In general management of official data of quality monitoring, inspection and quarantine, China is already the world’s largest importer of dairy products and is a huge and growing market for baby formula. This is not an unexpected situation because in 2015 a child’s law of law was canceled, it is a baby boom in China. By 2040 figures it shows that China’s 24% population will be 65 and higher, this means that the percentage of people will be inactive to work and senior people A great deal can be spent in care. From this date, because young people will not be enough to do so. Due to a series of scandals about eating food events in 2008, more and more young parents love the baby formula very much.
Chinese company added raw oil ingredients for the formula of substance to provide more visible protein material when joining milk. This scandal causes about 300,000 victims and has lost the title of child formula factories. A supplier for Beijing Olympics, State-owned Dairy Company, was involved in busy milk scandal in 22 companies, including Eli.
The attempt to hide this incident from foreign journalists was new by foreign media resources and by attracting global attention to this issue. In the same situation a few years back in Shanghai, Shanghai authorities arrested a group of people involved in the production of American child formula brand Similac counterfeit products with fake labels.
The scandal even destroyed the reputation of large local child formula brands. Otherwise, it gave a big opportunity to easily enter Chinese market for a foreign brand. But being imported, it is not enough to get the confidence from the Chinese parents who are searching for the internet searching for the food. Need to identify the right path to communicate with branches, to investigate their needs in real life and to provide solid proof of product advantages. This is not a secret, other Internet resources popular on Google and West are placed in China, instead of Google, Chinese people have searched the search engine 68,5% of the search engines.
Chinese host hosting China’s website and surfing through the Internet in Chinese only gives the opportunity to be found by potential users. Due to hostile foreign sites in China, it is not difficult to rank on the Bio, the connection and speed of overseas servers from Mainland China can be very incredible due to China FoW Wallwall.
Teach your customers
Increasing child formula costs, the goods are seeing the most cost-effective products. The brand should pay attention to giving more details about mandatory ingredients, this is the value and effect helps to engage Chinese wagons and provide them with the best option. By defining the value of ingredients and source of milk, it makes a strong reputation among Chinese consumers and they believe that the brand is honest and does not hide any information from the young parent.
Cole using the application
The weak confidence in the brands provides a great chance of KOL (*) for an effective tool to create a positive image of your brands. Chinese masses take a lot of time using their mobile phone after major startup and influence in social media. Can be more powerful and popular in China, choosing the right KOL to write the right social to children in their social media, targeting the right audience. Kill two birds with a bird: brand increase confidence and target the right audience.
Registration is a very important price
After canceling “a child’s policy,” it is estimated that in the next five years, 2-3 million children will be born every year, which will make new demand for milk powder. A child born in China is also a huge expense: clothes, food and other baby products, the costs consider the people a lot, while they are planning another child. Development of Chinese economy not only costs but also the income.
Tiger, such as Shanghai, Beijing, Guangzhou, Shenzhen, is opening under 1 “Economic Miracle” in urban areas, the capability of urban citizens to buy expensive goods is increasing in parallel. Formula price is not very important as Chinese consumers choose the child. China’s brands are more popular that are two or more children (33% overall 33%) and access to foreign brands reach 70 percent that do not want to make another child. Focus on the Tire 1 cities where people are usually a child, the higher the income level, the number of educated people is large, the young parents pay more attention to the safety than the cost.
The price analysis shows that there is a profitable and stable industry both in the child’s food market in China. The overall margin for foreign brands sold on Mainland is 60 to 70%, according to research by CMRG and Mintel.