SUMMARY:It is a mistake to believe that the market for Mead Johnson is the only Chinese.The growth of local brands of competitors should not greatly affect the MJNThe release of the product in China for sale on the Internet has a great potential. MJN sells formula milk powder. The shares traded at $ 82.08. The family of brands, including Enfamil, Nutramigen, Pregestimil are global brands in the market of pediatric nutrition. Many believe that the main product sales MJN concentrated in China, and thus there are concerns about slowing growth. And this perception led to the resale of the shares. Lately however, a large number of times mentioned China and Hong Kong to increase revenue growth for Q2. But such an opinion is not entirely correct. This is not entirely true. Misunderstanding in the market segment can be attributed to the way the company presents itself: Asian contribution to the market is 52%. Based on the estimate, the share of China and Hong Kong is 30%. The remaining part belongs to other Asian countries. MJN also protected from rapid slowing of the manufacturing sector in China, due to favorable trends in Asian countries, not including China, in which the level of urbanization is growing rapidly. The level of demand still remains high everywhere. The current situation of affairs in the market in our opinion, has not such a high impact on MJN, which caused a sharp decline in prices for the products of competing companies. The mark is the historical record prices for milk. Ultimately exit prices rise, the competitors will not be able to such a sharp price changes. China's policy is aimed at increasing breastfeeding up to 50% over the next 7 years, in our opinion, also will not have much success. given the infrastructure and the lack of cultural norms. It should be noted two interesting facts in China. First, the price may be more expensive than in other countries. Second, Chinese consumers believe that the powder of foreign production of higher quality. Thus, the Chinese tend to buy products in HK, and smuggle it back. This significantly affects the situation in the country, the whole smuggling limited to Southern China. MJN looks weaker in eastern and northern China. E-commerce has the potential to increase its presence in the market by almost two times. The company has about 10% market share in sales offline and online order of 30%. Also noticeable general trend of transition to electronic sales. In 2012, e-commerce accounted for only 14% of Mead Johnson's sales in China, now it is 37%. Company MJN has an optimistic outlook in China and the US long-term nature, and is well positioned on the background of positive trends associated with an increase in the birth rate in the United States and a decrease in costs in the region, and with the release of new products in China, which will be sold in Internet.