Baby Industry

Business Overview

In the past 30 years Haier has built up an enormous amount of experience and capabilities in the R&D and manufacture of home appliances. As a result of China’s exceptional economic growth in recent years, consumption power of family units is rising rapidly. Being the focus of attention in a family, babies are an important consumer group and bring about tremendous market opportunities. To capture these fast-growing opportunities Haier makes the most of its brand reputation and product quality achieved over the years to produce a comprehensive range of intelligent baby products pledged to enhance their health. Haier baby products cover the mid-to-high end market and the current portfolio includes: large appliances, intelligent products, small appliances and Brillante products.

Current situation

About 16 million babies are born in China every year. With the new two-child policy to be effective soon, a new wave of births can be expected. It is estimated that the market for maternal and child products may reach a staggering RMB2,500 billion. At the same time, consumers’ purchasing power continues to rise and more parents are interested in high-end products and services. Statistics from the China Research Center for Children’s Industry (CRCCI) indicate that the market size of products for newborns to 12 years old was RMB1,430.5 billion in 2013. Taking into consideration the effect of the ‘selective two-child policy’ the market may reach RMB2,580.3 billion. The CAGR in the next four years is 16%. Factors for the rapid growth of this market are as follows:

• Number of infants in China will continue to rise in the next 5 years
• As the disposable income in Chinese families increases, infants will
  become a core consumer group
• Two-child policy is gradually implemented in different parts of the country