75% of Chinese mums feed their babies with Baby milk formula in 2017.
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For some time, the baby products market in China has been growing. Chinese parents spend an average of 500 yuan for their young children. The food industry has seen an annual growth of about 25% due to food shopping for baby and especially the purchase of powdered milk. Let’s first take a look at the state of the market in China and why it’s a very favorable market to enter into before heading to the how to promote your baby milk, shall we?
The baby milk market in China
Safety and reliability of products are one of the main drivers of growth in the baby milk market in China. This desire for security and reliability coming from Chinese parent is largely caused by many scandals in this sector in China.
Moreover, more and more Chinese people join the middle class and see their purchasing power increase, so they can easily more invest in baby products. For Chinese companies, the production of baby milk has decreased by 12% per year since 2010.
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The scandals of baby milk in China
Let us go back to 2008. The Chinese company Sanlu has killed six children and sickened more than 3,000 across the country because of its contaminated baby milk powder. This scandal has taken an international scale and changed the baby milk market in China. It was a national panic and Chinese have become warier of national brands. Many local businesses have had their reputations shattered by this problem put forward on the national scene.
According to the survey done by CCTV, 70% of the Beijing people felt hesitant to buy baby milk powder from Chinese companies.
In 2011, the media revealed that there was still contaminated baby milk on the market. In addition, after the Chinese Association of Quality Control and Quarantine demanded local producers of this sector to renew their licenses, of the139 business license holders, only 70 got their renewal.
An opportune for International Baby Milk Brand in China
Baby milk imports in China are exploding. Since 2008, China imports a large amount of foreign milk. As the most populous country in the world, China is experiencing an increasing demand for milk becoming one of the largest milk markets for baby.
These scandals and the increasingly strong demand for Chinese parents for their young children has become a boon for foreign companies. Having a better experience and more reliable and qualitative products, foreign companies already established have taken a big lead over their domestic competitors. Indeed, although the latest report of the Chinese Dairy product Association shows no difference between milk from Chinese producers and foreign and 99% Chinese baby milk have the quality standards, Chinese consumers are always suspicious.
Mintel 2018 research explained that high-end & niche baby F&B products have great potential in China.
- Organic baby milk formula has experienced a Great adoption rate, explains that Chinese consumers with more spending power are willing to pay more for a Premium Brand for their kids.
More and more foreign companies entrants into this market in China. The French brand Candia has opened several Candia stores in China for milk sales in the country.
The price of baby milk in China
The price of imported baby milk in China is much higher than in other countries. It takes 340 yuan (around 55 dollars) for a famous European brand box of 800 g. The same product is sold only 22 dollars in Europe. Baby milk produced in Germany has become a luxury. While the German brand Muh sells for about 0.74 dollars per liter in German, it sold nearly 3.97 dollars per liter in China.
The importance of e-commerce in this field
China is the most connected countries in the world. Chinese Internet users are more than 600 million and are on average 26.1 hours per week online. 500 million consumers are active online buyers. 300 million Chinese affirm performs at least once per months an online purchase. According to estimates, online sales will represent 539 billion dollars in 2015. Currently, none sector escapes to e-commerce. Companies must be on Chinese internet and social networks to attract Chinese consumers and reach more customers. Alibaba Group’ Tmall, the most popular online shopping platform in China sells since 2013 foreign baby milk. Tmall also opens official baby milk stores for Danone and Nestlé 6 brands. Companies are increasingly likely to sell their products through online trading platforms or through this channel.
Since baby milk coming from foreign companies is pricier than the one sold from local companies, as a foreign company selling baby milk you should insist on three key elements of communication as follow :
Mother & Babies are usually Top sale Volume on CrossBorder Plateform like Tmall Global and JD global
Baby Milk Formula is usually the First Products sold on these plateforms.
Example on jd.hk
E-Reputation is VITAL for baby Milk Brand in China.
These must be well undergrounded Promote on platforms Chinese mothers are used to going to for more information. These platforms would be :
- Baidu zhidao, the largest Q&A community in China where your target customers, the young mother would go and ask the questions about recommended brands.
- Baidu Tieba, with a Tieba about your products
- Social media like Weibo with an official account that could help create a community about your brand and show your expertise in the baby health area, reinforcing your image of an expert brand
- A Wechat account where mothers would be able to reach out directly to you on a one on one discussion that would have a very effective reassuring effect
- Presence in online journals focusing on health where professional especially doctors would recommend your brand as a safe and good product for babies. Doctors are legitimate as the most trustworthy experts in that area
Have a Nicely Design Website is important
To have Brand corporate information is necessary to start Business in China in this industry.
Example the Aptamil Chinese Website
Traffic Acquisition : SEM & SEM on Baidu
In addition, a good SEO strategy would help you appear on top of the results related to baby milk.
This is the basic strategy for promoting your baby milk brand in China, but knowing and doing are two different things. You need experts to deliver the messages the right way.
- SEM is more advertising , so hard Promotion
- SEO is more for long term Research, answer to question and to reach smart Mums that have a lot of questions.
3500 people are searching Baby Milk on Baidu everyday.
Social Media : WeChat
WeChat is the King of Social Media in China. this Super App is used by every Chinese. We can help you to
- Setup Official Account
- Create Nice H5 pages as Ebrochure or Special Event
- Create Attractive Content with nice Design
- Promote the Account to get Followers
We have advanced Strategies to Market baby Milk in China
- Feel be free to contact us.
- We are a Marketing Agencies based in Shanghai
- A Team of 50 marketers
- A good experience in Mother Care Products and Baby Milk in China