IMPORT SUBSTITUTION SERVICES

Research

We provide in-depth import substitution research and versatile product commercial, economic, technical and engineering analysis. We perform deep market research and analysis of volumes and size, economic and financial indicators, pricing, manufacturers, customer preferences, and marketing of the original western products on which we further plan to implement import substitution. Our research analysts work with full database of traditional and atypical secondary and primary sources of information. We check all available legal and technical documents as well as find and analyze existing patents on import products, to prepare the solid ground for western product substitution domestically. Our patent attorneys assess the entire patent portfolio, which gives an understanding of technology behind the product, where the importing company is moving in its portfolio in an innovative sense and makes it possible to forecast its next steps. As a part of the investigation, we perform entire process of engineering and technical planning for the implementation of the import substitution project. We study the technical side of an original western product to be later substituted and calculate the budget for creating its prototype (cost of materials, product self-cost, selling price, and profit depending on expected sales volumes). Our research engineers carry out a complete analysis of the particular technology for the import alternative product development. With this research, we are able to predict general doability of a technological novelty implementation as a local import substitution. Such insight into the western competitors and their products provide our clients with deep understanding of the philosophy and product development, helps to choose the correct path to produce own cost-effective domestic analogue, to reduce the budget and timeframe for domestic product production, improve it and save significant physical and financial and resources and huge amount of time. At this stage, based on the results of our comprehensive research and analysis, we provide our clients with clear vision of the full prototype production process and its budgeting, the total project costs and timeframes, what additional competencies are required for the project implementation.

Based on this information our client comes to an understanding whether the project of import substitution is doable or non-doable, feasible and economically unviable, what problems may arise during imported product replacement within the framework of the expected production volumes and, accordingly, make a decision whether implement the project or not.

We provide our clients with:

• Comprehensive research and analysis of economic feasibility and technical/technological doability of the import substitution project;
• Risks and opportunities evaluation within the legal framework and patent portfolio of import analogue;
• R&D, technical/ technological documentation for next stage of prototyping;
• Detailed step-by-step plan for import analogue product development and localization;
• Budgeting and commercial proposal for development of import-substituted analogue;
• Import substitution team formation for the project realisation of our in-house and outsource employees;
• Identifying and preliminary negotiations with western technical specialists who have missing competences and understanding of the production process of the necessary products for import substitution from selected Western companies.

Timeframe: average 3 months

Prototype

After the research stage, we provide our clients with prototyping of Western analogue product/ sample. After the fulfilled research of the entire technical/ technological database available on an import analogue, we start product/ formulations recreation, precisely based on the technical specifications of the original product. Our in-house team carries out the complete prototyping process from scratch and creates the product/ sample with similar functionality or adjusts to the domestic market needs with respect to license agreements. Our professional legal attorneys fulfil the signing of licensing agreements for patented technologies. For the specific tasks, our professional headhunters recruit the necessary external niche industrial engineers from the leading Western companies to fill the technological and knowledge gap. The main task is not only to recreate a 100% analogue of Western product, but also to make it more up-to-date, efficient and/or adjusted to the domestic market requirements. Our engineers perform the industrial design of initial prototype according to customer requirements by means of reverse engineering, 3D CAD modelling and manufacture the final prototype. They create the final technical documentation and blueprints.

Depending on the products, in the case of physical electronic and mechanical housing, based on technical/ technological documentation such as specifications, design documentation, signed patents use, and blueprints collected about the import product at the research stage, we develop its full alternative prototype. Since many products require software, if necessary, our team of professional software engineers also develop integrated software. In case of import analogue with biotech, pharmaceutical or medical background, we involve our internal and external medical doctors, biotechnologists and pharma engineers for such products development. At the prototyping stage, our R&D engineers develop and establish the formulations, so that they fully comply with the technical formulations and requirements of the original product that is being replaced. They prepare the samples to the stage of final production, stabilizing formulas, adapting to the domestic market requirements, and finalizing compositions after initial testing. Our safety assessors ensure product documentation and safety meet the original. They perform needed in-lab trial quality tests and examinations (e.g. microbiological, toxicological, and stability studies). Our composition engineers select raw materials of similar quality for the production of the analogue product, which excludes prohibited substances, especially if the product comes under the bio quality mark, and producers of raw materials who carefully adhere to production technology so that the materials also correspond to the ideology of the original product production. During product development, we also conduct testing of samples by the focus group, to make sure that the analogue product meets all the parameters of the original composition (texture, fragrance, color etc.), has the same action and result, or adjust it to the domestic market requirements.

At this stage, we provide the client with the product prototype/sample with the same functionality as the original product. Nevertheless, such prototype / sample cannot be directly transferred to the production, since it may require final pre-production adjustments such as sizе or other fine-tuning and requires additional financial calculations. We provide our clients with:

• Clear understanding of the functionality and operating principle of the technology based on Reverse, Mechanical and Microelectronic Engineering, 3D CAD Modelling;
• Technical documentation, blueprints, technical specifications development and set-up;
• Industrial & packaging design;
• Integration of electronics;
• Formulations establishment, and stabilization of the composition for the next phase of production;
• Selection of raw materials;
• Product safety control, and quality tests (e.g. microbiological, toxicological, and stability studies).
• Initial software development that provides an understanding of the compliance of the Western product operation.

Timeframe: 6-12 months

Production

In conclusion to the previous prototyping stage, at this stage we completely transform the prototype into the ready for mass production industrial western product analogue and start its full-scale production in the client's country of origin. During professional product industrialization, from the initial fully functional prototype, which does not correspond to some parameters, for example, size, etc., our engineering team finalizes it to an industrial version 100% ready for mass production, based on the provided technical specifications, as well as supplemented with all the documents necessary for production. This is the largest amount of work, which involves the entire production team. We work closely in full synergy with the client’s production team to launch serial production at chosen domestic factories. Together we agree on all production issues, launch a new production site or adapt a client's existing production facilities to release the serial production.

First of all, our teams are building a component base and resource base which includes the search and purchase of the necessary components, materials, technical solutions, building up a technological production process, if necessary, working out the required temperature conditions, special product packaging, making molds for production, etc. We carefully select suppliers of the necessary components, packaging, raw materials, equipment, and technological solutions for the production process of creating a final industrial product. We constantly monitor compliance with the conditions of storage, packaging and transportation of raw materials for components and formulations. For products, which require packaging, our design and marketing team ensures the right packaging and chooses proper package suppliers.

Since we mainly work with extremely complex products that require a high level of scientific and technical knowledge, there is a tendency to create long-term partnerships. With the client’s team, we finalize all long-term contracts with all suppliers, as well as the license agreements, employment contracts with recruited specialists etc.

When all is agreed and ready for production, first, within the framework of narrow collaboration with the customer’s production team, we release a small trial batch of industrial products into production at the client's premises. We check all key performance indicators (hereinafter KPIs) for compliance with the client’s initial parameters. Afterwards, we test this initial batch on the client’s customers, get feedback and, if needed, make the final adjustments to scale it up. Under our supervision, the client produces a larger batch, ensuring quality control, KPIs, making adjustments if needed. After final adjustments, the client is ready to start serial production without limitations in big batches, store it in the warehouse and start sales. If there is a need, we conduct professional factory "baby sitting”.

Only after we make sure that the production process of an analogue product is 100% established, staff trained, all processes are running smoothly without any limitations, initially targeted goals are achieved and the produced goods meet the client’s initial specified parameters (production volume, quality, functionality, and production costs), our team undocks from the client. Quality is always a priority, and since the level of innovative complexity is constantly increasing, it is essential to pursue high-speed innovation and technology trends. Thus, if the new requirements for our client’s product arise along the process of evolution, at the request of the client, we are docking back and help to implement and adapt these requirements.

This production stage includes the following services:

• Complete industrialisation of test prototype for mass production;
• Selection of all suppliers, components and technological solutions;
• Production of the initial industrial batch;
• Adjustments to the initial industrial batch;
• Re-production of the improved product batch with constant increase in production volumes;
• Training of production personnel;
• If there is a need, recruiting of new specialists to the client’s team;
• Full serial production launch;
• “Factory babysitting”.

Timeframe: 12-24 months