As the world's second largest economy, the Chinese market has been moving forward like clockwork in the past four decades since reform and opening up. As a popular joke earlier: a friend was jailed for theft, I went to pick him up on the day of his release, he was very moved, in order to repay me, decided to give me half of the smuggled stolen goods, came to hide the stolen goods to dig out a look, nima, it was hundreds of new BP machine!
The rapid development of the market is accompanied by the drastic turnover of enterprises. BP machine is just an epitome, which can be fully illustrated by the average life span of Chinese enterprises of only 3-5 years. In a fast-moving market, every day a large number of companies are wiped out by brutal competition, but there are always more new entrants to step on the bones of their predecessors.
There was no time to lay down the hatchings, no time to even examine myself, where I had started, where I was going, because it was hard enough to stay alive. The majority of Chinese enterprises are stuck in the current struggle, struggling with who to compete with and how to compete, but they ignore the first step, namely the strategic benchmark based on customer value creation, based on the judgment of the future, based on the prediction of change.
The baby industry is a serious patient of this type of development. It starts fast, accelerates development, expands suddenly, and slows down suddenly. To complete this process within ten years is like a roller coaster for enterprises. Reflected in the enterprise organization, is the rapid increase of personnel, the frequent change of marketing executives, the shelf life of marketing ideas is shorter, often a thought, can only work for two or three years.
The baby industry is full of big ups and downs, skyrocketing and plunging companies and brands, which is hard to see in mature industries such as home appliances. Today is still the darling of the shelf, the terminal performance is very active, before long to be squeezed into the corner, dim with the dust. Lack of strategic design and system construction from the origin, so that the brand has become a source of water, a tree without roots, a little market impact will make it hurt, product, channel problems exposed.
As a result, there was a great reshuffle of the infant milk powder industry. More than 2,000 brands were cut down by three quarters at a time, and chaos in the industry was forced to be cleared up by means of quick cutting, so that the core competition of enterprises returned from profit competition to supply chain competition and consumer competition. Milk powder, as the most mature and the most concerned category of baby and children, plays the role of industry pathfinder in a sense. No one can guarantee that such industry integration reform will not spread to the whole baby and children industry.
In a sluggish economy, the high-margin baby business is still a promising place, and it continues to expand even as growth slows and competition intensifies. In the past ten years, as the channel of baby industry "indigenous", mother and baby shop with the advantage of tuyair rapidly expanded. However, the good times did not last long. Led by e-commerce, subdivision channels continued to emerge and compete for the market. Each of them had its own skills, forming a circle of maternal and child stores, and the inherent channel pattern of baby and child industry was broken. Now, after several rounds of the throes of change, a new normal is about to be born, and we are just one step away from the next point of origin.
In the next decade, consumption iteration will force industrial upgrading, and new market space will continue to be released. It will also continue to provide opportunities for those discerning strategists and speculators to make a fortune overnight. At the same time, in the huge stock market, competition will develop from fierce to fierce, the boundary of enterprises is becoming more and more blurred, competition is no longer limited to peers, may come from unexpected side or rear, even from the upstream of the industrial chain dimension reduction blow.
The year before, we pondered the hidden worries that lurked beneath the surface of the industrial boom; Last year, based on the new business core, we discussed the baby industry ecology in the new consumption era; This year, we stand at the inflection point of The Times, re-examine this business which is about the origin of life, return to the essence of business, and explore the original intention and mission of the industry.
We often say that children are difficult to raise, but the other side of children can not afford to raise, is the substantial increase in the cost of each child, from "feed" to "raise well" qualitative leap. This is also the fundamental reason why we are optimistic about the baby industry.
It's just, how close are you to this new beginning?
We are looking forward to your arrival at the 2016 China Baby Industry Leadership Summit!
