Mainland importers jump on milk train
Prices of foreign-made baby formula in China are highest in the world because mothers will pay for what they believe is a better product
Chinese companies are flocking to bring overseas-brand baby formula into the mainland, where prices and profit margins are among the highest in the world.
Each month yet another batch of imported baby food is added to supermarket shelves around the nation, all packaged for mainland mothers with labels saying they are "tailor-made for Chinese babies".
To overcome their lower brand awareness in a market dominated by big players like Nestle, Abbott, or Wyeth, a host of smaller baby formula brands are battling to establish a foothold in second- and third-tier cities and expand their sales network quickly by offering distributors and retailers commissions of up to 50 per cent on their sales.
At the China International Dairy Products Fair in Beijing last month, about 65 of the more than 100 booths were taken up by baby formula sellers who were looking for franchisees or distributors.
Many of them had turned to the lucrative baby food sector from other businesses, including importing adult food and drugs, frozen food, and even textiles.
Li Mingli, a sales director of Shenzhen Jinyongfeng Industry & Trade, said his company was working with a dairy farm in New Zealand and would launch a new baby formula brand called Infans Gold in China next month.
