Mother & Baby

Sector Insight 2019

In collaboration with:
CBBC Research Mother & Baby
Sector Insight 2019

Santander is pleased to have once again led a delegation to the Children Baby Maternity
Expo (CBME) in China in conjunction with the China-Britain Business Council (CBBC). As a
bank with international presence in 10 core markets and many more via our network of
alliances, Santander UK focuses on helping businesses prosper by being the “accelerator
for business growth”. We know that businesses want to grow in their current markets
and even beyond – that is why we have a deep, holistic and tailored approach to our
international proposition to help with their international growth ambitions.

Trade missions are one of the ways
where we help. China was chosen as the
destination for the trade mission due to
it being a major hub for the maternity,
children and baby market, worth more
than GBP 339 billion in 2018. The child
population has grown significantly over
the last couple of years, and the industry
is expected to see consumption growth of
more than GBP 3 billion year-on-year. In
addition, Chinese consumers are willing to
pay higher premiums for high quality and
high safety baby products.
For this trade mission, Santander, together
with CBBC and DIT, organised 1-2-1
matchmakings for our delegates to meet
Chinese buyers. In addition, there were
baby and maternity store visits, testing
laboratory visits to ensure products can be
sold in China, marketing briefings, Key-
Opinion-Leader (“KOL”) strategy, and visits
to the CBME trade show.
To find out more about how we can support
your ambition to grow in China, please
contact dennis.lin@santander.co.uk

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CBBC Research Mother & Baby
Sector Insight 2019

THE MARKET OPPORTUNITY

The growth in China’s Mother & Baby market has been well documented and shows no sign of stopping. According to Mr Enlong Hou (COO,
Suning Commerce Group) the value of the mother and baby market in China reached RMB 2.59 trillion (GBP 298 billion)1 in size by 2017 and
with the introduction of China’s two-child policy, it is predicted to reach RMB 3 trillion (GBP 345 billion) by 2019.2

Figure 1: Market Size and Growth Rate of

China’s Mother & Baby Product Market by Year3

Market Size, RMB Billion Growth Rate %

3500 20%
15.8% 16.2% 16.3% 16.5%
15.7%
Market Size, RMB Billion

3000 13.7%
13.5% 3019
2500 2227 15%

Growth Rate %
10.4% 1916 2591
2000 1654
1430 10%
1500 1258
1108
1000 5%
500
0 0%
2011 2012 2013 2014 2015 2016 2017 2018E
Year

Among the fastest growing sub-sectors within China’s market for Mother & Baby products is fast-moving consumer goods (“FMCGs”),
seeing a growth rate of 9.0% in 2017. Within this category, market demand for baby diet supplements grew by 32%, and baby care products
grew by 18.7%, as shown in Figure 2. Meanwhile, the largest product categories are infant formula and nappies, which grew at 8.7% and
6.8% respectively in 2017.
Online, childrenswear and shoes were the most popular sub-categories sold in 2016, with casual shoes and sports shoes for children being
particularly popular. In addition, baby carriages and cribs also performed well.4

Figure 2: Growth of 40%

Mother & Baby 30%
32.0%
Growth Rate

Fast-Moving Consumer 18.7%

20%
Goods, 2017 8.7%
10% 6.8%

0%
Diapers IMF Products Baby care Dietary
supplememnts
Products

1
https://finance.yahoo.com/currency-converter/
2
http://36kr.com/p/5078310.html
http://www.baobei360.com/Articles/Html/2018-03-19/152558.html
http://research.baobei360.com/a/20161023/10004016.html
3
http://www.sohu.com/a/228160600_372052
4
Kantar World Panel: New Generation’s Baby Shoppers Behaviour
http://www.sohu.com/a/160585389_766558
http://research.baobei360.com/a/20161023/10004016.html

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CBBC Research Mother & Baby
Sector Insight 2019

Different product categories within China’s Mother & Baby market display various levels of development, as Insight & Info Consulting Ltd has
summarised, and as is shown in Table 1 (below).5

Table 1: The Development Levels of Selected Product Categories

PRODUCT CATEGORIES MARKET CHARACTERISTICS MARKET NEEDS & POSSIBLE CHANNELS

• Children’s food; High degree of market saturation There is strong demand for international baby formula
• Children’s skincare products; concentration; high importance and nappy brands in China; Chinese consumers pay a
• Fast moving consumer goods. attached to brand. close attention to which brand a product is labelled as;
all retail channels would be suitable for these products.

• Childrenswear; Low degree of market saturation; Brands new to China need to first raise brand
• Children’s footwear well-known brands see more awareness; shopping centres, department stores, and
and accessories. success in the market. online platforms are all suitable for these products.

• Functional appliances; Low degree of market saturation; Brands new to China need to first raise brand
• Daily-use goods; wide range of sub-categories. awareness; shopping centres, department stores, and
• Toys for young children. online platforms are all suitable for these products.

• Children’s car seats.
Low degree of market
penetration; opportunities for
expansion of these products.
Despite the low degree of market penetration and
awareness of car seats, demand for car seats in
China is increasing; hence there are opportunities
for international brands in this market. Consumers
generally require to test these products on-site,
therefore Mother & Baby product stores would be a
suitable channel for distributing car seats.

Demand for Mother & Baby products is not restricted to first- and second-tier cities. Economic and cultural differences between more affluent
cities and those that have lower incomes has resulted in consumers with different demands, and lower-tier cities are expected to record
strong growth in the coming decades. Some key trends that look set to define the Mother & Baby sector over the next decade include:

A New Generation of Mother & Baby Consumers

Consumption of Mother & Baby products in
China is mainly driven by those born after
1985, with these generations generally
considered to be more willing to try new
products, as well as heavily influenced by
the Internet, and open to international
culture.
Convenience and fashion are more
important to today’s young mothers
than to those from previous generations.
Coupled with a growing disposable income
that these mothers are partly spending
on Mother & Baby products, new market
sub-sectors are being created to meet
their needs, such as skincare products for
pregnant women; a market predicted to be
worth RMB 4.7 billion (GBP 540.2 million)
by 2022.
The generation of mothers born after 1985
are more economically independent than
previous generations, and are therefore
pursuing a high quality of life, as well as
improvements in their personal appearance.
The annual expenditure of this new
generation of mothers on Mother & Baby
products ranges from RMB 5,000 (GBP 588)
to RMB 18,000 (GBP 2,118).6

http://www.gyii.cn/m/view.php?aid=208253
5

http://mini.eastday.com/mobile/180322150923810.html
6

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 CBBC Research Mother & Baby
Sector Insight 2019

Demand for Higher Quality Products Key Distribution Channels

Quality is more important than ever for Chinese parents, which
presents a significant opportunity for international companies,
which are often perceived by Chinese consumers to be of a higher
quality, safer, and more reliable than their Chinese counterparts.
The effects of this drive for quality can be seen in ever-more
specific and detailed consumer demands for products to be healthy,
pollutant-free, environmentally friendly, and contain minimal added
additives, as well as to have a long service life.7
Researching online
From community E-commerce, to user reviews left online, to simply
discussing new products on social media, Chinese mothers are using
the Internet as an information source more than ever before. On
the Chinese search engine, Baidu, more than 100 million searches
related to Mother & Baby products are conducted each month.
Both online and offline distribution channels are dynamic and
complex, with major companies across both channels seeking
to take advantage of growth in the Mother & Baby sector, and
differentiate their approach to the market from those of their
competitors. Online sales made up 16.3% in 2017, with this
expected to increase to 27.7% by 2022.8
Supermarkets still dominate the offline market in China as a whole,
but specialist stores attract 57% of shoppers in first and second
tier cities. Growth in specialist baby product stores is predicted to
outpace that of other channels to become the main offline sales
channel for Mother & Baby products in China by 2020.9
Finding the right model to access the market is key to success in
this competitive market, and various options are available to UK
exporters, as shown in Table 2 (below).

Table 2: Potential Distribution Models Available to UK Exporters

LOW CAPITAL LOW CONTROL OF OFFLINE CONTROL GIVES IDEA DIRECT RISKS/LIMITATIONS
INVESTMENT OPERATIONAL PRODUCT SALES OF SALES OF MARKET ACCESS TO
RISK BRANDING DEMAND CONSUMERS
AND/OR END
USERS

CROSS BORDER Not Yes Yes No Yes Yes Yes Government policies and
E-COMMERCE always regulations changeable.
Limited market share; no
product in-market.

DISTRIBUTOR Yes Yes No Yes No No No Loss of control on pricing

and branding. Limited
oversight on exact
activities.

CONSIGNMENT No No Yes Yes Yes Yes Yes Greater risks of product

TO RETAILERS not selling, and paying
higher costs for
consignment. Potential
return of stock.

DIRECT SALES Yes Yes No Yes No Yes Yes Potential risk of retailer
TO RETAILERS managing brand. Low
visibility on performance.

7
http://mini.eastday.com/mobile/180322150923810.html
http://www.sohu.com/a/160585389_766558
8
https://ww2.frost.com/files/9415/2689/0964/Preview_-_the_Cross-border_E-commerce_Haitao_Opportunity_in_China_Preview_mtd.pdf
9
http://www.sohu.com/a/228160600_372052
Online Consumption Trend Report for China Maternity and Baby Products 2017 by JD Big Data Research Institute

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CBBC Research Mother & Baby
Sector Insight 2019

Online Channels
As stated in the China online retail market data report- 2018 H1
released by China E-Commerce Research Centre (电子商务研究中
心发布了《2018年（上）中国网络零售市场数据监测报告》),
the market size of China’s mother and baby e-commerce in the
first half of 2018 reached RMB 374 billion. By the end of 2018, the
number was estimated to be RMB 747 billion. Source: http://news.
baobei360.com/research/2018-10-31/10008493.html
Among all Mother & Baby products sold online, sales of clothing
comprise over 25% of the total and are likely to have a total sales
value of approximately RMB 192 billion (GBP 22.7 billion) by
2018.10 Key platforms for this product category are shown in Table 3
(below).

Table 3: Leading E-Commerce Platforms

NAME USER PROFILES DESCRIPTION

Tmall Global Registered users: 500 million Comprehensive online shopping platform with
Daily visitors: 60 million cross-border E-commerce section

JD Worldwide Registered users: 300 million Comprehensive online shopping platform with
cross-border E-commerce section

Kaola Active users: 50 million Specialises in cross-border E-commerce

VIP Registered users: 300 million Comprehensive online shopping platform with
Active users: 58 million cross-border E-commerce section

Mia.com Registered users: 30 million The first flash sales platform in China offering imported
Mother & Baby brands

Mama.cn Active users: 4 million Content-driven social E-commerce platform focusing

on the Mother & Baby sector

Babytree.com Active users: 9 million Content-driven social E-commerce platform focusing

on the Mother & Baby sector

Little Red Book Registered users: 70 million Specialises in beauty and personal care, healthcare,
(mobile only) and Mother & Baby care products

10
CBBC ; Santander;
https://www.sovereigngroup.com/wp-content/uploads/2015/04/China-e-commerce-2016-for-website.compressed.pdf
https://www.sohu.com/a/219536078_119659;
https://www.thedrum.com/news/2018/08/20/china-e-commerce-market-forecast-reach-18tn-2022

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CBBC Research Mother & Baby
Sector Insight 2019

Offline Channels

Table 4: Large Offline Store Chains

STORE NUMBER OF STORES DESCRIPTION

Kidswant 227 offline stores and
one online store
Established in 2009, Kindswant is well-known maternity and baby retail brand
in China providing a full range of products and services for mothers-to-be, and
children aged up to 14.
Kidswant’s 227 large and fully digitised stores are located in 19 provinces and
109 cities cross China. To accompany its physical stores, Kidswant launched its
online app in 2015, which had been downloaded by 6 million users by 2017. It is a
content-oriented and community-based maternity and baby platform.

Leyou 580 offline stores and six Set up in 1999, Leyou is a maternity and baby chain store brand with O2O
online stores omni-channels for maternity and baby products. Leyou adopts the “App+
online shopping mall + chain stores” business model with the aim of providing
consumers with one-stop professional services and a convenient and comfortable
shopping experience.
Leyou has worked with more than 530 suppliers from 21 countries across the
world, and owns more than 30,000 SKUs in 16 product categories, including
children's and maternity clothing, toys, car seats, children’s furniture, milk
powder, food, feeding supplies, toiletries, and diapers.

les enphants 382 stores and seven Les enphants first came to mainland China in 1993. It is composed of four
online stores companies in mainland China covering maternity and baby clothing, daily
supplies, toys, and logistics, respectively.
Les enphants has established branch offices in Shanghai and Beijing and several
regional marketing centres in China. Apart from the 382 direct-operated stores, it
also has 426 franchised stores covering China’s first and major second tier cities.
The brand is seeking to build a more extensive presence by opening and running
counters in many shopping malls such as Bailian and Wangfujing, and working
with large shopping complexes.
Les enphants established its flagship stores on Tmall, JD, VIP.com, and other
E-commerce marketplaces in 2012.

Baby Bear 230 stores and two Wholly owned by Infore Group and founded in 2003, Baby Bear is a famous
online stores Chinese maternity and baby chain store brand focusing on providing mid to high-
end products and services to families with babies and children aged up to six years
old.
Baby Bear’s business covers seven large provinces (Hunan, Hubei, Jiangsu,
Shanghai, Jiangxi, Sichuan, and Chongqing), providing 17 categories of
commodities including milk powder, nappies, high-end children’s clothes, shoes,
maternity clothing, and bedding. It currently owns more than 230 stores with 5
million members and continues to actively expand.
Baby Bear has established its omni-channels by integrating its online and offline
resources so as to provide its customers with a convenient and comfortable
experience of purchasing goods and using its services. Baby Bear has also set up
its own flagship stores on key E-commerce marketplaces, including Tmall and JD.  

Aiyingdao 1,600 stores and one Established in Zhuhai, Guangdong Province in 1998, Aiyingdao is one of China’s
online store biggest maternity and baby chain store brands. It has more than 1,600 stores
(both directly-operated and franchised models) in 12 provinces, across over 80
cities in South China, East China, and Central China, as well as an online shopping
mall (baby.com.cn). Aiyingdao’s key product categories include baby food, daily
necessities, toys, and clothing.

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CBBC Research Mother & Baby
Sector Insight 2019

Intellectual Property
Protection
A key preparatory step to consider before entering the China
market is registration of your intellectual property (“IP”)
rights, including trademarks and patents. CBBC recommends
reading the detailed guidance on this available on our
website www.cbbc.org.

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CBBC Research Mother & Baby
Sector Insight 2019

Regulatory Environment & Trade Compliance Requirements

Intertek agencies, social organisations, and non-government bodies, such

The children’s sector in China is highly regulated. It is important
to understand which standards (known as “Guobiao”, or “GB”),
certification, or other tests are required for products, and what
effect this will have on your route to market.
China's regulatory regime is still in the process of reforming, and
there are currently multiple regulators within the Mother & Baby
product industry, including the government, semi-governmental
as professional shoppers. Key government bodies in charge of
regulations related to the maternity and baby product industry
include China Customs and the State of Administration for Market
Regulation (“SAMR”), while the China Consumers Association
(“CCA”) is a semi-government agency.
The testing requirements for market entry can be split into three
parts: laws and regulations, mandatory standards, and product
standards, As Figure 1 (below) shows.

Three aspects of
Legal Compliance
of commodities

Laws and Mandatory Product

regulations standard standard

Laws and regulations are Mandatory standards Product standard is

compulsary and non- must be adhered to normally stated on the
compliance is a serious label and once used, the
offence product must comply to it
(optional but beneficial)

Products affected include:

• Clothing and soft furnishings (both mandatory testing and labeling requirements apply);
• Feeding accessories (mandatory standards apply);
• Toys and games (some require CCC certification);
• Cosmetics or skincare products (mandatory testing and filing regime);
• Car seats and prams (CCC required).

For further information or product-specific advice, please contact Mr Joseph Peng, joseph.peng@intertek.com.

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CBBC Research Mother & Baby
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Marketing

Key Online Marketing Trends in the

Mother & Baby Product Sector
With over 800 million Internet users in China, 98% of which go
online using a mobile device, it is little wonder that international
companies first focus on digital channels when entering the Chinese
market,11 with 73% of digital purchases now made on mobile
devices in China.12 However, a company’s offline presence is still
crucial, especially in smaller cities, as parents sometimes still prefer
to test baby products out and make inquiries with salespeople.
Companies are therefore exploring an omni-channel approach when
marketing Mother & Baby products in China.

Case Study: Biostime

Biostime Omni-Channel Campaign

Biostime, one of China’s largest brands of milk formula for expectant
and nursing mothers, organised an omni-channel campaign by
launching its family yoga camp through online platforms, before
inviting Key Opinion Leaders (KOLs) to participate in its offline
activities. This campaign not only raised the awareness of this
brand in the Chinese market, but also positioned it as a brand that
mothers can rely on.
Mother & Baby KOLs
Apart from having a verified branded presence on Chinese social
platforms, it is also crucial to involve influencers or KOLs that
can endorse a brand. Engaging with KOLs in the Chinese digital
ecosystem is a key component of marketing activity in China, more
so than in many western countries. With multiple brands trying
to attract Chinese consumers, Chinese parents are more selective
of which brands they choose, and heavily rely on word-of-mouth
recommendations from friends and KOLs.

KOL Campaign Example

An example can be seen in the recent launch of Teletubbies’ new
series on Subscription Video on Demand (“SVOD”) platforms in
China. Teletubbies partnered with a popular celebrity, Da Tao, who
has a two-year-old son, who produced a short film set in London
and posted it on her social media accounts, to announce the launch
of the new series. Da Tao’s video highlighted the educational aspect
of the new Teletubbies series and also played on the memories
which young parents who grew up watching Teletubbies may have.
The video generated approximately 3.5 million views and garnered
significant interest from Chinese parents.

11
 https://www.forbes.com/sites/niallmccarthy/2018/08/23/china-now-boasts-more-than-800-million-internet-users-and-98-of-them-are-mobile-
infographic/#5616f8a77092
12
https://www.forbes.com/sites/niallmccarthy/2018/08/23/china-now-boasts-more-than-800-million-internet-users-and-98-of-them-are-mobile-
infographic/#5616f8a77092

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CBBC Research Mother & Baby
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Aside from celebrity influencers as KOLs (Key Opinion Leaders), brands can also consider working in partnerships with experts such as
nutritionists, authors and educators, some examples of which can be seen in Table 5, below:

Table 5: Examples of KOLs in China’s Mother & Baby Market

KOLs INTRODUCTION

年糕妈妈 Nicomama has over 16 million followers in total across various online platforms. Her most read
(Nicomama) article achieved a readership of more than 2.2 million.
The platform was established 4 years ago by an individual KOL and is now an integrated platform
with functions and services including community, expert Q&A, and an online shop.

 
大J小D Big J little D has over 278,000 followers on Weibo and shares stories related to her difficult
(Big J little D) experiences during childbirth and raising her child under the guidance of a US doctor.

君君食尚美妈 Meima Loves Cooking has close to 2 million followers on Weibo. Her content focuses on baby
(Meima Loves Cooking) foods, nutritious meals, travel, and lifestyle.

Recommendations for Marketing

Most brands are familiar with online marketplaces such as Tmall
or JD, but it is also important to explore partnerships with targeted
Mother & Baby product platforms such as Babytree and Mia.
com. Apart from having E-commerce features, these platforms
also serve as a community for mothers to share information and
recommendations. Companies are also exploring co-branding and
collaborations, as seen in a campaign for Babyfirst, which worked
with Kidswant, ibaby, Purecotton, and Matern'ella during China’s
Children's Day on 1st June 2018; covering multiple Mother &
Baby social channels, and receiving positive reviews from users.
This campaign increased awareness of Babyfirst and expanded its
customer base at the same time.
As most Chinese parents are first-time parents, they often seek
information and conduct their research online. It is therefore
important to ensure that branded content is also coupled with
engaging, insightful, and creative information. Constant sales-driven
posts are a necessary component of online content but should not
be the bulk of the content. In China, parents are most attracted to
companies committed to their children’s wellbeing and that are
perceived as being accessible, trustworthy, and reliable.

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Case Study: Frugi

Frugi, a large ethical and organic children’s
clothing brand from Cornwall, is a family-run
company producing products in bright and
vibrant colours and that feature a variety of
characters and designs.
China presented a new market for Frugi, so
it decided to explore this opportunity. Frugi
commissioned a research project with CBBC
to include bespoke market information and
introductions to potential partners. It then
joined a Santander-CBBC trade mission to
the Children, Baby, and Maternity Expo in
July 2018, meeting with several Chinese
buyers through the matchmaking activities
organised as part of this mission.
Frugi has since gone on to secure initial
orders from China, and continues to explore
opportunities with other partners.
To enable that first step into such an
important market, the help from CBBC
and Santander was invaluable, the market
research element was a huge help, and
the in-market support essential. The team
created a trade mission with broad appeal
to all businesses attending, yet managed
to provide focussed support to Frugi and
our individual needs. Our first step into
China will be made with more planning and
understanding as a result...”
Neil Roach (International Distribution
Manager, Frugi)

Next Steps
Taking preparatory steps, building a brand, establishing routes
to market, and ultimately continuing to grow in China can seem
daunting. It is important to learn and benefit from the expertise
of partners in both the UK and China to tackle these challenges
effectively.
To learn more about doing business in China, please visit the CBBC
website for information about support, services, and upcoming
events.
To be put in contact with a CBBC China Market Business Adviser,
please contact: enquiries@cbbc.org

If you would like to find out more about how Santander can support
you and your business please visit: www.santandercb.co.uk
Products and services are subject to eligibility, status, terms and
conditions and availability.
Santander UK plc. Registered Office: 2 Triton Square, Regent's Place,
London, NW1 3AN, United Kingdom. Registered Number 2294747.
Registered in England and Wales. www.santander.co.uk.
Telephone 0800 389 7000. Calls may be recorded or monitored.
Authorised by the Prudential Regulation Authority and regulated
by the Financial Conduct Authority and the Prudential Regulation
Authority. Our Financial Services Register number is 106054. You
can check this on the Financial Services Register by visiting the FCA’s
website http://www.fsa.gov.uk/register. Santander and the flame
logo are registered trademarks.

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CBBC Research Mother & Baby
Sector Insight 2019

Annex:

Table 6: Major Trade Shows in the Mother & Baby Product Sector,
or which feature Mother & Baby Products

EXHIBITION TIME VENUE WEBLINK

Children-Baby-Maternity Late July 2019 National Exhibition and www.cbmexpo.com

Expo (“CBME”) Convention Center (“NECC”),
Shanghai

Ying BashaBaby / Early October 2019 China National Conference bj.yingbasha.com

Children Expo Centre (“CNCC”), Beijing

Best of British October 2019 Shanghai Exhibition Centre, www.thebestofbritishshow.com

Shanghai

China Kids Expo Mid-October 2019 Shanghai New International cn.china-kids-expo.com

(“CKE”): China Expo Center (Shanghai)
International Baby
Articles Fair

China Toy Expo Mid-October 2019 Shanghai New International cn.china-toy-expo.com

Expo Centre, Shanghai

MBC China Early November 2019 Shenzhen Convention & www.mbcexpo.cn

Exhibition Centre, Shenzhen

China Jiangsu Mid-March 2019 Nanjing International www.mbechina.com

International Products Exhibition Centre, Nanjing
for Maternity & Baby
Exhibition

The 29th Beijing Late April 2019 Beijing New International www.jingzheng.com
International Pregnancy, Exhibition Center, Beijing
Babies & Children’s Expo

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CBBC Research Mother & Baby
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Contact us for more information

China-Britain Business Council: Santander Corporate & Commercial Bank:

Jack Porteous Dennis Lin
UK Sector Lead - Retail & E-Commerce China Desk Director
T: +44 (0) 207 802 2008 T: +44 (0)75 4013 8187
E: jack.porteous@cbbc.org E: dennis.lin@santander.co.uk

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