Video: Suzan M. Jagger at the 19TH ICIS World Base Oils Conference
LONDON, UK. Suzan Jagger, President of Jagger Advisory, is interviewed at the 19th ICIS World Base Oil Conference, where she presented her paper “Capturing New Value in Lubricants: Preparing for the Road Ahead” (request a transcript). Among her comments:
“Future value growth is being driven by a number of key factors but most importantly it is about capturing the growth of the premium and synthetic product categories. It is also about capturing the growth in Asia Pacific to offset the volume contractions we are seeing in Europe and conventional product categories across the world.”
Jagger is asked, what are the new challenges facing the global lubricants industry?
“First, new technology is disrupting the way we do business and new business models are being tested. On the supply side we have the impact of unconventional oil and gas that flows through our cost and margin structure. NexGen engineering, especially in automotive, that now pulls demand for premium products. And with growing focus on Smart products, Mobility, and Sustainability the industry is gradually finding new ways to monetize these trends.
Second, the growth of the synthetics category in the consumer automotive space is accelerating, providing new opportunities for branded marketers and base oil suppliers. It is happening in both the automotive and industrial sides. And with the greater availability of synthetics technology to marketers around the world, and as more players enter the category, the challenge becomes possible commoditization.
And lastly, the volatility is not going away. The BRIC markets will continue to be a roller coaster and marketers need adaptive models that can deliver value in both the ups and the downs. More than ever, SAP and ERP systems become vital in managing through this volatility.
Looking forward, there is room on the road for value growth and I think if we as marketers and base oil suppliers continue to focus on value, not volume, marketers will continue to support investments in technology and marketing that we need to move the industry forward to meet the new challenges of the OEMs, as well as take advantage of branding opportunities across DIFM channels.”