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Foreign baby formula firms step up invasion of China (2)

(People's Daily Online)

08:20, July 27, 2012

The spot of Shanghai International Children-Baby-Maternity Industry Exposition.

Foreign infant formula companies have stepped up invasion of the Chinese market, Guangzhou Daily reported. More than 100 high-priced foreign infant formula products made their debut at the recent Shanghai International Children-Baby-Maternity Industry Expo, which is widely regarded as a weathervane for China’s formula market. Certain foreign companies even used luxury cars as a stunt to attract sales agents.

The largest number of foreign infant formula products at the expo are from New Zealand and Australia, and the second largest number are from European countries. There was even infant formula from South America. Despite a long list of competitors, foreign formula companies have still set high prices for their products in China. A Swiss infant formula manufacturer explained that the competition at China’s baby formula market is fierce, and the costs of business operation, sales channels, and marketing are too high, so they tend to set higher retail prices for their products in China than in Europe.

A New Zealand-based infant formula company said that any sales agent can be rewarded with a BMW X3 SUV as long as he or she sells 2 million yuan worth of the company’s products, or an Audi A4L if the sales reach 1.5 million yuan.

Read the Chinese version: 洋奶粉送宝马奥迪招募经销商加速进军国内市场

【1】 【2】

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