isn't the whole reason China is in this situation (distrust of...

isn't the whole reason China is in this situation (distrust of local brands) because of the incidents that happened around 2008?

https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal

Sure you can put policies in place to try and boost consumer confidence and promote local brands however if you eat food at a dodgy restaurant and get sick I can guarantee that you won't be going back there. Such was the distrust of local brands that buyers were using friends and relatives to ship them tins of baby formula from Australia which evolved into a market of its own.

I think A2 has actually positioned itself perfectly in this space as not only does it have an already strong following, it also has CDFA certification and it also markets itself as a premium brand which I think local brands will struggle to compete with. Local brands could pick up the bottom end of the market and steal market share from brands like Aptimal however A2 as a brand and also the fact it is from AU/NZ positions itself as a premium brand and the pricing and margins also reflect that, if you are in the market for a Porsche you are not going to be persuaded by the awesome value of a locally made Greatwall.

That being said A2 also has a very small market share, I think we were around 5% from the last report so while the lower and middle end of the market might start to see a lot of competition, I think we are sitting safe at the top end.

As with any product people are always willing to pay more for better quality imported goods and people that can’t afford them were never going to buy them in the first place.