Chinese Milk Powder Case Study

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The Next Step for Chinese Domestic Milk Powder


BEINMATE, is one of the most famous Chinese domestic milk powder brand, but its sales was hit a brutal decline after the SANLU milk powder scandal in 2008. Even after seven years, the Chinese has still lost confidence in the domestic milk powder, and the imported milk powder has enjoyed a great potential in Chinese market since then. In this article, I will use ethnographic theory and method, including “participant observation” and “interview”, to find out solutions for BEINGMATE in order to rebuild confidence for Chinese domestic brand among customers.
BEINGMATE Introduction
BEINGMATE,established in 1992 and headquartered in Hangzhou, is a Chinese domestic brand providing maternal and child supplies, including feeding supplies, toiletries, baby beddings, strollers and textiles etc. BEINGMATE has its own independent production lines of infant milk substitutes, which are specially developed for Chinese babies and are more suitable for their fitness and growth. Now BEINGMATE provides ten series of milk powder, including “Love +”, “Classic”, “Babies” and etc. Although, the whole Chinese infant milk powder industry has
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In order to reduce the high inventory, the company has done lots of promotion in the terminal market, leading to higher marketing expenses and thus affecting the bottom line. However, the situation in BEINGMATE is just a miniature of Chinese diary market, and shows the subsequent influence of SANLU scandal. SANLU milk scandal, occurred in 2008, was a serious food safety and incident in China. SANLU was exposed that its infant formula has adulterated with melamine, which resulted in an estimated 300,000 victims with six infants’ death. Chinese customers have totally lost confidence in Chinese dairy industry, even seven years past after the sanlu

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