Presentation on theme: "James Song General Manager of Marketing Mengniu Dairy (Group) Co Feb. 24, 2014 The Changing Landscape of China’s Dairy Industry."— Presentation transcript:
James Song General Manager of Marketing Mengniu Dairy (Group) Co Feb. 24, 2014 The Changing Landscape of China’s Dairy Industry
1990-1996Harbin Institute of Technology majored in Applied Chemistry with Master degree and minored in Business Administration 1996-2007Procter & Gamble (China) Co. Ltd., Product Manager, Section Head 2007-2010Nestle Co. Ltd., Business and Brand Development Manager 2010-2013Ariston Thermo (China) Co. Ltd, Marketing & Sales Director 2013- presentMengniu Dairy (Group) Co. Ltd, Marketing General Manager
D efending milk D emand diversification D igitalization D eficiency of raw milk
Milk Safety issue Is always a focus of the media and the public around the world.
Pause & Recharge SpoilDelightProvideSatisfyFillNourishGood ForRefresh Simple convenient meals Fill Easy Simple Health Creative inspiration to impress Straightfor ward balanced family meals Pause & Recharge Indulge Positive Health Celebrati on Satisfying and nutritious goodness Pause & Recharge Indulge Impress Provide Satisfy Fill Nourish Good For Celebration Stressed & Struggling Young Path Finders Life Jugglers Optimistic Experience Seekers Settled traditionalists Foodie Idealists Health Controllers
Young girls spent 10 minutes taking food photos, making boyfriends hungry to tears The Internet has totally changed consumer behavior and experience.
The insufficiency of raw milk supply is forcing dairy companies to explore disruptive innovation aggressively
E very day 70 million 5 million more than 70 million consumers and 5 million students drink Mengniu products
Value: to provide nutritious and healthy food to meet consumers’ diversified needs with strong innovative capability Vision: to forge an eco-system with consumers, employees, investors and all related parties and grow together
Positive cycle in capital market – Market value of Mengniu in 2013: from £3.06b to £5.18b JanFebMarAprMayJunJulAugSepOctNovDec
61 % feel their life will be better in the next 12 months 47 % think their financial situation today is better than 12 months ago Forward-Looking Despite the supposed economic slowdown, consumers in China continue to live better and better lives. Enjoying Improved Lives 49 million Chinese homes earn middle-class incomes by 2013 More Well-Off Than Ever
As a result, much has been said about how their increased willingness to trade-up their brands across a wide slew of product categories. Source: McKinsey & Co. (*weighted averages for 12 categories), Ipsos China % Agree: “Expensive Products are Better” Main Reason for Spending More on Various Products (%)* Bought new type of product Traded up to more expensive products Bought more frequently or in larger quantities The Spending Habits of the ‘New Mainstream’ Consumer Trading-Up in Food/Beverage Yes, 40% No, 60% Willingness to Pay for High Quality Food & Drinks
Duplication to innovation People, people, peopleTechnology Real partnership
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