Core Tip: As the implementation of the infant formula registration system entered the “second half”, the industry competition began to heat up. Foreign infant formula tycoons such as Wyeth and Mead Johnson tried to seize the urban market share through developing new sales channel, while domestic dairy companies began to differentiate through products to break through the current sales jam.
The fourth-tier and fifth-tier cities have replaced the first-tier and second-tier cities and become the focus of the international infant formual milk power company for battling the market channels. An important step of Wyeth last year was the developing of the channels and the efforts of the third and fourth tier markets. Yan Feng, president of Wyeth Nutrition's Greater China Region, said that the domestic infant milk powder brand is doing a good job in the market channel, and Wyeth will learn from domestic brands in terms of channel expansion and brand promotion in the third and fourth tiers’ cities.
Wang Shiquan, chairman of the Treasure of Plateau , pointed out that under the formula registration system, the domestic infant formula milk powder market has entered a fierce competition, while infant formula wild yak milk powder formula is a differentiated product with promising prospects. Recently, Tibet Treasure of Plateau Dairy Co., Ltd. announced that its registered infant formula is officially listed. This is also the world's first infant formula wild yak milk powder registered in China.
According to data released by Nielsen, as of September 2017, although the share of market share of Chinese domestic manufacturers has increased, it is taking only 28.5%, while the proportion of internatioanl brands is as high as 56.2%. Stimulated by the new policy of infant milk powder, the sales of domestic milk powder industry has regained growth, but the overall industry is still optimistic, and differentiated products have become an important means for milk enterprises to break through.
