European milk powder huddles on the beach in China

As the Spring Festival approached, many foreign milk powders entered the Chinese market in the year. Yesterday, German Xibao milk powder officially landed in the Chinese market two years after preparation. At the same time, many imported infant formula milk powders in Europe, New Zealand, Australia and other regions slammed preferential policies for tariff reduction at the beginning of the year, and they also knocked on the door of the Chinese market. . A large number of foreign milk powder entered China, enriching consumers' choices, but it will face an impact on the domestic dairy industry.

20 new foreign milk powders added in two months

Yesterday at the site of the German company Xibao, the brand's international sales director Ms. Kathryn Read said in an interview with this reporter that Germany’s Xibao’s market share in Germany is about 24%, and China is the world’s most important market in addition to the German home market. Currently, Xibao has certain sales in the Asia Pacific and Vietnam markets. Into the Chinese market has been prepared for two full years.

In an interview, the reporter learned that German Shibao milk powder tried to enter the Chinese market 10 years ago, but it was abandoned due to the lack of a suitable partner dealer. This time back to the Chinese market, prepared for two years, carefully studied the Chinese infant milk powder market competition, consumer demand. Xibao has only boxed products but no iron canned products in China. In order to grab the Chinese market, the company has specially launched tin cans. The first tin cans of baby milk powder have been sent to China.

After the tariff reduction policy was announced, foreign milk powder from New Zealand, Australia, and Germany began to gather and enter the Chinese market. According to incomplete statistics, the domestic infant milk powder market has annual sales of about 50 billion yuan, with sales of 500,000 tons, while the average imported brand of milk powder has increased by an average of 10% each year, with about 50,000-60,000 tons. From the end of last year to the present, the number of foreign milk powder brands entering the country has increased by nearly 20, of which European brands account for about half.

According to Chen Lianfang, dairy analyst of Beijing Oriental Agritech Consulting Co., Ltd., milk powder from Europe and other regions has entered the Chinese market one after another. Apart from Chinese consumers' demand for foreign milk powder, there is also a good Chinese market for making money. The same product is common in domestic prices. Higher than foreign countries, equivalent to RMB at least 30%.

Half of the market is foreign milk powder

The reporter learned from some supermarkets in Wuhan yesterday that there are many brands of infant milk powder and more than half of foreign milk powder brands. In the mother-and-baby shop, foreign brands even account for more than 90% of all brands of infant formula.

Maternal and Child Health Hospital near the provincial number of maternal and child stores, Abbott, Mead Johnson and other foreign brands sell well, the majority of foreign milk powder from Europe, New Zealand and other places. In supermarkets such as clothing retailers, the number of domestic brands is relatively large, in addition to brands such as Yili, Shien and Yashili, Bein America and Ausnutria. There are only a handful of domestic milk powder products sold in the maternal and child stores, and they are sold in an unremarkable position. Over 90% of them are foreign milk powders, and some are all foreign milk powders. They do not sell domestic milk powder at all. Her mother's Purchasing Guide said that the sale of foreign milk powder is significantly better than that of domestically produced milk powder. Most people will choose foreign milk powder. In order to make profits, it is necessary to cater to the needs of customers. Therefore, they basically only want to sell foreign milk powder.

A milk powder supplier in Wuhan said that Chinese families are not the same family as foreign families. Generally, there is only one child. Parents will choose the best milk powder to feed their children. Coupled with frequent domestic dairy industry problems, consumers have formed a misunderstanding of only choosing foreign milk powder. “A large amount of foreign milk powder has entered the domestic market. Although consumers have a lot of choices, for the domestic milk powder, it has brought market shocks. At the same time, many foreign milk powders with uneven quality have also taken the opportunity to enter China.” Insiders believe that Consumers should choose brands when they choose milk powder brands. For foreign brands with more negative news, they need to be carefully selected.