Home > Financial Channel > Sankei Shimbun > Text Competitive Analysis of Infant Milk Powder Brands in June 2018: Wyeth Stabilizes the Champion (with ranking)
July 26, 2018, 18:31
Source:China Merchants Research Institute
Editor: Eastern Fortune Network
On July 24th, at the “New China Milk Powder Industry Development Trend Forum” held by Zhongmu New Zealand, according to industry analysts, after the Chinese government strengthened its supervision on the infant formula industry, some did not get the formula registration. The small brands have withdrawn from the market and the market is more concentrated. For most small and medium-sized milk powder companies, the business is getting harder and harder. In the next two years, they will enter the fierce competition stage of “big fish and small fish”. Many small and medium-sized brands will even qiut the market.
On January 1, 2018, the "most strict milk powder new policy in history" was fully implemented. This new milk powder policy is expected to bring about a major clean-up of the industry. Among the domestic milk powder brands before 2018, 103 milk powder manufacturers have nearly 2,000 formulas, and the number of individual companies has even exceeded 180. After the implementation of the New Deal, the number of milk powder will be reduced from 2000 formulas to 500 or even less, and more than 70% of the milk powder brands will be eliminated. In the future, the concentration of the milk powder market will be more concentrated.
According to the latest data: in June 2018, the top three competitiveness of infant milk powder brands were Wyeth, Mei Su Jia and Ai Mei. Among them, Wyeth's market competitiveness is the strongest, the competitiveness is 15.54, and it continues to occupy the championship. Mei Su Jiaer surpassed him to be the second best. In June, the top ten brands of infant milk powder competitiveness are Mead Johnson and Abbott., Yili, Feihe, Nuoengeng, A2 and Nestle. In addition, Mei Su Jiaer, Yili and Wyeth entered the Red List. In the single product list, the 900g specification is more popular.
Source: China Business Research Institute
From the perspective of online brand competitiveness index, the top ten brands of competitiveness are: Guli Fruit, Wyeth, Bellamy, Mei Su Jia Er, Carotani, Yili, Heshengyuan, A2, Abbott and Mead Johnson. Among them, the solid fruit is far ahead with the competitiveness of 76.51.
Source: China Business Research Institute
Future development trends of the industry:
1. Brand concentration is becoming more and more obvious
Whether in developed or developing countries, the concentration of milk powder industry development is relatively high, especially the top brands occupy 80% of the market share. In the future, the domestic brand of infant milk powder, only the top few brand giants are favored by consumers, so these brand enterprises will strive for excellence, comprehensively improve the quality of brand products, and make the development of the industry more centralized.
2. Domestic brands are gradually emerging
According to the latest data released by the State Administration of Markets and Administration, as of June 5, 2018, a total of 1156 infant formula formulas were approved in 152 factories, of which 864 were formulated in 106 factories, accounting for 93%. There are 274 formulas in 46 factories overseas, accounting for 35%. Overall, domestic brands will gradually rise after the new policy of milk powder.
3. Demand growth in the second, third and fourth tier cities is accelerating
Infant milk powder sales channels are mainly: maternal and child channels, e-commerce channels and business channels. Maternal and child channels have absolute advantages in third- and fourth-tier cities. According to the data, the sales of maternal and child stores account for about 75% of the low-level cities and towns. After the implementation of the registration system, the domestic milk powder faucet has the advantages of channel sinking and price advantage. Therefore, under the new policy of milk powder, domestic milk powder has relatively superior advantages, and the market demand for milk powder through this channel will increase in the second, third and fourth tier cities.
4. "Comprehensive two-child" policy provides an opportunity
According to statistics, in 2017, the number of new students in China was 17.23 million, a slight decrease of 630,000 compared with 2016, but the annual average number of births during the “Twelfth Five-Year Plan” period before the implementation of the “Comprehensive Two-Child” policy was 790,000, and it was 2000. The second highest value in history since the year. Obviously, after the implementation of the “Comprehensive Two-Child” policy, there will be a peak of concentrated release of fertility in the period of 2016-2018. The “Comprehensive Two-Child” policy provides a huge opportunity for the infant formula industry.
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