It’s you that got it completely the other way around. Trying to be an armchair general without actually getting out here in the field. Feihe and other domestic brands are the establishments in China. And A2m is the relative new challenger . If you have been to China and know what’s going on in China, you would probably burn all your previous posts.
From Feihe’s report you will come to know the below facts
—Feihe reckon they’re the dominant player in the tier 3-5 cities
— Feihe now thinks the rise in income from his customer base from tier3-5 cities has warranted its premium product roll out
In the 1st and 2nd tier cities , people have seen the domestic brands and have cast their vote for the imported IF not for 1 year but for as long as A2 and Aptamil have been in the Chinese market. And imported IF takes up the top section of the sales Chart in Tier 1-2 cities.
Now A2M is accelerating their store roll out into the Tier 3-5 cities with the help of the business partner official Government vehicle China State Farm
Your visualisation created in your home window from a little hole that watches the moon in Australia sees things upside down. Just like when mechanism of photo imaging was first discovered. Upside down. And you need to add another mirror in the imaging box to turn the thing back up.
The visualisation should be
People from Tier 3-5 cities walk into the M&B shops and find out to their surprise their previously liked Feihe is now offering a premium product. But more to their surprise , the proverbial A2 product that sells like hot cakes in coastal cities are now available from their local shops and in terms of pricing it’s on a par with their Feihe. Ermmm you talk about competition?
You now understand why the sales in China expanding fast. It’s not that Tier 1-2 city mums are having more children, it’s that Tier 3-4 mums are seeing A2 appearing in their own local shops.
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