Keywords: transnational dairy brand dairy brand branding failure in price war
Following France Danone, Italy Phra Maha LVL, United Kingdom United States Kraft, Unilever, Netherlands Friesland has recently also sadly ended Chinese business, exit this they originally quite optimistic about the huge potential of "consumption" of China city often Guangdong milk Association Vice President Wang Ting cotton believes that international dairy Giants defeated the Chinese for various reasons, but most headache or excluding cost of price wars.
25, Netherlands-Philippines, said Matt Baker company be in control of Friesland (Tianjin) dairy co., Ltd. to operate at its joint venture partner in Tianjin, China and Finland dairy research and training center holding management, formally ended in China's dairy production and business. This is further to France Danone, Italy Phra Maha LVL, United Kingdom United States Kraft, Unilever, one had to withdraw from the Chinese market of foreign dairy magnate.
Time, the international dairy multinationals that exit China once again become the focus of attention of both inside and outside the industry. Provincial milk Association Vice President Wang Ting cotton believes that international dairy Giants defeated the Chinese have many causes, but to say that most headaches or China dairy market, excluding the cost of price wars. In a sense, in fact, foreign dairy giant is China price war scare!
Exit is helpless in China
In 1996, the Netherlands, Mr Matt Baker company Philippines to enter and Tianjin-Finnish joint venture dairy research and training center, 2100 m investment in Tianjin plant and to holding 70% of the forms of direct marketing.
Surprisingly, 17, Friesland (Tianjin) dairy co., Ltd. announced suddenly to the media, from January 24, Netherlands-Philippines, said Matt Baker company decides their control of Friesland (Tianjin) dairy co., Ltd. to operate at its joint venture partner in Tianjin, China and Finland dairy research and training center, holding, managing Orchid Baker company will conclude its in Chinese production and marketing of milk and lactic acid Beverage business.
In fact, the Philippines, said Matt Baker company was not the first exit China dairy magnate. Earlier this year, was deeply troubled by financial scandals, the international dairy giant Phra Maha LVL company announced its withdrawal from the Chinese city often and before that, France Danone, United Kingdom United States Kraft, Unilever, has announced its withdrawal from the Chinese city is often expensive, said Matt Baker company Northern Marketing Director Rao holds Reith told reporters that the divestment of the main reasons is currently China dairy market competition is very fierce, Tianjin market there are dozens of dairy brand in selling price very low liquid milk area Guild Wars, and for foreign-funded enterprises, engaged in price war profits decline very obvious, there is no longer in business need.
25, Philippine, said Matt Baker company sales by a senior person in the interview also acknowledged that Friesland company in recent years operating results are not encouraging, especially in the last two years, the domestic enterprises large push in the market, and normal milk being worked for a price war. Affected by this impact, their products have been very difficult to show a competitive advantage, and narrower profit margins. Make a decision to withdraw from the Chinese market is wunaizhiju!
He defeated away reason
Why strong international dairy brand every one in China suffered a "Waterloo"? is they are not familiar with China's market rules, or do not understand Chinese food culture? or own management aspects out of the question Association of Guangdong Province milk?, Vice President of King Ding cotton that resulted in the withdrawal of the international dairy giant is multifaceted, can be summarized into the following ten areas: first, the international dairy TNCs is too high and too optimistic estimate China's milk market cultivation and development speed. Because, in the 1990s, China 13 billion people lack drinking milk.
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