A systematic analysis of the market potential of foreign infant powdered milk brands in China

Abstract

After the scandal of Chinese infant milk powder products, consumers have gradually lost confidence in the domestic brands, which provides a good opportunity for foreign milk powder brands to open up markets in China. The ultimate purpose of this research was to ensure and analyze the potential of the foreign branded milk powder in the Chinese market. The main objective could be achieved by analyzing the Chinese market environment and the Chinese consumer behavior. Since the author was not able to be in China to collect the data in person, therefore, in order to ensure the quality and the quantity of the research data to make it qualified for analysis, the sample was taken by following the sampling method of snowball sampling by using the author’s social network. In this marketing research, two main data collection methods, such as desk research and questionnaire, were applied. The research result indicated that the development of the Chinese milk powder industry has been rapid. However, at the same time, relative to the whole milk powder market, the development of Chinese milk powder industry is still behind the general level of world milk powder industry. Meanwhile, the development of these markets would bring new market opportunities for infant formula manufacturers, especially to foreign brands. If online marketing channels mature, it would be a huge blow to the market share of domestic brands.