Revenue of Maternal & Kid Industry in China Is Expected to Hit 3.0 Tn Yuan by 2020

Source:IResearch November 29,20188:16 AM

Given an increase in number of new-born babies and personal dispensable income as well as an improvement in family consumption ability, the revenue of China’s maternal & kid consumption industry reached 2.36 trillion Yuan in 2017 and was expected to attain 3.0 trillion Yuan in 2020 with the consumption upgrading and the benefit from the “Two Child Policy”. 

Demand for maternal & kid products is rigid and the consumers are not sensible of price of the products. Meanwhile, as 80s and 90s parents have relatively better understanding for education and better living conditions, product quality and utility become the most important factors when buying maternal & kid products. It is found that consumers now have a higher willingness to pay for products of higher quality and utility. What’s more, consumers pay a lot of attention to the word-of-month of brands as well when choosing maternal & kid products, as good word-of-mouth represents people’s acknowledgement of the brand and the products. Also, consumers usually don’t have high requirements for the appearance and packaging of the product when product quality is guaranteed. 

Expansion of monetization modes is the challenge for various Internet-based maternal & kid business companies. Online maternal & kid communities now earn profits mainly through advertisements, e-commerce and paid knowledge. Currently, online maternal & kid community users visit them for communication and maternal & kid knowledge learning, and then they will mostly turn to vertical e-commerce platforms or comprehensive e-commerce platforms when it comes to online shopping, which is the disadvantage of online maternal & kid communities. Different types of e-commerce platforms may have different performances in maternal & kid market as well. Vertical e-commerce platforms usually have single profit mode and are faced with pressure in traffic attraction and profit making; Comprehensive e-commerce platforms enjoy larger traffic, richer product varieties and relatively mature shopping habits among users, while their understanding of maternal & kid product consumers’ demands are not that precise and their services are not so satisfying; O2O retailers has established relatively high brand popularity and have got users loyalty through offline activities. If they want to get further development and breakthrough, they should link and integrate the online data and offline data and attract more traffic via information. Thus, many Internet-based maternal & kid business companies starts to merge online and offline businesses and actively promotes cross-industry cooperation in order to get development in integration. Integration will be the new trend in maternal & kid industry.

More details can be seen in 2018 China's Internet Maternal and Child Industry Report

Related Views