolites are complex compounds, their synthesis and release are costly processes. It is important to understand that often a big plus of the vegetable raw material is a complex action of the whole plant, and not a single component.

But high-quality plant material you need! Medicinal plants have been and remain the main source of active compounds for cosmetic industry [6]. According to the Summary Report for the European Union, 7000 plant compounds in the modern Pharmacopoeia derived from plants.

Therefore, in the last three decades actively developing the technology for culture of plant cells [7]. This biotechnology allows us to grow biomass of rare and endangered species of medicinal plants in bioreactors on an industrial scale, to obtain sterile high quality raw material with unique properties at the buyer’s request. It should be noted that the resulting plant material is not genetically modified.

Biotechnology cell culture of plants and uses its businesses are environmentally and socially responsible, as in the cultivation of plants by means of biotechnology can significantly save natural resources and to conserve rare species in nature. For example, according to the company, the IRB, biotechnological cultivation of one kilogram of Echinacea angustifolia (Echinacea angustifolia) allows you to use compared to traditional growing plants is five times less nutrients, in 1379 times less water and in less than 383 times square! In addition, when biotechnological cultivation does not use pesticides.

There are other companies in the cosmetic industry who have successfully used raw materials of biotechnological origin. The French company Sederma, one of the strategic partners IRB, uses in the manufacture of its cosmetics such products based on plant biotechnology as Buddleja Stems GX™ (anti-aging, soothing, anti-inflammatory effects), Echinacea Stems GX™ (helps prevent the appearance of dark circles, collagen loss and decrease of capillary permeability), Centella Stems GX™ (helps prevent the development of rosacea) and other products based on the culture of plant cells.

Companies that use for the production of vegetable raw materials of biotechnological origin, have a unique competitive advantage compared with other companies in this and related market sectors and, as a consequence, the opportunity to increase their profits.

On the territory of the Russian Federation industrial biotechnology cultivation of rare medicinal plants BioPharmos Group is engaged in [8], which operates since 1987 and is a pioneer among domestic companies in this field. The group’s enterprises located in St.-Petersburg and Kotka (Finland) and is certified under international quality standards ISO 9001:2008 and ISO 22000:2005 (HACCP). In 2012 the group of companies was awarded Grand Prix Européen de la Qualité (Geneva) in the nomination “Leader in the field of application of innovation in biotechnology”.

Thus, the use of biotechnological methods of cultivation of rare and endangered species of medicinal plants is a new approach to creating unique competitive advantages for the enterprises of the cosmetic industry. At the same time it benefits the environment and contributes to the growth of product quality and safety.

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