Chinas big retreat! Milk powder and health care products in this big country cant be sold

category:Finance
 Chinas big retreat! Milk powder and health care products in this big country cant be sold


30% of purchasing agents in Australia closed down

Novel coronavirus pneumonia has caused a significant decline in the number of overseas consumers purchasing China, according to ABCNews (Australia Broadcasting Corporation). Many brands in Australia have been hit by 30% of their stores.

According to ABC, Australias multi billion dollar purchasing agency industry has been completely overturned by the epidemic. Not only tens of thousands of individual purchasers have felt the impact, but also the major purchasing companies in Australia.

Before the outbreak, it was estimated that 150000 people in Australia were engaged in purchasing on behalf of others. In addition to professional purchasing, there were also many tourists and international students acting as temporary purchasing agents. About 1000 physical stores catered to this demand. However, during the epidemic period, the number of overseas students dropped sharply, especially international students. However, with the closure of the Australian border and the implementation of the blockade ban, Australias retail trade, represented by purchasing agents, has been greatly impacted. Honeyroo, an Australian brand and purchasing consultancy, said about 30% of its agency stores were temporarily or permanently closed.

The report also said that this situation is not only caused by the decline in the number of tourists, the epidemic is quietly changing the Chinese way of consumption. For safety reasons, Chinese consumers tend to choose products produced or stored in China, as packages may be contaminated with the new coronavirus from overseas. Another reason is that logistics is interrupted and people dont have to wait that long to receive the goods.

Affected by this, in Australia, the most popular infant formula for Chinese consumers is also facing the problem of oversupply.

It is understood that a2milk is a New Zealand dairy company, which provides A2 liquid milk products and infant formula. In March 2015, the company listed on ASX Australian Stock Exchange by issuing CDR depository receipts at the IPO price of a $0.50. After that, its market value continued to expand, and its share price rose 36 times in five years. Now, it has successfully become a constituent stock of asx50.

Earlier, the company released a report saying that because the purchasing market accounted for a large part of its infant formula sales, and after the outbreak of the epidemic, the number of Chinese tourists and the number of overseas students decreased, making the sales of purchasing agents lower than expected. Therefore, the company predicted that the revenue in the first half of the year would be significantly lower than expected.

As a result, the secondary market, the companys share price also fell 30%. From a peak of a $19.90 in mid July to a low of 13.98 in early October, the market value evaporated by a $3.5 billion (about 16.5 billion yuan).

Health care products cant be sold

Founder calls for purchasing agent to return to the market

In addition to milk powder, many well-known health products from Australia have also been hit hard by the closure of Chinas purchasing agent.

Swisse, an Australian natural health brand founded in 1969, saw sales in Australia and New Zealand drop 36% in the first half of this year to a $127 million.

Blackmores, another listed natural nutrition company founded in 1932, said sales in China have also fallen 16% to a $103 million this year, while its Chairman BrentW.Wallace Once frankly said that 1 / 3 of sales in China rely on purchasing agents.

A2milks boss, Geoff babidge, called for with the end of the epidemic, I hope the agency can come back to the market. Catherine cervasio, founder of aroma baby care brand for pregnant women and infants, also said, a lot of products are extremely dependent on purchasing agents.

However, for the major retail business companies, they are happy to see that China purchasing agent has repeatedly emptied the supermarket milk powder shelves in order to grab milk powder, because purchasing agent is almost the guarantee of their sales volume, which can be seen from their financial report and sales decline.

Tourism losses could reach $55 billion

The number of international student applications plummeted by 88%

In addition to the retail industry, the tourism and study abroad industry was also the most seriously affected industry in Australia during the epidemic.

The modeling of tra (Australian Tourism Research) predicts that the loss of tourism in 2020 / 2021 will reach 55 billion Australian dollars (about 267.3 billion yuan).

In terms of studying abroad, a research report from Michelle college, a think tank of Victoria University, points out that international students are crucial to the recovery of Australias economy from the epidemic. International students contribute 38 billion Australian dollars (about 184 billion yuan) to its economy every year, supporting more than 130000 jobs. However, due to the sharp decline in the number of international students, especially Chinese students, the countrys international education industry is facing the risk of huge losses.

According to Australian media reports, the number of applications for international students in the country has plummeted by 88% in May, which has directly led to a sharp drop in the income of Australian colleges and universities. Some universities have even begun to sell their buildings for survival. For example, the Royal Melbourne University of technology and the Swinburne University of science and technology announced the sale of industries in Melbourne City in June and July respectively.

The University of Sydney expects to lose more than a $550 million in tuition revenue in the next four years, and predicts that the impact of the epidemic on income will continue until 2025. The president of the University of Sydney announced a 20% pay cut for the schools management, including himself. In addition, the University of New South Wales, Monash University, University of Melbourne and other Australian universities have announced plans to lay off hundreds of employees. The Australian University Alliance predicts that universities will lose another 21000 jobs next year.

The collapse in the number of overseas students has also directly affected the Australian property market. In May this year, the number of inquiries from Chinese buyers on Australian real estate fell by 65%; according to the data of Australian real estate agency domain, the number of houses sold in Victoria, Australia, on July 31 was 46% lower than that of the previous week. Among them, take Melbourne as an example, according to industry forecasts, local Melbourne house prices may plummet by 30%.

Since the beginning of this year, affected by the epidemic situation and international relations, Australias economic situation has deteriorated sharply. According to the latest data from the Australian Bureau of statistics, Australias GDP fell by 7% in the second quarter of this year, a record high.

This is the first time Australias economy has been in recession for 30 years. Australian media said the recession was more severe than the great depression in the 1930s.

In order to maintain the operation of small and medium-sized enterprises and restore the vitality of all walks of life, the Australian governments fiscal expenditure is rising sharply. Australias fiscal deficit in fiscal year 2020 will climb to a $213.7 billion (about RMB 1 trillion), the highest since World War II, Treasury minister fredenberg said on October 8.

The Australian governments spending money to save the market seems to have come to an end. According to the data, the ratio of Australias total debt to GDP will rise to about 55%, the highest level since nearly 70 years (1950). The Australian government does not have enough funds to continue to help enterprises avoid bankruptcy.

According to the latest financial stability assessment report released by the Australian central bank, due to the end of the countrys loan extension and employment preferential policies, it is estimated that at least 10% to 15% of the funds of small and medium-sized enterprises will be dried up, and a new round of Australian enterprise bankruptcy may come.

Editor: Captain