Understanding Purchasing of Chinese Parents - "China's 2013 Consumer Research Report for Children and Baby Products Industry" Published by UBM China (Hangzhou)

Jan 07, 2014, 09:00 ET from UBM China

SHANGHAI, Jan. 7, 2013 /PRNewswire/ -- With a population base of 222 million 0-15-year-old children and 16 million newborns each year, as reported by the National Bureau of Statistics of China, China ranks second as the world's largest consumer market for babies' and children's goods after the United States. The increasing disposable income and the new generation of parents continue to drive the children, baby and maternity products industry in China. China's latest relaxation of its one-child policy will only drive more demand and growth in the industry.

UBM China (Hangzhou) released the "China's 2013 Consumer Research Report for Children and Baby Products Industry" highlighting monthly spending and purchasing habits and growing trends in the industry. The report surveyed major cities including Beijing, Chengdu, Guangzhou, and Shanghai among others, representing northern, central, southern and eastern China.

Monthly Spending and Purchasing Habits

With the rise of disposable income, the average monthly spending on children and baby products is US$157 per family. The expenditure during the baby's first 0-24 months is the highest at an average of US$174 every month. Research shows that as the child gets older, monthly spending decreases. Monthly expenditures include infant formula, baby diapers, baby food, baby feeding items, baby healthcare items, baby clothes, toys, strollers, car seats and furniture.

Chinese parents are careful when choosing the items and food their child uses and consumes. Some factors they consider when making a purchase include brand, taste, safety, place manufactured, raw materials, price, brand / manufacturer's reputation, function, style, comfort, packaging and more. The top three factors they look at when making purchases for these key items are:

  • Infant formula: brand, place of manufacture, safety
  • Baby diapers: brand, safety, comfort
  • Baby food: safety, brand, ingredients
  • Baby care items: safety, brand, ingredients
  • Apparel: comfort, material, safety

Brand, product safety and ingredients/raw materials rank consistently high in purchase decisions.

Purchase Channels

In choosing where to shop, Chinese parents consider the following: a wide-variety of product and brand selection and the option to verify product quality and convenience. Children & baby products stores are the most popular retail destinations in China compared with other shopping channels like online shopping, department stores or supermarkets. 40% of parents purchase baby products at children & baby products stores. Children & baby products stores have a variety of brands and good selection of stock, and their staff is better trained with proper product knowledge, making shopping a better experience. These retail stores also provide value-added services to entice shoppers, like kids' entertainment areas and free product trials. China now has over 40,000 children & baby products stores country wide, with more opening each month.

The Rise of Online Shopping

China is one of the countries with the highest online population in the world. As of July 2013, industry reports revealed, China's population of internet users has grown to 591 million, driven by a 20% rise over the past year in the number of people who surf the web from smartphones and other wireless devices.

Online shopping is also on the rise. China Internet Network Information Center reports that as of June 2013, 271 million people in China are shopping online. For the children baby products industry, online shopping is also becoming more popular, ranking third as the most popular shopping channel in China, right after children & baby products stores and supermarket.

This growth is driven by the unique advantage of convenience, price comparison to find the cheapest price, other customer reviews and home delivery services. Diapers and toys are the most popular purchases, followed by clothes, healthcare items, strollers, car seats and furniture.

Brand owners, distributors and other suppliers are also getting on the online bandwagon. As of July 2013, industry reports revealed 71% of brand owners have already started online shopping portals. Distributors and retailer are following and more will take on this trend. According to an iResearch report, in 2012 alone, the children, baby and maternity products industry accounted for USD 10 billion revenue online in China, representing 12.2% of the total revenue in the industry.

"With the continuously rapid growth of the children, baby and maternity products industry in China, a lot of brands and suppliers from all over the world are seeking opportunities in the China market. With our decades of experience in this industry, we aim to provide the industry player with various business opportunities and useful information to boost the industry worldwide as a whole," says Athena Gong, General Manager of UBM China (Hangzhou).

"Our products, targeting both consumer and trade professionals, aim to bring the whole children and baby industry together. Fashion Baby Magazine and Mama Weibao, a print magazine and mobile app respectively, provide parenting tips, up-to-date information and fashion trends to moms and moms-to-be. Children Baby Maternity Business Magazine and CBM Weibao, a trade magazine and another mobile app, provide real-time feeds and industry reports to trade professionals. CBME China, a trade sourcing event launched in 2001, is a perfect business platform for children, baby and maternity product buyers, manufacturers, distributors and suppliers to meet and do business. It is now the world's largest sourcing event for children, baby and maternity products. We have also expanded the CBME brand to India, Turkey and South America," Athena Gong adds.

To learn more about China's children, baby and maternity products industry, contact cbmexpo@cbmexpo.com.

For press enquiries, please contact:
Louise Kathryn Yu
Senior Marketing Manager
Children, Baby, Maternity Industry Expo (CBME)
Tel: (+852) 2585 6101

About UBM China (Hangzhou

UBM China (Hangzhou) focuses on the children, baby and maternity products industry. Fashion Baby Magazine and CBME fairs are the two major businesses which the company runs, providing service for children baby products manufactures, distribution companies, consumers and setting up an efficient communication platform for the children baby products industry in China and overseas.

About UBM Asia www.ubmasia.com

Owned by UBM plc listed on the London Stock Exchange, UBM Asia is Asia's leading exhibition organiser and the biggest commercial organiser in mainland China, India and Malaysia. Established with its headquarters in Hong Kong and subsidiary companies across Asia and in the US, UBM Asia has a strong global presence in 25 major cities with 30 offices and over 1,400 staff. With a track record spanning over 30 years, UBM Asia operates in 21 market sectors with 160 dynamic face-to-face exhibitions, 75 high-level professional conferences, 28 targeted trade publications, 18 round-the-clock vertical portals and virtual event services for over 1,000,000 quality exhibitors, visitors, conference delegates, advertisers and subscribers from all over the world. We provide a one-stop diversified global service for high-value business matching, quality market news and online trading networks.

About UBM plc www.ubm.com

UBM is a global events-led marketing and communications services business. We help organisations make connections, communicate their proposition and do business effectively. We help professional people in more than 30 countries around the world succeed by enabling them to connect with each other and with the markets they serve. And we do this by whatever means works best – at live events, through digital media or in publications. Our 5,500 expert staff are deeply embedded in the many specialist communities we serve, bringing both an unusual depth of understanding and real know-how. We organise hundreds of live events each year and provide a range of related market-leading digital and print marketing and media products, and we support professional marketers and communicators through our targeting, distribution and monitoring services.