When regional brand, second-tier brands were "decapitation", who have ability and firms compete? Dairy farmers and consumers will lose more product selection and the possibility of bargaining, the free market will by oligarchs "kidnapping" and lose freedom, in north China's largest yogurt enterprises...

When regional brand, second-tier brands were "decapitation", who have ability and firms compete? Dairy farmers and consumers will lose more product selection and the possibility of bargaining, the free market will by oligarchs "kidnapping" and lose their freedom

Recently, in north China's largest yogurt enterprise to nearly 500 million yuan jun to extreme price will be 51% of the control over to dairy giants mengniu group. The sour milk industry, the market share of the first and fourth combination, produced a new market, but for the beginning of jun to extreme is a blessing or a curse, but a dairy experts question whether this is the newly developed promising second-tier brands presided over the "decapitation behavior", think it will make China dairy industry further to oligopoly.

Jun to extreme, in fact, "alongside" mengniu seems realized to win more, but with a full belly injustice.

In September this year, yili invested 500 million yuan, in Zhang Bei of building hebei's largest liquid milk production base. In October, New Zealand's fonterra project investment of 200 million yuan of ranch in yutian... Jun to extreme stronghold, hebei province, one of the domestic high quality raw milk, has become a racetrack dairy giant.

Most let jun to extreme dairy co., LTD., chairman and general manager of shijiazhuang Wei Lihua worries, has happened to another regional milk companies. In July, liquid milk of yili and mengniu invest hundreds of millions of yuan successively in ningxia hui, yinchuan new factory construction. Ningxia, is once of summer into dairy last refuge. With the situation said, once mengniu, yili started production base in the second half of next year summer into the local factory will very likely "no rice pot".

So when the yili, mengniu, fonterra heavily hook strength of large enterprises, is a gentleman to extreme thrive is already the way.

A "guns," said the dairy people wang cotton is full of worries, like jun to extreme performance has done 1 billion of medium-sized enterprises, developed just eaten by big mergers and acquisitions, this is big business for small and medium-sized enterprises "decapitation", the ultimate goal is to guide oligopoly. Some reason of the personage inside course of study is not without regrets ground say, the future dairy will be accelerated, merger and reorganization between local brand of acquirers, does duopoly and foreign investment.

Large companies with strong capital power, enormous social influence, strong public relations ability, always take advantage in the competition. "The real worry is that sometimes the competition even unfair." Wang cotton said. For various reasons, we often see resources and policies are overwhelmingly to big business.

Law of the jungle is not defy the laws of nature is good, but the harm of oligopoly is obvious. In contrast, some of our industrial policy, fly into a rage at the "one size fits all" for small and medium-sized enterprises, with production, scale high demand to a large number of small businesses in the threshold of the market, forcing medium-sized enterprises "fox", hurried out of the "internal injuries". How to medium enterprises build the coordinated development of environment, let small and medium-sized enterprises also the opportunity to get bigger and stronger, sustainable development, is a unavoidable problem.

Characteristics of the dairy industry determine, we can not only the national brand, also need to benign supplement of the regional brand, this is not only beneficial to safeguard the interests of dairy farmers to promote construction of raw milk, also is advantageous to the through market competition to fully protect the rights and interests of consumers. When regional brand, second-tier brands were "decapitation", who have ability and firms compete? Dairy farmers and consumers will lose more product selection and the possibility of bargaining, the free market will by oligarchs "kidnapping" and lose their freedom. "Decapitation" killed more than second-line brand, and the coordinated development of the market. Benign market should be to pack.