China, the second largest market for children's products
According to a report by the CBME, the company that organizes the Chinese trade show "Children, baby, maternity expo," China is now the second largest global market for children’s products behind the United States, reports HKTDC Research.
The “mother-child” market, which features a wide range of products ranging from powdered milk, diapers, to clothes and toys, makes up 2 trillion Yuan in Europe.
Entitled "CBME China Children Baby Maternity Products Industry Report" (2014 edition), the study also indicates that 67% of business connected to mothers and their children jumped by at least 20%.
The growth was largely driven by births (on average 16 million each year), with a one-child policy that is becoming more lenient, and an increasing average net income that is generating higher levels of consumption.
The babywear segment remains the largest in terms of volume for the overall "mother and child" market. However, its concentration remains relatively low, with a very large number of actors. So while the market is worth 100 billion Yuan, sales of Balabala, the largest clothing chain in the country, are at 2.5 billion Yuan.
International brands, moreover, don’t have a truly national reputation, while local brands have developed strong store networks, boosted by large production capacities.
Overall, local brands may support the market’s growth. Although the Chinese continue to turn to largely imported products, mainly for food, local brands are becoming more and more attractive.
Internet sales already account for 15% of sales of the mother-child market, which should see significant growth in the coming years, according to HKTDC Research, citing the report.
1 Chinese Yuan = US$0.16
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