The Challenges, Opportunities and Optimization Strategies For Nicewell In the International Edible Gum Base Market

In the context of global economic integration, competition in the edible gum base market has become increasingly fierce.

1. The Urgency of Enhancing Product Competitiveness

NiceWell not only has to contend with direct competition from international brands in the Chinese market but also needs to deal with the challenge of these brands gradually penetrating the global market. In recent years, international giants such as Wrigley and Lotte have dominated the global market through continuous brand investment, technological innovation, and supply chain optimization. For instance, Wrigley spent 50 million US dollars on advertising in the Chinese market in 2023, resulting in a 15% year-on-year increase in sales of its "5 Sugar-Free Chewing Gum". This market dynamic has directly pressured Nicewell’s business development. Enhancing product competitiveness, including product quality, technological innovation, brand influence, price, and service, has become the top priority in the company's strategic planning.

2. Current Situation of Products and Downstream Factories

Nicewell’s product line covers various forms of edible gum base, such as powder, granules, thin sheets, and thick blocks, which are widely used in chewing gum and some food processing industries. As an important supplier in the industry, the company continuously optimizes product performance to meet the demands of different markets. The company's official website (https://en.wuxi-gumbase.com) showcases its complete product catalog and application areas.

From the perspective of the downstream market, Nicewell’s customers are mainly distributed in Asia, Africa, and Europe. The Asian market (including China, India, and Southeast Asia) has a large demand and stable growth, with the main customers being local food enterprises. The African market has grown rapidly in recent years and has a high demand for cost-effective gum base products, but the supply chain system is relatively unstable. The European market, on the other hand, has strict requirements for product quality, food safety certification, and environmental protection standards, and the industry competition is relatively intense.

3. Main Factors Affecting Downstream Factory Purchases at Present

When purchasing edible gum base, downstream factories consider multiple factors, among which the most crucial ones include:

Product Quality: The stability and safety of product quality are the core considerations for downstream customers. Besides basic physical and chemical indicators and consistency in taste, food safety certifications (such as ISO, KOSHER, FDA) are also important bases for purchasing decisions. In 2023, Nicewell was forced to return 100 tons of goods to European customers due to microbial contamination caused by damaged packaging during domestic transportation, resulting in a direct economic loss of 2 million yuan. This incident highlighted the importance of quality control and packaging optimization.

Price Competitiveness: Under the premise of ensuring quality, price is a key factor influencing purchasing decisions. Customers usually compare the unit price of different suppliers (especially the bargaining power in bulk purchases), long-term cooperation price discounts, and cost savings brought by supply chain optimization (such as local procurement and reducing intermediate links).

Supply Chain Stability: Factors such as logistics efficiency, inventory management, and production scheduling directly affect customers' purchasing decisions. For example, in 2023, 25% of Nicewell’s customer complaints were related to logistics delays, which had an adverse impact on order delivery. The security of logistics is also crucial. Issues such as damaged packaging and improper storage conditions can affect product quality and customer confidence.

Customer Service and Financial Support: In addition to focusing on the product itself, downstream customers also have high requirements for the flexibility of payment methods, after-sales service, and technical support. For instance, some customers need more flexible payment methods, such as deferred payment and credit limit support, to reduce short-term financial pressure. Improving customer service levels, such as providing prompt technical support and after-sales service, helps enhance customer loyalty and increase the willingness for long-term cooperation.

Product innovation capability: The development of new products and technological innovation can bring new market opportunities to downstream manufacturers. The R&D investment of suppliers, the speed of new product launches, and market adaptability are all important considerations.

Environmental protection and sustainability: With the global emphasis on environmental protection and sustainable development, downstream manufacturers also consider whether the production process of edible gum base is environmentally friendly and meets the requirements of sustainable development.

Compliance with regulations and standards: The regulations and standards in the food industry are constantly changing, and customers are increasingly concerned about whether suppliers comply with the latest international food safety and environmental protection regulations. Suppliers that meet strict regulatory requirements can reduce the business losses of customers due to compliance risks.

Market reputation and brand influence: The market reputation and brand influence of suppliers are also factors considered by downstream manufacturers. A good brand can increase the trust and market competitiveness of downstream products. Customers are more inclined to cooperate with suppliers that have a good market reputation and high brand recognition. International certifications, exposure at industry exhibitions, and customer word-of-mouth can all enhance market trust.

Product customization capability: Some customers (such as Mars) have special requirements for gum base, so customization capability has become an important competitive advantage. For example: providing customized formulas (adjusting taste, elasticity, temperature resistance, etc.). Responding quickly to order changes, shortening the development cycle, and improving customer satisfaction.

4. Optimization Strategies For Gum Base

To enhance the international competitiveness of Nicewell's products, this article will conduct in-depth discussions from the following main directions:

4.1 Product quality and safety
With the increasingly strict global food safety standards, downstream customers have higher requirements for the quality consistency, microbial safety, and packaging integrity of edible gum base. Taking the feedback from Western European customers in 2023 as an example, Nicewell's granular gum base is prone to external contamination during long-distance transportation and does not meet the strict food safety standards of the European Union. Therefore, the following measures are recommended:

Optimize packaging solutions: Use higher-strength packaging boxes and introduce automated packaging equipment to increase packaging strength by 10% and ensure that products are not contaminated during transportation and storage.

Enhance the quality inspection system: Introduce stricter quality control standards throughout the production process, increase the frequency and accuracy of microbial safety testing, and ensure that all products meet international standards (such as ISO, HACCP, FDA certification).

Establish a traceability system: Apply digital tracking technology (such as RFID) to ensure that the entire process from raw material procurement to final delivery is traceable and increase customer trust.

4.2 Supply chain stability and risk management
In terms of supply chain stability and risk management, logistics delays have become one of the main sources of customer complaints, with a proportion of 25% in 2023. To improve logistics efficiency, it is necessary to prioritize the optimization of the logistics system, introduce RFID technology for intelligent tracking, and aim to reduce the logistics delay rate to 10% within the next year. In addition, a diversified supplier layout should be established to reduce dependence on a single supplier and ensure the stability and risk resistance of the supply chain. At the same time, deepen cooperation with third-party logistics companies, optimize transportation routes and warehouse layouts, improve transportation efficiency, and reduce logistics costs.

4.3 Innovation capability and technological development
Technological innovation is a key factor in enhancing market competitiveness and is the core direction for Nicewell to improve its competitiveness, with the highest priority. Industry leader Wrigley launches over 200 new products each year, while Nicewell's innovation speed is only 30% of that. To narrow the gap. In 2025, it is planned to add 5 million yuan in research and development funds, focusing on the development of functional gum bases, such as rubber-free gum bases, low-density gum bases, degradable gum bases, and vitamin-rich gum bases, to meet the global trend of healthy consumption. At the same time, strengthen cooperation with universities and research institutions to promote breakthroughs in gum base technology and establish a dedicated innovation laboratory to accelerate the research and development and market application of new products. Optimize the R&D process, shorten the product development cycle, and improve the market adaptability of new products to ensure the launch of at least 5 to 10 competitive new products each year, thereby enhancing the company's technological advantages and market competitiveness.

4.4 Price Competitiveness and Cost Analysis
Nicewell's unit production cost is 12% higher than the industry average, which has affected its market competitiveness. To optimize the cost structure, it is recommended to optimize supply chain procurement by cooperating with local suppliers to reduce raw material procurement costs by 10%. In addition, introduce lean production management to reduce waste in the production process, improve production efficiency, and lower the unit product cost. At the same time, adopt a small-batch and multiple-purchase strategy to reduce the risk of market fluctuations after locking in prices, and conduct regular cost structure analysis to identify further cost reduction opportunities. Meanwhile, promote production automation and introduce intelligent production equipment to reduce labor costs and improve production efficiency, which can reduce operating costs by 15% in the long term.

4.5 Payment Methods and Financial Terms
Flexible payment methods are one of the important factors in attracting overseas customers. Some overseas customers, due to significant financial pressure, hope to obtain more flexible payment terms. Therefore, it is recommended that Nicewell optimize its existing payment methods and add multiple options such as D/A, D/P, CAD, installment payments, letters of credit (L/C), and deferred payments to meet the needs of different customers and enhance the attractiveness of cooperation. At the same time, strengthen the management of accounts receivable, shorten the collection cycle, optimize cash flow conditions, and reduce financial risks. Additionally, cooperate with banks and financial institutions to provide supply chain financing support to customers, helping them alleviate financial pressure and further enhance their willingness and loyalty to cooperate.

4.6 Market Reputation and Brand Influence
Nicewell still has considerable room for improvement in brand recognition in the international market. Compared with leading enterprises in the industry, the company's investment in market promotion and brand building is relatively limited. To enhance brand influence, it is recommended to increase industry exposure by regularly participating in international food exhibitions such as ISM, GULFOOD, Canton Fair, and FIC (Shanghai Food Additives Exhibition), and leverage industry exhibitions to increase brand awareness. At the same time, strengthen cooperation with industry media, expand market influence through professional food industry media and social media marketing. Additionally, obtain international authoritative certifications such as ISO, HACCP, KOSHER, and FDA to enhance brand credibility and customer trust. At the same time, establish a customer feedback mechanism, improve the after-sales service system, and conduct regular customer satisfaction surveys to ensure that the company can quickly respond to customer needs, increase customer loyalty and repurchase rate.

4.7 Product Customization Capability
With the increasing diversification of market demands, the demand for customized products continues to grow, especially large food enterprises (such as Mars) have higher personalized requirements for the formula and performance of gum bases. Therefore, it is recommended that Nicewell strengthen market research and develop customized products for the needs of customers in different regions. For example, develop products that meet local climate conditions and chewing texture for the European market, or develop more cost-effective and heat-resistant gum bases for the Southeast Asian market. At the same time, optimize the production process and improve flexible production capacity to shorten the delivery cycle of customized products and improve market response speed. In addition, it offers small-batch customization services, allowing customers to conduct small-scale trial production, enhancing the flexibility of market testing and strengthening customer cooperation stickiness.

Overall, the core challenges currently faced by Nicewell can be summarized into four aspects: brand influence, supply chain management, product innovation capability, and cost control ability. These issues are interwoven and have an impact on the company's market expansion, customer retention rate, and long-term development. The subsequent parts of this article will conduct in-depth analysis around these key issues and propose targeted improvement strategies to help Nicewell enhance its international market competitiveness and achieve sustainable growth.




Author: Wuxi Gum Base
Publication Date: 9/16/2025