Cheapest growth stock on ASX, page-35

^Indeed. Uphill battle for any Chinese player with the 2008 milk scandal still reverberating in the minds of Chinese mothers. One reason A2 has likely thrived in the Chinese market is because it ISN'T Chinese; consumers associate A2 with clean, green NZ/Australia. When I see the sheer volume of positive 5 star reviews of the product in China, I see a lot of brand loyalty being ingrained into the market. Think about it: you've got a premium product which you're 100% confident in so far as quality and safety - all for a few extra dollars, versus a local company with ties to an incident that saw the deaths of several babies and the hospitalisation of thousands more. Are mothers really going to play dice with their babies health?

Even if confidence grows in quality of Chinese products, it's not going to detract from A2's position as first mover and the clean/green image associated with it. As A2 themselves have said they welcome the competition; it validates their proposition. The market is absolutely enormous over there and so is the potential for further growth alongside any local imitators.

If A2 can't handle a little competition, then perhaps they should go back home and crawl under their bed. Fortunately though, I think they can and are more than prepared for it.