Friday, June 20, 2014

Focus group in China : Milk market can rise again

Focus group in China : Milk market can rise again

According to focus group in China, this product, which benefits from the healthy image of the yoghurt but frees itself from constraints connected to the cold chain, passed from 0 to 500 M € of figure of affair in five years - the billion is aimed for 2015, and benefits from a 60 % gross margin. Among other categories susceptible to grow strongly over the next years, focus groups quote the h-milk, the drinks with yoghurt and with milk, the desserts and the milky snack bars, the organic products.

Importation of milk from New-Zealand to China market

Other opportunity: the Chinese market structurally has a deficit in milk, pulling imports which could quadruple by 2018. Today, these imports are very dependent on New Zealand; importers are avid to diversify their supplies, and ready to establish partnerships with new sources if quality and traceability are assured, said focus group in China.
In this context, the consolidation and the modernization of small Chinese producers also establishes a lever of value creation.

Focus group shows dynamism of online channel

Focus group in ChinaLast track: the dynamism of the digital channels, waited increasing by 60 % a year over the next years, is a great deposit for the international groups. Naturally, the presence on the main sites of e-commerce is inescapable; but it is possible to go much more far to term of commitment of the consumer: for example, why do not to imagine a mobile application allowing, from personal data (weight, size, age, activities, medical balance sheets) to identify dairy products the most adapted for one or his children, and to integrate them immediately into his basket on its site of favorite e-commerce? This idea come from focus group in China and seems very promising in this market.
All these construction sites are in the course of opening, whether it is by the Chinese giants whom are Yili, Mengniu and Bright, or by the big dairy groups of Europe and Asia Pacific. These invest significant amounts in the development of new products (center of R*D created in China by Arla in 2014), and with new channels(canals) (e-commerce for the infantile milk of Fonterra in 2014). Now the French groups have to position, if they want to grow in a profitable way on the Chinese market.

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