After the May Development and Reform Commission's Price Division talked about six foreign companies such as Abbott, Dumex, Wyeth, and Nestle, Abbott, Wyeth, and other foreign milk powders were unable to hold the lead and led the rise.
On the 8th, a reporter from the China Economic Times found in a supermarket in Haidian District, Beijing that the Wyeth Golden Sports, New Kinds of Children's Music, and old packaging products with the words “new upgrades†were being sold at the same time, for example, Wyeth’s 1st Phase Gold “ Love music" rose from 235 yuan to 248 yuan, two-stage gold "Gold music" rose from 198 yuan to 223 yuan; Abbott intellectual protection Kang Xibao 900 grams rose from 238 yuan to 261 yuan, two-year-old children's milk by 87 Yuan rose to 97 yuan. Both Wyeth and Abbott’s prices rose by 10% to 15%. The promoter of the supermarket's Wyeth milk powder told this reporter that “Wyeth is currently buying a 4 to 1 promotional event. The old product is no longer produced after it is bought.â€
In response, Wyeth had told the media that the old Wyeth Golden Milk Powder was still being sold, the old version price remained unchanged, and it was sold in parallel with the new formula product until it was sold out. In early June, Wyeth had launched new Wyeth gold milk powders. The content of various nutrients in the new products has been increased, so the price of new products is about 10% more expensive than the old version.
For some of the price-raising behaviors of foreign milk powder companies, will Dumex initiate the plan for the listing of new products, and DMG related people told the China Economic Times that “the position of Dumex brand is to provide more children with healthy and nutritious food. So that they can grow healthily. Therefore, the company did not consider price adjustments at the moment, nor did it have a price increase plan."
"For a long time, Ausnutria will not increase its price, because the price increase is a very cautious decision." Ausnutria executives told this reporter on the 9th.
In this regard, analyst Chen Lianfang of East Iger Agricultural Consulting Co., Ltd. said in an interview with the China Economic Times on the 10th, “Businesses such as changing formulas and packaging can be considered as invisible price increases. However, baby-related products are rigid. Demand, poor substitution, so even if prices rise, consumers will pay.â€
The domestic dairy companies are facing the right to speak in the industry about how milk companies plan to resolve the pressure from rising logistics, labor and raw materials. Related people from Dumex Public Relations told this reporter that “a lot of factors may cause the production cost of milk powder to rise. For example, Raw material prices, energy, logistics, transportation, etc. We will overcome this pressure by strengthening internal management and increasing work efficiency."
“For the pressure from logistics, raw materials and other aspects, we mainly solved it through internal digestion. Ausnutria has signed a long-term agreement with upstream and downstream companies. The long association guarantees the quality and stability of milk sources.†.
According to market participants, the recent price hike strategies of foreign milk powder and domestic milk powder are different. One obvious trend is that most foreign milk powder companies have risen in price, while domestic milk powder companies have not moved.
The person further pointed out that the differentiation of the price higchenism of milk powder companies precisely shows that the domestic milk enterprises have further discourse power in the milk powder industry. This is an important reason why domestic milk powder companies do not dare to raise prices swiftly, and this has led to a fearless increase in foreign milk powder prices.
In this regard, Chen Lianfang said, "Some domestic brands of milk powder face a crisis of confidence, so consumers have a certain degree of trust in foreign milk powder, which may enable consumers to further increase the loyalty of foreign milk powder."
However, why is it that the price of milk powder every time is 10%? Chen Lianfang told this reporter that “because of consumer inertia, some consumers will not easily replace the milk powder brand because of a 10% price increase, while the 10% price increase is basically the upper limit of psychological burden on consumers. After the price rises, the overall price increase of foreign milk powder will be very large."
Chen Lianfang said, “The gross profit of domestically-produced milk powder companies is generally 40%, while the gross profit of foreign milk powder companies is mostly 60%-65%, and the profitability of foreign milk powder is abundant. Therefore, the top priority for domestic milk powder companies is to reconstruct consumers. Confidence in domestic milk powder, regain milk industry voice."
On the 8th, a reporter from the China Economic Times found in a supermarket in Haidian District, Beijing that the Wyeth Golden Sports, New Kinds of Children's Music, and old packaging products with the words “new upgrades†were being sold at the same time, for example, Wyeth’s 1st Phase Gold “ Love music" rose from 235 yuan to 248 yuan, two-stage gold "Gold music" rose from 198 yuan to 223 yuan; Abbott intellectual protection Kang Xibao 900 grams rose from 238 yuan to 261 yuan, two-year-old children's milk by 87 Yuan rose to 97 yuan. Both Wyeth and Abbott’s prices rose by 10% to 15%. The promoter of the supermarket's Wyeth milk powder told this reporter that “Wyeth is currently buying a 4 to 1 promotional event. The old product is no longer produced after it is bought.â€
In response, Wyeth had told the media that the old Wyeth Golden Milk Powder was still being sold, the old version price remained unchanged, and it was sold in parallel with the new formula product until it was sold out. In early June, Wyeth had launched new Wyeth gold milk powders. The content of various nutrients in the new products has been increased, so the price of new products is about 10% more expensive than the old version.
For some of the price-raising behaviors of foreign milk powder companies, will Dumex initiate the plan for the listing of new products, and DMG related people told the China Economic Times that “the position of Dumex brand is to provide more children with healthy and nutritious food. So that they can grow healthily. Therefore, the company did not consider price adjustments at the moment, nor did it have a price increase plan."
"For a long time, Ausnutria will not increase its price, because the price increase is a very cautious decision." Ausnutria executives told this reporter on the 9th.
In this regard, analyst Chen Lianfang of East Iger Agricultural Consulting Co., Ltd. said in an interview with the China Economic Times on the 10th, “Businesses such as changing formulas and packaging can be considered as invisible price increases. However, baby-related products are rigid. Demand, poor substitution, so even if prices rise, consumers will pay.â€
The domestic dairy companies are facing the right to speak in the industry about how milk companies plan to resolve the pressure from rising logistics, labor and raw materials. Related people from Dumex Public Relations told this reporter that “a lot of factors may cause the production cost of milk powder to rise. For example, Raw material prices, energy, logistics, transportation, etc. We will overcome this pressure by strengthening internal management and increasing work efficiency."
“For the pressure from logistics, raw materials and other aspects, we mainly solved it through internal digestion. Ausnutria has signed a long-term agreement with upstream and downstream companies. The long association guarantees the quality and stability of milk sources.†.
According to market participants, the recent price hike strategies of foreign milk powder and domestic milk powder are different. One obvious trend is that most foreign milk powder companies have risen in price, while domestic milk powder companies have not moved.
The person further pointed out that the differentiation of the price higchenism of milk powder companies precisely shows that the domestic milk enterprises have further discourse power in the milk powder industry. This is an important reason why domestic milk powder companies do not dare to raise prices swiftly, and this has led to a fearless increase in foreign milk powder prices.
In this regard, Chen Lianfang said, "Some domestic brands of milk powder face a crisis of confidence, so consumers have a certain degree of trust in foreign milk powder, which may enable consumers to further increase the loyalty of foreign milk powder."
However, why is it that the price of milk powder every time is 10%? Chen Lianfang told this reporter that “because of consumer inertia, some consumers will not easily replace the milk powder brand because of a 10% price increase, while the 10% price increase is basically the upper limit of psychological burden on consumers. After the price rises, the overall price increase of foreign milk powder will be very large."
Chen Lianfang said, “The gross profit of domestically-produced milk powder companies is generally 40%, while the gross profit of foreign milk powder companies is mostly 60%-65%, and the profitability of foreign milk powder is abundant. Therefore, the top priority for domestic milk powder companies is to reconstruct consumers. Confidence in domestic milk powder, regain milk industry voice."
Xi'an JCF Herb Technology Development Co., Ltd , https://www.jcfherb.com