Milk electricity supplier prices down

Ho Tianjiao

E-commerce channels are accelerating the fall in the prices of infant formula in the country.

A maternal and child store owner told reporters that at present a number of milk powder brands are being promoted through price promotions in disguise, multiple brands fell about two percent. Some e-commerce channels are also price cuts, Jingdong, a milk powder seller told the media that paragraph 1 (milk) is now 249 yuan, about 50 yuan cheaper than the original bar, before it is about 289, the price cuts or Pretty big.

In fact, many promotional measures are not manufacturers of milk powder. Earlier, there was news that Wyeth Kai-fu milk, which has been firm in price, dropped by more than 25% from the original price of 388 yuan to 288 yuan at a well-known electricity supplier platform. In this regard, the person in charge of Wyeth told the "First Financial Daily" reporter said Wyeth milk powder ex-factory price has not adjusted, there is no recent price or price plans for the year, some of the terminal prices, especially online prices Change is the business's own behavior. So far this year, only the Dumex Upgraded Products, which are recently marketed, have the highest declines of 18%, 8% and 10% for Mom's Milk Powder, 2nd and 3rd milk powder, respectively, among several brands of ocean milk powder so far this year %. This is almost the first time in recent years, the domestic infant formula milk powder market sales of new products. Other major foreign milk powder brand did not take the initiative to lower prices.

A milk company official admitted frankly, with the rise of major e-commerce, e-commerce between the price war and one after another, lowering the price of infant milk powder, last year's NDRC price antitrust investigation, the major milk companies on the terminal price Control began to weaken, but also accelerated the online price drop. The reason why there is room for decline in e-commerce, on the one hand is the electricity supplier in order to seize the market, will take the form of subsidies, on the other hand as e-commerce providers across the traditional channels of the dealer system, saving a lot of channel costs, so that electricity suppliers Have confidence to lower prices.

Dairy expert Song Liang said that the reason why China's milk prices are so elevated, in large part because of the traditional channels of raising prices, assuming a 250 cans of milk powder, of which 100 may be the cost of the channel. Because of this, many foreign brands of infant formula milk prices in Europe are mostly 9 to 15 euros, once imported into China as high as two or three hundred dollars.

With the drop in online prices, offline prices have also been hit, the original strong prices began to loose, promotional activities also increased.

In fact, the government is also actively trying to promote the rational return of infant formula milk powder through the channel of electricity supplier. State Food and Drug Administration has publicly said in May, China's infant formula milk powder distribution costs are high, and will study the development of online shopping for a set of milk formula supervision and management approach. Judging from the industry, the e-commerce channel may become the government's next important means of regulating the price of milk powder.

In addition to the current e-commerce channels pull down the price of infant milk powder, Song Liang said that with the milk powder prices lower and the development of 34 markets, infant milk powder price cuts will become the industry trend. "The current supply of milk powder on the market is very adequate, higher than the demand growth, and may even be surplus; first and second tier cities tend to be saturated, third and fourth tier cities will become the main market, first-tier brands in third and fourth tier cities, will introduce new products, Take the lower end of the price route. "