China is a huge and growing market for baby care products. However, if there are unique opportunities, there are also challenges in this market that brands need to be aware of. In this blog post, we’ll explore the baby care market in China and discuss the key factors brands need to consider when entering it. We’ll also look at some of the major players in this space and what they’re doing to succeed. So if you’re looking to break into the Chinese baby care market, read on!
China Baby care market – Fast Growing Market
In 2020, China’s baby and child skincare industry brought in $554 million dollars. This is far ahead of the U.S., where it only accounted for 361 million US Dollars! Even though Chinese parents don’t have as many children compared to other countries like India or Japan; they still invest heavily in baby products
With a value of RMB9,617 million in 2018, China’s baby personal care market is projected to register healthy growth rates due largely to rising concerns over infant health and increasing awareness among consumers regarding babies’ hygiene. The addition that must be taken into account are higher wages which have enabled families from middle-class backgrounds to afford to spend more on their children than before so they can maintain some level of status symbolism throughout childhood despite lower income levels).
China Baby care market segments & trends
Skincare: The largest segment of China’s baby care market is made up of skincare products (segment worth RMB9.617 billion in 2018). This segment is also marked by premiumization and green cosmetics. There is an increasing demand for products with hypoallergenic, paraben-free, and dermatologically tested properties. Brands are increasingly launching herbal or plant-based ones to respond in response of consumers’ desire for natural remedies
Increased consumption in China’s lower tiers cities: From the report by Chinese research firm CBNData and Tmall Baby, it seems that third-tier cities have a higher growth rate than first or second-tier ones.
Live-streaming: Parents born in the 90s are more sensitive to live-streaming and Kols marketing for babycare brand recommendation
The Challenges of China babycare market:
With baby care becoming increasingly premium, China’s personal care market is one of the most attractive in Asia. However, with its own set challenges including strict regulations, this sector still has an opportunity to develop into something big – but only if companies can operate within those confines and meet consumer demand for high-quality products at reasonable prices!
- The quest for quality: The category of baby products includes skincare, haircare, and oral care items. In China, it has been a key segment over the past 5 years with cosmetics being popular among parents to children in that age group as well-though expensive brands tend not to be their first choice when shopping for these things Parents prefer branded goods that have quality assurance or sponsorship from larger companies.
- Fear of food safety scandals: Consumers’ behavior does not stop at pricing, brand notoriety and longevity is much more important as the Chinese tend to be very wary of new brands. The 2008 infant formula scandal left a mark on society that is still felt today.
- Brands Values: Not only Chinese parents are extremely wary of baby products’ good quality, but they are now also becoming more aware of brands’ values and practices making your localization and branding effort in China crucial.
- Governement regulation: With the introduction of China’s Children’s Cosmetics Regulation and Little Golden Shield mark. The goal being guidelines to help safeguard children from any harmful chemicals in products meant for usage on baby and kids. According to industry experts, babycare brands can only benefit from more rigorous regulations. Indeed, consumers knowing that regulation ensures only safe products will enter the market will help brands gain their trust more easily.
Explosive Growth of Babycare sales online
Online shopping is growing in popularity according to consumer reports. This indicates the potential growth and competition for online retailers over offline retailers. Cao Lei (director of China E-Commerce Research Center) stated that the rapid growth of the Chinese maternal and child industries in recent years has prompted many internet retailers to enter this market. Many Chinese online retailers have started collaborating with foreign brands to create customized products in order to meet the growing demand for baby and mother products.
E-commerce has become a popular way to purchase baby care products in China. It now accounts for 50% of the total value of the Chinese mother and baby retail market. The platform is a huge source of growth for both mothers and their babies in China. Chinese consumers are also most interested in transnational online sales of baby food and baby care products.
Tmall dominates the online market, followed by JD and Xiaohongshu. Kaola, Vip.com. mia.com, and Kaola are other online retailers. To sell your products, it is important to establish your brand and be present on well-known Chinese e-commerce platforms.
Social Media in China Babycare Market: not an Option
Promoting baby’s skincare products online is just as important as selling them on eCommerce platforms. Brands that don’t promote their products online are unlikely to be successful in China, according to estimates. The rise of digitalization in China and the tech-savvy people living there have led to a majority of Chinese parents searching online for information before buying anything.
Here is a list of Social Media & Platforms you should use:
- General Social media
- Targetted at infant parents
- Kidswant 孩子王
- MuYingZhiJia 母婴之家
It is vital for brands to be active on Chinese social networks, as China has a highly tech-savvy population. Chinese social media users are active on the platforms. They are known for commenting, sharing their buying experience, and giving advice. If you want to reach large audiences, it is important to make yourself visible online using the most popular social media platforms and websites.