Chinese Brands Finally Start Beating Global Giants at Home

In 2008 at least six babies died and 300,000 fell ill after drinking made-in-China infant formula tainted with toxic chemicals. In response, many Chinese parents embraced foreign brands, catapulting the likes of Danone SA’s Aptamil and Nestlé SA’s Illuma to the top of the market. Yet for the past two years, the leading formula brand in China has been made by China Feihe Ltd., a Beijing company that emphasizes its local roots rather than seeking to obscure them. “More suitable for Chinese babies,” the company’s advertising boasts.

In categories ranging from baby food and bottled water to ...