Natur Top to exit China market amid ‘fake foreign brand’ questions

Summary

Natur Top, a formula brand promoted as 'genuinely imported from Australia' and a 'No. 1 bestseller,

' faces mounting questions over its 'fake foreign brand' status. Its trademark was originally held by a Hong Kong company, before being transferred to Natur Top Biotechnology Pty Ltd in Australia in 2019.

Commentary

The Natur Top case highlights the growing wariness among Chinese consumers toward 'fake foreign brands' in infant formula. Typically, these brands cultivate an imported image through overseas registration and contract manufacturing, yet lack a genuine home-market base, leaving them exposed to greater scrutiny. In recent years, brand concentration in China's formula market has intensified, with leading domestic players and international brands with authentic origins ahead.

That has narrowed the space for smaller 'pseudo-imported' labels. For New Zealand SMEs, China remains an attractive market, but brand transparency and a credible origin story are essential. New Zealand dairy enjoys strong trust, but if contract manufacturing or licensing is part of the model, marketing must faithfully reflect actual supply arrangements.

Failure to do so can trigger questions that lead to shrinking distribution networks and compliance risks. Natur Top's sales tumbling to just over 2 million yuan underscores how vulnerable cross-border operations can be without local supply chains or brand loyalty. New Zealand companies can draw lessons from the path taken by major players such as Fonterra, which built a solid China presence by prioritising joint ventures or self-built channels over branding alone.

Keywords: Natur Top, fake foreign brand, infant formula, Australian import, exit China market, sales, consumer questions

Source: East Money Network