Increased competition in the maternal and infant industry and then lifted the “IPO boom”

Recently, some media have disclosed that the well-known mother-to-child retail brand baby-friendly houses are secretly planning a listing plan and have landed on the Shenzhen Stock Exchange. In this regard, the industry sources said that the application of the IPO or love-infant room this caused the fiercely competitive maternal and child supplies retail industry to intensify "scrape."

In fact, with the constant influx of capital and brands, domestic chains of pregnant, infant, and child products continue to attack cities and start to “move from the local to the national level and from the frontline to the second line”; at the same time, the speed of e-commerce is increasing. Development also helps related companies find new breakthroughs, and a new round of “Nuggskin” is about to detonate.

Capital favors many companies for listing

It is understood that the number of infants and children in China currently stands at 108 million, of which infants and young children aged 0-3 years are conservatively estimated at about 70 million. With the continuous high growth of China's GDP, the new trend of parents' thinking after 80s, and the escalation of demand for infant and early childhood education, the market demand for pregnant infants and children in China is now at least 1 trillion yuan. In 2015, it will reach a scale of 2 trillion yuan. International brand giants gradually seized the market, while domestic brands such as Li Ning and 361° also entered through various channels. With more and more capital and brands influx, market competition tends to become more intense.

Baby-friendly room is a B2C online store, store as the main sales channels, business products cover infant milk products, diapers, feeding supplies, toys, baby clothes, maternity supplies and other dozens of categories, the number of products sold more than Ten thousand kinds.

In fact, there have been many speculations about who will become the first listed company of pregnant and baby chains. Among them, Red Children has been ranked first. At the end of 2010, Red Kids clearly stated that they will go to the US in 2011. The investment market is also unanimously optimistic about the development of Red Kids. Northern Lights, NEA, KPCB and other investment institutions have entered and continue to add capital. After several rounds of financing, Lok Youying CEO Gong Dingyu also stated that if the company develops smoothly, it may go to the US in 2011. Lijiabao and Xingbeibei also showed great interest in the capital market. However, the opportunity fell on the baby-care room that was not particularly eye-catching, and it really surprised the industry.

However, industry insiders unanimously believe that the successful application of IPO to the baby-friendly room will bring a great sense of crisis to other mother-and-child retail enterprises, which will inevitably stimulate further market robbing. In fact, the competition in the domestic retail market for pregnant and infants has become fierce. In addition to the above-mentioned retail chain companies, there are also good-baby, doctor-frog and other manufacturing companies, as well as many international baby product retailers including Mothercare, as well as the Chinese market. Eyesight.

“Even if the financial success is listed, the future of the baby-friendly room is full of unknown.” Some insiders pointed out that sometimes the listing is not necessarily a good thing. The doctoral frog with the aura of “China's first consumer goods consumer” halo succeeded on the Hong Kong motherboard. After the listing, the performance was worse than before. In March of this year, after Dr. Frog’s financial fraud scandal broke out, the company did not resume trading after the suspension of trading.

Siege and capture the second-tier cities

With the entry of capital, well-known retail chains in many industries, such as Baby Island, Leyou, and Beibei Xiong, continue to attack the city. The Baby Island, which focuses on the South China market, currently has more than 180 direct-operated stores. In 2010, Leyou achieved the strategic goal of “ten cities, 100 stores” in advance, and has 220 direct chain stores in 11 cities across the country. The growth rate of Beibei Bear, which came out of Hunan from 2010 onwards, is also alarming. Up to now, there have been 150 stores.

“Enterprises can use money for time”, Kissing CEO Cheng Zifeng said that the entry of capital will inevitably promote the further development of the entire market, but it will also increase the competition between companies and brands, and accelerate the reshuffle of the entire industry. As for the large-scale expansion of enterprises through the use of capital, Xu Weihong, the general manager of Jiangsu Children’s King, said that capital is a good promoter and can promote the formation of the industry’s mainstream order. However, it is imperative not to kill chickens and take eggs for low-level competition.

It is worth noting that before the expansion of chain brands was mainly concentrated in first-tier cities, companies began to sink channels this year. Hu Chao, chairman and chief executive of Leyou's baby and baby child, said that in addition to the provincial-level first-tier cities, Leyou will accelerate the development of second-tier cities with huge potential. The Hunan-born baby brand Happy KuBa also announced in a high-profile manner that in 2012, Happy KuBa will adopt the “Direct + Chain” model and establish 500 franchise stores in Hunan Province to strive for the development of 2 to 3 cities in each county. The store will cover six provinces in the middle three years and become the mother and baby chain leader in the central region within five years.

Happy Chunba Maternal and Child Investment Company President Liu Zhongqiang points out to reporters: “The current first-tier cities and some provincial capital cities, coupled with more wind investment intervention, mother-infant chain companies to expand momentum is increasingly fierce; long-term perspective, single-store The right to speak will become smaller and smaller, and eventually it will be difficult to compete with large-scale chains, and the number will be less and less. The strong terminal chain store chain for pregnant and baby will squeeze the small and medium-sized single stores."

In many second-tier cities, department stores and other hypermarkets and small baby shops are still the preferred shopping sites for many mothers. However, with the entry of mother-and-baby chain companies, this shopping habit will be broken, and the professional image of the chain mother-and-baby shop will be Rich products, as well as product quality protection and affordable prices, the combination of online and offline channels, can more meet the needs of different consumer groups.

E-commerce help the competition become more intense

In recent years, the rapid development of e-commerce has also spread to the baby products industry. Including baby strollers, milk powder, diapers and other "Amoy brand" online shopping search for maternal and child products rose overall, including data in February showed that the overall search volume increased by 298% compared to the same period; the swing, cradle and other goods also increased the degree of concern More than doubled. The reporter also saw in the Maternal and Baby Industry data analysis provided by the data Rubik Cube, in July 2011, the overall sales volume of maternal and child products was 3.032 million pieces and the sales volume was 176 million yuan, and the overall sales of maternal and child products reached 729.57 in June of this year. Ten thousand, an increase of about 240% over the previous year, and sales reached 402 million yuan, an increase of 228% from the previous year.

"The development of the Internet bred and encouraged many new brands." Zheng Zifeng said that in the past due to the limitations of channels, companies often pursued large-scale development, lacking consideration in comprehensive interactivity, and the emergence of the Internet allowed enterprises to lower their costs. Costs reach consumers.

It is reported that the brand new products of maternal and infant products kissed my parent company, the Fukang Group. It had previously done foreign trade processing for Disney and other giants of international baby brands. In 2008, it created its own brand for domestic sales, and it became a domestic market within only three years. "Great Netcom" and "Top Ten Net Goods Brand", this year's sales are expected to exceed 150 million, and online channel sales are expected to reach more than 50 million. "Online shopping children's clothing brand green box sales this year is expected to exceed 5 billion." According to industry sources.

In the process of the rapid rise of online brands, many of the original children's products companies have begun to increase the construction and promotion of e-commerce channels. According to industry sources, currently there are about forty to fifty brands of maternal and child products that have been stationed on the network. When powerful brands seize large-scale online shopping platforms such as Taobao and Jingdong, they are also sparing no effort to increase the construction of their online shopping platforms. For example, Parkland has a nursery library, Mi Xidi has a state purchase, Royal Baby has a mommy and so on. It is reported that Royal Baby’s online sales this year will increase from 20 million in 2011 to 50 million.

“Children online can participate in shopping decisions at any time.” Li Ding, general manager of Jiangsu Fusha Cultural and Creative Industry Co., Ltd., said that e-commerce is more convenient and rapid, and has grown explosively over the past few years. Fusha started the line in August 2010. On the marketing, maintain two to three times the annual growth rate. Xu Weihong pointed out that the online platform is conducive to brands providing more interactive experiences and value-added services. "We don't want to go too fast. We mainly want to make a good user experience." Wu Fangfang, founder and CEO of Green Box Kids, also put user experience interaction at the top of the list.