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Bellamy (Bellamy Organic), I think everyone has heard of, and two other brands, A2, and Swisse, are called the leverage of the Australian purchasing community.
However, the Australian milk giant has had a difficult time these days, after the company`s CEO McBain released the company`s business update on Friday. Their share price has been falling unstoppably-it`s now down 45%.
Converted to Australian dollars, overnight, seven billion is gone.
This is interesting, because Bellamy also said not long ago that their income on the National Day holiday in China this year is quite good, and that it has doubled the figure for the whole year.
What`s the price of the milk? The price of the company is down, and it`s going to be so bad?
I don`t know a lot about business, but I don`t think there`s a big news in it!
There is nothing wrong with it. That`s what Bellamy`s CEO says..
"Chinese authorities have changed controls on the import of infant formula, and competitors have cut prices sharply to compete, causing sales to decline."
Wait. Wait a minute, Mr. CEO, your milk powder was sold on double Eleventh Day, 93 million, more than double last year, and you said the company`s sales were down. And dump responsibility on China`s goverment...
This is too hurt the feelings of the Chinese people ah!
So the editor is going to come to August 18 today, and you have lost 700 million dollars overnight. Do you really want the Chinese to bear the pot or not?
Since it`s August 18, then you can`t take the public without a strong medicine at the beginning,
Just a month before the start of the National Day holiday, Australian media reported such a news!
(large Australian enterprises are currently planning to push Chinese purchasing agents out of the market.)
Do you think there are any Bellamy in the big companies mentioned in the news?
Okay, is this a sign of an official declaration of war?
Small purchasing agents in China, at first, struggled to write advertising messages and propaganda words for these big brands in Australia.
Help them open up the Chinese market and raise their profile. It`s hard to make Chinese consumers look familiar,
But in the end, they want to be out of the market?! Naked across the river bridge!
How much free advertising for others..
Say, some foreign brands, want to enter the Chinese market, that generally has to take a lot of effort.
For example, Aldi, a cheap supermarket in Germany, was forced to drown in the face of drown, and must build itself into a "luxury" brand, with the aim of being able to make itself famous in the eyes of Chinese consumers.
Official promotional soft text from Aldi
You can see how lucky these big Australian brands are by looking at what they`ve done to make them famous.
I am at home, do nothing, rely on Chinese purchasing agents, lie down can be spread to thousands of miles.
That`s exactly what Bellamy saw. Wow, there`s a free ad for us, huh.
So Bellamy figured out that when those daigou ads ran out, they could plan a wave of harvest..
Bellamy`s way of harvesting, I think you have guessed, is nothing more than the old-fashioned way of entering e-commerce in China, what Taobao, JD.com, NetEase, the same set:
In this way, Bellamy is happy, but purchasing agents are miserable.
After all, they are large companies, the logistics of resources in hand, more abundant than personal purchasing agents, so natural prices also have advantages.
Over time, few customers buy Bellamy from purchasing agents.
And this time, the two-and-ten-and-one-and-the-ten-year-old, Bellamy, is more than enough to carry a ton-ton of milk powder to the warehouse in China...
The price of these milk powder is not only cheaper than all the overseas purchasing in the market, but even lower than the local price of Australia...
It can be seen that Bellamy, in order to monopolize the market, how much it can compete to squeeze out purchasing agents.
Less than $23 a can of organic milk powder, can you believe it?
See this, you also understand, Bellamy this obvious pendulum is to cross the river to break down the bridge, that is, to dismantle and kill donkeys, is to hurt the feelings of China`s purchasing agents.
But it`s... Man is the species that likes to hurt each other. The overseas purchasing agents know Bellamy`s virtue, and it`s not the air. It`s fair to get back. It`s necessary to get back.
Purchasing agents: there is no competition for steamed bread to fight for breath.
But how to counter-attack, this is also a problem. After all, other large companies, rich, competitive prices of purchasing agents are bound to suffer losses.
Think again and again, you`d better take the medicine from the source. Didn`t you use us to help you promote it? now, on the other hand, we don`t want to help you publicize it. So the more purchasing agents decided to stop selling Bellamy`s milk powder..
Bellamy VS`s war of purchasing agents started..
But Bellamy doesn`t think so, huh, I`m afraid of you? In a twinkling of an eye the advance sales of the company were raised again.
We all know what happened later..
With too much appetite and too much hoarding, Bellamy still has a lot of milk powder left to sell, even if he sold twice last year`s sales during the double.
Not only did the final advance amount fall short of the company`s previous estimate of A $ one hundred and nineteen million nine hundred and ninety nine thousand nine hundred and ninety nine, but it even fell short of the company`s previous estimate of A $ one hundred and nineteen million nine hundred and ninety nine thousand nine hundred and ninety nine.
Even if you don`t reach your expected sales, you can`t sell milk powder more slowly than any other product. Milk powder shelf-life is short, once sales stagnate, will face a large number of stock expiration situation.
This time Bellamy is really in a hurry, and no matter what big Australian brand`s aura, the price cut crazily..
But Bellamy didn`t think it was a stupid move..
Many Chinese consumers like to buy Australian milk powder at a high price because they think it is good. Now that you sell it so cheaply, many consumers will think that your home may not be of good quality.
Analyst Sam Teeger shares the same view.
Look at another lever, A2 powdered milk powder, no matter whether it sells well or not, people just don`t cut prices, and do everything they can to keep it going.
It turned out to be true..
The fourth quarter of the company`s income increased by 96%... After-tax net profit is increased by 7 times...
The abandonment of daigou and the wrong price cuts, coupled with lower-than-expected sales, sent Bellamy`s shares down nearly 4 percent at the start of Monday morning, another wave of losses after their home plunged 43.5 percent on Friday. It`s like eating flamboy. there`s no way to stop..
Ironically, as they had abandoned overseas purchasing, many investors sold their shares during the period, with a market value of from 12.13 to 6.85 yuan. It`s hard to see...
If I had known that, why did I have to?!
Finally, Sam Teeger, an analyst at Citibank, thinks Bellamy`s death is likely to kill himself.
Compared with two other purchasing agents, it has insufficient investment in marketing; moreover, it has fallen out with purchasing agents and has lost its reputation on the other side of the Chinese market. So eventually Citi cut its forecast for Bellamy`s earnings per share for fiscal 2017 by 47 percent and set its target share price at 6 yuan.
For example, the price of six yuan is not as big as an Australian milk-milk giant.
Well, that`s the secret to Bellamy`s tumbling share price..
Sometimes I think that the ideas of these Australian enterprises are really subtle. If there is no purchasing agent, it is some small enterprises that are not famous. After relying on purchasing agents, they want to forget about the market and occupy the market. In the end, the Chinese consumers also blame China`s goverment policy too strict, rival pricing is too low.
Anyway, China could be the biggest loser? There are too many tricks, and the one who eventually dies is himself.!
