China’s Infant food industry shows positive progress
On average, Chinese parents spend more money to feed their children compared to western parents because prices are higher for both powder milk and fresh milk. These higher prices can be explained by the huge demand that puts some pressure on the market since homeland producers don’t have the capacity to satisfy the demand. Moreover, they think that buying infant formula is better than milk.
One important fact that we should highlight concern the end of the one-child policy. It implies that the demand will be multiplied. The consumption for babies also involves food supplement. Mother are advised by professionals to give to their children food supplement from 3 years old to 6 years old. In reality, there are different stages in which the child should eat different product. From 1 to 4 years old , the child need fortified food. Therefore natural lungs tonic and honey foods are welcome. Then from 4 to 6 , the child expresses needs in for bones . Parents can give them growth , vitamin and mineral. From 6 –to 12 , people are looking for product that could reinforce the immune system. enhanced supplement foods. After the government opened the country, many brands made numerous advertisements to promote milk. As a consequence, mother though that infant formula was better than natural milk. According estimation of Market research, if one baby consumes 100g food supplement per day, the baby food market scale will reach more than 80 billion yuan.
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Chinese consumers’ preference for foreign brands
Like many other products, Chinese people are more likely to choose foreign powdered milk formulas rather than domestic ones. Actually, the majority of milk in China is imported but most cereals, meals, and other products are produced locally. Compared to 2010, imports were multiplied by 4 reaching 225 tons. Indeed, they have the budget for that and are willing to pay higher prices because first, they want the best for their children, and secondly, they earn more money, especially the middle class.
Increase in sales
Between 2010 and 2016, in terms of value, baby milk knew a rise of 79%. Chinese consumers moved from premium brands towards super-premium brands. Concerning the way to purchase the products, Chinese parents select online options in other to save time. Indeed, they can compare brands and products very easily and choose the best options. We need to remind you that in China, the e-commerce sphere is very developed especially with payment facilities. On the contrary to western countries, it is normal for people to purchase food online. The largest channel for baby food is now specialist mother &baby stores ( 46%). Food and general retailers have 21 % of the market. Today, more and more manufacturers have their own online shops. The sales get through C2C and B2C channels. Indeed, delivery services, in general, are very common and popular. They are facilitated by big platforms such as Tao bao.
A Market feed by the rise of living standard
If producers keep satisfying the demand in a good way, the market will continue to grow. Indeed, there are many opportunities in this industry since the birth rate is expected to increase as well as parents living standards. We can notice the reduction of rural poverty by 12.32 million people. In parallel, Chinese consumers and their purchasing power keep rising. Chinese parents are more and more demanding. So they pay attention to the quality of products especially because it is for the babies.
How could you sell your baby food products?
Choose a specific segment of the market
If you want to extend your brand to China or to develop a new brand in china, your success will depend on your marketing strategy. Indeed, as we mentioned earlier baby food market is vast and there are subcategories. Consequently, it is better to target a specific category and to adapt your strategy. We can provide you a good analysis of the market from the location to the way you should do your business and choose the accurate distribution channels. Actually, the Chinese market is very large. This is the reason why you need to reduce your market.
Build a strong image
Your brand needs to be a reference in Chinese people’s minds. Because they are more and more demanding it is better if you qualify your brand as a premium or super premium brand. You should remind that in China good quality means high prices. It has to be a part of your strategy. If you decide to have your own e-commerce platform and website, it is very important to work on the design but also the content of your website. You need to pay attention to your image online but also offline because it contributes to your reputation.
Make people choose your brand
Even if, parents have a comfortable income that permits them to pay high prices in order to have the best products, they will be happy to have a discount on the product. This is a way to make them get used to your brand. You should keep in mind that the competition is fierce, so you need to make a difference in order to attract them. Therefore they will make a good promotion for you and talk about your brand in a positive way to their friends and family.
If you want to start a business in the baby food market, feel free to contact us.