China, Eric Lamb, Bloomberg discussed on BTV Simulcast
Thirty two billion dollars here to explain why is Bloomberg cross asset markets reporter, Eric lamb, thirty two billion, Eric what does it? So today, we're coming up on the ten year anniversary of the tainted milk scandal in China and thirty billion dollars figure is actually an estimate from Euromonitor for the size of the infant baby formula market in China. It could grow to thirty two billion over the next five years by twenty twenty three which really gives you a sense of the stakes that are involved in that market now at current currently, we're dealing with foreign producers versus domestic producers real battle right now for the hearts and minds of consumers in young parents. So what are foreign producers doing to build market share Howard, domestic producers fighting back? Yeah. The foreign producers certainly have an advantage because they're perceived to have higher quality products that are less risky for parents. And for companies like Nestle, which has seen their market shared quadruple since two thousand and eight in China. They're actually starting now to focus down on lower tier cities. So the smaller cities outside of the main regions, whereas a little more rural? There's a little more opportunity for growth, so looking at ways to for instance, develop ecommerce or better better supply their products to consumers, their meanwhile, the domestic producers are realizing that actually if they have some kind of brand association with foreign cows or production from outside of China that gives them a leg up and makes them a little more competitive. Yeah. So we saw one Chinese producer, for instance, brand itself as American dairy, right? What will it take to change the situation at what point do Chinese consumers come to believe in domestic producers again? The problem is for some memories are still still fairly fairly recent that they're just not to the point where they're willing to accept it. But over time that might change, right. Bloomberg cross asset markets reporter, Eric lamb. Thank you so much for.