Will The Challenges Faced By The Traditional Mother And Child Retail Industry Bring About New Changes?

Due to the influence of the new coronavirus epidemic situation, most of the offline stores are unable to operate normally, and even many of them are forced to close their stores in the face of the epidemic. A large number of powdered milk and maternal and child products need to turn online, and the sudden change of consumption habits will bring some new changes to the decentralized and traditional domestic mother and child retail industry. The epidemic makes the traditional maternal and child retail industry face new challenges.

The epidemic has great impact on the business of small and medium-sized mother and child shops. Such products as milk powder and diapers are always the guarantee for store drainage. Milk powder is very important to stores. Many mothers and infants shop is evolved from milk stores. The epidemic has reduced the contribution of milk powder to downstream stores.

Mr. Yan, a mother and infant store owner in Zibo, Shandong, said that because of the closure of the local community, the two maternal and child shops were not operational, so they could only receive orders through WeChat, but most of the deliveries were milk powder. Fortunately, although the mother and baby shop is not open, its users have strong desire to hoard milk powder and buy more boxes. The performance in February did not decline much compared with that of last year.

Large chain mother and baby shops mostly have their own online platforms, which are smaller than those affected by the epidemic. Some chain stores also need to switch to online after the outbreak. The baby friendly room is a chain store that combines catalogue sales, e-commerce and store sales. It is also one of the largest selling service agencies in China. Affected by the epidemic, half of the company's stores are closed. The whole business is still subject to some impact. But the company's headquarters and subordinate subsidiaries have online home business. They can cover consumer demand through four aspects: short message, WeChat, app and telephone.

With the rapid growth of the birth of the domestic population, the maternal and infant industry market is also expanding rapidly, and now it has become a trillion market. Due to the impact of the epidemic, more consumers began to choose e-commerce services. The sales of Royal Beauty Salon increased by 1.5 times, and Wyeth's sales in Jingdong and Tmall increased 2 times over the same period.

According to the prediction of Roland Begg and CITIC Securities Research Department, the scale of China's maternal and child products market will reach 1 trillion and 950 billion yuan in 2020, an increase of 16.07% over the 1 trillion and 680 billion yuan in 2018.

Mother infant shop channels still occupy the market leading position in the 3-5 line market, and sales occupy 50% of the domestic milk powder market. In the past two years, with the decline of the birth population, the domestic mother and child retail industry also appears the growth and decrease of roller coaster nowadays.

A group of data released at the 2019 pregnancy baby show showed that 70% of maternal and child retail milk sales fell 20% to 30% compared with 2018, while 50% of maternal and infant stores were cut off, while 90% of the mothers and children stores opened new customers.

With the setback of traditional offline sales, the industry impact brought by the epidemic will speed up the integration of industries.