Amidst the dramatic changes in the macroeconomy and environment in recent years, in 2024, where mentions of consumer downgrading are frequent, what sort of mental shift has taken place in Chinese consumers when it comes to choosing maternity and baby products? Recently, at the 2024 CBME Pregnancy, Baby & Children Industry Summit, Zhang Bin, President of Digital 100, shared his insights under the theme “The Future Growth Drivers of the Maternity and Baby Market.” Zhang Bin mentioned that, through research, Digital 100 believes that ‘quality’ and ‘rationality’ have become two key words for maternity and baby industry consumers, and these also hint at where the potential for industry growth lies. Below are the insights shared by Zhang Bin, organized by CBME:
Consumer Change and Trend One: Quality Parenting
How do we understand quality parenting? It is reflected in three aspects: from the early preference for strong brands to today’s professional knowledge; from consuming in major categories to diversifying consumption categories; and from regular routines to the pursuit of distinctive services today.
First Aspect of Quality
Regarding professional knowledge, there are three opportunities to seize: 1. Ingredient-focused consumers; 2. Preference for targeted functional products; 3. Communicating the story of special ingredients well.
Firstly, ingredient-focused consumers. Our data shows that today, mothers like to label themselves, with over 30% self-identifying as ‘ingredient-focused consumers.’ If today’s products do not clearly show their ingredients or seem unintelligible or likely to evoke negative impressions, there’s a problem at first glance. For today’s mothers, the simpler and cleaner, the better, and they will do their homework on ingredients. This is a change from the past when many consumers would say they didn’t want to talk about ingredients since they didn’t understand them and only recognized big brands as quality. But now, mothers learn and understand, signified by the ‘ingredient-focused’ label.
Secondly, a fondness for targeted functional products. In the past, maternity and baby market consumers wanted multi-functional products, but today, consumers pursue precision and targeted products.
Thirdly, communicate the quality story of special ingredients. Consumers are clear—for immune support, they look for lactoferrin; for skin issues, they know the role of gentian root…
Today, these special ingredients can form consumer interest, and when communicating, we emphasize the quality and user experience. How to tell a good story? For example, consumers say, “Our family drinks a certain brand of milk because it contains small-molecule hydrolyzed whey protein. It’s highly absorbable, doesn’t cause heatiness, and comes from the golden milk source at 47° North latitude.”
There are three pieces of information in this statement. Firstly, the special ingredient hydrolyzed whey protein; secondly, the consumer quality feel of not causing heatiness; and finally, 47° North latitude, golden milk source tells a good story about a special ingredient. Today, such a loop is a professional display to consumers, and they are willing to pay for it.
Second Aspect of Quality
We should gradually return the decision-making power to the users, let the children be involved in decision-making, and make the product consumption categories more abundant.
Today, our research finds that ‘Tiger mothers’ or indulgent parenting styles are decreasing, and the concept of equal parenting is becoming deeply ingrained. 61.1% of parents agree they are using encouraging parenting methods, and nearly half consider themselves equal or democratic in parenting. Moreover, such concepts are increasingly accepted in both higher-level and lower-level cities. Therefore, under a more equal concept, children’s role as decision-makers is more prominent, which also drives richer category product consumption. For example, cartoon IP images, product styles, colors, etc., give children more say in decision-making.
Children’s involvement is key in three major categories we found in our data: children’s clothing and shoes, stationery, and infant and child cleansing products. In summary, there are two directions where potential for opportunities is significant: IP collaboration products; and child-friendly mirrors of adult commodities (e.g., aesthetics, socializing, leisure snacks, badges, self-discipline cards).
In the past, adults bought outdoor clothing for themselves; today, children also want their outdoor clothes. On our voice of customer platform, 6-year-old kids even want their eyeshadow, lipstick, and nail polish, which they apply themselves for fun. This reflects the opportunity in many adult markets to also cater to children. Today’s children have beauty and social needs.
Third Aspect of Quality
Expectation of value-added distinctive services.
Today we categorize consumer service demands into two types: 1. Basic security services, which are already being offered online and offline by major platforms, and it’s becoming difficult to differentiate; 2. Value-added service demands, such as size exchange services, stockpiling worry-free services, and hassle-free return services. Past services like 7-day no-reason return have become basic services, but value-added services like the first three mentioned are in great demand, as today’s users hope to receive memberships and special privileges.
Consumer Change and Trend Two: Rational Parenting
From a perspective of rational consumption, parents today rate their consumption philosophy as more rational and sensible, which has the highest proportion. Under rational consumption, there are three changes: 1. From choosing big brands to choosing the right fit; 2. From bulk hoarding to small steps and trial; 3. From a single channel to multi-channel price comparisons.
First Aspect of Rationality
Firstly, regarding “buying the right fit.”
Here we categorize buying habits into four types: routine planned purchases, as-needed purchases, stockpiling purchases, and impulsive purchases. General speaking, impulsive purchases are now rare, and stockpiling is less common. Stockpiling mainly occurs in diapers and milk powder sectors, while the vast majority are planned or even need-based purchases. Thus, today’s consumers won’t blindly stockpile just because there is a sale. So “fit” or “fitting” has become a very important keyword for consumers today. Additionally, some families planning for a second or third child were textbook parents at first, but during a subsequent second or third child, adopt what we call ‘resilient feeding.’ They buy according to need, quantity, and price, demanding “fit.”
Second Aspect of Rationality
Rational Change Two: Small step trial.
In the past, hoarding meant buying in bulk, but now small-packaged complementary foods and small-packaged nutrients are seen as desirable by consumers. Small signifies demand for products that are less in quantity, portable, and trial-friendly, which can more easily bring about trial experiences for consumers and influence purchasing decisions.
Third Aspect of Rationality
The third point is multi-channel price comparisons.
Eighteen years ago, when discussing consumer value for money, the key word was “price,” with competitive pricing being paramount; Ten years ago, we found the essence of value for money was on “quality,” with upgraded quality and better performance winning the market; Today, it’s still the term “value for money,” but the focus is on “comparing.” Comparing is not necessarily about price; it includes experience, price, scenario-focused offerings, and the richness of specialized categories. Whoever competes effectively in “comparing” wins today’s market.
So, it’s still about value for money, but the focus has shifted. Today, multi-channel price comparison is a typical consumer behavior that includes both shopping dynamics and mental channel comparisons.
In conclusion, significant changes are happening on the demand side, which is driving suppliers to upgrade as well. In the mother and baby market today, whether it’s the three significant shifts in quality or the transformation of rational pursuits, these are both changes and growth opportunities.
