According to Dairy
Products China News issued by CCM in
January, Chinese consumers intended to focus on infant formula brand reputations.
The complete report is shown as follows:
Research data on consumers’ online searches
which was released in December showed the ongoing focus on formula brands’
reputations in Q3 2012.
According to Baidu Data Research Centre
(Baidu Data, part of Baidu, which accounts for 80% of China’s online search
traffic), milk powder/formula attracted increasing levels of consumer interest
in Q3, being the subject of an average 1,140,000 searches per day, up by 31%
against Q3 2011. In fact, the search levels increased successively through the
quarters last year (Q1=1,000,000, Q2=1,120,000, Q3=1,140,000).
Questions of brand reputation accounted for
24% of the total searches on milk powder/formula, followed by brand name (19%),
product name (17%), product safety issues (12%) and product prices (6%).
The focus on brand reputation is 4 times
higher than that on product prices according to this data. Food safety receives
a separate score, but undoubtedly lies behind the focus on brand reputations.
For example, in June 2012, Yili’s infant formula was hit by a scandal over
elevated mercury levels, while in July 2012 various brands were alleged to
contain carcinogens (Nanshan) and vanillin (Mead Johnson and Abbott) in media
reports. The increased focus on brand reputations has provided an opportunity
for processors to raise their prices, in line with the seemingly ever-increasing
prices of infant formula in recent years.
Yili was the brand in the category which
drew the most attention in Q3, being checked out by 6.8% of the netizens
overall (note: the figure in the chart below – 18% – refers to its share
amongst searches for domestic brands only). International brands attracted
460,000 searches per day whilst local brands received 280,000 searches per day:
this is less than the total number of searches, as some searches are understood
to have been more generic, focusing on terms such as “infant formula” rather
than specific brands. Abbott (checked out by 9.7% of the searchers for
international brands) and Yili (checked out by 18% amongst searchers on
domestic brands) were, respectively, the brands of most interest in these
categories.
The similar level of attention shown to the
various international formula brands reflects the fierce competition amongst
them and is broadly in line with their market shares. According to AC Nielsen,
Dumex accounts for a 12.6% market share at present, followed by Wyeth (Nestlé)
and Mead Johnson each at 12%, Abbott at 9% and Nestlé (excluding Wyeth) at 5%.
Advertising support seems likely to be a significant factor attracting
netizens’ attention. For instance, Abbott spent USD509,000 on online
advertising in Q3 2012, 53% more than Wyeth: although it has a lesser market
share than Wyeth in China,
it still drew more attention than Wyeth online.
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Dairy Products China News, a monthly publication issued by
CCM on 30th or 31st, offers you the latest information on
new market dynamics, company development, new products, technology, packaging
and raw material supply, etc. It also focuses on the government’s direction and
polices, helping you get the whole picture of the industry.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road,
Guangzhou 510070, China
Tel: 86-20-37616606
Email: econtact@cnchemicals.com
