Electric business channels are speeding up the price of domestic infant formula

Absrtact: Electric business channel is speeding up the price of domestic infant milk powder. A mother and child shop responsible to reporters that the current number of milk powder brands are promoting, through promotional means to achieve a disguised price reduction, a number of brands fell about 20%. Some electrical business channels are also

Electric business channels are speeding up the price of domestic infant formula.

A mother and child shop responsible to reporters that the current number of milk powder brands are promoting, through promotional means to achieve a disguised price reduction, a number of brands fell about 20%. Some electrical business channels are also in the price reduction, a Beijing-east milk powder sellers to the media that 1 paragraph (milk powder) is now 249 yuan, than the original cheap almost 50 yuan it, formerly 1090 or so, the price of the strength is quite large.

In fact, many promotional measures are not the behavior of milk powder manufacturers. There has been news that the price of a strong Wyeth formula milk powder in a well-known platform prices from the original price of 388 yuan to 288 yuan of the transaction price, the decline of more than 25%. In this regard, Wyeth related officials to the "First financial daily" reporter said that the current price of Wyeth milk powder has not been adjusted, the recent or even the year did not increase or reduce the plan, some terminal prices, in particular, the changes in the price of the line is the merchant's own behavior. So far this year, the number of ocean milk powder brands, only recently listed on the sale of the AIDS upgrade products-Precision Surplus TM products, mother milk powder, two and three of milk powder of the highest decline of 18%, 8% and 10% respectively. This is almost the first time in recent years the domestic infant formula milk powder Market new product price sale situation. Other major brands of milk powder have not taken the initiative to reduce prices.

A milk powder business owner frankly, with the rise of major electric dealers, the price war and one after another, pulling down the price of infant milk powder, last year, the NDRC price antitrust investigation, the major milk powder enterprises on the terminal price control began to weaken, but also accelerated the price of the line down. And the reason why the electricity business has fallen space, on the one hand is the electric business in order to occupy the market, will take the subsidy form, on the other hand because the electric dealer crosses the traditional channel the layer Layer dealer system, saves the massive channel cost, lets the electricity trader have the price to have the confidence to reduce

Dairy experts song said that the price of Chinese milk powder is so high, a large part of the reason is the traditional channel bidding, assuming a can of 250 yuan of milk powder, which may be 100 yuan is the cost of the channel. Because of this, many foreign brands of infant formula in Europe, most of the price is 9-15 euros, once imported into China, the price is as high as two hundred or three hundred yuan.

With the price of the line down, the price is also under the impact of the original strong prices began to loose, promotional activities have increased.

In fact, the government is also actively trying to promote the rational return of infant milk powder price through the electric business channel. The state Food and Drug Administration in May has publicly stated that China's infant formula milk powder sales channel cost is high, and will be for the online purchase of infant milk powder research to develop a set of corresponding supervision and management measures. Industry according to this judgment, the electric business channel may become the government to regulate the price of milk powder next important means.

In addition to the current electricity business channel pull low infant milk powder price, Song said, with the milk powder price lower and three or four line market development, infant milk powder price will become the industry trend. "At present, the supply of milk powder in the market is very sufficient, higher than the demand growth, and may even appear surplus, one or two-line cities tend to saturation, three or four-line cities will become the main market, a first-line brand into the three or four-tier cities, will launch new products, lower end price routes." ”