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China baby market

Since single-child policy was carried out in China, Chinese parents have come to put all their heart on their only-child so that they always spare no effort to let him enjoy a good life quality. Similarly, they would prefer to suffer living without brand to save money for buying goods with excellent reputation to ensure quality for their child, if necessary. Take baby toys for example, with a better understanding of different education between China and Western countries, a large number of Chinese parents look for foreign toys to encourage baby’s development, for instance, like Lego, which is potential to enlarge its business to 10 times larger than current situation with yearly growth rate of 25% to 30%, according to Lego’s CEO. The sixth national Demographic statistics in China show that the population of children living in mainland China has already been 222 million, which is definitely a huge market.

After serious issues of Chinese food quality inspection, an increasing number of parents, who lost trust in Chinese powder, turn to foreign brands for help. As recorded by the China Ministry of Agriculture, until the end of November 2010, imports of powder in china has amounted to 370,000 tons, up 62% compared with the same period in last year, and probably surpass 50% of market share in China in 2011. According to the statistics of Guangzhou Huangpu Customs, only in Guangdong Province, imports of powder increased 24.2% and achieved 59,000 tons during first seven months in 2011 with 3,714 US dollars as imports price. AC Nielsen’s report on China powder industry demonstrated that among top-10 best powder brands, 5 are foreign brands. They are Abbott, Wyeth, Meadjohnson, Dumex, Nestle and totally cover over 50 % of market share in mainland China, mainly 1st and 2nd tire cities, like Beijing, Shanghai, Guangzhou and provincial capitals.

In baby furniture market, Flexa, Europe NO.1 baby furniture brand, entered into China market 12 years ago when China didn’t have baby furniture category, and its market share yearly grows 2 times larger than that in Germany market. As for clothes market, 50 % of its market share are occupied by foreign brands, and these foreign brands almost monopolize the whole high-end market. For instance, Mickey and Snoopy from US, Jacadi and ELLE from France, Tomkid, Eland from Korea. Since clothes companies in developed countries pay more attention to clothes design, fashion trend and function segment, which includes Antibacterial, anti-ultraviolet radiation, entertainment, healthy, friendly environment, etc. With higher requirement of living standard, Chinese parents prefer to choose the baby goods with more added function regardless of price to protect their child and ensure his safety and happiness. To conclude, Chinese devote themselves to changing the old way of living which is reserved and restrained into a new, healthy and relaxed lifestyle.