Source:Zhongtong Observation

getUrls?link=e3d323feb9f440ce2620f693e557adad - Arla Baby and Me®:Back to the essence, products drive growth

Speech | Yashili Group Deng Weijun, Deputy General Manager of Imported Brand Milk Powder Division

getUrls?link=881c9501b3bbdb6a8a1eb4d858568b41 - Arla Baby and Me®:Back to the essence, products drive growth

Imported by Yashili Group Deng Weijun, deputy general manager of the branded milk powder division

He who wins Sichuan wins the world

Sichuan has a pivotal position in the entire Chinese mother and baby market.

Different from provinces such as Anhui and Henan, the business pattern of the infant and child industry in Sichuan is dominated by maternal and infant chains, supplemented by modern channels. There are many maternal and child chains in Sichuan with sales of over 100 million yuan. The maternal and child market structure can be described as a battle for hegemony and separatism between the princes. Those who win Sichuan win the world, and those who win the Sichuan mother and child chain win the power of Sichuan.

Mother and baby stores have operated more than 50 brands in the past, and gradually reduced to 30, 20, and even now there are only 10 brands in some maternal and baby stores. Channels are becoming more and more important for brand selection.

Especially in this special period of this year, the increase in consumer shopping channels and the serious decline in shop entry rates have affected the profitability structure of stores, and even the three controls of many brands have changed accordingly. The selection has become an urgent matter.

AndWhen channel business chooses, there are usually three latitudes:1. Channel (standard product) 2. Semi-channel (quasi-standard product) 3. Main push (non-standard product).

With the concentration of market share, there are not many opportunities for milk powder brands. Although there is a huge market capacity in Sichuan, it is very likely that there will only be a few main products in the future ( Non-standard products) can survive.

The general environment is declining, and the level of consumer consumption is also plummeting. Consumption levels and even consumption degradation must exist. Objectively speaking, consumers’ shopping has become more rational.

The market share of top 12 manufacturers in 2019 has reached 78%. In the future, the infant milk powder market will further concentrate on top brands. But in any case, the consumer’s choice is the most important, after all, the essence of marketing is to meet the needs of consumers.

Organization becomes a new trend

Everyone’s hard work is to pursue a better life. According to the latest China Health data, many chronic diseases have gradually penetrated into our daily lives.

getUrls?link=304c578188c968c67566d299c0226a36 - Arla Baby and Me®:Back to the essence, products drive growth

Adopting a healthy lifestyle is for contemporary people Is very necessary.

And”organic” is synonymous with”natural”,”healthy” and”safe”, and organic is a way of life.

In the minds of consumers, organic, milk source and authoritative certification are the representatives of high-end. The concept of organic has huge prospects and room for development. From the market, channel, or consumer side, what we will advocate in the future is the concept of organic life.

Arla is the world’s largest supplier of organic dairy products and the largest dairy company in Denmark. Arla is a dairy company China’s brand power has risen to about seventh in the world.

getUrls?link=642da5205e41845537317d4ea1cddb54 - Arla Baby and Me®:Back to the essence, products drive growth

Of course, besides brand power, product power is also an indispensable part .

Return to the essence, product victory

I want to talk about Arla’s product strength from four dimensions:

First, the formulation advantages are differentiated.

All Arla brand series can reach the golden ratio of GOS:FOS 9:1, full lactose formula, free of flavors, hormones, and maltodextrin.

Second, the monopoly of innovative technologies.

As the world’s largest organic dairy producer, Arla has many innovative advantages and technologies. At the same time, it is constantly updating and iterating. Nanotechnology will also meet with you soon.

Third, the supply chain is self-owned.

Arla owns 10,000 acres of its own farms in Northern Europe, which are transported to the factory via its own low-temperature cold chain transportation to achieve one-time milk production within 24 hours.

Fourth, high-end price positioning.

Arla’s price positioning is super high-end. After Phoenix is ​​launched, it will use technology and formula upgrades to once again raise the market price of organic series, lead the new positioning of organic milk powder, and maintain the concept of organic milk powder.

How high-quality products can more effectively drive business growth is inseparable from a suitable business model. We firmly believe that as a brand, we must cooperate with channel partners for a win-win situation and adopt a channel + brand dual-driven business model to go further.

getUrls?link=66ecfe04c0d217b7013737151fd1475f - Arla Baby and Me®:Back to the essence, products drive growth

channel + brand dual drive

First of all, in terms of brand building, Arla has done a lot of work this year, such as high-frequency coverage of TV media in major markets, brand container launches, and KOL traffic stars to increase brand voice Wait.

Secondly, on the channel side, Arla will also implement a differentiated operation method, focusing on 4K (province/city/customer/store) to create a benchmark.

Thirdly, in terms of promotion activities, Arla has large-scale ground promotion activities such as large-scale organic amusement parks, node gifts, and terminal mobile sales project support (themed activities).

Although Arla may not be strong enough at present, we are willing to do our utmost to work hand in hand with channels, move forward side by side, resist the cold winter, and embrace the future.