Higher pricing appears to help with the perception of a premium brand. After the Chinese baby milk scandal in 2008 (Chinese companies were adulterating product with melamine), Chinese parents looked to source milk for their children from countries that had high standards of quality and consumer protection - Australia and NZ. They are prepared to pay up for that and expect to be charged higher prices. Higher prices reinforce their perception of quality. Lower prices reduce their perception of quality.
The competitive advantage is the quality and standards that Australia and NZ is known for. Leveraging that advantage allows us to charge higher prices.
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