Why Chinese parents pay more for infant formula
Beijing fined foreign firms for exploiting distrust of local brands, but despite some improvements, parents outside China often get better deals
To the delight of parents across the mainland, recent fines imposed by the National Development and Reform Commission on six international suppliers of infant formula appear to have had an immediate impact on retail prices.
Since the fines were introduced, prices have dropped by nearly 20 per cent for many well-known brands as suppliers seek to reduce the likelihood of further sanctions after being accused of price-fixing and violating the country's anti-monopoly laws.
Comparative data prepared by the Post show that prices of infant formula on the mainland are now almost the same as those in Hong Kong.
However, parents in Hong Kong and the mainland are still paying a hefty premium compared with parents overseas. Price comparisons with Europe, the United States and Southeast Asia indicate that local consumers are paying up to double for the same brand.
An 820-gram tin of Abbott Comfort Similac Level 1 costs HK$358 in Hong Kong according to Consumer Council data. The same brand name retails for the equivalent of HK$236 in Malaysia. Meanwhile a 900-gram tin of Wyeth S-26 Gold costs HK$298 in Hong Kong, but only HK$180 in Thailand.
