In Chinese numerology, eight is the luckiest number. In Cantonese, it sounds similar to the words for both “wealth” and “fortune”. The Beijing Olympics opened on 8/8/08 at 8 seconds and 8 minutes past 8pm. And in 2003, a phone number made up entirely of eights was sold for over a quarter of a million dollars to Sichuan airlines.
So, when we decided to write a blog about the unique features of the Chinese formula market, it seemed only right to ofer you eight key facts:
It’s the only formula market in
the world with over 2000 brands
Quality is the most important
driver of consumer choice
High competition has not led to a scenario where brand matters more – instead properties that relate to quality are more important. The two most important factors driving choice of product are health benefits and safety. That’s why consumers want the benefit of sn2 palmitate (OPO), for example, and are seeking out products that contain high quality ingredients
It includes large premium and
super – premium segments
The value that Chinese consumers place on quality ingredients such as OPO has created a distinct hierarchy in the formula market. There are not only premium products, but also super-premium products. And the super-premium segment is growing – in 2013, it accounted for 14% of the formula sold in Chinese baby specialty stores. By 2014 that had grown to 18%.
In Chinese baby specialty stores
Prices are higher than in many
The emphasis on quality means that consumers in China are willing to pay more for formula. Price is considered an important driver of product choice by only 17% of consumers, and ranks lower even than considerations such as place of origin, raw materials and taste.
Price is a minor factor
Consumer Research Report 2014, October 2014
Local Vs Global Brands
Local Vs Global Brands is a key battle in recent years, importers in Australia and New Zealand in particular have recognized the potential of the market, and beneﬁted from high levels of trust in overseas brands. However, new import regulations have begun affecting their profits
E-commerce is increasingly
Imported Baby Formula’, Wall Street Journal, Aug 2, 2016
The relaxation of the Single Child
Policy is cause for optimism
Consumers are extremely
knowledgeable about ingredients
The Chinese not only want their children to be as healthy and comfortable as possible, but are also extremely well informed about the quality of formula ingredients. They know far more, for example, about the benefit of OPO (such as INFAT® OPO) than consumers elsewhere.