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A dramatic scene will appear when you inquire the rag trade experts about the statues quo of various kinds of garment industry: when you mention the women garment the smile as charming as Mona Lisa appears on their face, when you mention the men garment, a modicum of honor will still remain in their eyes but as to the infant and children wear, a sigh is all that you can expect. It is obvious that the domestic market for infant and children wear is far from their standard. The facts are more or less the same.
U.N. report exclaimed: maternity and infant products industry is the rising industry in 21st century. It is sure that Chinese maternity and infant products industry is one of the most potential and valuable industries. It isn't necessary to do anything about market survey because the changes of yourself and your friends will illustrate the situation.
Chinese infant and children products industry will meet not only the periodic changes but also the configuration changes. This industry will not only meet the periodic chance but also the chance to realize the enormous development.
It is worthy noticed that Kodak which used to rank top 10 in the world has rapidly declined. Global 100,000 terminals have brought six years of huge losses as the rule has changed. Spreading of Digital cameras lead to the structural changes of the whole industry. Now people don't need to go to the photo studios to develop their pictures. It is very convenient for them to watch the photos whenever they want only with the help of a link.
Similarly, if we still adopt the conventional way when the structural changes happen to the infant and children products industry the tragedy may repeat. It is even difficult for the global industry giant to avoid the tragedy so the infant and children products industry which still stands on the initial step should develop the strategic insight and marketing ability. Only to be responsible and hard working is not enough.
The capacity of the infant and children products market will gradually expand.
Currently the fertility rate in China is around 1%; the number of pregnant women in the country is about 13 million-14 million. Per capita consumption of pregnant women dress in China is about 46 RMB.
According to the fifth census: in Chinese mainland the monthly consumption of the family with new born of 0-3 years old has reached to more than 900 RMB. The consumption of one child in the medium and large sized cities has reached to 8000-10000 RMB.
<Investigation report on the development of Chinese children wear industry>: urban residents' consumption towards children wear raises around 26.5% annually. They demand for 800 million pieces or so while the number is still increasing by 8% annually.
Nowadays there is only one kid in each family so the parents, including the grandparents, will not be chary while they spend for their kids so six wallets gather together only for one kid. Actually we will have more wallets as long as we considering the uncles and aunts.
Consumption for each kid keeps on rising even though the number of the infants is descending. It is estimated that the market capacity will reach up to more than 1 trillion RMB till the year 2015.
The potential of Chinese infant and children products market is enormous.
Now the American urbanization rate has reached to 75% while Korean urbanization rate has reached to 93% but in China the urbanization rate is only 35%. Along with the urbanization movement in China, the urbanization rate is expected to exceed 65% in the year 2015 and the urban residents will reach up to 750 million.
Solving the three rural issues has been the basic national policy of Chinese government. "New Village Movement" is spreading vigorously across the whole nation. The government will set aside 300 billion RMB to subsidize the construction of 100 thousand rural supermarkets. Every supermarket can get around 3000 RMB. Supermarkets will be constructed in more than 50% villages.
The third baby boom in China is in the air and the new born in China will account for more than 20% babies in the world.
Consumption tendency of infant and children products market in China
Girls born in 1980s will be the main body of infant and children products customers. This generation grows up in the environment with rich material life and they are sensitive to the fashion trend. Thereby they not only pay attention to the quality of the products but also emphasize on dressing their babies in cute or handsome way. Brand trend will become the mainstream.
Grandparents with abundant deposit will not be stingy to their lovely grandchildren for sure. Parents' brand intention supported by the grandparents' wallet helps to develop the infant and children products industry.
Maternity wear considering both practical function and culture will attracts considerable profit. OCTmani from Singapore is takes the first step to design the maternity wear as the fashionable dress. Even the plump women are attracted by their glamour.
Infant and children products industry will promote a new gift market. Many enterprises start to take gift competition as usual instead of price war. Taking Japanese infant and children wear market as example, gifts sold at birthday and festivals account for more than 80% of the total saleroom.
Following the steps of emotional consumption and rational consumption intellectual consumption's feature is "rapid": Spreading rapidly; Covering rapidly and selling rapidly.
Local share of infant and baby products market is descending.
International brands have accounted for more than 50% market share in children wear industry. In the medium and large sized cities, such as Shanghai, international brands occupies most of the sales area of children wear but the local brands only accounts for less than 30% market share. More than 20% enterprises don't have the brand of their own at all.
Infant and children products market becomes more and more competitive.
There are more and more partners as well as the potential partners; meanwhile, competitors are stronger and stronger. More enterprises operate with brand orientation while they join in this market.
15 years ago there were only several brands competing with each other but in recent 5 years the number has reached up to more than 200.
The situation that many enterprises' success based on the single advantage in the past would gradually disappear, which shows the industry would come to a system resources competition stage.
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