As China’s wholesale snack industry surges towards an estimated 200 billion RMB in sales by 2025, with over 45,000 stores and a compound annual growth rate exceeding 11%, the mother and baby retail sector can draw valuable insights from this rapid development. This success is exemplified by Hao Xiang Lai, a leading brand in the wholesale snack track, which has signed 10,000 franchise stores, growing by more than 800 stores each month. The question arises: what can the mother and baby industry learn from this expansion, and how can it tap into new growth opportunities?
Lessons from the Wholesale Snack Boom
The rapid rise of the wholesale snack sector is driven by several key factors that make its business model appealing. These factors—abundance, speed, good quality, and economy—could serve as inspiration for the mother and baby sector in terms of product offerings, supply chain management, and customer satisfaction.
Abundance and Variety
Hao Xiang Lai’s product portfolio includes 13 categories and 1,800 SKUs, ensuring customers always have diverse options. In a similar vein, mother and baby stores can diversify their product range beyond essential baby products to include adjacent categories like organic snacks for children, maternity nutrition, or health-related products. Expanding the product variety allows retailers to cater to a broader audience, offering a one-stop shop experience that appeals to modern parents.
Speed and Agility in Operations
The speed at which Hao Xiang Lai expands is remarkable. It takes just 21 days from renting a store to its opening, including 17 days for decoration. In addition, they introduce 50 new SKUs each month and ensure quick capital turnover by placing three orders per week with next-day delivery. Mother and baby retailers could benefit from improving their operational efficiency, adopting faster inventory turnover practices, and leveraging efficient supply chains to keep shelves stocked with the latest products.
By adopting a more streamlined store opening and inventory system, mother and baby retailers could quickly adapt to evolving consumer demands, expanding their reach and customer base more effectively.
Quality at Competitive Prices
The wholesale snack industry thrives on offering high-quality products at highly competitive prices, with the cost advantage rooted in direct access to manufacturers, eliminating middlemen. This results in products that are widely available in supermarkets but at a much lower price point. For the mother and baby sector, learning from this cost-saving approach could involve optimizing supply chains and negotiating directly with manufacturers to offer quality products at more attractive price points. This strategy not only enhances customer satisfaction but also builds brand loyalty through affordability.
Economical Franchise Model
Hao Xiang Lai’s franchise model is built on the premise of reducing financial burdens on franchisees, with 0 franchise fees, 0 service fees, and even subsidies for store signage and decoration. Mother and baby retail stores could explore adopting a similarly attractive franchise model to encourage expansion, enabling smaller entrepreneurs to enter the market with minimal upfront investment. This kind of support system would not only boost brand presence but also foster entrepreneurship within the sector.
Operational Support and Franchise Success
The wholesale snack track’s success also hinges on the operational support provided to franchisees. From 0 franchise fees to comprehensive support in store setup, decoration, and training, the model ensures a smooth and speedy store launch. The detailed supervision system in place—where store operations are monitored both online and offline, and regular audits ensure compliance—helps maintain high operational standards across all franchise locations.
Mother and baby retailers could implement similar franchise and operational models. By offering a structured support system with clear guidelines and performance metrics, these retailers can ensure brand consistency while allowing rapid expansion. Structured auditing and support mechanisms ensure the quality of service and products, which is crucial for long-term success in the mother and baby industry.
Synergy Between Mother and Baby Stores and Snack Stores
Both snack stores and mother and baby stores share a common customer base—parents. These consumers are not only looking for baby products but also snacks and food items for their families. However, opening both types of stores together might not be the ideal approach. Instead, mother and baby retailers can borrow key marketing and operational strategies from snack stores, such as centralized purchasing, quick inventory turnover, and efficient store management systems.
The inherent advantages that mother and baby retailers have—strong capital, solid management teams, and extensive operational experience—can be leveraged to explore new product categories, streamline operations, and expand into new locations. Moreover, understanding local property markets and landlord relationships gives baby product industry owners a leg up when considering expansion.
Conclusion: A Blueprint for Future Growth
The explosive growth of the wholesale snack track offers the mother and baby retail sector a valuable blueprint for success. By adopting a customer-centric approach, optimizing supply chains, expanding product diversity, and supporting franchisees with operational excellence, mother and baby retailers can capitalize on untapped growth opportunities. Learning from the rapid and efficient operational methods of snack stores can enable them to better meet the evolving demands of modern families and establish themselves as leaders in a highly competitive market.
