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The Changing Landscape of China’s Dairy Industry. James Song General Manager of Marketing Mengniu Dairy (Group) Co Feb. 24, 2014. About Me. 1990-1996 Harbin Institute of Technology majored in Applied Chemistry with Master d egree and m inored in Business Administration

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Presentation Transcript
slide1

TheChangingLandscapeofChina’sDairyIndustry

JamesSong

General Manager of Marketing

MengniuDairy (Group) Co

Feb. 24, 2014

about me
AboutMe
  • 1990-1996 Harbin Institute of Technology majored in Applied Chemistry with Master degree and minored in Business Administration
  • 1996-2007 Procter & Gamble (China) Co. Ltd., Product Manager, Section Head
  • 2007-2010 Nestle Co. Ltd. , Business and Brand Development Manager
  • 2010-2013 Ariston Thermo (China) Co. Ltd, Marketing & Sales Director
  • 2013- presentMengniu Dairy (Group) Co. Ltd, Marketing General Manager
dairy in china
Dairy in China

Defending milk

Demand diversification

Digitalization

Deficiency of raw milk

slide4

Defend Milk

Milk Safety issue

Is always a focus of the media and the public around the world.

slide5

Demand Diversity

Pause & Recharge

Celebration

Impress

Good For

Provide

Satisfy

Indulge

Nourish

Fill

Pause & Recharge

Celebration

Indulge

Satisfying and nutritious goodness

Positive Health

slide6

Digitalization

The Internet has totally changed

consumer behavior and experience.

Young girls spent 10 minutes taking food photos, making boyfriends hungry to tears

slide7

Deficiency of raw milk

Theinsufficiencyofrawmilksupplyisforcingdairycompaniestoexploredisruptiveinnovationaggressively

slide8

Mengniu: largest UHT milk provider

Every day

more than 70 million consumers and5 million students drink Mengniu products

slide9

One of the world\'s fastest-growing dairy enterprises

Established in 1999

Stepped into World Dairy Top 20in 2008

The 15th in 2013

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High penetration in China

One Mengniu sale outlet

serves810Chinese consumers

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Mengniu’s Value and Vision

  • Value:toprovidenutritiousandhealthyfoodtomeetconsumers’diversifiedneedswithstronginnovativecapability
  • Vision:toforgeaneco-systemwithconsumers,employees, investorsandallrelatedpartiesandgrowtogether
expanding platform
Expanding platform

Positive cycle in capital market

  • MarketvalueofMengniuin2013:from £3.06bto£5.18b
the changing c hinese consumer
The changing Chinese consumer

Despite the supposed economic slowdown, consumers in China continue to live better and better lives.

Enjoying Improved Lives

More Well-Off Than Ever

Forward-Looking

47%

61%

49million

think their financial situation today is better than 12 months ago

feel their life will be better in the next 12 months

Chinese homes earn middle-class incomes by 2013

slide14

As a result, much has been said about how their increased willingness to trade-up their brands across a wide slew of product categories .

The Spending Habits of the ‘New Mainstream’ Consumer

Trading-Up in Food/Beverage

% Agree:

“Expensive Products are Better”

Main Reason for Spending More

on Various Products (%)*

Willingness to Pay for

High Quality Food & Drinks

Bought new type of product

Traded up to more expensive products

Yes, 40%

No, 60%

Bought more frequently or in larger quantities

Source: McKinsey & Co. (*weighted averages for 12 categories), Ipsos China

doing business in china
Doing business in China

Duplication to innovation

Technology

People, people, people

Real partnership

slide16

Bewealthyandgetpromotionquickly.

Getpeach blossomandbeluckyquickly.

Thanks!

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