It was reported yesterday there were 15.23 million live births in 2018, a drop of two million from the year before.
Thats a lot of infant formula required.
So - how is a 12% drop in the birthrate good news for A2? Why would you think that the percentage of parents using A2 formula in economically challenging times would be increasing? Average Chinese per head disposable income in China is less than NZ$5000 per year (roughly 22.000 yuan) - makes you wonder how many A2 tins per month at roughly NZ$50 per pop they can afford. Don't forget - feeding babies with milk formula from the other side of the world is a luxury, not a necessity.
edit: I used originally in this post the Chinese per head GDP (roughly US$1000 per head per month). Relevant in this context is however not he GDP but the disposable household income - which is obviously much lower.
So - how is a 12% drop in the birthrate good news for A2? Why would you think that the percentage of parents using A2 formula in economically challenging times would be increasing? Average Chinese per head income is something like US$1000 per month - makes you wonder how many A2 tins per month at roughly US$35 per pop they can afford. Don't forget - feeding babies with milk formula from the other side of the world is a luxury, not a necessity.
I would say it's somewhere in between luxury and necessity. For a lot of Chinese mothers ensuring their babies have the safe and high quality infant formula is something they would prioritise.
So - how is a 12% drop in the birthrate good news for A2? Why would you think that the percentage of parents using A2 formula in economically challenging times would be increasing? Average Chinese per head income is something like US$1000 per month - makes you wonder how many A2 tins per month at roughly US$35 per pop they can afford. Don't forget - feeding babies with milk formula from the other side of the world is a luxury, not a necessity.
Besides birth rates and number of births, there are two other key factors driving premium A2M infant formula consumption in China besides birth rates :
1. Rise in real disposal incomes - the middle classes are getting wealthier and spending more on quality products and services;
2. The perceived benefits of A2 milk for their one child (supported by 6 adults).
I suspect you will find that the Chinese do not perceive feeding their little emperors and little empresses with the best infant formula as a luxury - just as they do not see spending a huge chunk of their incomes on education.
Gotto take off the Western blinkers when assessing China.
So - how is a 12% drop in the birthrate good news for A2? Why would you think that the percentage of parents using A2 formula in economically challenging times would be increasing? Average Chinese per head disposable income in China is less than NZ$5000 per year (roughly 22.000 yuan) - makes you wonder how many A2 tins per month at roughly NZ$50 per pop they can afford. Don't forget - feeding babies with milk formula from the other side of the world is a luxury, not a necessity.
edit: I used originally in this post the Chinese per head GDP (roughly US$1000 per head per month). Relevant in this context is however not he GDP but the disposable household income - which is obviously much lower.
15.3 million is still a hell of a lot of available market.
Think big! There must be at any one time roughly 200 million babys and toddlers on this planet, why only focus on the diminishing number of Chinese babys ?
Ignoring for a moment price pressure and competition: only the sky is the limit!
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
Think big! There must be at any one time roughly 200 million babys and toddlers on this planet, why only focus on the diminishing number of Chinese babys ?
Ignoring for a moment price pressure and competition: only the sky is the limit!
Are you suggesting their "only focus" is on the China market? Surely you know that is not the case.
Reply With Quote
Originally Posted by 777
?
Bookmarks