Dairy Products China News

In the wake of the Mead Johnson launch on Tmall last month, astute marketers will be reminded of a key conundrum – how big could China’s online dairy market prove to be? This isn’t a subject which is well understood in China, and it reflects the wider challenge of assessing markets in the new omnichannel age.

E-commerce is hardly the only way forward for retailers. In today’s market successful retailers are developing a great multi-channel strategy with the store being central to the shopping experience. They are also driving a differentiated shopping experience and customer loyalty through product and service offering, tailored loyalty programs, distinctive shopping environment and seamless communication. Additionally they are also tapping into customer core insights to drive emotional links, not only from their own customers but from global trends and retail insight.

Yet whilst it’s far from being the only show in town, e-commerce seems set to have a major impact on packaged food sales in China. This is important as international businesses have struggled in China because of their frequently limited focus in geographical and channel terms. This has struck me on many consulting and research projects around the country, so it was interesting to see Zong Qinghou – founder and chairman of Wahaha and China’s richest man – refer to this in an interview recently: “When foreign companies entered the market, they went into big provinces and cities… They didn’t go deeper. They also didn’t understand China’s national conditions. In the United States, it’s mainly large supermarkets, which are very simple, unlike in China where things are complicated. There are all sorts of channels and forms. The situation is very complicated”. This seems something of an understatement.