On November 6th, the 16th Belt and Road Eco-Agriculture and Food Safety Forum was successfully held in Shanghai as a concurrent event of the 6th China International Import Expo. The forum was hosted by the State Administration for Market Regulation and co-organized by the Shanghai Municipal Administration for Market Regulation, the Development Research Center of the State Administration for Market Regulation, and the Secretariat of the Belt and Road Eco-Agriculture and Food Safety Forum. Lu Guang, Chairman’s Consultant of China Feihe Limited, attended the opening ceremony of the forum and delivered a speech.
Lu Guang, Chairman’s Consultant of China Feihe Limited, delivered a speech
Esteemed leaders and guests,
Good morning! It’s my pleasure to participate in this forum.
This year marks the 10th anniversary of the Belt and Road Initiative and the 6th year of the China International Import Expo. Over the years, under an inclusive, open, and favorable macroeconomic environment, industries such as China’s dairy industry have encountered unprecedented new opportunities for development.
As a part of China’s dairy industry, I believe the most significant opportunity during this period is the rise of major national brands. The report of the 20th National Congress of the Communist Party of China points out that high-quality development is the primary task in building a modern socialist country in all respects, and to comprehensively advance the great rejuvenation of the Chinese nation with Chinese-style modernization. Currently, China has transitioned from a middle-income to a high-middle-income country, moving towards a high-income country. The aspiration of the people for a better life has become the mainstream of society. Brand-oriented consumption will become the mainstream, and China will give birth to several major national brands in the next decade. This is an intrinsic requirement of high-quality development and a necessity to enhance China's overall international competitiveness. Regarding business management and development strategy, I would like to share briefly.
A brand represents the comprehensive manifestation of a company’s or a country’s core competitiveness. Data shows that 3% of well-known brands occupy 40% of the global market share. The development experience of both the East and the West indicates that the transition from a middle-high income to a high-income period is the ‘golden era’ for the rise of major national brands. This period has three characteristics: a large market, cultural trends, and new models.
Feihe is one of China’s earliest milk powder companies, with a history of 61 years. Over the years, through relentless perseverance and effort, we have developed into China’s leading infant formula brand, leading the domestic milk powder industry in a significant turnaround. The brand competitiveness of Feihe and Chinese milk powder has greatly improved. In this process, we have gained a lot of insights.
1. Forging the Soul of the Brand: To build a major national brand and enhance the competitiveness of China's milk powder, it is essential to stick to the original mission and consistently adhere to the unique value of the brand, rooted in Chinese land and culture for nourishment and energy. Feihe has always adhered to the concept of ‘Each place has its own way of supporting its own inhabitants,’ focusing on providing Chinese babies with milk powder that suits their physique. This core strategic positioning has remained unwavering over the decades. Today, Feihe’s brand value and philosophy are widely recognized, winning the choice of millions of Chinese mothers and babies.
2. Establishing the Foundation of the Brand: Quality is the foundation of a brand. To build a major national brand and enhance the competitiveness of China’s milk powder, it is essential to solidify the brand’s foundation with quality craftsmanship. Feihe’s industry is mainly located at 47° north latitude in the Songnen Plain of Heilongjiang, one of the three black soil regions in the world, recognized as the ‘Golden Production Area for Infant Formula Milk Source in China.’ Here, we have established the industry's first complete supply chain, ensuring quality and safety from the source. We firmly believe that ‘quality must not yield to anything,’ considering quality as the lifeline of our development. Thanks to our strong product quality and the joint efforts of our colleagues in the industry, the market share of domestic milk powder has now exceeded 60%, regaining consumer confidence, which is more valuable than gold.
3. Building the Momentum of the Brand: Today’s brand competition is global. To shape major national brands and enhance the competitiveness of China’s milk powder, it is necessary to continuously enhance brand potential through technological innovation. Feihe has always been committed to long-term, strategic planning and investment in research and development innovation. In collaboration with authoritative institutions like Harvard BCH, Peking University Medical Department, Jiangnan University, and academician Zhu Peiwei’s team, we have established multiple scientific research platforms. Undertaking 39 national and provincial-level major scientific research projects, we have achieved many pioneering results in the fields of Chinese breast milk and infant nutrition and health. These scientific achievements are widely applied in our products. For example, we developed the market's first infant formula milk powder—Star Feifan, designed based on the golden standard of Chinese breast milk, which is now the world's top-selling single product, and we continuously upgrade its formula and technology based on the latest scientific research findings.
These efforts have been decisive in elevating the industry and brand. For instance, we successfully established the first domestically developed lactoferrin production line in China, with a domestication rate of over 90%, breaking through industry bottlenecks and enhancing the discourse power and core competitiveness of Chinese dairy enterprises in the global supply chain. Last year, we also undertook the ‘14th Five-Year’ national key research and development plan project to develop China’s new generation of infant formula milk powder. Among the projects related to infant formula in the ‘14th Five-Year’ national key research and development plan, Feihe undertakes one special project and one subject. Recently, we launched a brain development strategy, collaborating with top global research platforms such as Harvard BCH and Peking University Medical Department, to conduct more systematic and comprehensive research on brain development. The first 1000 days of life, defined by the World Health Organization as the ‘opportunity window period’ for human growth and development, are irreversible once missed. As a leading enterprise in the infant formula industry, we bear the responsibility of researching infant brain development nutrition.
All these actions are about practicing long-termism and laying a solid foundation for the brand. We believe that as long as we are committed to our cause with perseverance, focus on quality, and strengthen our internal capabilities, the brand competitiveness of China’s dairy industry will definitely improve, and Chinese brands will earn more respect in global competition.
The theme of the forum is, ‘Deepening the Belt and Road Cooperation in Agriculture and Food: Jointly Creating a Better Life for Humanity.’ Leaders from the State Administration for Market Regulation, Ministry of Agriculture and Rural Affairs, Ministry of Industry and Information Technology, National Health Commission, General Administration of Customs, as well as leaders from Shanghai, Henan, Hainan, and other provincial governments, representatives of provincial market supervision departments, representatives of relevant United Nations organizations, the Shanghai Cooperation Organization, and embassies of South Africa, the Netherlands, Colombia, Sri Lanka, Bulgaria, Tanzania, Senegal, among others, along with over 400 delegates from domestic and international enterprises, participated in the forum. Guests collectively deliberated on agricultural cooperation and food industry development, contributing insights and strategies for the high-quality development of agriculture and food industries in the Belt and Road Initiative, highlighting the role of the forum as a platform for policy interpretation.
2023 marks the 10th anniversary of the proposal of the Belt and Road Initiative and the 10th anniversary of the Belt and Road Eco-Agriculture and Food Safety Forum. Over the past decade, the forum has been successfully held for 15 sessions within the framework of the National Food Safety Publicity Week and the China International Import Expo. The forum has solidly promoted high-quality joint construction of the Belt and Road, extensively conducted exchanges and cooperation in the agricultural and food industries, played a significant role in the development and safety of agricultural food industries in the countries along the route, and facilitated smooth international trade among the Belt and Road countries.
