Summary

Feihe Dairy, one of the oldest domestic dairy products company in China, resurged from the negative publicity of the melamine-tainted milk scandal in 2008, and is now a leading player in the Chinese infant formula market, taking on the multi-nationals that dominate the space.

When the tainted milk scandal damaged the reputation of domestic powdered infant formula (PIF) companies in 2008, Chinese consumer migrated to foreign PIF brands. Feihe Dairy repositioned itself as a premium infant milk powder brand and strived to win back the lost faith of consumers, emerging as one of the market leaders in the China’s premium and super-premium PIF market.


Scope

  • Feihe Dairy’s unrelenting focus on improving product quality, and comprehensive measures to ensure g freshness of powdered infant formula (PIF) stocks across its supply chain garnered the trust of Chinese consumers who are wary of spurious and adulterated food following a spate of food scandals.
  • By shifting the focus of its product positioning, marketing, and branding strategies to the premium and super-premium PIF market, the company propagated the perception that its products are on par with foreign brands, which are considered to be high-quality offerings.
  • Feihe Dairy also differentiates itself by striving to customize its infant formula for Chinese babies through intensive R&D investment, which appeals to the growing consumer need for personalized products for children.
  • The company’s single layered distribution network covering retail outlets across the country, presence in leading online retail stores, and foray into the maternity stores, also abetted its swift growth




Reasons To Buy

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