Following the melamine scandal in 2008, China’s dairy industry has changed dramatically. No other product segment experiences the same lack of trust in the domestic supply chain quite like milk. This has seen an explosion of dairy imports over the past 8 years. Yet even with such a perception advantage, foreign players have failed to capitalise, being outsmarted by local players who understand Chinese consumers and Chinese sales and marketing channels significantly better, as illustrated in the infographic below. Although this data applies to dairy, much of it could be equally applied to other product categories where foreign brands are behind the eight ball.