Leveraging insights extracted from the CBME Database, extensive visits to regional markets over the past year, and interviews with industry professionals, data analysts, and discerning consumers, we embark on a journey to encapsulate the evolving trends and dynamics within the maternity and baby industry. Join us as we navigate through the frost and explore strategies to thrive in this changing landscape.
1. Emotion Value Drives Business Growth
In today’s retail market, emotional value has emerged as a vital driver of business growth, particularly among younger consumers. This trend is increasingly relevant in the maternity and baby retail sector, where products must transcend mere functionality and foster profound emotional connections.
Enhancing Customer Experience
For online retail channels, implementing initiatives such as hassle-free 30-day return policies, combined with the assurance of product destruction rather than resale, significantly contribute to customer satisfaction. Enhanced after-sales service efficiency further elevates the emotional value perceived by consumers.
In offline retail, cultivating emotional bonds can be achieved through instant retail services and creating inviting third spaces—such as cafes, parent-child activity areas, or DIY kitchens—within maternal and baby stores. These environments not only enhance the shopping experience but also foster community engagement and brand loyalty.
2. Localized Parenting Revitalizes Offline Business
Recent data indicates that instant retail has maintained an impressive average annual growth rate of over 50%. In 2022, the market size reached 504.286 billion yuan, and projections suggest it will triple by 2025. Instant retail, a product of “retail + technology,” offers localized retail businesses incremental value by creating innovative shopping experiences through “digital reality integration.”
Addressing Immediate Needs
In the maternity and baby sector, instant retail effectively addresses various consumer demands—ranging from urgent midnight breastfeeding shortages to the convenience of large purchases for social gatherings like picnics and camping trips. The ability to deliver everything swiftly not only alleviates consumers’ immediate pain points but also stabilizes the maternity and baby retail market by accommodating the preferences of consumers who may prefer not to enter physical stores.
3. Target All Family Members with Diversified Product Categories
For maternity and baby retailers, formula milk remains a cornerstone category. However, as brand concentration intensifies and profit margins narrow, diversifying into secondary categories becomes imperative. Among these, cotton products are gaining traction, with children’s clothing emerging as a notable extension.
Embracing Emerging Trends
The cotton products market is evolving alongside changing consumer demographics and consumption patterns. Key concepts driving this transformation include scenario-based consumption, functionality, aesthetic appeal, and tech-styling. Moreover, strategic partnerships with intellectual property (IP) can further enhance product offerings.
Recent trends highlight impressive growth in niche categories, with children’s cheongsams, tangzhuang, and folk costumes experiencing a remarkable sales growth rate of 222.10%. Similarly, children’s outdoor clothing has surged with a growth rate of 217.31%, highlighting the potential for retailers to tap into these burgeoning markets.
4. Cotton Products Set to Rebound
For maternity and baby retailers, formula milk remains a cornerstone category, yet as brand concentration intensifies and profit margins narrow, diversification into secondary categories becomes imperative. Among these, cotton products are gaining prominence, with children’s clothing emerging as a notable extension of this concept.
In tandem with the evolution of consumer demographics and consumption trends, the cotton products market is undergoing a transformation, characterized by emerging consumption patterns. These trends can be distilled into five key concepts: scenario-based consumption, functionality and tech-styling, cost-effectiveness, aesthetics-oriented focus, and IP collaborations.
New markets unlock new opportunities. In the Top 10 category list, children’s cheongsam/tangzhuang/folk costumes claimed the second position with an impressive sales growth rate of 222.10%. Similarly, children’s outdoor clothing secured the third spot, growing by 217.31%.
5. Green and Eco-Friendly Parenting Gains Popularity
The demand for sustainable practices within the maternity and baby industry is on the rise. Platforms like Xianyu have achieved remarkable milestones, with over 600,000 users engaging in group-buying transactions during the 2023 Double 11 Shopping Festival.
Shifting Towards Rental Models
A noteworthy trend on Xianyu is the transition towards renting rather than purchasing, particularly for children’s toys. This shift underscores a burgeoning commitment to green and eco-conscious parenting, reflecting a growing demand for organic, healthy, and eco-friendly products among consumers.
Parents are increasingly prioritizing sustainable family expenditures, marking a shift from cost-saving endeavors to a more mindful approach to consumerism. Brands that position themselves as eco-friendly will likely capture a significant share of the market.
6. Product Segmentation Expands
As customer demands grow increasingly diverse, the need for product segmentation by stages, ages, genders, and scenarios is expanding.
Tailoring Offerings to Specific Needs
For childcare brands, product offerings are diversifying across categories. In skincare, for example, products are now available for specific needs such as moisturizing, sensitivity prevention, soothing, and maintaining stability. Furthermore, skincare lines for children over three years old can be further segmented by gender and age group.
Diapers also demonstrate an evolving landscape, with offerings now segmented based on criteria such as gender, age, and specific needs like rash prevention, mosquito repellent, and training. This level of product specialization offers valuable opportunities for chain store employees to enhance their offerings, evolving nutritional products from structured stores to more diverse chain systems.
7. Mass-Selling Snack Stores Pave a New Path for Manufacturers
The concept of consumption downgrade has garnered attention, reflecting a broader macroeconomic context. However, a concerning trend of consumer stratification is also emerging. Top-tier consumers demonstrate a willingness to pay premiums for reputable brands, while middle-tier consumers are more selective, accepting limited premiums for product upgrades. Meanwhile, base-tier consumers prioritize cost-effectiveness, seeking quality products at reasonable prices.
Catering to Diverse Consumer Needs
This consumer stratification trend is evident in the popularity of discount stores and mass-selling snack stores, which cater directly to the preferences of mainstream consumers. In response, businesses in the maternity and baby industry are exploring strategies to accommodate this stratification. Some brands are even experimenting with boutique maternal and baby “outlet stores” to meet the distinct demands of various consumer segments.
8. Consumer Stratification Becomes Evident
Consumption downgrade has become widely discussed nowadays, reflecting a certain macroeconomic background. However, amidst this phenomenon lies the concerning trend of consumer stratification— where top-tier consumers are more willing to choose reputable brands and accept high premiums; middle-tier consumers can accept limited (not exceeding 5%) premiums and pay attention to product upgrades; while the base-tier consumers prioritize cost-effectiveness, expecting product quality to exceed their cost.
The mindset of base-tier consumers undoubtedly dominates the market at the moment, as evidenced by the popularity of discount stores and mass-selling snack stores. These establishments directly cater to the preferences of mainstream consumers today.
In the maternity and baby industry, businesses are actively exploring strategies to accommodate this consumer stratification. Some maternal and baby players have already begun experimenting with the concept of boutique maternal and baby “outlet stores”.
Conclusion
The maternity and baby industry is poised for dynamic growth in 2024, driven by evolving consumer expectations and market trends. By recognizing and adapting to these promising opportunities—such as emotional value, localized retail, product diversification, and sustainability—brands can effectively navigate the changing landscape and thrive in a competitive market.
