"Chinese brands feed Chinese babies". Although foreign milk powder is popular in China, foreign monks are not localized enough after all. Due to different physical conditions, many babies still suffer from allergies and eczema when they eat foreign milk powder. In fact, the best-selling milk powder in the UK is Niulan milk powder, and in Australia it is Karicare milk powder, rather than an American multinational brand, which dominates the market, so will there be a similar local brand in China in the future, which is both relevant to Chinese baby constitution and international quality? "We want to be one of them," said Lu Minfang, Yashili's president. Statistics show that in the current Chinese milk powder market, domestic milk powder accounts for 45%, while foreign milk powder accounts for 55%. China does not have a very strong brand.
From the world, using China's "internationalization"
At the end of 2015, Mengniu and Yashili jointly announced that Dumex China, a milk powder brand owned by Danone, would be sold to Yashili. Some analysts believe that after the acquisition of Dumex, Mengniu is likely to become the largest domestic milk powder brand market share with its three brands, Yashili, Dumex and Junlebao. This is the beginning of the outside world placed high hopes on Mengniu, and also the beginning of Yashili in the field of domestic milk powder by leaps and bounds.
In order to create a professional and international image, Yashili imported products from world-class factories in original containers, which are now on the market in China. "There are overseas bases. This is an international step. This year, the emphasis is on quality and internationalization. We have supervision from both China and New Zealand, and the European standard and high-quality milk source system is the endorsement of our international resources." In the future, the New Zealand plant will produce base powder, including finished products, for Danone, Mr. Lu said, marking the first time a domestic company has done contract manufacturing for a global brand and a milestone. It is reported that the overall breast milk study will be completed by the end of 2016, Yashili will use the University of Auckland, New Zealand, Danone's international research, to develop the most suitable for Chinese children the most ideal product.
According to the industry, the essence of the "new domestic product" image created by Yashili is that "foreign" is used by the country, and the new domestic product is the global milk source, global technology, global supply chain, feeding Chinese babies.
Channel sorting, supply chain integration highlights innovation
However, "New domestic products" also faces the impact of the overall industry slowing down, intensifying market competition and changing policies. Since the first half of 2015, Yashili has continued to transform the sales model of maternal and infant products and e-commerce channels, sorting out the sales channels and reforming the marketing model. However, the implementation and effect of the new marketing strategy require time and cost input. In addition, Yashili began to increase promotion efforts in 2015 to cope with fierce market competition,
Yashili said that in 2016, Yashili will strengthen channel transformation, front and back office resource integration and management team operation efficiency and other measures to improve their ability to cope with the market, to capture favorable competition opportunities. In terms of maternal and child channels, Yashili will realize brand transformation by focusing on maternal and child chain, relying on channel thrust + brand pull, and relying on high-end products such as Super A-gold and Arla series. At the same time, maternal and child channels are supported from the aspects of media publicity, brand promotion, community activities and system management of directly operated stores, so as to accelerate the product market laying, promote the marketing of directly operated stores, and improve the sales level.
In the e-commerce channel, Yashili performance growth is very fast, won the first place of milk powder e-commerce new domestic products. Starting from 2016, Yashili said that it will establish a new model to promote cross-border e-commerce, realize channel subsidence, and increase the proportion of e-commerce channel sales from 10% to 15%.
Some industry insiders believe that, after the merger of Dumex, Oshi Mengniu and strategic cooperation to introduce Arla super high-end brand, the integration of domestic and foreign high-quality resource platform, the performance of 2016 is expected to be significantly improved, operating profit will be greatly improved. Yashili also said that it will complete the all-channel transformation in 2016, and strive for 55% of the infant milk powder business from maternal and infant and e-commerce channels. The results of the transformation will be gradually reflected in 2016, and the performance is expected to improve to some extent in 2016.
Yashili's innovation is also synchronized with the parent company's strategy development. In the past year, Mengniu President Sun Yiping and her team, guided by "innovation", designed the core strategy of "internationalization + digitalization" for Mengniu. Sun Yiping said: Mengniu continues to join hands with the world's top strategic partners, integrate international resources, upgrade the technology management system, and constantly improve milk sources, products, brand strategy, sales channels and information management, and continue to devote to the "internationalization" and "digital" development process. In addition, Mengniu actively builds an advanced R&D and innovation platform, creates a win-win alliance ecosystem by building a "circle of friends" in the dairy industry, and promotes the long-term sustainable development of Mengniu.
