Actually, quite the opposite. When it comes to feeding their children, Chinese consumers do go for the higher priced, premium options. This is why Australian and NZ companies, particularly brands like A2M, have been successful and why Bellamy's had problems a couple of years ago. Bellamy's started discounting and Chinese consumers saw this as sign of lower quality, causing Bellamy's difficulties with its Daigou distributers.
Ann: Bubs Australia Investor Update - Citi, page-16
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