the future of dairy industry: bright future and boundless scenery!
China’s dairy industry started late with a low starting point, but developed rapidly. Especially since the reform and opening up, milk production has increased rapidly with a double-digit growth rate every year, far higher than the world average level of 1% in the same period. The output and gross output value of China’s dairy products have increased more than 10 times in the last 10 years, which has gradually attracted the attention of the world. In recent years, although China’s annual per capita milk share has increased rapidly, there is still a big gap compared with the world average. At the same time, dairy consumption between urban and rural areas and between regions is also extremely unbalanced. At present, the sales volume of urban dairy products accounts for 90% of the total sales volume of dairy products in China. The vast rural dairy market has great potential and needs to be explored. With the gradual growth of rural dairy consumption, China’s dairy industry will usher in a broader development space.
Current situation of dairy industry: seven heroes and a hundred schools of thought contend in the Warring States period!
Under the slogan of a cup of milk to strengthen a nation, Yili, Mengniu, Guangming, Sanyuan, Feihe, Heilongjiang dairy industry, new hope, etc. have an unstoppable trend of waving flags from south to North and running horses to enclose land! However, local brands are still strong and independent. With geographical advantages, terminal control and flexible market policies, they can still control their territory.
Trend insight: market segmentation is inevitable, and product power and terminal power are the key!
In the early days of the rise of China’s dairy industry, people mainly focused on milk powder. With the development of the market, the concentration and maturity of dairy brands, and the rational improvement of consumers’ purchase of dairy products, segmented milk powder divided by age has been differentiated from milk powder, and now pregnant women’s milk powder has begun to appear; Liquid milk is subdivided into catering milk for catering, fruit juice (tea, coffee) mixed milk for white-collar workers, pillow milk and box milk for high-income people, and plastic bagged lactic acid beverage for rural consumers. With the increasing variety of dairy products and intensified competition, the blue ocean market has gradually evolved into a red ocean market. Large and small dairy enterprises have their own advantages: big brands win the market by scale; Small brands win consumption with products. Facing the local market, large and small enterprises are still on the same starting line, and what finally wins the market is consumers’ love for products!
Thinking on the positioning of new dairy products:
The so-called market segmentation means that when the market of a certain type of product develops to a certain scale and degree, consumers have become numb to this kind of product from fresh, and have a new personalized pursuit. At the same time, the profit margin of enterprises is getting lower and lower due to competitive price reduction. In order to find new profit growth points and obtain competitive advantages and forerunner, they will launch targeted products according to the different needs of different consumers, so as to promote the further expansion of the overall market of this type of products.
The timing of market segmentation generally meets the following conditions at the same time:
First, the consumer group has expanded to all people who can be affected. Consumers have become accustomed to and numb to the original products, and the material or spiritual functions of the products have become prominent;
Second, the fierce market competition makes the price of original products fall again and again, and the profit space of enterprises becomes smaller and smaller. Looking for new profit growth points will force enterprises to subdivide the market.
However, as an enterprise, it is a little late to launch subdivided products when the above two conditions are mature or too obvious. The amount of advance in time is very important, that is, the enterprise should make relevant preparations in advance and launch them in advance.
The relevant preparations mentioned here include:
1. Through the analysis of consumers, it is determined that one or more groups launch corresponding products, and it is best to determine the group with the largest number, the most avant-garde awareness and suitable consumption ability;
2. Analyze the needs of target consumer groups in terms of material and spirit, determine the outstanding characteristics of products, and refine product demands;
3. Plan product packaging, promotional materials, promotional products and marketing methods for target consumers.
There are many methods of market segmentation, which are described as follows:
1. Develop corresponding products for men and women respectively. Such as he + she of Huiyuan, he she water of Wahaha;
2. Develop corresponding products for consumers of different ages. Such as segmented formula + fortification factor;
3. Develop corresponding products for different income earners. For example, for white-collar workers and the general public;
4. Develop different products according to the consumption environment. Such as family, office, Internet bar, catering, bar, leisure, etc;
5. Develop different products for different consumption habits. Such as capacity, taste weight, etc;
6. Develop different products for people with different consumption awareness. For example, for avant-garde people;
7. Develop different products for consumers with different consumption styles. Such as netizens, students, entertainment people, etc;
8. Develop different products for consumers of different occupations. For example, for students, teachers, company occupations, manual workers, mental workers, etc.
Requirements for platform and popularization of product innovation
The so-called platform and popularization requirements of product innovation, that is, product innovation is best based on the mainstream products in the existing market, such as the raw materials and product types well known by the public. Since the platform products are familiar and accepted by the public, the innovative products are relatively easy to be accepted by the public. Therefore, the possibility of success of innovative products is greater, and the completely innovative products that are separated from the mainstream products in the existing market, Because of the need for arduous cultivation and guidance of consumer ideas, it is much more difficult to change ideas than to change material conditions. Accordingly, it will be very difficult for such innovative products to succeed.
China has a vast territory, and there are great differences in customs and habits. Different from other industries, dairy products are imported things, which are largely affected by the taste habits of consumers. The food that people are used to in this place will be difficult to accept in another place. Therefore, when enterprises launch products, they can’t cover their eyes with one leaf. They want to take it for granted that people all over the country attend the meeting. Like locals, regional things are sometimes regional goods. In addition, sometimes, although locals are used to a product, they don’t agree with it after packaging, which is also a habit problem.
the future of dairy industry: bright future and boundless scenery!