Baby formula maker surfs digital wave

Baby formula maker Mead Johnson Nutrition, a unit of Anglo-Dutch health and hygiene consumer goods company Reckitt Benckiser Group, is banking on digital technologies to gain more traction with young Chinese mothers in the post-COVID-19 era, a top company official said.

Livestreaming and providing information via online medical and retail platforms would be the approaches that the company is using to provide parental information in China, said Enda Ryan, the chief executive of Mead Johnson in China.

The digital engagement strategy, or DARE, is a consumer-centric approach, involving continuous interactions through a centralized but agile model to enhance consumer experiences, said Ryan. "The pandemic has further fast-forwarded the utilization of digital technology in daily lives," he said.

According to him, the retail landscape has seen several years of development within a few months. "In the long term, digital technology will play an even more significant role in the consumer journey."

The company launched online parenting classes via livestreaming after the Lunar New Year. It has joined hands with online medical platforms like Chunyu Doctor and WeDoctor to provide digital medical consultation services.

During the first six months of this year, nearly 30 percent of Mead Johnson's revenue came from online platforms, said the CEO, and the same is expected to see steady growth.

In July, the company launched a new product line named Total-Grow specially designed for digital channels and the same is now available on JD and Tmall.

Ryan said that more than 90 percent of Chinese mothers were born in the 1990s and are extremely internet-savvy. As a result, they are able to leverage the online resources and diversified digital channels to gain knowledge and make informed baby product purchases, he said.

"Chinese mothers are increasingly becoming aware of health and wellness after the pandemic and are looking for products with proven health and immunity benefits," said Ryan.

"Not only do we nourish Chinese babies, we deliver clinically-proven benefits of cognitive development, immunity, digestion and overall physical growth."

The company, which has infant and child formula brands including Enfamil, Enfinitas and Gentalease, said it has developed consumer education engagement activities focusing on scientific research and formulations to help consumers gain better knowledge about combating challenges.

The company has rolled out educational programs around the clinically-proven benefits of Enfinitas to reflect its continuous scientific investments in China.

Zhu Danpeng, an independent food analyst, said the enhancement of omnichannel retail and unique scientific formula have been key messages for Mead Johnson, one of the top six players in the Chinese market, to gain breakthroughs in the infant milk formula market.

According to data provided by research firm Mintel, the total sales value of the infant milk formula sector in China stood at 112.2 billion yuan ($16.4 billion) by March 2018, thanks to the better performance of the premium sector.