Following the sales report card of 35.5% year-on-year growth in China’s milk powder Market in the first four months of this year, organic dairy giant Arla from Denmark also maintained a high growth trend in the first half of this year.
The world’s largest organic dairy producer revealed during the Shanghai Baby Show (CBME) that in the first half of this year, the group’s international market business (including the Chinese market) experienced the highest growth rate in the past 10 years. Among them, the group’s strategic infant formula brands baby and me also maintained double-digit growth in the Chinese market in the first half of the year.
Under the new situation of global epidemic challenge, Arla Arle not only has new thoughts on its own business development, but also talks about the specific ideas of realizing the strategic goal of “top 10 brands of Chinese infant formula milk powder within 5 years”.
Today, snack food agents learned that Arla Arle knows more about organic milk and Arla baby and me organic infant formula milk powder series will also be displayed at the third China International Import Expo in Shanghai early next month.
Let’s take a look at the details.
The fastest growing Chinese market in the world
At this year’s Shanghai children’s show, Arla al Le displayed many baby milk products such as baby and me on the booth, including baby and my organic organic formula milk powder (baby and I organic 4 segments) introduced in the mainland China in the first half of this year. This product is not only the first fully imported organic children’s milk powder in China, but also the first place of this new product in the world.
The company disclosed that the new organic children’s formula had achieved rapid growth after its launch in the Chinese market. “Baby and I organic 4 from the beginning of January to ship, the first three quarters of this year month on month growth rate of about 60% Arla Arle told the snack generation.
In the company’s view, the rapid growth of the new product is due to the addition of DHA, dietary fiber, probiotics and other nutrients in the formula. At the same time, the product is also targeted at children’s segments, “meeting people’s needs for improving children’s immunity under the epidemic situation”.
On the other hand, the sales volume of organic milk powder in the latter segment accounted for 4.5% of the total sales volume of baby milk powder in the whole industry. On the other hand, the sales volume of organic powder in the latter segment accounted for 4.5% of the total sales volume of baby milk powder in the whole industry. “We are still in the fourth stage of the market, which indicates that we are still in an organic market.” According to Arla Arle.
It is reported that as part of the brand’s global expansion strategy, baby and I will be listed in other overseas markets of Arla Arle in the first half of next year. Regarding China as the first global market for new infant formula milk powder, Arla Arle told the food agency that the reason is that China market has become the fastest growing and most potential market for Arla in the world.
The data shows that in the past five years, the sales volume of all categories of Arla Arle in China has quadrupled, while infant formula milk powder has increased nearly 10 times.
According to Mr. xiaoshidai, executive vice president of Arla Arle’s international marketing business, Tim Ø rting J ó rgensen disclosed to the representatives of national distributors in May this year at the online strategy conference of baby and me 2020 that the company plans to take the first place in China’s organic milk powder market within three years, with a market share of more than 30%.
New ideas under epidemic situation
It is worth noting that Arla Arle also shared more thoughts on its business development in the post epidemic period.
The company pointed out that from the global market point of view, after the outbreak of the epidemic, consumers will pay more and more attention to the nutrition and health of products, and dairy products will play an increasingly important role, which also means that the dairy industry will have great growth potential.
Specifically, in the Chinese market, enterprises have learned a lot of new ways to reach consumers under the epidemic situation.
“Under the epidemic situation, we all learned to live broadcast, especially the infant milk powder industry, and moved many offline activities before onto the line.” Arla Arle believes that as a brand, it needs to keep up with consumers’ consumption habits. In addition to providing good products, it also needs to strengthen the ability of brands and products to reach consumers, so as to meet the needs of consumers under various environmental changes.
In addition, the challenge of the epidemic has also made Arla Arle realize the importance of close cooperation between brand owners and partners such as distributors and retailers.
According to the plan, Arla Arle organic milk powder will continue to focus on large and medium-sized maternal and infant chain system this year, focus on high-end first and second tier cities, and expand e-commerce and cross-border channels. In terms of marketing, the company also plans to increase brand investment and further increase the exposure of its milk powder brands in various channels.
As for “China’s top infant formula milk powder in the next five years” “10 brands” and “to win the first place in China’s organic milk powder market within three years”, Arla Arle said that at present, the company has four “imperial brands”: the world’s leading independent R & D team to ensure the continuous upgrading of product formula; the supply chain system including its own farms and factories; the brand accumulation of nearly 140 years; and a series of high-quality products.
“In the future, we will closely follow and tap the potential needs of consumers, ensure the sustainability of brand building, and maintain close and stable cooperation with our partners.” The company said.
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