The dairy products competition becomes fiercer and fiercer nowadays. As a result, those dairy products producers are paying more attention to e-commerce trade accross border. Especially with the increasing competition of famous brands in the traditional stores and increasingly tightened cross-border milk purchasing, international dairy producers began to focus on China's cross-border electronic business platforms.
On September 12, John Paul Kavanagh, the Irish Ambassador, Yang ao, vice president of the Beinmate Group, Gupo Xiaobo, director of maternal and child department in JD B2C market jointly launched the first sale its new product in Beijing. As the first imported milk powder officially sold on the domestic e-commerce platform, the cooperation between JD B2C market and Beinmate is considered as the symbol that imported milk powder market in China has entered a new era of electronic commerce.
The a new product green love + launched by Beinmate comes from the local plant in Ireland which is jointly invested by Beinmate and world renowned multinational company KERRY. From the ranch to the end products in the whole supply chain management, the products are produced entirely in Ireland, and all products entering the Chinese market have been inspected by the two countries to make sure the quality is super.
Gupo Xiaobo, director of maternal and child department in JD B2C market noted that the cooperation between the two sides means in the future Chinese mothers can save energy spent on online purchasing merkets such as Haitao (where particular employees get products directly from the original places). They can buy imported milk powder in China without any worry.
Experts point out that major foreign milk powder manufacturers will compete for Chinese e-commerce platform, which will become the future trend in the future.
The huge demand for imported milk powder in China's domestic market has in recent years become an important factor affecting the international dairy market prices. Data provided by American Dairy Export Council showed that, driven by Chinese demand, in 2013, milk powder exports from United States to China is more than doubled over the previous year. The export volume of the American dairy products in March this year hit a new record. As an important producer in the world, the New Zealand has exported to China more than 4 billion U.S. dollars worth of dairy products in 2013. The huge purchasing power of Chinese buyers attacts more and more international dairy products giants who seek larger market share in China. The latest official data show that China has approved a total of 1,686 dairy products enterprises registeration from 27 countries, which includes 55 overseas enterprises producing infant formula milk powder.
However, the prices of imported milk powder in China is relatively high, which gives birth to the rapid expansion of overseas purchasing for domestic customers. In 2013, the total volume of China's overseas purchasing of milk, infant food and other complementary products reached 17.5 billion yuan, becoming the most popular overseas purchasing consumer goods market. But at the same time, overseas purchasing is faced with the problem of tax evasion and other issues, while the flaws of legal procedures make the false and fake products widely spreaded in Chinese market.
Experts said that the cooperation between world milk powder suppliers and China’s e-commerce platform is expected not only to make it easier for Chinese consumers to buy more imported milk powder, but also help to reduce the cost of imported milk powder. Therefore, China's major e-commerce platforms are sure to become another main source for milk powder manufacturers to increase sales in China in the future.
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