Imported milk powder turns price experts say or save "killing" factor

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Following the price increase at the end of last year for many imported brands such as Wyeth and Meso, at the end of March this year, imported brands such as Mead Johnson and Nestle also issued price notifications in succession. The price of imported milk powder was changed in turn, and consumers were feeling "can't afford it!" Many people still said that in the face of “fail to feed” and “security is more important”, loyalty brands are also helpless.

The price of imported milk powder was changed in turn, and consumers were feeling "can't afford it!"

Experts believe that, in addition to cost pressures, consumers’ dependence on imported brands has also contributed to the price increase. Indeed, the reason why imported milk powder has risen again and again with unbridled inflation is to take a fancy to the dependence and loyalty of Chinese consumers on imported milk powder. China is a major producer of powdered milk. In 2011, China produced 1.385 million tons of milk powder, but why Chinese consumers lacked enthusiasm for domestically produced milk powder?

At present, Mead Johnson and Nestlé's two brands of milk powder have issued price notifications. Prices will increase by 13% and 10% respectively from this month. In Zhengzhou, Henan Province, a number of major supermarkets in the dairy area, the reporter saw, Nestle can Engen Shield 1, paragraph 2, and other sections of the Golden Shield have changed the price of milk, to adjust the price. A person in charge of a supermarket dairy district in Zhengzhou told the reporter:

Responsible person: Nestlé had already greatly increased the price the day before yesterday. The rate of increase was basically 4-5 blocks per bag. Mead Johnson did not receive this notice, but it should probably rise in the next two days.

For the adjustment of the price of milk powder, a staff member of the Mead Johnson factory explained that it was mainly affected by the cost.

Staff: The reason is that the price of raw materials and labor has risen, and we have never raised the price. Now because the cost pressure is too high, we must raise the price.

In fact, this year, "foreign milk powder" is not the first price increase. The reporter visited the dairy supermarkets of supermarkets in Zhengzhou and discovered that imported milk powder brands such as Mesophyll, Abbott, Wyeth, etc. have all increased prices in different forms.

A supermarket dairy sales manager in Zhengzhou: Abbott’s most obvious, it had sold more than 240, and now sells 272.

For frequent price increases of foreign milk powder, some Zhengzhou consumers said they could not afford it.

Ms. Zhang, a citizen of Zhengzhou: If you say 200 yuan, if you are younger, you may eat half a month, eat a bucket a bit longer, and you do have a lot of money.

At the same time, many parents said that after the domestic milk powder was frequently trapped in the “quality door”, it would inevitably affect their trust in domestic milk powder. However, if the imported brands of milk powder continue to increase prices for some time in the future, they will consider replacing the relatively low-priced domestic brands.

Parents: Domestically, it is more affordable than imports. If you follow the law of imported milk powder, your milk powder at home will spend at least two to three hundred dollars for a month, but it will not be replaced by domestic ones.

In the interview, many consumers also stated clearly that compared with domestic brands, they believe that the quality and safety of foreign milk powder are more trustworthy, and even if the prices increase, they still buy it:

Reporter: After the price increase, will you still buy this powdered milk?

Consumers: I think if I were to, I would surely. I think the baby can drink well and how much it can cost.

Consumers: The factors of price increase I think less, mainly because there will be problems.

Song Xiangqing, executive vice president of the Henan Provincial Business Economics Association, analyzed that the price of imported milk powder is getting more and more intense. In addition to being affected by production and circulation costs, the role of the people’s trust and loyalty in their brand can not be ignored.

Song Xiangqing: First, the increase in the cost of raw materials and labor, resulting in passive price increases, in addition it uses the psychological dependence of the national foreign brands, in order to pursue higher profits formed by the active price increases. The first price increase is a normal price increase, which can be understood and accepted. However, I think that the second price increase is a kind of “killing” phenomenon. From marketing skills and the pursuit of corporate profits and other aspects can be understood, that is, the oldest customers with the most brand loyalty are not merciless, do not loyalty slaughter phenomenon.

The high price may not be high quality. Behind the rise in prices of foreign milk powder, an endless stream of “quality doors” cannot be ignored. Mead Johnson "metal doors", Wyeth "insect pest door", Meiji "recall door", Abbott "casein door" and other negative news frequently appear, and consumer loyalty does not seem to have been severely hit. Song Xiangqing believes that the experience of building a foreign brand system is worth thinking deeply about domestic dairy product manufacturers:

Song Xiangqing: Local brands must fully understand the reason why foreign brands are highly trusted by the people. One is quality, and the other is brand. Local brands must pass technological innovation, so that the quality of domestic milk powder can surpass foreign brands, and the price is excellent. Yu Yang brand. At the same time, focusing on the shaping of the corporate citizenship, the national milk powder brand can truly stand out in the market competition and gain the trust of the nationals and even foreign nationals. In addition to corporate interests, local brands should also treat this issue on the basis of national branding and national economic development. This must be done not only in terms of quality, but also in branding, national trust, and The overseas brand respects us.

For infants and young children, milk powder is their future health. In fact, in the final analysis, Chinese consumers’ reliance on imported milk powder is absolutely a last resort. If the quality of domestic milk powder can make people believe, why should they buy these imported high-priced milk powder?

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