Wuxi Gumbase has maintained a steady growth trend in its overall operations. In 2023, the company's total sales volume reached 16,000 tons, achieving sales revenue of RMB 272 million, representing an 8.5% year-on-year increase and setting a new historical high. However, affected by the downward pressure of the macroeconomy in the domestic market, consumer demand has slowed down, resulting in a 2.3% year-on-year decline in domestic orders.
Competition in the domestic market has intensified. Foreign brands (such as Wrigley and Perfetti) have further consolidated their shares in the high-end market by increasing new product R&D and market promotion. Moreover, these brands generally adopt a self-sufficient gum base supply chain strategy to reduce their dependence on external suppliers, which has exerted certain pressure on Wuxi Gumbase's market share.
Despite the pressure in the domestic market, the international trade business has performed remarkably. In 2023, the order volume of the trading company increased by 11% year-on-year, becoming the main driving force for performance growth. Particularly in the Russian market, influenced by the supply chain transfer, the order volume has increased significantly since the second half of 2023. The market share of European suppliers has been gradually replaced by Chinese suppliers, bringing new development opportunities for the company.
Overall, Wuxi Gumbase has demonstrated strong adaptability and growth resilience in the complex market environment. In the future, the company needs to optimize the allocation of resources in domestic and international markets, strengthen brand building and technological innovation to enhance its market competitiveness, and cope with industry changes and uncertainties in the external economic environment.
![Wuxi Gumbase]( "Wuxi Gumbase")
SWOT Analysis
Although Wuxi Gumbase is currently operating well, a thorough SWOT analysis can help enterprises comprehensively assess their internal Strengths and Weaknesses, as well as external Opportunities and Threats, thereby formulating more effective strategies and decisions. Specifically: Discover strengths: By analyzing the company's core competitiveness (such as technology, brand, resources, etc.), clarify its unique position in the market, and provide confidence and direction for further development. Identifying weaknesses: Understanding the internal deficiencies of the company (such as management issues, cost disadvantages, etc.) helps to make targeted improvements and avoid being at a disadvantage in competition. Seize opportunities: Analyze the external environment (such as the growth of market demand, policy support, etc.) to enable enterprises to adjust their strategies promptly and take advantage of favorable conditions to achieve growth. Responding to threats: Identify potential risks (such as competitors, economic fluctuations, etc.), make preparations in advance, and reduce adverse impacts. Overall, SWOT analysis is a simple yet practical tool that enables companies to have a clearer understanding of themselves in a complex market environment, optimize resource allocation, and ultimately enhance their competitiveness and adaptability.
The SWOT analysis of Wuxi Gumbase is as follows:
Advantages
Leading in technological innovation: In 2023, the company successfully developed 352 innovative products, far exceeding the industry average of 100, and its R&D capabilities are at the forefront of the industry. For instance, the granular gel-based products developed in collaboration with Mars, through formula optimization, have seen a 30% increase in chewiness, a 25% rise in sales in the European market, and a significant enhancement of brand influence. The scale and professional capabilities of the company's R&D team are also constantly improving, providing a strong guarantee for long-term technological innovation.
High product quality: The product quality is stable and has a good market reputation. In 2023, there were no complaints about product quality, demonstrating a stable ability to control product quality. The company's products have passed ISO 22000 (Food Safety Management System), FDA certification, HALAL certification, and KOSHER certification, and meet the international food safety and halal market access standards. The qualified rate of microbial testing reached 99.8%, which is 5% higher than the industry average, further ensuring the stability of product quality.
Strong market competitiveness: It has established cooperative relationships with over 70% of large Food production enterprises and well-known brands, including industry-leading enterprises such as Lotte Gum, Orion Gum, and Chuanghui Food. It holds a significant share in the domestic high-end market, and its market recognition has remained stable for a long time.
Stable customer relationships: The renewal rate of cooperation is high. The company has established a good reputation among customers in the industry through its stable supply capacity and high-quality services. For instance, we have been cooperating with major manufacturers such as Lotte and Orion for over five years, with a renewal rate of 90%. Meanwhile, the company adopts a customer Relationship management (CRM) system to enhance the efficiency of customer data management and business communication, and to strengthen customer stickiness.
Abundant capital reserves: The company has sufficient capital reserves and flexible procurement and supply chain management. In 2023, the company plans to purchase 6,000 tons of rosin glyceride and 3,000 tons of SBR raw materials in advance to lock in prices and reduce the cost risks brought about by market fluctuations. During periods of fluctuating raw material prices, the company, relying on its abundant cash flow, adopted flexible purchasing strategies to ensure cost stability. When a client is temporarily short of funds, such as when Naisi Import and Export Company urgently needs goods, the company promptly arranges for shipment through a flexible financial policy, which not only maintains business relations but also ensures that the client's production chain does not break.
Disadvantage
Insufficient international brand influence: Compared with internationally renowned brands, the brand recognition in the global market is relatively low. For instance, the brand awareness in the European market is only 8%, far lower than Wrigley's 60%, which limits 20% of potential order opportunities. It is necessary to enhance brand promotion, increase international market recognition, and boost brand added value.
Insufficient marketing promotion: The intensity of marketing promotion is relatively insufficient. The company's marketing promotion methods mainly rely on the ISM exhibition, the Canton Fair, and the official website, and the market reach is relatively limited. In 2023, the ISM exhibition only brought in 3 new customers, far below the industry average of 15, and the market expansion effect was limited. It is necessary to further expand market promotion channels, such as increasing participation in digital marketing, social media advertising, and industry forums, to enhance brand exposure.
Inefficient supply chain management: The company currently lacks an efficient supply chain management system, resulting in low timeliness of product delivery. In 2023, the on-time delivery rate was only 89%, 8% lower than the industry average. For instance, in November 2023, two containers exported to Lucky Company in Ethiopia were delayed by three months due to transportation issues, which affected customer trust and business stability.
High production cost: The unit production cost is 12% higher than the industry average. Among them, the price fluctuations of raw materials SBR and rosin glyceride have led to an increase in material costs. In addition, the company's labor costs are 10% higher than the industry average, resulting in a gross profit margin 5% lower than the industry average.
The product line is not diversified enough: Currently, the company mainly produces traditional rubber bases, which fail to meet the market's diverse demands for powder rubber bases, drug-resistant rubber bases, etc. This has led to the failure to meet the demands of some customers, especially in the Asian market, resulting in a 30% loss of potential customers.
Opportunity
Global market demand growth: The global market demand for edible gum bases continues to increase. It is expected that by 2030, the global market size will exceed 1.1 billion US dollars, among which the markets in Asia and Africa are growing rapidly, with the annual growth rate of the African market reaching 8%.
Environmental protection trend: With the tightening of environmental protection regulations, enterprises are increasingly developing and producing low-residue, degradable, and environmentally friendly edible gel-based products.
Technological progress: Technological innovation drives the development of the edible gum base industry. Companies can take advantage of technological progress to enhance the competitiveness of their products. For instance, natural heat dissipation technology can reduce energy consumption costs by 20%. The company has invested 10 million yuan in research and development. In the future, it is expected to lower production costs and enhance profitability through technological innovation.
Changes in international trade policies: Changes in international trade policies may offer new market opportunities for Wuxi Gumbase. After the pandemic, many countries have relaxed their import policies for food raw materials from China. It is expected that the export value of Wuxi Gumbase will increase by 15% in 2025. For this reason, the company has recruited three more foreign trade talents to prepare for future international market expansion.
Changes in consumer preferences: The increasing demand for healthy and functional foods from consumers has provided market opportunities for functional edible gel-based products [31]. The market for functional chewing gum (such as those for supplementing trace elements, calcium, strengthening teeth, refreshing the mind, supplementing collagen, treating ulcers, and enhancing sexual function, etc.) is growing. In the European and American markets, 30% of the demand for health food is driving the demand for functional gum bases.
Threat
Fierce market competition: The competitive landscape of the edible gum base market is diversified, and the global market leaders are mainly concentrated in developed countries such as the United States, Europe, and Japan. Wrigley holds a 30% global share, and its number of technology patents is ten times that of Wuxi Gumbase. Its strong innovation ability has led to fierce competition in the traditional rubber-based market and reduced market prices by 10%
Fluctuations in raw material prices: The risk of fluctuations in raw material prices is relatively high. In 2023, the price of natural rubber rose by 15%. Although the price of synthetic rubber SBR was not affected due to early locking, the overall cost still increased by 8%. The company needs to optimize its procurement strategy to reduce the risks brought about by price fluctuations.
Environmental regulations are becoming increasingly strict: The EU REACH regulation requires a complete ban on certain chemical food additives by 2026. It is estimated that compliance costs will increase by 5%. Enterprises that do not meet environmental protection standards may be forced to withdraw from the European market, while compliant enterprises also need to bear higher production costs.
The policy barriers of the purchasing country: These barriers include high tariffs, import quota restrictions, strict regulatory requirements, and local protection policies. For instance, India raised the rubber base tariff to 25% in 2023, resulting in a 10% increase in export costs. The FDA certification process in the United States is relatively long, usually taking an additional six months, which affects the speed at which products enter the market. In addition, the uncertainties of global political changes and trade confrontations have increased the difficulty for companies to expand their overseas markets.
Summarize
Through SWOT analysis, Wuxi Gumbase has certain advantages in technological innovation, product quality, market competitiveness, customer relationships, and capital reserves. However, at the same time, it also faces problems such as insufficient international brand influence, weak market promotion efforts, inefficient supply chain management, high production costs, and relatively single product lines. In addition, the growth of market demand, environmental protection trends, technological progress, changes in international trade policies, and changes in consumer demands have provided important development opportunities for Wuxi Gumbase. However, companies need to be vigilant against the threats posed by intensified market competition, fluctuations in raw material prices, strict environmental regulations, and trade barriers.
Author: Wuxi Gum Base
Publication Date: 9/11/2025
