Domestic and super premium brands continue to enjoy favourable momentum

We analysed a UBS Evidence Lab study that used  >600,000 records online to track price and SKU trends in China IMF (>Access Dataset). Key Q1 takeaways: (1) Super-high-premium offering persistently gaining momentum, and has reached a record high share levels both on the bestseller list and in terms of the total online SKU count. This confirms that premiumisaiton trend will likely continue to drive the category growth going forward; (2)  Two domestic brands do well on the bestsellers list, Feihe (super premium) and Junlebao (mainstream) gained most market share; (3) The average pricing up +4% y/y but IMF ingredient costs also rising sharply in the last 6 months.