After more than 300 days of exploration and practice in localization and independent operation, Mead Johnson China business group has handed over a brilliant report card.
Today, Zhu Dingping, President of Mead Johnson China business group, released the results of Mead Johnson’s first year of localization and independent operation in China to more than 400 channel strategic partners from all over the country in Guangzhou.
“In the second quarter of this year, our revenue increased by more than 20% month on month, and the actual profit in the first half of this year exceeded the expectation by nearly 30% He said that new MAXAM has returned to the positive growth channel in the three core business indicators of operating income, cash flow and customer acquisition ability, which also means that the “new MAXAM” model has been proved to be able to adapt to the rapidly changing market trend in China and is effective.
At the national Partner Conference held today, Zhu Dingping also released the latest goals for the next five years on the spot, put forward the plan of creating 10 billion single products, and talked about the detailed ideas of laying out new tracks such as sheep milk powder.
Let’s take a look at the details.
First anniversary report card
Today, Zhu Dingping released a number of latest business data of Mead Johnson at the meeting. Among them, the company’s market share in the super high-end milk powder increased by 10.8% in the first half of this year on a month on month basis; The monthly average number of new customers increased by 30% month on month in the first half of the year; The inventory turnover days of dealers are 17 days. In addition, against the background of the multi-point outbreak of the epidemic this year, the company’s cash flow still reached 160% of the required for operation.
“It’s almost a year since last year (localization and independent operation). Basically, the performance indicators set at that time, including revenue and profit, including customer and operation indicators, have been fully achieved. The revenue in the second quarter of this year increased by 20% compared with the first quarter.” Zhu Dingping said that although the entire economic environment is facing growth pressure under the epidemic, Mead Johnson’s profits in the first half of the year exceeded expectations by nearly 30%, and according to the time schedule, it has completed 60% of the annual profit target.
“All these represent that our first phase of reform has been successfully completed.” In Zhu Dingping’s view, after one year’s efforts, Mead Johnson China has successfully built a healthy business growth model and become a healthy, sustainable and profitable company that has won market share.
He specifically mentioned that the new management team has made great changes after taking over. First, it has invested enough resources to support professional channels, deeply explored a large number of potential consumers, and effectively reached consumer groups. In particular, the communication and interaction with the younger generation of consumers have been greatly strengthened by investing in popular variety shows and popular dramas and other marketing methods.
Secondly, Mead Johnson makes reasonable profits in all links of the value chain by continuously building a stable value chain.
“We have set up a new dealer service structure to allow local dealers to serve the local market, including making some improvements to the product matrix, by organizing to sink to further cities.” Zhu Dingping explained that Mead Johnson’s approach is to select a number of dealers nationwide who have trust in the brand of Mead Johnson and are willing to cooperate, and provide them with resources.
Five year new goals
Today, Mead Johnson also released on the spot “create super high-end mental space, create 10 billion single products; lay out new tracks, achieve double-digit compound growth; and create sustained and stable partner income
“We have three factories (supply chain) in China and the Netherlands Layout. Next, we will consider building four distribution centers in China based on regional characteristics. In addition to the existing Guangzhou distribution center, we completed the Chongqing Distribution Center in May. Including the opening of the China EU railway special train for milk powder, because the China EU railway passes through Chongqing, which has really helped us a lot in terms of customs clearance speed. We will also consider Tianjin in the next step. ” Zhu Dingping disclosed.
Finally, Mead Johnson hopes to build a symbiotic value chain ecological network. It announced today that the United protection foundation and baby Island launched the “environmental protection recycling program” in Guangzhou, Shenzhen, five cities and
“We need to form a very close strategic relationship of mutual trust with our partners in the entire value chain, so that everyone is willing to cooperate with us more and realize a sustained and stable return in business in the face of too much uncertainty. If we can solve the uncertainty in this way, it will become some of our advantages.” Zhu Dingping said.
Layout of new track
So, in the face of increasingly fierce competition in the industry and the changeable market environment, how does Mead Johnson plan to achieve sustainable growth?
The snack generation noticed that today Mead Johnson officially announced its first sheep milk powder product, Mead Johnson pure crown sheep milk powder. Zhu Dingping also talked about more ideas and plans for this new subdivision circuit for the first time.
”He said that Mead Johnson is the first brand among international brands that can release bulk trade sheep milk powder products. To build a new high-standard infant formula sheep milk powder factory of 10000 tons
It is disclosed that Mead Johnson also plans to invest in the construction of a “domestic demonstration and industry-leading” sheep milk powder R & D center in Tianjin to help enterprises continuously develop and innovate more infant formula segment products at the sheep milk powder track in the future.
At the same time, the company also plans to explore new growth channels.
“In the future, we will definitely build a new track based on the changes in China’s population structure, including the student milk market and the adult precise nutrition market.” He explained that some analysts believe that there will be a “wave of retirement” this year, because from 1962 to 1971, China’s annual birth population was more than 20 million. This part of consumers will have great changes in their health and nutrition consumption concepts and methods, which is full of huge business opportunities for the company and also in line with the strategic direction of healthy China in 2030.
This afternoon, Mead Johnson’s xueyouli children’s growth milk powder for school-age children also made its debut at the conference. It is reported that this product is a precision nutrition solution customized for Chinese children by Mead Johnson according to the nutritional status of Chinese children.
“In the future, new mezzanine will continue to give play to the advantages of the new mode of localized operation, make full use of the advantages of domestic and foreign resources, inherit the scientific research essence of ’empirical and effective’, create a new mezzanine scientific research system that introduces full nutrition cycle research and innovative nutrition solutions, and provide support for new mezzanine’s product innovation and development.” Said Xu SA, chief scientist and Innovation Officer of Mead Johnson China business group.
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Mead Johnson’s profit in the first half of the year exceeded expectations. President Zhu Dingping gave the latest growth ideas today