How input firms are adapting to mature markets
Across Asia, many mature agri‑inputmarkets face slower top‑line growth, rising execution costs, and growing competition from regional players and generics. Simply selling more products doesn’t work when market demand is flattening and margins are under pressure.
This second article zooms into how leading input firms are rethinking how they create and capture value, adoptingnew business models, shifting where and how they operate, and partnering to scale execution in mature markets.
1. From Products to Solutions
The move towards solution selling is reshaping input companies’ businessmodels. This isn’t just about selling inputs; it’s about providing integrated, trusted, customer‑centric solutions, combining advice, finance, crop protection, nutrition and market linkages. Firms are setting up digital incubators and ventures to pilot services like “spraying‑as‑a‑service,” advisory apps, and crop‑specific marketplaces.
2. From Ownership to Orchestration: Partner‑Led Models
In mature markets, asset‑heavy commercial operations often erode profitability. Successful firms are moving from direct control to partner‑led execution. A recent transformation in a North Asia market shows why: facing declining profitability in a mature, highly regulated market, the company decided incremental tweaks weren’t enough. It “launched a full‑scale commercial transformation,” shifting from direct sales to a partner‑led model and transferring sales and distribution to
a local agribusiness. Internally, the team was streamlined to focus on product and brand strategy, lifecycle management, regulation and key account management. The partner, selected through a rigorous process, brought full retail coverage and the largest field force. Early results were encouraging with sell‑in volumes and brand visibility improved, operations became leaner, and EBIT margins increased. Outsourcing execution to a trusted partner while retaining innovation and brand stewardship has become a reference for other mature markets.
3. Multiple Go‑to‑Market Models,Tailored per Segment
Even within one country, growers and channels can differ widely. In one mature East Asia market, a crop protection player shifted from direct sales to an industrial sales model, reducing OPEX while focusing on product innovation. The
leaner model delivered a significant EBIT improvement. Elsewhere, companies have piloted tiered retailer loyalty programs to drive engagement and sell‑through in markets where retail networks are consolidated. The lesson is
that no single GTM strategy fits all territories. Firms are running multiple archetypes side‑by‑side: direct sales for high‑value growers, partner‑led models for mature segments, and digital or e‑commerce channels for fragmented
or low‑margin regions.
4. Scaling Through Ecosystem Partnerships
Building new business models often requires capabilities that input firms don’t have in‑house. In the digital farming program cited above, the strategy emphasises accelerating partnerships with local players to build capabilities and scale. Ecosystem partners include drone manufacturers for precision spraying, financial institutions for micro‑credit, tech platforms for advisory apps, and local agronomy experts. In mature markets, partnerships with established distributors
and local ag‑companies allow input firms to extend reach and reduce cost‑to‑serve without large, fixed investments. The key is to design joint governance and profit‑sharing structures that align incentives and protect innovation.
A Thought to Close
Mature markets may seem to offer limited growth, but they are fertile ground for business model innovation. Companies that shift from product sales to outcomes, from ownership to orchestration, and from one size fits all to adaptive GTM will sustain relevance and profitability. The journey is iterative and context specific, but the direction is clear: embrace change, work with partners, and focus relentlessly on delivering value to growers and the food chain.
If you’d like to discuss how these strategies could apply to your portfolio, we’d be glad to connect.