China’s infant formula market is entering a new age. High-end domestic brands reported three-digit growth in the first quarter of this year while smaller companies are now teetering on the brink of extinction with little prospect of meeting the impending Jan 1st 2018, infant formula registration deadline. In the context of this regulatory reform market behavior has been erratic and unpredictable, already precipitating a chaotic price war which has negatively impacted the performance of some domestic brands evidenced by significant price reductions and share price devaluations.
China Infant Formula: New Regulations Reshaping Market Landscape
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