Mother and child market wide Web site needs to be transformed

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With the arrival of the baby boomers in the late 70 and early 80, as well as the "golden Pig" and "the Olympic Baby", experts predict that the fourth wave of baby boomers has arrived since the founding of the nation. With the advent of baby boom, is a huge resistance to economic cycle of the mother and child consumer market, for the mother and child type of website entrepreneurs to provide a blue ocean.

How big is the mother and child market?

The 7-Year-old primary School as a watershed, usually targeted at the age of 0-6 years of children's use of products and services called the mother-child market. The consumption subject in the mother-infant market is a group which is intended to be the parent of the parents, and the characteristics of them determine the breadth and depth of the mother-infant market.

Strong consumption ability is the primary characteristic. From the beginning of pregnancy, a family enters a strong consumption period: Mother's health care products, protective clothing, maternity clothes, nursing supplies, baby bottles, baby stroller, children's wear, special washing supplies, toys, etc., even fetal education, domestic services, early childhood education services, as well as the family to buy homes, room change requirements, the issue of child enrolment and so on. Once a child enters the family, rigid consumer spending begins.

Strong information demand is another feature. Given the lack of childcare knowledge and the high demand for childcare, expectant mothers are eager to help from the time they prepare for pregnancy and often need to consult their elders, colleagues, and friends, including how to adjust their living and dietary structures, how to prepare for prenatal education, how to prevent childhood illnesses, and complex parenting skills. In addition, the group has strong communication and sharing needs. New moms generally have plenty of time and are happy to share their pregnancy and parenting experiences. Therefore, they also desperately need to communicate with the same platform.

From a wide variety of products to a wide range of services, can support the size of the maternal and child market? The birth rate is the basis for measuring the scale of the mother-infant market. China's annual birth is 15 million to 17 million, according to statistics from the National Bureau of Statistics. A mother from pregnancy to the child 6 years old to school, this 7 years is the mother and child market prime time, taking the average annual birth of 16 million times 7, to get about 110 million children or 110 million families are the mother and child market buyers. If the average family spends 1000 yuan a year on their children, the market will have a capacity of 110 billion yuan, and surveys show that newborns in medium-sized cities spend between 6000 and 18,000 dollars a year.

Website facing blue Sea

To the mother and child market as the target of the site is a blue ocean. China Internet Network Information Center data show that in 2007, China's 25-30-year-old internet penetration rate of 25%, 18-24-year-old prevalence of 38.8%. By multiplying the population of the mother and infant groups by 25%, it is concluded that at least 25 million families are potential users of the mother-child web site, while the number of registered users of each mother-child website is not more than 2.5 million. With the mother and child website practitioners optimistic estimates, the domestic mother and child website market Potential scale of more than 30 billion U.S. dollars.

Compared with the huge capacity of the mother and child market, the practitioner is a late start. In addition to providing maternal and child products Le You and the provision of information services, such as the cradle network of individual enterprises nearly 10 years ago, most enterprises are still less than 5 years, and the majority of those less than 2 years. March 2007, because of the name "Google" and famous the original Google Asia-Pacific market director Wang Whinan and the founder of Shao Yipo to join hands to kill the mother and child market, but also the mother and child market within the entrepreneurial boom to the peak.

Some companies that have economies of scale or clear business models have been recognized for venture capital, especially in the last two years, where venture capital has moved frequently in the field of maternal and child websites (table 1). Up to now, the industry's biggest financing is the July 2008 Le You received from Deutsche Bank and Yong-Wei investment of 37 million dollars. Due to the huge market and the capital of the push, the maternal and child web site in recent years to achieve an alarming growth. Le You 2006 and 2007 sales growth of more than 300%, red Children 2005 sales income of 40 million yuan, 2006 reached 200 million Yuan, 2007 years more than 600 million yuan; Good child 2007 sales revenue of 3.3 billion yuan, and to go to Hong Kong listing.

Although the operation of different, but from the business model, the current mother and child website can be divided into two main categories: Information community services and network retail category. Information Community Service website to cradle nets, baby tree, mother said, such as representatives, mainly to create portals, provide Community blog services, for the mother group to provide information and online communication platform. The value of such sites is to meet the needs of parents ' information and communication, by creating a popular community to attract advertising, so as to achieve profitability. Network retail sites mainly for child-rearing family sales of maternal and child-related commodities, belong to the category of consumer, mainly in the downstream of the difference between the profit source. Depending on the level of sales channels, can further the network retail model divided into "e-commerce + Catalog Sales" and "E-commerce + Catalog sales + physical store Sales" Two, the former to red children, love baby nets, such as the representative, the latter to Le You, good children, Lai Jia Baby, cool Philippine son, etc. for the representative.

Business model short board to be "mended"

Three business models are different, information Community Service Web site start-up costs relatively low, "E-commerce + Catalog Sales" category of sites belonging to the light asset sales model, easy to expand, and "E-commerce + Catalog sales + physical store Sales" category of Web site to achieve a full coverage of sales channels, and to meet the actual experience of consumers. But the short board of three kinds of models can not be neglected, and as the industry matures, the problems exposed in the pattern have become the shackles of the further development of the industry.

Advertising as the main source of income of the information Community Service Web site is facing a dilemma: to attract users to register, in addition to rich information, but also requires a clean and tidy network interface, which is bound to make advertising revenue is limited; The network retail website faces the threat of high logistics cost eroding profit. According to related reports, the mother and child product line sales margin of roughly 20%, and network sales of only 10%. For example, "E-commerce + Directory sales class represents the Web site Red Children's sales net profit margin is only 2%-3%, while" E-commerce + Catalog sales + Physical store Sales "class for good children, even if part of the sales in the physical store to help improve profitability, 2007 sales net profit is only 3.39%. In addition, the mother and child market, because of the difference in characteristics, different sales channels have different sales targets, such as online or catalog sales to diapers, milk powder and other fast-moving consumer goods, physical stores to baby stroller, children's bed and clothing, and so on, while the "Poisonous milk powder" incident exposes the pure reliance on virtual channels of "E-commerce + catalog Sales" Mode has a large operating risk.

The orientation of the business model of the mother and infant websites should be to reduce the risk and improve the profitability. Industry insiders said that for a single revenue situation, the information Community Service website may rely on the member group, extends the industrial chain, enters the retail domain, but this means enters the brand-new domain, the difficulty is big, but also may in the existing information service, introduces the business, plays the recommendation, the shopping guide and the comparison function, enriches the income source. and the Network retail class website, on the one hand, we need to strengthen the integration of logistics system to reduce the cost of distribution, on the other hand, with the information Community Service Web site cooperation, mutual marketing, which, "E-commerce + Directory Sales" category of enterprises, can also launch offline entity stores, enhance profitability and reduce business risk.