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Actives Innovation Grows in India
Posted: December 22, 2009
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Once established in the market, participants must work to retain their position since competition is price-based, stated the analysis. And in addition to inadequate product differentiation, the lack of intellectual property or trademarks for ingredients in this region is a challenge. This deficiency of proper legislation has hindered the growth in this sector, both internally and externally. Indian exporters find it difficult to export ingredients to Western markets because they cannot claim ownership of their products. While India is a major source of raw materials, it does not claim royalties or copyrights on its locally sourced actives, which makes it more difficult for domestic manufacturers to effectively compete.
Thus, in order to compete, Telles stated that it is important to develop products that can be positioned to create brand loyalty and thereby retain customers to create niches that will reduce the intensity of competition. She added that "showing superior ingredient backing through academic research and clinical trials would result in customers developing ingredient as well as supplier loyalty, enabling [market] participants to distinguish their products."