Recently, Junlebao has launched its first organic milk powder online. The so-called probiotic organic infant milk powder just comes after the latest launch of A2 milk powder in December last year.
This time the Junlebao probiotic organic infant milk powder mainly engages itself in two big online distribution platforms in China, including the WeChat Shop and e-commerce giant Taobao. With some discount activities on Taobao, the price of the product seems quite acceptable for customers. For example, a tin of 200 grams just costs around RMB 50 after discount.
Junlebao utilizes overseas cooperation for the new arrival
According to Junlebao’s vice president and general manager of milk powder, the probiotic organic infant milk powder marks the cooperation between Junlebao and two overseas probiotic enterprises with a long history of a hundred years, which are Chr. Hansen from Denmark and DuPont Danisco from the USA. The two companies provide active probiotics Bb-12and HN019 for the Junlebao probiotic organic infant milk powder.
High cost performance considered most important strategy of Junlebao’s new arrival
Organic milk powder lies in an industry of high price range from roughly RMB 300 to more than RMB 600. However, Junelebao wants to turn over the existing situation in the aspects of double probiotics, organic industrial chains and moderately hydrolyzed protein. Hence, the price of the new arrival is set under RMB 300 for 800 grams after discount. With such a strategy, the orders of the probiotic organic infant milk powder broke through 120 million on the first day of launch.
Some market insiders hold the opinion that the organic milk powder of Junlebao aims at a high-end route with a high cost performance strategy. The purpose of Junlebao’s launching the probiotic organic infant milk powder is to emphasize its advantages of high quality but low price.
Organic milk powder seen to be potential in milk powder market
Organic milk powder is considered to have growth of potential in the prospect of milk powder industry. According to the statistics released by the China Business Industry Research Institute, the sales volume of organic milk powder has experienced a rapid growth at the rate of 47% in the recent years. From 2016 to 2018 the offline sales volume of organic milk powder reaches respectively RMB 1.820 billion, RMB 2.670 billion and RMB 3.920 billion. The one in 2019 is predicted to get to RMB 5.770 billion.
It is shown in the data released by Junlebao in January 2019 that the revenues of the company rose 25% in 2019, which is nearly RMB 16.300 billion. In the meanwhile, the production and sales volume of milk powder reached 75,000 tons with an increase of 62%.
Junlebao was founded in 1995 with a 25-year history in dairy industry. Nowadays, it is the biggest dairy processing enterprise in Hebei Province in China. Apart from that, the company has earned quite a lot of outstanding titles, such as Chinese key Leading Enterprise in Agriculture Industrialization, Chinese High-tech Enterprise, as well as Chinese Dairy R&D Technology Sub Centre.
Junlebao’s business ranges from infant milk powder, low temperature liquid milk, normal temperature liquid milk to husbandry. With already 20 production factories and 13 modern ranches in China, the company has sales distribution all over the country. In the recent years, Junlebao started to work with global leaders by establishing international joint R & D platforms.
For more information on China’s milk powder market, please check our Dairy Products China E News.