---
title: "Why Junlebao's New Lezhen Formula Has Become the Undisputed Choice in the Market?"
description: "Recently, Junlebao's Lezhen brand underwent a comprehensive upgrade, leading the lactoferrin formula segment with a golden ratio of 100mg/100g lactoferrin. This marks another ultra-premium flagship product following Youcui Organic Formula. As China's demographic dividend fades with declining birth rates, the infant formula industry has entered a stage of stock market competition, where core competitiveness now hinges on brand, product diversification, mature user management, healthy growth targets, stable pricing, and full industry chain coordination."
author: "Amy"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2022-06-21"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/8FlrKrlCFfCbxDoFdUYK2A"
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# Why Junlebao's New Lezhen Formula Has Become the Undisputed Choice in the Market?

> Recently, Junlebao's Lezhen brand underwent a comprehensive upgrade, leading the lactoferrin formula segment with a golden ratio of 100mg/100g lactoferrin. This marks another ultra-premium flagship product following Youcui Organic Formula. As China's demographic dividend fades with declining birth rates, the infant formula industry has entered a stage of stock market competition, where core competitiveness now hinges on brand, product diversification, mature user management, healthy growth targets, stable pricing, and full industry chain coordination.

Recently, Junlebao's Lezhen brand underwent a comprehensive upgrade, leading the lactoferrin formula segment with a golden ratio of 100mg/100g lactoferrin. This marks another ultra-premium flagship product following Youcui Organic Formula.

In recent years, China's demographic dividend has gradually disappeared as birth rates decline, and the consumption volume of the formula industry has become saturated. The infant formula industry has entered a stage of stock market competition.

In this stage, the core competitiveness of formula companies has shifted to brand competition, diversified product competition, mature user management systems, healthy growth targets, stable price control, and full industry chain coordination.

Similarly, on the channel side, competition comes from the ability to judge quality products, market operation capabilities, network control capabilities, terminal service capabilities, and the ability to transform from single-channel to omni-channel operations.

Many formula distributors are increasingly realizing that the old "wait, sit, and rely" mindset can no longer continue. **Proactively learning, thinking, and even using the manufacturer's mindset to force self-growth is the key for distributors to regain market initiative and achieve operational growth.**

So, in the era of stock competition in the formula industry, what kind of product should distributors choose? And how can they improve channel operation and service capabilities?

Next, let's look at the upgrade approach of Junlebao Lezhen formula to see what inspiration it can bring to distributors.

**1**
**Follow the market's high-end trend and find the right scenario positioning**
**The formula market is showing a trend of consumption diversification and high-endization.**

According to a Frost & Sullivan report, high-end and ultra-high-end formula are the main drivers of steady growth in China's infant formula market. It is expected that by 2023, the high-end segment will account for approximately 53% of China's infant formula market share.

Secondly, it is worth noting that **under the overall high-end trend, organic/special formula has become the new favorite.**

In the dimension of "better immunity enhancement," the lactoferrin segment is growing rapidly.

According to CBNData's "2020 New Health Consumption Trend Report," the compound growth rate of consumption scale for lactoferrin-containing dairy products and formula exceeds 300%, which is 10 times that of the overall category. Among them, the weight of lactoferrin category formula is increasing year by year, with double-digit growth, exceeding 20 billion yuan in scale.

After identifying the niche track and market positioning, another strategy to make the product memorable to consumers is to create consumption scenarios. By deeply linking the product with scenarios, the activation of scenario power can make consumers think of the brand at the first moment and trigger purchase behavior.

How does the new Lezhen use product functions to meet the actual needs of users in the formula transition scenario?

**2**
**Comprehensive nutrition safeguards baby growth, and corporate strength ensures quality leadership**

During the formula transition period, infants are prone to diarrhea, refusal to feed, vomiting, constipation, crying, allergies, and other issues. To address these very common problems, the new Lezhen offers a comprehensive solution for resistance, digestion, and absorption.

First, the new Lezhen, which features **"full-score lactoferrin"** as its main ingredient, can maximize the enhancement of infant immune system function.

Clinical medical research results show that the ratio of 100mg lactoferrin per 100g of formula powder is effective in enhancing immune function in children with recurrent respiratory infections, preventing diarrhea, reducing neonatal total mortality and necrotizing enterocolitis mortality, and improving the eradication rate of Helicobacter pylori when combined with standard drug therapy.

In fact, lactoferrin is extremely precious and scarce.

On one hand, the lactoferrin content in cow's milk is low, and the separation process is complex and technically difficult, resulting in low yields. The lactoferrin content in fresh milk is only 0.02-0.2g/L, meaning that on average, about 10,000kg of fresh milk is needed to extract 1kg of lactoferrin.

On the other hand, according to the new national food safety standard "Food Nutritional Fortifier Lactoferrin" implemented in June 2017, the purity requirement for lactoferrin was raised from 90% to 95%.

Once this regulation was introduced, some raw materials on the market did not meet the standard, leading to supply shortages and soaring lactoferrin prices.

Secondly, the upgrade is not limited to the golden ratio of lactoferrin. The new Lezhen also features patented OPO structured lipids, with 7 clinical reports verifying affinity and easy absorption; two probiotics (BB-12+HN019), and three prebiotics: galacto-oligosaccharides, fructo-oligosaccharides, and isomerized lactose, which help balance the gut microbiota and provide sufficient nutrients for the gut flora, thereby improving the baby's intestinal environment and promoting nutrient absorption.

Scarce and expensive lactoferrin and multiple precious formulas can only be operated by powerful large enterprises with cost leadership and technological advantages.

**In terms of milk source**, the new Lezhen formula is freshly sourced from Junlebao's own pastures and directly delivered to the formula factory. According to international third-party inspections, the actual indicators of the milk source are superior to US and EU standards.

**In terms of quality**, the scientific and nutritionally comprehensive formula combination enables Lezhen not only to lead other domestic formula products in the lactoferrin category but also to surpass multiple international lactoferrin products in overall product benefits due to its comprehensive nutritional formula.

A deep dive into Junlebao's strength reveals that after years of continuous investment in the full industry chain layout, Junlebao has not only established a full industry chain integrated production management model with self-owned and self-controlled processes from pasture grass planting, dairy cow breeding, to production and processing, but also created the **"Five World-Class"** model, which includes world-class pastures, world-class factories, world-class R&D, world-class partners, and a world-class quality management system to ensure high-quality formula.

**In terms of scientific research and innovation**, Junlebao continues to improve, investing 500 million yuan to build a Dairy Industry Innovation Research Institute, conducting research from pasture grass planting, dairy cow genetics and breeding, dairy processing technology to new product development across the entire industry chain, fully supporting Junlebao's technological development needs.

The full industry chain layout and scientific research innovation guarantee enable Junlebao formula to steadily advance on the path of product high-endization, crafting world-class high-quality products with craftsmanship.

**3**
**Channel strategy optimization and upgrade, digitalization drives growth**

**Good products need channel promotion to reach consumers.**

The new Lezhen follows the times in its channel strategy, actively promoting channel digital transformation, helping channel distributors and stores connect with C-end consumers, and achieving new growth under refined user operation models.

For the formula industry, consumers' concerns always revolve around core issues such as product quality, brand authenticity, origin traceability, and safety.

Channels also need to use sales flow information to eliminate cross-regional selling (channel conflict) and maintain a healthy and orderly market order.

In the past, tracking the code on the outside of the formula can was often inefficient due to non-standard market behaviors, such as the outer code being covered or low scanning rates.

**Junlebao Lezhen innovatively launched an inner code system**, which adds a QR code visible only after consumers open the aluminum foil membrane inside the formula can, in addition to the original outer code.

The security of the inner code is self-evident. Through the inner code, both channels and consumers can enjoy a service experience beyond what was previously available.

Consumers can not only clearly access information about the raw materials, production process, and quality inspection of the can of formula through the inner code, but also receive multiple benefits such as cash and points after purchase.

After scanning the code, the user's purchase behavior is directly linked to sales flow, allowing traceability to the store where the purchase was made and the distributor who supplied the store. Everyone will enjoy the sales rebate for this can of formula.

The innovative use of the inner code not only improves the traceability system, making consumers more confident in their purchases, but also completely eliminates cross-regional selling issues among distributors and stores. Channel parties can focus better on standardized market expansion and consumer services.

Furthermore, through the use of the inner code, **the association between terminal stores and users is further promoted. Lezhen's move is also an exploration of the bC integration direction in channel digitalization.**

As is well known, an important component of sales growth in the formula industry comes from the management of the user's full lifecycle. User acquisition, retention, and conversion are particularly crucial.

Brands directly connecting with consumers can only achieve shallow operations and maintenance. True user operations must be placed in the hands of the terminals closest to consumers.

In the past, the stickiness between terminals and consumers was limited to in-store visits. Now, with the proliferation of marketing tools, a simple mini-program can achieve functions such as one-item-one-code, online cloud stores, and user CRM management. Stores and consumers can break through the previous limitations of traditional offline transactions and services, making marketing actions, after-sales service, and sales conversion no longer restricted. Consumers can enjoy the most reassuring services at any time, which greatly assists stores in user operations.

Through the inner code, Lezhen directly directs users and profits to stores, further activating stores' sales enthusiasm, improving user acquisition, retention, and conversion. While helping stores move inventory, distributors and manufacturers will also gain growth in the entire market.

Following the manufacturer's digital transformation, distributors can not only achieve dual improvement in learning and growth while using digital tools, but also consider how to complete their own transformation in this wave of digital change.

**Conclusion:**

Driven by the high-end trend in the formula industry, Lezhen, positioned as an ultra-high-end flagship product under Junlebao, relies on Junlebao's full industry chain advantages and R&D strength. Through its own product strength and digital marketing empowerment of channels, it is accelerating its rise as a leading brand in the domestic formula industry.

The comprehensive upgrade of the Lezhen brand **not only establishes its leading advantage in the lactoferrin competitive dimension, discovers the precise positioning of the formula transition scenario, and redefines the product, but also uses a unique market operation strategy on the basis of high-quality products to bring multiple benefits to channels and consumers.** The all-round upgrade is full of sincerity and has a promising future.

In the formula industry, not only is competition fierce among brands, but the product characteristics of formula also place high demands on distributors. Unlike beverage distributors, formula distributors' core tasks are not in warehousing, logistics, or market distribution, but rather they need to become professional operators and service providers to assist brands in jointly operating the market and serving terminals and consumers.

Therefore, as a formula distributor, thinking about the thinking behind Lezhen's comprehensive upgrade may also help you gain some inspiration.

You might also treat yourself as a brand owner, learn from the manufacturer's marketing ideas, and think about how to choose a good product in your own regional market, how to do refined market operations, and make yourself more competitive. At the same time, leverage the manufacturer's resource advantages, combine your own strengths to create more market increments, and work with the manufacturer to achieve a win-win situation.

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