China is attempting to improve its birthrate through this policy and as a result would give rise to the sector catering to the healthcare of pregnant and new mothers. A welcome indicator was last week on Singles Day, which is China's equivalent of the Black Friday and cyber Monday, the baby-goods category outperformed.
Venture Capitalists who invest in high risk startup businesses believe that there is a higher chance for this industry to boom than the technology industry and would be more likely back the baby products after this policy shift in China. Parents want to spend on getting healthier and safer products for their children and are also considering ordering from abroad through E-commerce giants Alibaba Group. They have been offering baby supplies through the internet as China had a baby-formula scandal which rocked China in 2008.
The Chinese families are changing, they are more health conscious and the priority is not the price but safety of the products. The biggest problems for mothers is to trust the product they are using for their children. But the main idea is that the market has still more room to grow as the population starts to gather pace and there are many mothers who are still yet to be served.
This article was interesting as it gives businesses the opportunity to expand it's operations. The objective of the marketing department is to reach out to this target market and maximize on its sales revenue.
Published : Nov. 15, 2015 8:00 p.m. ET
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