Exclusive Interview: Profitability is the Key to Baby Product Stores Retailers

Recently, Mr. Nengcai Luo, Chairman of Kunming Dengkang Infant & Toddler Product Co., Ltd. has accepted an exclusive interview from CBME China.

Q: What is your opinion about the market consumption upgrading in China?

A: We have already upgraded our products. We sell middle-end and high-end products, no low quality products in our stores.

Q: What do you think about the consumers in China nowadays?

A: We realize they don’t want to arrange full payment for purchasing a product. Instead, they would rather pay in instalments. We start to accept down payment from them, and provide the space for children to play in our stores.

Q: What do you think about the change from traditional baby product store to the new ones?

A: Even though we have a long history running baby product stores, we still need to learn more from new baby product stores constantly. We have realized the importance of online and offline integrating marketing strategies, even though it is difficult to implement.

Q: What do you think about the online stores and offline stores?

A: The advantages of online stores are: products are relatively cheaper than those in brick-and-mortar stores, as the operational costs are lower. Also, shipping is easier. However, nowadays, we can arrange shipping from retail stores and we have decreased our operational costs.

Q: What is the key success to business success under the new market change?

A: No matter how the market changes, Products Quality and Services are the key to business success. Kunming Dengkang gives 110% attention to product qualities. Services from “Brick-and-mortar” stores are unique compared to online retail stores. Retailers have to find their ways to retain customers by using all kinds of services. Retailers have to be profitable in order to provide quality products and better services.

Q: We noticed that you also have changes in your team. Any comments on this?

A: We don’t really rely on what we have. Nowadays, we leverage social media, new technology and tools to attract customers’ attention. We also hire more 1990-born generations to bring fresh ideas to our team.