Hong Kong and Guangdong milk powder price difference or loss of market share

In the domestic highly sought-after milk powder brands such as Wyeth, Mead Johnson, and Nestle, the price of Hong Kong milk powder is comparable to that of Guangzhou. The price difference of the same product amounts to about 50 yuan. For some brands, the price difference exceeds 100 yuan. The biggest spread is Nestlé's super-enhanced milk powder in three phases. One phase of milk powder is sold at HK$243 in Hong Kong's PARKnSHOP supermarket, and the HOLIDAY supermarket in Guangzhou’s Xingang West sells RMB 310, with a spread of more than RMB 110.

Liang Mingxuan, a food industry researcher at CIC Advisors, pointed out that the milk powder standards in Hong Kong and the Mainland are different. Since Hong Kong does not have an infant milk formula standard, Hong Kong companies are implemented in accordance with the International Codex Alimentarius and domestic food standards in China. To perform production. In fact, the different production standards may cause some consumers to switch to Hong Kong to purchase milk powder. The consumer demand for the powdered milk market will increase, which in turn will increase the price of the product. However, why the price of milk powder in Hong Kong is more than 30% cheaper than the Mainland? What?

According to Liang Mingxuan, compared with the fluctuations in prices caused by supply and demand, other cost factors have a greater impact. The most significant cost difference lies in tariffs and transportation costs. From the analysis of the tariffs between the two cities, Hong Kong is a free trade port, without any taxes, and the domestic import tariff is generally 10% to 17%; on the other hand, transportation costs, Hong Kong covers an area of ​​less, milk powder is transported from the customs after import The short distances for sales stores are relatively small compared with the domestic product transportation situation, which in turn accounts for 10% to 20% of the cost.

Such a large price difference makes consumers more willing to go to Hong Kong to buy milk powder, which will lead to the loss of part of the market share, but also to the domestic milk powder manufacturers are facing a more severe pattern of competition, the China Investment Consulting Research Director Zhang Xiaolin pointed out that since the melamine incident broke out Consumers' confidence in domestically produced milk powder is greatly reduced. Foreign milk powder was once favored. At present, there is a large gap between the price of foreign milk powder in Hong Kong and the Mainland, which will lead to the shrinking of the number of consumers who purchase milk powder in the country.

The "2011-2015 China Milk Powder Market Investment Analysis and Forecast Report" issued by China Investment Advisors pointed out that there is a huge market space for China's milk powder market. China has added more than 10 million infants each year, and the consumer market has a greater demand for milk powder. The potential of China's milk powder market is huge.