The birth-rates in China have risen to their highest level since 2000, the increase is a result of the relaxation of the one-child policy in 2014. Since then it is allowed for families to have more than one child in their family, this policy was affecting a big part of the population since 1979. There is another boom underway: the spending on infant care products, and in particular, the online spending has been soaring.
According to research from Mintel it is estimated that the market for mother and baby products grew by 256% in the last 5 years, totalling to €70 billion last year. This industry growth if fuelled by the increased in income and spending power from Chinese parents and grandparents.
The market is expected to keep on growing with 15 percent until 2020 due to the willingness from consumers to purchase pricier and higher quality merchandise. The health scares from recent years over poisonous baby formula and product safety has allowed Dutch companies to increase their market share in China. Popular Dutch brands Nutrilon (Danone) and Friso (Friesland Campina) are doing well. The Netherlands has a good name in the field of Babycare products, other Dutch brands can profit from this image.
Parents are looking for the genuine product that produced in The Netherlands and meet international safety standards. The online cross-border platforms created the ideal marketplace for baby care related products as it reassures the authenticity of the goods. Over the past 2 years, more than 90% of the world’s well-known baby care brands have opened flagship stores on these cross-border platforms. These companies are selling a range of products varying from diapers to child car seats, allowing the platforms to become a one-stop shop for pregnant mothers-to-be and young mothers.