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The baby-friendly room accelerates the expansion in different places, the encrypted eastern China expands in southern China, and the offline store opening accelerates. Can regional chains draw a national map?

发布日期: 2019年09月20日 Source: New Mother and Baby StoreRelease Date: September 20, 2019 Franchise

According to Analysys statistics, the size of China's mother and infant market in 2018 reached 2.77 trillion, a year-on-year growth rate of 9.50%. Despite the decline in the number of new people, the trend of consumption upgrade is still obvious. From a channel perspective, online and offline have their own pain points but opportunities still exist. Currently, the offline retail market is fragmented. Although there are also top players such as Child King, Baby-friendly Room, and Leyou, there are no national leaders in the industry. In recent years, with the expansion of channel expansion of leading companies in various regions, it is expected that market concentration will increase in the future.

As the only A-share mother-to-child chain company, Aiying Room has attracted much attention from the industry since its listing. On September 17th, according to public information, the baby-friendly room plans to accelerate the expansion in other places, cross out of East China, and enter South China, Sichuan and Chongqing, and the total number of stores in the next three years is expected to exceed 300.

Crypto East China expands South China, offline stores accelerate

According to the baby's room financial report, the operating income in the first half of 2019 was 1.179 billion yuan, an increase of 15.92% year-on-year; the net profit attributable to shareholders of listed companies was 62,287,300 yuan, an increase of 27.31% year-on-year. The main reason for the increase in revenue was the increase in the number of baby-friendly room stores, especially in the second quarter. Baby-friendly rooms opened 12 new mother-baby stores, a net increase of 9 stores, completed the acquisition of 51.72% equity of Chongqing Taicheng, and increased 18 stores , The speed of opening stores has accelerated significantly.

As the leading mother-to-baby retailer in East China, the baby-friendly room focuses on the developed areas of East China, and has steadily strengthened Jiangsu, Zhejiang, Shanghai and Fujian. By the end of the first half of the year, the total number of baby-friendly rooms directly operated reached 251, with a business area of 149,100 square meters. The double growth in store revenue and volume has further consolidated the stable growth of baby-friendly room profitability. According to the report, in the second half of the year, the baby-friendly room plans to focus on Chongqing and accelerate the deployment of areas in South China, Sichuan and Chongqing. Currently, 44 stores have been signed for opening, and it is expected that the total number of stores will exceed 300 by 2021. It can be seen that the nationwide layout of baby-friendly rooms is steadily advancing.

Draining milk powder as the core, focusing on developing its own brand

As a mother-infant chain retailer, Baby-loving Room has a wide range of baby-infant categories, including milk powder, supplies, cotton spinning, food, toys, lathes, and baby-infant services. The products are positioned at the mid- to high-end, and have cooperated closely with many world-renowned brands such as Wyeth, Mead Johnson, Kao, Disney, Lego, and Hi-Po, to create a good and reliable brand image among consumers.

From the perspective of product sales, the gross profit margin of milk powder and supplies is relatively low, but its high frequency of use and fast turnover speed can provide greater profitability for stores. Therefore, the baby-loving room uses milk powder and infant supplies as the core category to drive the sales of other products. The financial report shows that milk powder revenue in the first half of 2019 was 547 million yuan, accounting for 46.4%, and the gross profit margin increased to 21.87%, which increased by 3.27% over the same period. The company's net profit in the first half of the year reached 5.7%, an increase of 0.46% over the same period.

While selling leading brands, the baby-loving room also pays attention to the development of its own brands. It currently has more than 16 private brands and 4 authorized agency brands, mainly in the areas of infant and toddler clothing, wipes, lotions, diapers and other fields. Private label also brought good revenue to Baby-Friendly Room. According to the financial report, in the first half of 2019, Baby-Friendly-brand product sales were 109 million yuan, accounting for 9.82% of product sales, a year-on-year increase of 36.33%.

Compared with European and American countries, the current market share of China ’s private label market is huge. The expansion of Baby Brand ’s own brand not only occupies a certain opportunity for Baby Brand ’s market competition, but also has become a favorable factor for the nation ’s expansion of Baby Brand ’s.

Increase the proportion of direct supply, full coverage online and offline

The baby-friendly room's procurement channels mainly include direct purchase from manufacturers and indirect purchase from agents. Since 2015, the baby-friendly room's direct procurement ratio has increased significantly. At the same time, it has built multiple logistics centers and warehouses, which not only improves the efficiency of product supply. Expanding the scale advantage of procurement has laid the foundation for cross-regional expansion.

In terms of sales channels, the baby-loving room is still dominated by offline physical stores, and the gross profit created by store sales has firmly occupied the company's dominant position in sales. In addition to selling goods in direct-operated stores in various places, Baby-loving Room also has online platforms such as APPs, mini-programs, and WeChat public accounts. In 2019, it also formed cooperation with Internet giant Tencent to jointly create a new model of "maternal and infant smart retail".

The online platform is not only a supplement to sales channels, but also an innovation to the traditional retail business model. Online and offline full coverage marketing model will also become the industry's development trend.

Market competition is fierce, and cross-region expansion is challenging

In recent years, the mother and baby products retail industry has developed rapidly. Online sales, professional chains, large and medium-sized supermarkets, department stores and other formats coexist, and market competition has become increasingly fierce. At the same time, foreign retail enterprises have entered the mother and baby products retail market in China, which has intensified. The competitive landscape of the domestic baby and infant products retail market. Although strong management capabilities, accurate marketing strategies, and other advantages, have provided guarantee for the baby room to determine its industry status. However, on the road of cross-region expansion, retail companies such as baby-friendly rooms still face some challenges.

The mother-infant retail industry presents regional characteristics. Leading mother-and-baby chain companies rely on major cities to develop their businesses. For example, baby-loving rooms mainly occupy the Jiangsu, Zhejiang and Shanghai markets, and Child King is mainly concentrated in second- and third-tier cities in Jiangsu, Anhui, Zhejiang, and Sichuan. With Lijia Baby occupying the North China market, Aiying Island, which is mainly franchised stores, is based in the Pearl River Delta region, and Beibei Bear occupies Hubei and Hunan markets. On the expansion path of the nation ’s mother and baby business, the strong companies in various places are definitely indispensable for the market at home, so for foreign brands that want to “siege the city”, it is bound to face the local brands that have fought for many years at home. competition.

In addition, from the recent incident of Ali's wholly-owned acquisition of Netease Koala, we can also see that the mother and baby market is also a must-match for major e-commerce platforms. As early as 2003, the mother-to-child e-commerce channel began to develop. In 2018, the mother-to-child e-commerce sector raised a total of 21 funds with a total amount of 3.43 billion yuan. This number is enough to let us see how fierce the mother and baby market competition is. At the same time, with the major e-commerce platforms such as Ali, JD.com, Suning, etc., vigorously deploying the offline mother and baby market, traditional retail companies will also encounter a certain impact.

The form of online and offline retail will be highly integrated in the future. Whether the baby-friendly room can use its advantages to consolidate the leading position of the mother and baby market in the Yangtze River Delta, and enter the southwest and other markets in a timely manner, and gradually achieve comprehensive coverage of the domestic economically developed areas, we wait and see.

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Le Mom

  • (Visitors) 7 days ago

Reply to the topic: “Central suspension without school suspension” was deflected and attracted the public. The Ministry of Education answered questions about the “School suspension without school suspension” related to the postponement of primary and secondary schools.

While asking our parents to return to work, it is homework for various groups in the school. It is a sophomore, Chinese, mathematics, English, music, sports, art, and so many groups. Parents must accompany their children to read and complete the tasks. Then take pictures, videos! Then, parents are back to work. How can these homework be completed? Is it time to return from work? It's really unreasonable. Parents are tired.

Luo Jiahui

  • (Visitors) 7 days ago

Reply to the topic: “Central suspension without school suspension” was deflected and attracted the public. The Ministry of Education answered questions about the “School suspension without school suspension” related to the postponement of primary and secondary schools.

I think the health of students is very important now, especially under the background of this student, there are already a large number of students with myopia. Why does the school education even force students to watch it so that glasses ca n’t work in a day, I I am a senior in high school. I have to stare at the screen for at least four hours a day. The glasses are really tired, and it takes about seven or eight hours a day to do questions on the screen. The glasses are really too high.

Oops

  • (Visitors) 7 days ago

Reply to the topic: “Central suspension without school suspension” was deflected and attracted the public. The Ministry of Education answered questions about the “School suspension without school suspension” related to the postponement of primary and secondary schools.

Teachers, parents, and children all torture each other. Actually, the kindergarten also recorded online lessons. I did n’t think it was necessary for my second grade. The teacher could arrange special homework, copy papers, diary and manual. The damage to the eyes is great, and the loss is worth it.

Yunpiao

  • (Visitors) 7 days ago

Reply to the topic: “Central suspension without school suspension” was deflected and attracted the public. The Ministry of Education answered questions about the “School suspension without school suspension” related to the postponement of primary and secondary schools.

I'm curious. Except for the supplementary classes for the junior high school and high school winter vacation, aren't all the elementary and middle schools yet to start? Generally, it is around February 25 every year. Why are there live lectures everywhere? How are the students' schedules arranged? Looking at parents' phones all day long?

The commoner is far away

  • (Visitors) 7 days ago

Reply to the topic: “Central suspension without school suspension” was deflected and attracted the public. The Ministry of Education answered questions about the “School suspension without school suspension” related to the postponement of primary and secondary schools.

Suspension and non-stop online teaching is to make head decisions, without considering the actual situation of each teacher or student, can it be equipped? Non-graduate classes may be delayed for the summer vacation and shortened.

Live the Royal Sister Rice

  • (Visitors) 8 days ago

Reply to the subject: Wuhan million elementary and middle school students start online classes, unified lessons in the morning, personalized coaching in the afternoon, missed live broadcast can watch video playback

I think this form is very good. In the fifth grade, a class is only about 15 minutes. It is very efficient. Think about how much time you usually waste at school. After listening, the child can rest and do his own work. He finishes his homework at six o'clock, and the evening time is all his own.

Zheng Yu brother

  • (Visitors) 8 days ago

Reply to the topic: Wuhan million elementary and middle school students start online classes, unified lessons in the morning, personalized coaching in the afternoon, missed live lessons, see video playback

It looks like a good thing, but it's impractical to think about it a little more, one without teaching materials, two without teaching participants, three without multimedia courseware, and four without classroom feedback and interaction. How to keep the network unblocked? How to ensure everyone's participation? Does the leader feel that the teacher can talk like a speaker for three hours without stopping? Usually carrying the new curriculum standard with students as the main body of the classroom, at this moment, the teacher sang a monologue.

Worchen

  • (Visitors) 8 days ago

Reply to the topic: Wuhan million elementary and middle school students start online classes, unified lessons in the morning, personalized coaching in the afternoon, missed live lessons, see video playback

This is indeed a new transformation. The teacher did not expect that one day it would become a webcast anchor. Maybe one day, the teaching methods changed due to the virus epidemic in the new hall increased the popularity of online education. In fact, from one aspect, this is also necessary for the progress of the times. School education can also be diversified and adapted to different courses on different platforms.

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