Three questions about the baby milk powder market in the end how?

On March 1st, Hong Kong's Import and Export (General) (Amendment) Regulation 2013 was formally implemented. It was stipulated that the number of milk powders taken out by departing persons should not exceed two cans per person. Offenders were liable to a fine of HK$500,000 after they were convicted. And imprisonment for two years. As soon as the news came out, not only consumers, but also milk powder manufacturers are in a hurry. The most important reason for purchasing imported milk powder from Hong Kong is that the price of imported milk powder in the local market is too high. According to the Fuzhou Evening News (3.4), at present, 900 grams of imported powdered milk on the Fuzhou market are available at a low price of around 300 yuan, while the expensive one is over 460 yuan. However, people in the industry pointed out that the import price of milk powder is only about RMB 100. After the increase in prices of layers of channels, the market's terminal price has increased two or three times.

As early as the sound of the wind, Danone Group and Nestle Group have announced that they will open an official flagship store on e-commerce platforms such as Tmall to sell direct overseas production. Watsons has just announced that it will work with Abbott, Wyeth and Mead Johnson baby milk powder, in the company's full line of online stores, including Tmall flagship store, handheld online store and official website launched milk powder direct marketing business. Both Tmall and Watsons have stated that all imported brands of imported powdered milk from their country of origin guarantee 100% production abroad. They will cooperate directly with brand owners and purchase directly to ensure product quality. Recently, Zhou Bohua, director of the State Administration for Industry and Commerce, said in an interview with the media that the relevant departments have taken measures and are increasing the amount of imported milk powder to ensure the domestic market.

Hong Kong's purchases are blocked, e-commerce, physical stores, and government departments are dispatched. Is it true that China's infant formula milk powder market cannot be separated from foreign milk powder? What is the cause of this infant formula milk market?

Foreign milk powder = absolute high quality? Absolute security?

Strictly speaking, domestically produced milk powder is no worse than foreign brands.

From a qualitative point of view, since the beginning of 2010, the foreign milk powder has been found to have been linked to problems: South Korea's dairy products have been detected with formalin; Abbott and other foreign brands of milk powder have been exposed to insects; Mead Johnson, Nestle, etc. Brand milk powder has exposed metal contamination, iodine excess and so on.

In terms of nutrition, domestically produced milk powder should be the most suitable for Chinese consumers because as a formula milk powder, the nutrients and the amount of added nutrients are determined according to the actual needs of Chinese people, such as physical fitness and nutritional level, and they are produced abroad. Milk powder is different. They are not produced by the actual conditions of the Chinese people. The situation of nutrient addition is not the same, but Chinese consumers are buying in large quantities. As a result, some nutrients are unbalanced. As some children are prone to gain weight, there are also A certain relationship.

Who gave the imported milk powder high living space?

Since the melamine incident, the foreign milk powder brand has frequently increased its prices for various reasons. Although its “upgrading of formulas,” “increasing costs,” or escalation in accordance with new national standards and other price hikes have been exposed by professionals, it is not difficult to see through the analysis that foreign milk powder dares to To say that the price rises, the confidence is nothing less than three aspects: the sluggish domestic milk powder, the domestic consumer confidence crisis of domestic milk powder and foreign milk powder in China's infant market, the right to speak and pricing power.

According to analysis, the foreign milk powder brands accounted for 60% to 65% of the market share of China's infant milk powder, and accounted for more than 90% of the high-end milk powder market in China. They have mastered the pricing power of China's high-end milk powder market. This dominance makes it price hike. Before the melamine incident, the foreign brand's market share has not been so high now, so this is the price that domestic brands lose their trust in consumers.

Domestic milk powder, what is the way out?

The reason why consumers are so obsessed with foreign milk powder, the reason why foreign milk powder manufacturers are so "arrogant", the fundamental is: China's milk powder production enterprises lost their hearts.

Melamine has defeated consumers’ confidence in domestically produced milk powder, making it difficult for people to lose their hearts and minds. China's milk powder production enterprises must give top priority to the safety and security of product quality, continue to standardize the industry development environment, increase brand promotion, and re-establish the image of consumers. Only in this way can we regain the right to speak in the milk powder market. This time, Hong Kong purchases may be a good opportunity.