Chinese Milk Scandal Case Study

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Since the melamine scandal that occurred in 2008, also known as the milk scandal, many Chinese customers have lost confidence in domestic baby food brands. 22 national companies were known to be involved in the scandal because some of their milk products, such as baby milk powder, were found to be melamine-tainted and therefore seriously dangerous for infants and children. (Bainbridge, 2008). It was stipulated by Chinese state authorities that infants as young as four months feeding on the formula succumbed to side-effects of growing breasts and entering into precocious puberty. At the height of the scandal in 2008, an overwhelming 300,000 children became ill and six children drastically died due to the complexities of tainted milk (Telegraph,…show more content…
Despite the fact that foreign companies offer higher-priced products, this appears to be an attractive alternative to Chinese consumers as overseas infant food brands tend to be associated with product quality. With the boycotting of local Chinese baby milk brands, this has given leverage towards western companies. So much so, that foreign baby formula has been imported illegally in large quantities much to the dismay of Chinese officials. Due to popular demand, baby formulae sales grew an astonishing 29 percent in 2012 with a market estimated at USD$15 billion. (Lin & Cruz, 2013). Henceforth, the aftermath of the milk scandal and Chinese consumer preference of foreign companies, proposes a striking opportunity which Semper should cogitate. Semper, an infant and adult food brand with strong cultural roots to Sweden considers its core values to offer trusted Swedish baby food which is nutritional and unconventional. A domestic brand with loyal consumers, Semper has a strong cultural identity and history of near seventy years built on trust by testing products with doctors, nutritionists, researchers and connoisseurs (Semper,

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