https://mp.weixin.qq.com/s/y24efBl3GSIbVCz4ex_DBw?fbclid=IwAR1qNcqlWKQbGeDiufBKrjiVYpmN4r2JWOB3SbDjqWtzQkiPUqrJWDlZ1ZYAt noon on December 14, according to related reports, Abbott Nutrition announced a business adjustment, gradually stopping the operation and sales of infant and children's nutrition products in the Chinese mainland market.
"In the next year, we will cooperate with all relevant parties to gradually stop our Abbott infant and children's nutrition products business in the Chinese mainland market."
Why did Abbott suddenly make such a decision?
According to an internal notification from Abbott, the decision reflects the changes in the current infant nutrition market. At present, there are many companies in the mainland market that can provide corresponding products and services to meet the needs of consumers. At the same time, the ageing population in mainland China is increasing, so Abbott will be committed to providing innovative medical nutrition products based on science. Maternal and Child Industry Watch interviewed Song Liang, a dairy industry expert, for the first time. He pointed out three reasons for "why did Abbott quit?"
"The first reason is that Abbott has had too many brand negatives in recent years, which has caused significant damage to the brand attributes in the minds of Chinese consumers. Of course, this negative information is true or false, but they are magnified no matter what.
The second point is that Abbott has not been very successful in its marketing plan in recent years. Whether it is stabilizing the first- and second-tier markets or advancing the third- and fourth-tier markets, its market share has been declining.
The third point is the milk powder safety incident this year, which had a great impact on Abbott's formula registration in China, which is also an important reason why Abbott had to withdraw from the Chinese market.
"Further talking about formula registration, Song Liang said: "Although the confidence in the Chinese milk powder market has recovered, the market as a whole is unfair. The advancement of the formula registration system has indeed raised the barriers to entry for the industry, but it has a negative impact on the pace of innovation of enterprises. A very big obstacle.
Specifically, Abbott explained the decision: "In the past few years, Abbott has participated in fierce competition in the fast-changing market in mainland China. However, consumer demand for infant and children's nutrition products is changing. Therefore, we decided to focus more on the growing Medical nutrition business, and gradually stop the operation and sales of infant and children's nutrition products in the mainland China market.
"It is worth noting that Abbott China emphasized that its cross-border e-commerce platform will not be affected and will continue to operate.
At present, consumers can still purchase and use related products through various channels online and offline, and obtain corresponding customer service support. In addition, the nutrition business in Hong Kong, Macau and Taiwan remains unchanged.
In addition, in 2014, Abbott spent 230 million US dollars on building a milk powder factory in Jiaxing, and its operation will not be affected.
The Jiaxing factory is still an important part of Abbott's global production and supply network of medical nutrition and infant formula products. It is reported that this project is Abbott's largest investment project in China. Having been deeply involved in the Chinese market for many years, Abbott’s nutritional products business covers the whole life cycle and is suitable for the nutritional needs of different groups of people. Jingzhi, Enmeili infant formula milk powder, and small Ansu full nutritional formula food for special medical purposes are very popular. They are popular in organic milk powder, The special powder track also occupies a certain position.
From the Abbott incident, what is the future development of many foreign brands in China? Song Liang said: " For the development of foreign-funded milk powder in China, although these years have been greatly hindered, we believe that: first, the Chinese market will gradually form an atmosphere of fair competition; second, the Chinese milk powder The future development of the market will still focus on technological innovation, from traditional infant milk powder to the direction of precision nutrition for the whole family, and foreign capital has obvious advantages in this regard.”