Recently, Junlebao has
launched its first organic milk powder online. The so-called probiotic organic infant milk
powder just comes after the latest launch of A2 milk powder in December last
year.
This time the Junlebao
probiotic organic infant milk powder mainly engages itself in two big online
distribution platforms in China, including the WeChat Shop and e-commerce giant
Taobao. With some discount activities on Taobao, the price of the product seems
quite acceptable for customers. For example, a tin of 200 grams just costs
around RMB 50 after discount.
Junlebao utilizes overseas cooperation for the new arrival
According to
Junlebao’s vice president and general manager of milk powder, the probiotic
organic infant milk powder marks the cooperation between Junlebao and two
overseas probiotic enterprises with a long history of a hundred years, which
are Chr. Hansen from Denmark and DuPont Danisco from the USA. The two companies
provide active probiotics Bb-12and HN019 for the Junlebao probiotic organic
infant milk powder.
High cost performance considered most important strategy of Junlebao’s
new arrival
Organic milk powder lies in an industry of high price range from roughly
RMB 300 to more than RMB 600. However, Junelebao wants to turn over the existing
situation in the aspects of double probiotics, organic industrial chains and
moderately hydrolyzed protein. Hence, the price of the new arrival is set under
RMB 300 for 800 grams after discount. With such a strategy, the orders of the
probiotic organic infant milk powder broke through 120 million on the first day
of launch.
Some market insiders hold the opinion that the organic milk powder of
Junlebao aims at a high-end route with a high cost performance strategy. The
purpose of Junlebao’s launching the probiotic organic infant milk powder is to
emphasize its advantages of high quality but low price.
Organic milk powder seen to be potential
in milk powder market
Organic milk powder is considered to have growth of potential in the
prospect of milk powder industry. According to the statistics released by the
China Business Industry Research Institute, the sales volume of organic milk
powder has experienced a rapid growth at the rate of 47% in the recent years.
From 2016 to 2018 the offline sales volume of organic milk powder reaches
respectively RMB 1.820 billion, RMB 2.670 billion and RMB 3.920 billion. The
one in 2019 is predicted to get to RMB 5.770 billion.
It is shown in the data released by Junlebao in
January 2019 that the revenues of the company rose 25% in 2019, which is nearly
RMB 16.300 billion. In the meanwhile, the production and sales volume of milk
powder reached 75,000 tons with an increase of 62%.
About Junlebao
Junlebao was founded in 1995 with a 25-year history in dairy industry.
Nowadays, it is the biggest dairy processing enterprise in Hebei Province in
China. Apart from that, the company has earned quite a lot of outstanding
titles, such as Chinese key Leading
Enterprise in Agriculture Industrialization, Chinese High-tech Enterprise, as well as Chinese Dairy R&D Technology Sub Centre.
Junlebao’s business ranges from infant milk
powder, low temperature liquid milk, normal temperature liquid milk to
husbandry. With already 20 production factories and 13 modern ranches in China,
the company has sales distribution all over the country. In the recent years,
Junlebao started to work with global leaders by establishing international joint
R & D platforms.
For more information on China’s milk powder market, please check our Dairy
Products China E News.