Maternal and Child Market Competition in China

Intensified competition, rushed in

Also because of the temptation of “2 trillion”, and the mature and competitive saturation of traditional industries, we have found that all companies in the “other” industries have started to enter the infant market.

Take the clothing market as an example. According to data from the National Bureau of Statistics, the retail sales of clothing products of enterprises above designated size increased by 11.5% year-on-year, which was 13.6 and 6.2 percentage points lower than 2011 and 2012 respectively, showing a three-year slowing trend. It was 2003. Since the lowest.

The apparel industry is in an overall haze and the children's wear market is enjoying a good turn. Industry insiders predict that from 2012 to 2017, the retail sales of China's children's wear market will double and the compound growth rate will reach 20%. It is estimated that by 2015, the scale of China's children's wear market can reach 140 billion yuan.

As a result, a large number of adult clothing companies open up children's clothing fronts, some increase the market strength of children's clothing brands, some open up new "trumpet" production lines, and some joint animation brands to promote, and even extend their own brand to the animation, construction Baby Center, Children's City...

You will find that not only are your peers competing with you, others in other industries will also come in to compete with you. The original children’s drinks for drinks were put on supermarket shelves; the swarms that used to make toilet paper were doing diapers; the original Mickey Mouse that made cups could sell baby bottles.

Moreover, in order to expand their competitive advantage, some local companies will continue to increase their own quantity:

1. Extensive categories: Originally only diapers began to do baby wipes, even toiletries, because the more categories, the more full, the more willing wholesalers and retailers to cooperate;

2. Expansion of the brand: Acquisition of a clothing brand, joint venture of a foreign brand, agency of several anime images, so as to achieve full coverage of the market, there is always a blossom;

3, expansion channels, offline, online, o2o, one can not be less.

What's even more interesting is that Internet companies that seem to be completely out of touch with the baby are also busy. 360 out of children's watches, music as a toy. The emphasis is not on what products they have but the marketing genes of such Internet companies are too strong. Their promotion ideas and their public relations abilities have not caught up with traditional baby companies.

Whatever you see, this is like a business where there is no end to the competition and there is no way out for competition.

Category killer, developmental disruption

The mother-baby chain industry in China has a history of development for more than 10 years.

At the end of the 1990s, China's mother-and-baby stores began to sprout, separated from the circulation, and formed professional stores. Maternal and child stores with a variety of categories began to appear, distributed in the weekly newspapers and the community, with the "business-type victory."

Since 2005, the mother-and-baby retail chain has gradually weakened its competitiveness and the mother-infant retail chain began to emerge. These chained retail brands use “scale to win” to meet shop-shopping rates on a scale basis.

Today, there are many regional retail kings throughout the country, and many employers are secretly gearing up their hopes that they can dominate the country like Gome and Suning. In fact, the market has also reached this stage.

However, three or four years ago, as if overnight, the retailing elite Suning and Gome suddenly discovered that thousands of square meters of stores were empty and customers were shopping online. So, Tmall's double 11 advertisements on TV that year, there was no one on the street, there was only one high-heeled shoe on the lift of the mall. It was not a ghost piece. It was a realistic version of a horror movie!

So o2o became the necessities of self-help for offline retail officials. Suning was forced to do o2o online and offline with the same price, Gome also made Gome Online.

The practitioners of the baby industry have not yet understood the channels and the chain, and they have faced the eruption of e-commerce.

85-90, influx of people

The customer faced by the baby industry is defined as a consumer group after 85-90 by many companies. The distinct feature of this group of consumers is that they are free from the traditional concept of parenting. They are more willing and willing to spend money for their children. "The child has become a parent's jewelry," "The child's clothes are to be bought properly, to buy a variety of styles and functions." ... For companies, this is undoubtedly a major positive news, but this group of consumers must Non-stupid (many stupid money comes in more speed)!

Their shopping venues have undergone major changes, the choices are random, random, and the vast majority of consumers have no loyalty to channel/retail brands.

When choosing commodities, they are particularly cautious and even discerning consumer groups.

After they use the product, they will thoroughly publish the experience. Occasionally, a careful mother wrote a trial report for the product, and the business might increase sales by several thousand; and a bad review full of sentiments may trigger a public relations crisis.