It also comes down to price and perceived value for chinese mothers.
The retail daigou avoided the local taxes so the chinese consumer were purchasing product at a lower price than buying the product through cross border e-commerce channels. Lets hope some of these mothers remember A2 milk when having their 2nd and 3rd children.
I agree that we will struggle to reach the same growth pre covid ( at least initially) but you have to also factor in the size of the chinese market (3 child policy) and the other new product innovations we will hear about shortly. As I said previously, A2 has to invest more in their liquid fresh and UHT milk, and leverage their brand into health and nutritional products like their manuka honey milk powder.
A2M Price at posting:
$5.73 Sentiment: Buy Disclosure: Held
(20min delay)