Regional dairy enterprises "attract fans" with local characteristics

In the third quarterly report of Tianrun Dairy, it said that it is ready to continue to promote the Internet celebrity product Tianrun milk beer; Jule Co.
, Ltd.
creates a large single product "authentic Sichuan taste" sour milk; Guangdong Yantang Dairy launched a new product of "fresh milk dessert" fresh milk pudding; Inner Mongolia Lange milk owner pushes grassland specialty yogurt.
.
.
In the face of fierce competition in the dairy market, some regional dairy enterprises choose differentiated play and develop products with local characteristics in order to "overtake on a curve"
.
Experts said that the expansion of regional brands outside the region mainly relies on two "weapons"
of marketing and quality.
Compared with national brands, differentiated marketing and specialty products are one of
the ways for regional dairy enterprises to achieve performance growth.
Especially under the current situation of general pressure in the industry, how to cultivate their own unique "powder absorption" ability has become the primary test
for regional dairy enterprises.

There is limited room for development

According to data from the National Bureau of Statistics, in 2021, there were 589 dairy enterprises above designated size in the country, with a total sales of 468.
738 billion yuan, a year-on-year increase of 10.
26%.

According to the data of China Business Industry Research Institute, Yili and Mengniu Dairy together occupy 43% of the market share, while Bright Dairy and Junlebao Dairy occupy 10% of the market share, and the competition pattern of the dairy market has basically formed
.

With the deepening of the consumption awareness of large and medium-sized dairy enterprises in the down-tier market, the limited resources of the regional market have been further concentrated
.
The most obvious is the supermarket shelf resources, and the supermarket chain that increasingly requires efficiency has to transfer the pressure of efficiency to the supplier, bar code restrictions, shelf display area restrictions, and further shortening of the sales performance cycle are the current situation
that regional dairy enterprises have to face.

Intensive cultivation of the local market

18 listed dairy companies have released their third quarterly reports for 2022, of which 5 dairy companies with a year-on-year increase in net profit in the third quarter of more than 40%, all of which are regional dairy companies
.
Among the above 18 dairy enterprises, Manor Ranch, JuneYao Health, Western Dairy and other dairy enterprises ranked first
in the third quarter in the growth rate of net profit attributable to the mother.
Manor Ranch achieved operating income of 280 million yuan in the third quarter, a year-on-year increase of 10.
12%; The net profit attributable to the parent was 21.
2626 million yuan, a year-on-year increase of 125.
46%.

JuneYao Health achieved revenue of 304 million yuan in the third quarter, a year-on-year increase of 35.
99%; The net profit attributable to the parent was 33.
4894 million yuan, a year-on-year increase of 71.
55%.

For regional dairy companies, low-temperature fresh milk is still a major "weapon"
in the face of competition.
On the one hand, low-temperature fresh milk has a short shelf life and is relatively more suitable for circulation
around the factory.
On the other hand, the low-temperature fresh milk products of regional dairy enterprises have the channel barrier
of delivering milk to households after a long period of accumulation.

Many regional dairy enterprises such as Weigang, Yantang, Changfu, etc.
have their own milk delivery services, and are also vigorously developing online milk ordering business
.
On this basis, regional dairy enterprises have further consolidated their low-temperature fresh milk business advantages and become the first choice
for local consumers when choosing fresh and high-quality low-temperature fresh milk.

It is worth mentioning that in addition to the advantages of channels, regional dairy enterprises also have a high degree of recognition and trust, and many of them are brands that local people drink from small to large
.
In other words, if regional dairy enterprises can do a good job of low-temperature fresh milk and deepen the local market, they can also win a certain voice
in the competition.

Develop differentiated and specialty products

Although the local market is very important for regional dairy enterprises, from the current market situation, many regional dairy enterprises are not limited to the local market for development, but have begun to gradually expand
outward.
Out of the local "comfort zone", face more products and brands, the market competition will be more fierce, if you do not have your own superior products may be difficult to compete
with.
Some regional dairy enterprises choose differentiated approaches and develop products
with local characteristics.
In the yogurt sub-category, Langege has innovatively launched three products with Inner Mongolian characteristics: "A Cup of Mongolian Meal", "Montmasuri Concentrated Yogurt" and "Montessori Cheese Flavored Kefir", which provides the possibility
for consumers in the peripheral market to taste early.
Xinjiang Tianrun focuses on the large category of yogurt, with taste innovation as the breakthrough, "ice cream", "bewitched by grapefruit", "interesting", "breaking orange", "honey melon" and "matcha ice cream" and other more than 10 products with fashion elements, forming a new product series
with regional characteristics.

It is worth mentioning that or thanks to the differentiated play, the contribution of Tianrun Dairy's overseas market increased from nearly 36% of revenue in 2019 to nearly 39% in 2021, and in the first three quarters of this year, it increased by 35.
2% outside Xinjiang and only 7.
54%
in Xinjiang.
Industry insiders said that compared with the national leading dairy enterprises, regional dairy enterprises should concentrate existing resources, give play to regional characteristics, create their own explosive products, and carry out differentiated competition
.

Product innovation is fundamental

When regional dairy enterprises expand outward, they not only face fierce market competition, but also have development restrictions, of which insufficient milk sources and production capacity may be the main problems
.
If these problems cannot be solved, regional dairy enterprises may not be able to better layout the low-temperature track and develop other dairy products
when they go global.

In this regard, listing may become a way for many regional dairy enterprises to seek breakthroughs, on the one hand, it can get relatively strong financial support to help regional dairy enterprises further build and optimize the industrial chain; On the other hand, listing can also enhance brand awareness and increase consumer confidence
.

Experts said that core products, core channels and core customers are the key to the survival of
regional dairy enterprises.
Whether it is Langege or Tianrun, the subdivision category that undertakes the mission of going global is yogurt
.
Because compared with low-temperature pasteurized milk and room temperature white milk, yogurt consumption is more diversified and has the possibility of
breaking the market circle.
In other words, the malleable attribute of attracting new consumer groups with taste innovation and product concepts is stronger
.
For regional dairy enterprises, there is more room for innovation in such a market segment, and regional specialty products are more likely to successfully break the circle
.

(Gao Na comprehensive collation)

China Food News(December 27, 2022, Version 04)

(Responsible editor: Gao Na)