High quality and high price domestic milk powder promotes the revitalization of the industry

The high price of domestic milk powder has been widely criticized by consumers, but it is questioned when domestic dairy enterprises launch low-cost milk powder. In fact, at present, domestic dairy enterprises have used the new mode of "global resources + Internet thinking" to break the traditional mode of production and sales, so as to produce milk powder products with high quality and high price. Only when domestic dairy enterprises return consumers with international quality and cost-effective products, can domestic dairy enterprises rise again.

The milk powder market in April is quite interesting. First, the New Hope Group solemnly launched the original imported infant milk powder with a price of only 99 yuan; two days later, Yashili announced that it would also launch low-cost products of about 100 yuan in the second half of the year. At this point, plus Junlebao, which was listed at a low price of 130 yuan a year ago, the 100-yuan low-cost milk powder camp of domestic dairy enterprises is speeding up.

Like Junlebao at that time, the price of New Hope milk powder attracted much attention and controversy both inside and outside the industry. Wang Zhi, general manager of New Hope Nutrition products Co., Ltd., does not agree with the saying that 99 yuan is "low price". "this is the price of foreign milk powder, which has supported the survival and development of foreign milk powder enterprises for decades or even hundreds of years." Wang Zhi said.

In contrast to the domestic milk powder market, high prices have been widely criticized by consumers. According to the analysis of the reasons, the price of domestic foreign milk powder is often two or three times that of foreign milk powder, which mainly lies in the superposition of landing cost, channel cost, brand building, marketing and manpower. Although domestic milk powder has no cost in import taxes and fees, it also leads to high prices due to the control of raw materials, high prices of milk sources, too many channels and business atmosphere.

"nearly 30% of the cost of milk powder is spent on channels and promotion." Dairy expert Wang Dingmian said. For example, when Junlebao milk powder went on the market last year, the reason why it was able to "halve" the so-called mainstream price and price the first milk powder at 130 yuan was precisely because it proposed a new model of "global resources + Internet thinking" to break the traditional mode of production and sales. Junlebao believes that only by rewarding consumers with international quality and cost-effective milk powder can domestic milk powder prices return to rationality and domestic dairy enterprises rise again. In the sales channel, we should give full play to the advantages of e-commerce in short, flat and fast, and save the cost and profit of each sales link in the middle, so as to greatly reduce the cost of purchasing milk powder.

The market is a touchstone. Junlebao's idea has been recognized and responded enthusiastically by consumers. By the end of March, the cumulative sales of the milk powder had exceeded 300 million yuan.

Like Jun Le Bao, the new hope milk powder on the market, also adopts the "global resources + Internet thinking" model. At the source, looking for partners to participate in shares directly from New Zealand, milk powder from cow feeding, production to filling are all completed in New Zealand; in sales, in cooperation with JD.com, the use of JD.com e-commerce platform vertical sales, further reduce marketing costs. Liu Yonghao, chairman of New Hope Group, said, "if the quality is good and the price is cheap, if you do both well, there must be a market."

Industry insiders believe that no matter whether it is 130 yuan of domestic milk powder launched by Junlebao or 99 yuan of original imported milk powder of New Hope, at present, the price of milk powder has basically completed its return in e-commerce channels, and the industry will certainly become more transparent in terms of raw materials, cost and quality in the future.

"the overall trend of China's baby milk powder prices entering the downward channel has become more and more obvious." Song Liang, a dairy analyst, said that under the wave of e-commerce and Haitao daigou, the Chinese market has accelerated its integration with the international market, and the milk powder industry has said goodbye to the era of high growth and high gross profit. Although Jun Le Bao and New Hope's new camp of 100 yuan high quality and high price milk powder is still a "microclimate" in the big market, it is worth paying attention to that the impact of this camp on the market and industry is deep and split. It is believed that the effects caused by this camp will continue to ferment and will eventually become a major trend over time.