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1、Slide 1: Before formally starting my presentation, lets first look at a screenshot of Yihaodian, the online shop. Here is a carton of milk called MeadFarm. It labels imported from Germany.Slide 2: After buying this milk, some confused customers raised questions: “The milk seems to be registered in G
2、ermany but filled in China. Do Germans know this brand? “Although customer service of Yihaodian guarantees that they are original imports, we find the problem that many Chinese customers are concerned about.Melamine melmin incidence in 2008 not only knocked down Sanlu Group, but also took a heavy to
3、ll on the domestic milk brands. Customer confidence in domestic milk brands has been badly dented. Consumers begin to turn to foreign milk powder brands. It is that they see commercial opportunities about this, Slide 3: some Chinese merchants register trademark abroad and entrust foreign factories t
4、o take charge of producing milk powder in order to confuse the public. Their products are intended to sell inland. Among hundreds of imported milk powder brands in current Chinese market, 80 percent adopt such operational method. These kinds of brands have little popularity and recognition overseas,
5、 by registering overseas and making up a western style brand name as well as entrusting local milk powder producer to manufacture for them, they succeed in reselling in China. Slide 4: BiosTime, Scient, Ausnutria and Nouriz have been singled out for playing a role of foreign brands.Nowadays famous m
6、ilk powder brands of America and Europe are less than 100 and only 20 to 30 of them have entered Chinese markets while there are hundreds of foreign brands inland. To avoid being seen through by customers, some brands are trying to white washing themselves by all means. Take Ausnutria Dairy Group Co
7、. as an example, it takes shares of European milk brands to white washing.Slide 5: Through research, I find that prices of OEM (original equipment manufacturer) per jar of milk powder is only 70 to 90 RMB while selling price reaches up to over 300. Actually, milk power prices rarely exceed 150RMB gl
8、obally.Slide 6: Those above-mentioned foreign brands lack capability of R&D since they merely find cheap local factories of OEM, with low technical contents. Furthermore, OEM enterprises need to set up production lines according to Chinese production standards. But they are not good at it so there a
9、re risks. Finally, it will have an impact on the market since costs of production; research and marketing are usually lower than other brands. Slide 7: In terms of how to bring recovery to China dairy industry, the answer is self-evident. Encouraging the mainland dairy industry is the fundamental so
10、lution to the problem. In a bid to guarantee food safety, China will issue a specific regulation on baby formula in the near future.The new regulation will target the entire chain, from production to circulation in the market.A slew of stricter supervisory measures will be adopted to handle the impr
11、oper conduct of breeders, milk powder producers and salespeople, ensuring peoples access to safe milk powder products.Regaining trust from customers will be long and hard. What is needed is not only support and trust from customers but also sincerity and effort of Chinese dairy industry. With confidence and aim, we believe future will pay back mainland dairy industry a bright prospect.Note: A lack of administration and supervision over the dairy industry is to blame for past food safety incidents.
