NetEase New Energy Dairy Industry Summit was held in Beijing

On December 27, the "NetEase New Energy Dairy Industry Summit" was held
in Beijing.
The dairy industry is an important basic industry related to the national economy and people's livelihood, and is an urgent need to promote the "Healthy China" strategy, and scientific and technological innovation is the primary condition and core driving force
for healthy and stable development.
As an influential and socially responsible content information platform in China, NetEase Media has joined hands with industry leaders and executives of the top 20 dairy enterprises to jointly provide an ideological feast
for the development of China's dairy industry.

Liu Yaqing, Vice President and Secretary-General of China Dairy Association, Liu Chao, Vice Chairman and Executive Deputy Secretary-General of China Dairy Industry Association, Liu Chunxi, Executive President of Yili Group, Li Pengcheng, Executive President of Mengniu Group, Sun Yugang, President of Modern Dairy (Group) Co.
, Ltd.
, Mou Shanbo, Chairman and President of Yipin Dairy Group, Zhu Chuan, President of New Hope Dairy, Chen Xiaodong, Vice President of Feihe Dairy, Dai Junqi, Vice President of Fonterra Greater China, Yang Guochao, Senior Vice President of FrieslandCampina China Corporate Affairs, Tang Hong, General Manager of Beijing Sanyuan Food Co.
, Ltd.
, Ren Song, Co-CEO of Miokolanduo, Nengzi Shi, Vice Chairman of Deloitte China, Zhao Hui, General Manager of Kantar Worldpanel North, Song Liang, Dairy Industry Analyst, Wu Wenwen, General Manager of Brand Marketing Center of Blue River Dairy Group, Xu Sa, Chief Scientist and Innovation Officer of Mead Johnson China, Zhu Hui, Director of Public Affairs of H&H Group China, Tian Hua, Vice President of NetEase Media, Zhang Wei, Deputy Editor-in-Chief of NetEase Media and other guests attended the summit
.

Tian Hua, vice president of NetEase Media, said in his speech that China's dairy industry not only benefits from long-term consumption trends, but also receives strong support from national policies, which not only cultivates many international leading brands, but also subdivides many categories through industrial chain and product innovation, forming a vibrant industry ecosystem
.
This ecosystem gathers advanced technology, top talents, abundant funds, and everyone makes unremitting efforts to create the prosperity
of the entire industry.
As a leading content information platform in China, NetEase Media comprehensively, accurately and timely records every major event in China's dairy industry, and the growth and maturity
of each brand.
It is expected that through the NetEase platform, the new energy, new products and influence of the dairy industry will continue to be transmitted to the public
.

Liu Yaqing, vice president and secretary general of the China Dairy Association, said at the meeting that the development of the dairy industry is stable and improving, and the future dairy industry is expected to have broad prospects, but it is not optimistic, the development of the dairy industry is facing the confusion of imbalance between supply and demand of dairy products and insufficient industrial competitive advantages, and it is necessary to work hard from the following four aspects: First, release internal potential and improve supply security capabilities; The second is to carry forward the spirit of ingenuity and promote quality safety and brand building; The third is to strengthen harmony and common prosperity and promote the optimization and upgrading of the industrial chain; The fourth is to accelerate scientific and technological innovation and create a new situation
of win-win cooperation in the dairy industry.

Liu Chao, vice chairman and executive deputy secretary-general of China Dairy Industry Association, said that China's dairy industry has entered a stage of high-quality and steady development, according to the forecast of relevant institutions, the dairy industry will maintain an average annual compound growth rate of 4.
8% in the next five years, and the industry revenue will reach more than 590 billion yuan
by 2026.
Liu Chao believes that the dairy industry has entered a stage of high-quality development mainly reflected in the following aspects: first, the achievements in pasture construction are remarkable; Second, the quality is excellent and the position is leading; Third, the green development of ecological civilization; Fourth, high-quality development
.

The trend of diversified channels and healthy consumption is more obvious

Liu Chunxi, CEO of Yili Group, said at the meeting that since the beginning of this year, despite the impact of uncertainties such as multi-point epidemics, dairy products, as nutritional and healthy foods, have increasingly become the rigid needs of consumers, and the development of the industry has shown considerable resilience and achieved steady improvement
.
In the face of the increasingly diversified and personalized new consumption trend of the consumer market, Liu Chunxi said that it is necessary to seize the market opportunities brought by new consumption, enhance insight, grasp new trends, and continue to meet the diversified needs
of consumers by strengthening innovation drive.

Li Pengcheng, CEO of Mengniu Group, said at the meeting that China's dairy industry has shown strong resilience and maintained a good development trend
of stable improvement.
The development of China's dairy industry also faces many challenges
.
The international situation is complex, the impact of the epidemic, the superimposed cost rise, and the increase in inflationary pressure, and many technical problems that restrict the development of the dairy industry have not yet been broken
.
The diversification of channel categories and the new changes in the healthy consumption choices are becoming more and more apparent
.
Li Pengcheng proposed to seize development opportunities, actively promote the transformation and upgrading of the industry, and draw a blueprint
for the high-quality development of China's dairy industry.

Deloitte China Vice President Nengzi Shi said that although China is facing a low birth rate, an aging population, and per capita dairy consumption is only 1/3 of the world average, there is a lot of room
for growth.
Under the background of the upgrading of consumer demand, the continuous innovation of brand consumer-oriented communication strategies, and the increase of dairy products empowered by cold chain, there must be a number of cutting-edge brands from the red sea of dairy products to form a breakthrough trend, driving the overall market space to continue to rise
.

Hui Zhao, General Manager of Kantar Worldpanel North, explained the changes and trends in the FMCG industry with four keywords: steady recovery, price, new convenience, and emerging humans
.
In the past one or two decades, FMCG has grown very high, with a low of only 1% in 2016, and the growth rate after driving domestic demand is very fast, and after the epidemic, the increase in 2020 is very small, this year it is 3.
9%.

After the liberalization, the recovery of FMCG products in China may come in the second quarter of next year
.
In terms of prices, the growth rate of FMCG in China is 1%-5%, but the premiumization stopped abruptly in 2020, and the high-end of FMCG has slowed down
in the past two years.

Zhao Hui pointed out that the new convenience mainly depends on the earth-shaking changes in the channel after the development of the epidemic in the past two years
.
Now, the business of hypermarkets and e-commerce is no longer rising, but O2O is growing very fast, including solving one-stop services, improvisational services, warehousing services, cold chain, etc.
, and the increase is very good
.
Emerging humans have also brought new consumption trends, such as more small households in first-tier cities, with one person as a family, such people account for more than 15% in China, they are paying more and more attention to high quality, using small brands, small packaging, is a typical willingness to spend more money to buy products from Hema Xiansheng, but also to buy products
from idle fish.

Product innovation becomes an enabler to seize new opportunities in the market

Tang Hong, General Manager of Beijing Sanyuan Food Co.
, Ltd.
, Zhu Chuan, President of New Hope Dairy, Ren Song, Co-CEO of Miaoke Landuo, Sun Yugang, President of Modern Dairy (Group) Co.
, Ltd.
, and Dai Junqi, Vice President of Fonterra Greater China, had a heated discussion
on how to seize new opportunities in the dairy market with product innovation.

Tang Hong said that Sanyuan, as the first domestic cheese production enterprise, has a deep accumulation in technical reserves and capacity reserves, although in the 2C business, is still unknown, but has been deeply cultivated in the catering market, has been serving Western food giants for many years, accumulated rich experience
.
In the future, with the continuous improvement of quality and technology, we will further subdivide this market demand and develop more new products in a targeted manner
.

Zhu Chuan put forward four forces for product innovation, one is product power, what is the product itself, what is different, what is the nutritional value
.
The second is channel power, what kind of channel to use to match the product, the crowd exists, the value of the product exists, but if there is no suitable scene to connect and deliver, the product cannot reach consumers
well.
The third is marketing power, the way of communication, no matter what content is used to talk about new media, where to speak, to whom, these marketing forces to help this product, even if it is a subdivision of the product, can really explain its interests thoroughly
.
Finally, there is organizational power, a product can sell quickly, but also need the organizational strength
of the enterprise.
Therefore, working together from the dimensions of product power, channel power, marketing power and organizational power can get a good growth opportunity
in the consumer market.

Ren Song said that the epidemic has brought both challenges and opportunities
to Miaokolando.
On the one hand, the terminal passenger flow of offline and online channels is decreasing, and the entire objective environment enterprises are under some pressure
.
On the other hand, during the epidemic, people paid more attention to health, and the intake of high-quality protein is a very powerful weapon
for people to resist the epidemic.
It is precisely this opportunity that people's awareness of cheese has been further improved
during the epidemic.
In view of this, Miaokolanduo has also deliberately strengthened this selling point and product characteristics in many new products, and has also launched some better products to meet the needs of
consumers.
At the same time, it has also strengthened its business such as in-store and home-to-home, and strengthened channels such as O2O and community group buying that can greatly facilitate consumers
' purchases.

"Carbon neutrality" is the current hot spot, and Sun Yugang introduced how modern animal husbandry can achieve green development
through technological innovation.
In the existing model, modern animal husbandry has carried out some optimization of breeding, and the conversion rate of feed is in the leading position in the industry regardless of yield, so that some carbon emissions are reduced
through high yield.
At the same time, after the carbon model of modern animal husbandry, the carbon emissions per kilogram of milk are far lower than 40% of the industry, but this is not the goal, modern dairy industry has set the goal of continuing to reduce 30% on the basis of this year, mainly through the improvement of substrate and the use of some new technology input, including nonferrous motors and other emission reduction, relying on these aspects to achieve high yield at the same time, reduce carbon emissions
.

Dai Junqi introduced his development experience and experience from the perspective of digitalization, on the one hand, from the automation, visualization and digitalization of internal enterprise management and operation to improve operational efficiency and reduce internal operating costs, as well as to achieve traceability and traceability of enterprise operations, and then use digital means to achieve quality management improvement; In terms of R&D, digitalization has given us a good means and platform to study consumer preferences; In terms of marketing, after the epidemic, more and more of our marketing activities have shifted from offline to online, and we have communicated with customers and consumers through different digital platforms; In terms of service, in the post-pandemic era, digitalization has also given us a better and more convenient opportunity
to serve customers.

The implementation of the new national standard points out the direction for enterprises to enhance their competitiveness

The three new national standards for infant formula food announced in March 2021 will be officially implemented
on February 22, 2023.
According to the policy, on the day of the implementation of the new national standard, the manufacturer must organize production
according to the product formula registered by the new national standard.

Regarding what kind of opportunities the new national standard will bring to enterprises, Mou Shanbo, Chairman and President of Yipin Dairy Group, Yang Guochao, Senior Vice President of Corporate Affairs of FrieslandCampina China, Wu Wenwen, General Manager of Brand Marketing Center of Blue River Dairy Group, Chen Xiaodong, Vice President of China Feihe, Xu Sa, Chief Scientist and Innovation Officer of Mead Johnson China, and Zhu Hui, Director of Public Affairs of H&H Group China, discussed and shared
the opportunities that the new national standard will bring to enterprises.

Mou Shanbo said that it is necessary to think from two aspects, one is how to smoothly pass the registration from the perspective of formula registration
market supervision.
It is necessary to carefully study China's new version of infant milk powder production management rules and infant formula registration regulations, which put forward higher requirements
for enterprise research and development and industrial chain construction.
Second, from the perspective of market demand, what market demand is facing now, whether consumer demand is upgraded or downgraded, and whether the market chooses to be a brand or a category
.

Wu Wenwen said that the implementation of the new national standard will promote some brands to withdraw from the market, the entire market will reduce the number of players, the standardization of the market will be further strengthened, due to the formula registration to make the formula of each brand converge, the head brand and category of the head enterprises will have better opportunities
.

Chen Xiaodong believes that the new national standard is more stringent in the nutrition and safety indicators of the formula, which also encourages enterprises to continue to innovate and develop
to higher quality.
At the same time, the new national standard also points out the direction
for enterprises to further enhance their competitiveness.

Zhu Hui said that the new national standard has put forward new requirements and challenges
for enterprises from the perspective of raw materials, production and R&D quality of enterprises.
Enterprises should continue to contribute
to China's infant formula through strict requirements for quality and continuous investment in research and development.

Digital marketing has become a hot spot in the past two years, and the milk powder industry is also constantly exploring and applying
.
Yang Guochao said that Meisujiaer's digital marketing focuses on three aspects, one is service, the other is CEM customer management, and the third is cross-platform coverage
.
Among them, the digital platform with cross-platform coverage can achieve more accurate demand forecasting and inventory management
.

In response to the innovation of milk powder, Xu Sa shared a gold standard: the first is ingredient selection, not only the content of ingredients, the types of ingredients, but also the pairing research of mother and child; The second is the innovation of ingredients, such as lactoferrin, from its process, activity, stability and function of the effect will do a lot of research; The third is the study of the formula, how to match the ingredients, how to exert the efficacy of the ingredients, how to maintain the activity
after the production process.

(Zhang Yu)

Preliminary review: Li Song Responsible editor: Zhao Yu Review: Wang Jinchen