Sorry, but where in the annual report mentioned A2 is loosing market share? I remember A2 mentioned A2 is the only international brand that increased their market share in China during the Pandemic. The big plummet in revenue is because of the large decrease of sales for English label which unfortunately was relied on Daigou channel in the old time.
I agree Dairy industry is competitive but IF is a bit different story. As a Chinese and also a newly upgrade parent, I am willing to pay extra to ensure my baby's food is safe which is a big problem for China demostic brand. Also, COVID defintely is a big contributing factor for much less Daigou sales as parents in China were afraid of getting COVID because the virus may stay on the IF cans. But now people are more rational about this and a lot of them has changed back to international brand.
Based on recent Tmall sales data, one of the observation I noticed is that how fast Aptamil is getting back to Rank 1 and its market share is way higher than Feihe which is the Rank 1 during the Pandemic period I mentioned. Also, A2 rank is also improved and currently is rank 7 based on sales data on Dec 2021.
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