Nov. 1 — FrieslandCampina, one of the world’s largest dairy cooperatives, has announced the appointment of Zhang Zhanhong as its new president for China. This decision comes after the resignation of the previous president in mid-August.
Zhang, who takes over from Grace Chen, has a strong background in infant formula sales with experience at Wyeth Nutrition and Danone. He also held leadership positions as the general manager of Haleon’s over-the-counter drug division in China and managed Tianjin Smith Kline & French Laboratories.
Industry analyst Song Liang emphasized that FrieslandCampina values Zhang’s extensive sales experience in various city tiers. This experience aligns with the company’s strategy to sustain growth. In recent years, the Amersfoort-based firm has focused more on digital technology to connect directly with retailers and consumers. This approach aims to avoid the common issue faced by foreign baby formula sellers of boosting sales while sacrificing profit margins.
Zhang’s knowledge of new retail strategies and lower-tier markets is expected to benefit FrieslandCampina, especially as China’s infant formula market contracts. According to Song, smaller cities are emerging as crucial battlegrounds. Zhang will need to explore new grassroots markets while managing fierce competition in existing ones, steering clear of aggressive pricing strategies.
FrieslandCampina also reiterated its commitment to the Chinese market, dispelling rumors of layoffs and emphasizing plans for further investments.
China’s declining birthrate is reshaping the market for mother and baby products. Suppliers are increasingly targeting lower-tier cities to create new sales channels. An annual market report by iiMedia reveals that 70 percent of baby formula buyers reside in third-tier cities or lower, with 60 percent preferring to shop in physical stores.
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