Mum and Child market in China has been top hunter-fields for those overseas brands in the health sector. putting extra fuel in the fire, China as a whole nation is promoting Big Health strategy. Post-90s, a Chinese way to label those who were born after 1990, have entered the birth-giving age range. What is the trend of China’s Mum and Child consumption market?
In recent years, China’s population suffers declining newborn numbers and ratios,
while new births are not obvious after abolishing one child policy 3 years ago, and any birth stimulation measures will not take effect in short term.
While young families are more and more hesitant to raise more than 1 child due to complex reasons, Parents do really have stronger willing and financial ability to spend more on high quality for their sole child.
China consumer market appears stable, Mum and Child market continues to grow
According to the data released by the China Statistics Bureau, the Consumer Confidence Index for the 1st quarter of 2018 was 115, and by the 2nd quarter of 2018, the figure was 113. Despite a slight decline, the overall trend was stable. In 2016, China’s Mum and Child market grew by only 3.9%. In 2017, it reached 123.3 billion yuan, an increase of 11% year-on-year. As researchers are talking more about consumer downgrade trend in wider sectors in China’s economy, consumption upgrade and the acceptance of new products are the two core drivers for the sales of Mum and Child consumer goods.
Compared with other matured markets, China’s per capita consumption of Mum and Child consumer goods remains at a low level with a large room for growth. In baby formula sector, the consumption per capita is in the US is 7 times more, France is 2.2 times more and Spain is 1.4 times more than China’s.
More high-end consumptions, led by post-90s mums
According to Nielsen’s research, the proportion of sales of cheap products in Mum and Child consumer goods categories has been decreasing; mid to high priced products are significantly growing. Post 90s’ consuming characteristics are reshaping Mum and Child market. They want to try new, value their own personality. Their purchases are more ignited by environment and surrounding. They are tech passionate, service oriented. These are their key points of difference from their previous generations.
The brands knowing their post 90s customers characters have used New product launch as their key driver of the sales growth with systematically planned and executed marketing activation campaigns. They try to match their consumer’s demand with the new concepts such as gut caring, organic certified. these hot spots are where the future growth comes from.
In 2018 We have seen an accelerated trend of new products releasing from Australian Child former makers’ camp. Nestle, Bayer, Wattle Health, Aptamil, A2, Bubs, all of which have launched their new product series in the year targeting the post 90s mums and to-be mums. In particular, A2 has been focusing on an organic concept with a carpet sweep style advertising campaign both in Australia and in China. Their premium baba formula market share has improved significantly.
Online and offline integration is the trend
According to Nielsen data, the growth rate of brick & mortar Mum and Child stores has maintained a double-digit growth with 13% in 2015, 10% in 2016 and 11% in 2017. However, the fragmentation characteristics of the Mum and Child stores lead to fierce competition and short life cycle.
The advantage of the offline Mother and Child stores are their experience and professionalism. They provide consumers with a one-stop service with a full range of categories, fine environment, and personal warm assistance. At the same time, the current online channels also have the advantages of being conveniently accessible, price comparability and richness of marketing means. The amalgamation of online and offline is the trend of the industry.
For baby formula products, genuine quality and safety is two undebatable priorities for a brand to survive in China market. Utilizing WeChat moment ad, banner ad, online store voucher, drive online traffic to the physical stores, convert office customers to be the loyal and repeating customers by offering online content engagement and interesting online theme campaigns.
Key influencer testimonials, live streaming on a brand event, WeChat content push message, WeChat moment sharing, user experience share at e-Commerce sites, all of these have been influencing consumers behaviors,
Conclusion
Chinese consumers in Mum and Baby sector have become more mature as purchase capability increasing, which helps to fire up sales growth and expansion of premium segment. The market still has a good space to grow. WeChat is one of the key gateway connecting brick & mortar stores and online world. Manufacturing brands need to make effective WeChat presence, making sure their WeChat assets continue to bring value to the supply chain and supporting your resellers, paving well distribution network, adding more consumer value when building and growing your China brand and market share.
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