Main Brands and Products of Baby Food owned by Nestle in China

Nestle has made quite a lot of acquisition of other baby nutrition companies so as to ensure its dominance in the global baby nutrition market. The most well-known ones include Wyeth and Gerber. It is also said by some critics that Nestle’s world food empire is established by acquisition.

Wyeth, one of the global top 500 enterprises, was founded in 1926 and headquartered in Collegeville, Pennsylvania, USA. Wyeth is the world’s largest research-based pharmaceutical and health care products companies, having a leading advantage in prescription pharmaceuticals, non-prescription health care products and nutritional fields. Nestle acquired Wyeth in April, 2012.

Gerber, from America, having over 80 years of professional experience, is a brand who has withstood the test of time and people. Its raw materials are from global high-quality farms whose soil has passed strict safety tests, and ensured no harmful pesticide residues. Gerber was acquired with 5.5 billion U.S. dollars by Nestle in 2007.

Recent trouble in Brand image

Recently, some of Nestle’s milk powder was “downsizing”, with the prices remaining the same. Hence a great number of consumers questioned Nestle milk powder “disguised price rise”.

Nestle China official responded by claiming “Nestle downsized in order to put a spoon in the milk powder box to facilitate the consumers.” To justify the cost, the direction added: “The improved milk powder craft and quality had their corresponding cost.”

However, facing the situation of imported milk powder price rises and regarding to the quality and safety perceived of Nestle’s products, we can expect to not see any true consequence on Nestle’s performance. Finally, in order to compete with other international Brands, Nestle announced willing to slighlty reduce its price.

What is the influence of recent year incident for Nestle in China

Before the event of excessive iodine, the company’s performance was very good, especially the middle and low level products. At that time Nestle was one of the most Cost-effective domestic milk powder brands. This scandal could impact this leading position in China. Therefore, Nestle develop relevant product and communication strategy to gain advantage of this situation in the customer’s mind.

Nestle milk powder technology and R & D technology are of great advantage. Nestle promised to not use any genetically modified ingredients in their products in Europe, not in Asia. Nestle now mainly produces in Heilongjiang. Though the company uses domestic milk source, its production management is very stringent hence many consumers still find it trustworthy.

Amy Wang

http://www.bbc.com/news/business-23176085

http://www.scmp.com/news/china/article/1275122/nestle-danone-cut-chinese-infant-milk-prices-amid-probe

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Karicare is a leading infant formula brand of the global maternal and child nutrition experts Nutricia.

Karicare has been founded in 1896, developed by Dr. Truby King with the incentive of “Help fatigued mothers, protect cute babies”. After a hundred years of development, Karicare has now become the market leading brand in New Zealand and Australia, and the most preferred brand for mothers in New Zealand and Australia.

After the scandal on infant formula in China, Australia’s and New Zealand’s milk was quite popular in the Middle Kingdom. However, 2013’s scandale let the brand drop to disapear from China’s market. It is a good example of the difficulty to etablish in China when it comes to baby safety.

Why New Zealand and Australia’s milk was popular in China

New Zealand’s climate is pleasant, with enough sunshine and very lush plantation. The forest area accounts for about 29% of the country’s entire area, and consequently the ecological environment is very satisfying. Under the situation of fertile land and the government supported natural protection, New Zealand is a country emphasizing industries like agriculture, animal husbandry, tourism and education. The New Zealand government strictly controls industry, resulting in very little air pollution.

At present, New Zealand is the only country that produces milk where epidemic of avian influenza, foot-and-mouth disease, and mad cow disease has not yet appeared. Moreover, animal husbandry adopt complete stocking way, unlike the United States and other countries feeding with provender, resulting probable containing of hormones or genetically modified particules in the milk. Therefore the undoubted quality of the New Zealand animal husbandry is world-famous, renowned in Europe, the United States and other countries.

In China, as the safety of food industry’s product, in particular baby food, has become such a sensitive topics, this milk is going to be very attractive. Majority of China’s imports came from New Zealand, which counted for 25% of its exports.

Market Research China on Karicare’s development

Karicare is a sub-brand of NUTRICIA under infant formula company Danone, owning an astounding 72% market share in New Zealand. In August, 2011, Karicare officially entered China market, and set up sales channels on Taobao, u1baby, 360buy and other well-known online shopping websites in China, enjoying an average 80% sales growth per month. It was said that, after entering Guangdong, Karicare will soon open stores in Fujian, Guangxi, with an objective of reaching the scale of over 3000 shops in China.

Troubles of Karicare’s brand strategy

The troubles started with a micro blogger recently broke the news that she had bought fake Karicare milk powder. This blogger claimed that she thought that what she had bought was Karicare milk powder with new packaging after it localized in China. But she found it to be completely different with those Karicare ones she had bought before and realized that she was kind of hoodwinked.

Another blogger on the Internet also warned consumers by uploading relative photos, saying that there was some company in Shanghai claiming to be incorporation with Karicare released “Karicare” infant formula, which turned out to be fake ones called similar pronounced name in Chinese. Karicare’s high quality products has always been it greatest advantage and thus it is more likely to be copied. To treasure its precious reputation and to maintain its brand strategy, Karicare probably should consider seriously its strategy in China for anti-counterfeit mission.

However, in 2013, new Zealand milk powder has been banned from the China’s market as a bacteria which can cause serious disease to baby has been found in imported production. Thus, all the effort done by the brand Karicare for many year to build a relevant and efficient brand strategy and commercial development in China has been wasted.

Amy Wang

http://www.abc.net.au/news/2013-08-04/an-china-bans-nz-milk/4863858

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10890692

This article The difficulty of infant formula market in China : the example of Karicare is the first one to appear on Daxue Consulting - Market Research China.

Bestseller Fashion Group (Tianjin) Co Ltd, is a family-owned company established in Denmark in 1975. Up to 2011, Bestseller has enlarged its sales network to cover more than 300 cities in China. The company is engaged in the design and sale of both men’s and women’s clothing in China, under four mega brands: Only since 1996, Jack & Jones since 2000, Vero Moda since 2001 and Selected since 2008. The company seeks to offer localized fashion styles by tailoring specifically for Chinese consumers.

Production of Bestseller in China

Bestseller has choose to favor great flexibility to increase or reduce its production in order to be in accordance with retail performance. Since Bestseller is not an apparel manufacturer, over 90% of its products sold in China are supplied from in-country production, according to a recently conducted Branding research in China. It enables the brand to react quickly to the trend and the needs of the market.

Market Position of Bestseller in China

Bestseller, as a fast-fashion retailer in China that provides consumers fashionable clothing products, had a mid-end position over its period in China. It takes leading position in apparel, mainly owning to its great performance in men’s and women’s clothing.

Competitive Position of Bestseller Fashion Group (Tianjin) Co Ltd in 2011

Strategy and Situation of Bestseller in China

• Bestseller plays a leading role in women’s clothing by keeping dynamic retail value sales growth of Only and Vero Moda which targets at urban consumers of 20-35.
• Bestseller closed down its franchised stores and opened more self-operated outlets.
• Bestseller’s sales from self-owned stores accounted for 70% of total sales in early 2011.
• Bestseller’s key brand Jack & Jones opened its official online business-to-consumer store in 2009.
• Bestseller’s key brand Jack & Jones’s online store, shown by a related China market report, has 470 thousand sales a day within 3 days of its opening.

Future Plans and Goals of Bestseller in China

• Bestseller plans to make its percentage of sales from self-owned stores to 90% in 2013.
• Bestseller is likely to devote more resources and efforts to developing its online presence and promoting online sales of its key brands.

Amy Wang, mystery shopping in China

http://www.forbes.com/sites/luisakroll/2012/12/13/meet-denmarks-newest-youngest-fashion-billionaire/

This article Bestseller in China is the first one to appear on Daxue Consulting - Market Research China.

After seeing impressive performance of the domestic brands that have gained so much through Internet Retailing, International apparel manufacturers also want a piece of the action.

Indeed, with over 100 new stores, opened in China in 2011, 30 of which were Zara,  and an annual profit of 2.6 billion USD in 2011, the foreign apparel manufacturer market showed a figure of 11% up compared to the previous year. Generally speaking, they expanded online business in China in 2011. Nike and Levi Strauss, by launching different product line for online sales channels, reduced priced competition between online and store-based retailers. But how these brands can be insured of a successful market entry in China?

Macy’s Online Strategy – an example of Successful Move in China

Macy’s, although offers international shipping on Macys.com to Chinese consumers, understood that the English-based website set up a hurdle for customers in China, even with the competitive advantage of being able to ship goods to consumers from warehouses in China and hence without duties or tariffs. Therefore, to met the success in their market entry in China, Macy’s invested 15 million USD in the VIPStore, one of Chinese foremost online retailers selling luxury brands founded in 2009. Macy’s also began selling private label merchandise in China on Omei.com, a website operated by VIPStore selling western luxury and fashion commodities.

Being Online Without Physical Presence – Not a Good Idea in China

Led by the wise move of going online in the market entry in China, whether it is necessary to set up physical stores becomes a problem. But according to a recently conducted market research in China, the idea of having no physical presence may not be an advisable choice for apparel retailers. One reason is that for many Chinese young consumers, who are the main force online, the brand popularity and awareness is a great factor when they are looking to buy clothes. Without physical existence, it is not easy to establish recognition of the brand. Moreover, plenty of Chinese consumers tended not to believe in websites as a result of online shopping scandals. Not to mention the inconvenience of not being able to try on clothes when shopping online.

However, the Social Network can help the brand to avoid these difficulties, by reinforcing consumer trust and being a tools to develop a great Branding strategy.

Possible Consolidation and Future Prospects of Apparel Internet Retailing in China

As international players entering the internet retailing market in China, a growingly more competitive market can be expected and the collision will be inevitable. Consolidation will be intensified by the competition between distribution channels. It seems that with the will of international brands to expand, local players do not have competitive advantages like advanced logistics systems and extraordinary consumer service.

As e-commerce further develops in China, international style-savvy brands that fluidly integrate their online and in-store platforms seems to be able to find the rewards far outweigh any investment. For apparel manufacturers over the world, the potential of the Chinese e-commerce apparel market is currently a once in a lifetime opportunity.

Amy Wang
To read more

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The well-known nail polish brand Essie recently released its 3 new series of nail colors: the Navigator Her series aims to target “beautiful and ambitious ladies“; the Resort series seeks to be a “miniature of the amazingly attractive world” and the Wedding series are for those who are about to getting married in the spring.

Essie also provides new nail stickers the young and fashion Chinese in the time of New Year. The aim of Essie Sleek Stick series is to “drive the art of nail stickers into a whole new level”. There are more than 12 designs in the series and most of them are with metal texture. It seems that the new nail sticker series are going to have a satisfying sales performance after release, as is suggested by a related market analysis in China.

Main Competitors of Essie in China: Opi, Za, Revlon

Essie still has little development in China, but the nail polish market in China is very much developed and there are many renowned brands of nail polish currently dominating in the Chinese market. The most famous ones are Opi, Za and Revlon.

Opi Products Inc., is a manufacturer of professional-quality hand and nail care products founded in 1981. It is globally recognized as a leader in the Professional Beauty Industry and the number one brand used by professionals. Opi entered the Chinese market in 2002. Realizing the great future possibility of China market, Opi took step in China and had taken great market share and reputation in the market.

Za is a cosmetic brand designed to support women who desire sophisticated and high-end products. Both Za skincare and makeup are renowed to offer products which require no special techniques to ensure easy use and simple skincare steps. Now Za has its shop in almost every corner in China and has built up an unshakable position in the Chinese market.

Revlon was founded in 1932. Starting with a single product, nail enamel unlike any before it, the three founders pooled their meager resources and developed a unique manufacturing process. The Chinese translation name of Revlon is from a famous poetry of the Chinese poet Libai. Early in 1976, the first product of Revlon was sold in Guangzhou and now its business has been spread over 50 cities in China.

Amy Wang

To see more on the cosmetic industy in China

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To see more about luxury cars in China

The Bugatti Company, and most particularly, the company’s founder Ettore Bugatti are venerable fixtures in the world of automobile engineering. From the very beginning, Bugatti’s unique constructions and high aesthetic standards have lead the brand to be recognized as one of the most prestigious luxury brand, even beyond automotive market borders, of the world. The brand has been recently launched in China. Focus on its development after few years.

Focus on the Development and Market Condition of Bugatti in China

Bugatti officially started its selling in China at the car exhibition in Beijing, 2008. After the exhibition, it has released its first EB16.4 in China. The first purchased Bugatti car was owned by Mr. Cai from Xiamen, which led to great sensation at that time. This first car has been used only as collection, kept in the museum of Mr. Cai’s firm. Currently there are very few Bugatti cars in China. Most of them worth 25 to 38 million yuan, which are truly luxury cars. Bugatti has set its world’s first and only museum in China, which has never been done since Bugatti only sells custom made cars. Recent focus groups in China has shown that this is maybe because the giant consuming potential of Chinese luxury car market, which contains many billionaires who chase great quality and high price.

Bugatti’s Main Competitors in China: Rolls-Royce, Automobili Lamborghini, Bentley

Bugatti faces greatest threat from other world-renowned manufacturers of cars and SUVs, especially Rolls-Royce, Automobili Lamborghini and Bentley, which also own great popularity and reputation all over the world. Bugatti is now world famous and has its own market share in China high-end car consumers, but its competitors are also vey powerful and it seems that Bugatti is still striving hard to rival all these competitors.

Rolls-Royce is one of the most well-known brands in the world. Its name is one of its most valuable assets. It helps to open doors, it attracts talented people, it differentiates the brand and it is a reassurance of trust in its technical capability. Today, the brand means more than engineering excellence. It is a standard of quality across all its activities. The brand guides its actions and behaviors and the way it presents itself to the world as a leading-edge, international power-systems business.

Founded in 1963, Automobili Lamborghini is headquartered in Sant’Agata Bolognese, in Northeastern Italy. It manufactures some of the world’s most sought-after super sports cars. With the recent presentation of the best-in-class Aventador LP 700-4 at the Geneva Auto Show, Lamborghini has marked another milestone in the history of luxury super sports cars. With more than 120 dealerships worldwide, Automobili Lamborghini is building on a succession of dynamic and elegant super sports cars.

Bentley motors was founded by W.O. Bentley in 1919 when the first Bentley engine burst into life at new street mews, London. Then W.O’s company went from strength to strength through the 1920s, with an evolving series of acclaimed motor cars and a parade of racing triumphs to prove their outstanding performance. Located in Crewe, England since 1946 and owned since 1998 by Volkswagen AG, Bentley Motors is dedicated to making responsive and powerful Grand Tourers with the stamina to cross continents at pace, and drive in refined comfort and style.

Amy Wang, about Branding in China

Source : Forbes

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According to statistics, China has a vast number of childrens under 14 of age, which is about 216 million up to data from 2011, because of the sheer size of the country. This increase means a large potential market of children’s products, including childrenswear. However, results of China’s childrenswear market are not in accordance with its market size, with only 12 million U.S. dollars in 2011 while in the US, with only 61 million children under  having 14 of age, has a value of 28 million U.S. dollars.

Rising Purchasing Power Provides Further Chance for Childrenswear Market in China

Chinese per capita annual disposable income has risen by 88% since 2006, which allows parents to spend more money on their children. Especially urban parents, who have the most striking increase of income and under the policy of the one-child policy, spend more money than ever on their children.

According to a recent market research in China, expenditure on children’s apparel per household rose to 237 yuan in 2011 from 166 yuan in 2006, which shows a 43% increase in only 5 years.

Childrenswear Brand Position in China

Local children’s apparel manufacturers begun their step first hence they had been taking a leading position. In 2011 domestic brands of childrenswear still accounted for a larger share of retail value sales than international ones.

In the 10 leading brands of children’s wear, 7 are local, with Balabala and Semir as leading brands.

• Balabala has retail value share of 3% in China.
• Dadida, Pepco and Annil are increasingly targeting at market of China.
• Sports brands Nike and Adidas have entered the battlefield of apparels aimed at children and teenagers.
• Luxury brands Baby Dior outlet was opened in April 2010.
• Luxury brands Burberry, D&G and Armani introduced childrenswear in 2011.
• Local sports brands Septwolves, 361 Degrees and Li Ning expanded business to childrenswear in 2012.
• Sports brands Li Ning opened over 600 stores specializing in children’s apparel in 2012.
• Chinese footwear giant Belle International Holdings announced its intention in late 2011 to expand in to market of children’s footwear.
• Fashion brands Zara and Uniqlo have both incorporated fashion-conscious elements into their childrenswear products.

The Inevitable Collision of Local and International Brands in China

Domestic brands have been taking leading position for a long time in the Chinese market. But recently domestic brands have already fallen behind in the top tier cities, caught up by international brands. At the same time, the consumers in third and fourth tier cities that domestic brands focus on are still loyal to local brands. However, international brands have been trying to accelerate their penetration to lower-tier cities by playing lower pricing and multi-brands cards. Hence it seems, as it is shown by a recent market study in China, that the childrenswear market in China is definitely facing a great collision, with both domestic and international brands wanting a share of the huge potential of the Chinese market.

Edited by Amy Wang from Daxue consulting China (Branding in China)

fashionbi.com/

http://www.atkearney.com/documents/10192/1126588/Winning+China’s+Apparel+Market.pdf/9ac5fb6d-6da1-40ae-94cb-f5a9d45abb2e

This article Market of Childrenswear in China is the first one to appear on Daxue Consulting - Market Research China.

Market Analysis of JanSport’s Products in China

JanSport provides enduring and popular outdoor gear for consumers in China and worldwide. Recently JanSport just finished a program in cooperation with a famous fashion brand Benny Gold from San Francisco, releasing a “Benny Gold x Jansport” backpack and publishing it by filming short videos. This backpack, using high-quality canvas and PU materials, is able to accommodate a 15-inch laptop, convenient for both work and leisure. Certificated dealers of JanSport have already added this new product to the catalog, including both regular version as well as limited edition.

JanSport is aware that the backpack that carries the consumers’ books to school might need to be the same backpack that carries their gear on a Saturday day hike, so it incorporates flexibility into each and every design. And this, as is shown by a recent market analysis in China, seems to be a very important reason why JanSport takes such a significant position in the hearts of Chinese consumers.

Market Report for JanSport’s Big Plan for its Future in China

As outdoor activities like fishing and hiking get more and more popular in China, the market of related clothing and other equipment becomes a new focus point of merchants. Even though still immature compared to western markets, the huge development potential still attracts a growing number of foreign brands, making them to speed up their step in China.

The first outdoor brand JanSport in theU.S.came to China in 2012 and try further enlarging its influence, with the chance of conference of Outside Collection of 2013 spring. It is shown by a related market report in China that JanSport is already the first giant of outdoor gear in the world and has about 20% market share in the Chinese market, with the sales in China ranking in top 3 in Asia. Even though JanSport’s market in China still concentrates more on the first and second rank of cities like Shanghai and Beijing, it seems that JanSport is paying great attention to the second and third rank of cities as they become more complete.

Edited by Amy Wang from Daxue China consulting.

Picture source: bing, bing

This article JanSport in China, a Market Analysis on Outdoor Gear is the first one to appear on Daxue Consulting - Market Research China.

Market Research for the Most Popular Game Series of EA in China

The “Need for Speed” series is one of the most popular series of racing video games in China. The latest one of this series, the 17^th one, “Need for Speed: Most Wanted”, has over 3.5 million sales in total now. Although the series has experienced ups and downs in its years, the “Need for Speed” is still a legendary racing game for video game fans.

The “FIFA” series is the most well-known and played football video games that EA released in China. The latest one of this series, the 13^th one, which includes features of attacking intelligence, complete dribbling, 1^st touch control and so forth, achieved an astonishing 4.5 billion sales just in the fifth day of its release, as is shown by a recent market research in China. The FIFA 14 has also been confirmed by EA SPORTS and will be set toward a late winter 2013 date.

“The Sims” series, the most recognized strategic and life simulation video game series published by EA. When boys are crazy about sport video games, girls are also very much attracted by this series of EA. More of a sandbox game lacking defined goals, players create virtual people and control them to live their lives. “The Sims” currently has 3 series and each with several expansion packs. Some contents in expansion packs are specifically designed with Chinese elements.

The Recent Movement of EA in China

Just in February 2013, EA announced its strategic cooperation with Gamewave Group in China to carry out the Web version of the legend series of the RTS game “Red Alert”. It is said that the Gamewave Group has already began the development of that game. The “Red Alert” series is very popular and has plenty of fans in China, EA is seeking to further expand this series’ influence and popularity in China through this cooperation of the web version. EA seems to believe that this game will definitely obtain comparative advantages in the future marketing and operation, and become a satisfying piece loved by the Chinese players.

It can be seen that EA is expanding its business in China, as the China electronic entertainment market grows more and more mature, expecting great performance of the Chinese market in the long run. And from the turnover aspect, China market has become the 3^rd largest market of EA in Asia.

Edited by Amy Wang from Daxue China consulting.

Picture source: bing, bing

Sources:

• Ban on video games
• Gaming in China
• Digital trends

This article Market Research on Electronic Arts (EA), Entertainment in China is the first one to appear on Daxue Consulting - Market Research China.

China Market Research for CRN Yachts Development

Set up by Sanzio Nicolini in 1963, the CRN shipyard immediately made itself to be in a market which targeted a very select clientele. This has been the guiding principle behind CRN right from the outset and has earned it a position among the top world builders of luxury mega yachts. CRN became part of Ferretti group in 1999, and the Ferretti group has performed very well in China, earning an astounding 7 million euros in the first half year it entered China market. Then CRN broke prestigious new ground in 2003 by buying the neighboring Mario Morini shipyard. Now CRN has become one of the most recognized and noble brands of yachts, as is demonstrated by a China market research.

CRN Yachts’ Main Competitors in China: Itama, Azimut, Princess

CRN faces biggest challenge from other world-famous brands of yacht businesses, especially from Itama, Azimut and Princess, those who are also very popular and world-renowned companies of yacht. Mystery shopping in China has shown similar satisfaction in all of these brands products and services. It seems that CRN still needs to develop and become better to rival its most powerful competitors.

For over forty years Itama has made the history of Italian open yachts all over the world. In its many years of activity, the shipyard has been able to build and consolidate a strong, distinctive identity at the heart of which lie an outstanding engineering know-how and a unique, incomparable style. Since 2004 Itama has been part of Ferretti Group, one of the world leaders in the design, construction and sale of motor yachts.

Azimut Yachts came about in 1969, when the young university student Paolo Vitelli founded Azimut Srl, and began chartering sailing boats. In 1970 some prestigious yachting brands appointed the company to distribute their boats inItaly. Azimut quickly expanded its operations: Apart from distribution, it began to design new yachts. In 1985 Azimut acquired Benetti. Now Azimut Yachts serves its customers at over 130 sites worldwide. It boasts the world’s most extensive sales network for yachts and megayachts, with representative offices, boatyards, service points and delivery centres located in Europe, the Americas and Asia.

Since the launch of their first 31-footer in 1965, Princess Yachts have been quietly rewriting the rules of luxury cruising. From their legendary Flybridge range and thrilling V-Class sports yachts, to their long-range Motor Yachts and ground-breaking M-Class super yachts, all are unmistakably Princess. Based in some of the most advanced marine manufacturing facilities in the world, Princess Yachts have built our reputation on quality, strength and integrity of design and build.

Edited by Amy Wang from Daxue consulting China.

Picture source: bing

For a complete research on yachts in China (in French)

This article China Market Research for CRN Yachts is the first one to appear on Daxue Consulting - Market Research China.