2019-10-14    Read: 635

Current Situation of Child Car Industry in China

Current Situation of Child Car Industry


Children's car, from the manufacturing industry, the Chinese government classifies it as the toy industry. Our country's children's car and toy development track is the same: at the beginning of the reform and opening-up, it started from undertaking the transfer of Taiwan-funded and Hong Kong-funded enterprises and doing OEM. In recent ten years, with the rapid development of the domestic market, the children's car industry has entered a period of great development, and this trend is particularly evident after 2008.


Product diversification and industrial cluster. In a broad sense, children's strollers, strollers, bicycles, twists and turns, electric children's cars, children's bicycles, etc. are very diversified. At present, there are many industrial clusters in China, and their products have their own characteristics, such as Kunshan and Taicang in Jiangsu, Pinghu and Ningbo in Zhejiang, Pingxiang in Hebei, Shucheng in Anhui, Hanchuan in Hubei, Tengzhou in Shandong, Zhongshan, Dongguan and Foshan in Guangdong. In the Pearl River Delta, Yangtze River Delta and other coastal areas, the development of child car industry cluster is early, technology introduction has advantages, and it has become the industry leader; but in terms of development speed, in recent years, the development of child car industry cluster in the mainland is faster. For example, in Pingxiang, Hebei Province, the local government is very supportive of the industry, showing outstanding performance.


Export market slows down


During the visit, enterprises generally reflected that business was difficult to do and export pressure was high. The main reason is the decline of overseas market demand. According to the State of World Population Report 2014 issued by the United Nations Population Fund, there are currently 1.8 billion children and young people under the age of 18, accounting for one quarter of the global population, but most of them are concentrated in developing countries. In developed countries and regions such as Europe, America and Japan, the phenomenon of population aging, low fertility rate and fewer children persists.



In line with the above, a report released by the American Toy Association shows that sales of baby carts (excluding baby trolleys) in the United States in 2014 were $1.25 billion, almost the same as in the same period in 2013, compared with $1.61 billion in 2010. In other words, the U.S. child car market has stagnated and shrunk in recent years. The capacity of the European Union child car market is comparable to that of the United States, and the situation is similar. In addition, Brazil, India and other populous emerging markets have experienced sluggish economic demand in the past two years, while Russia and the Middle East have been affected by political factors, economic weakness and constant wars, which have affected the export of child carriages.


Analysis of Domestic Market


Analysis 1 In the survey, manufacturers reflect that domestic sales this year is not good, except in coastal areas, the midwest, north of the Yangtze River local children's car sales are not ideal, some enterprises have reduced production to reduce inventory pressure.


Analysis 2 found that there is a prominent problem in the domestic sales of children's cars, that is, serious homogenization of products, vicious competition at low prices, profit dilution. There is no way out for some enterprises not to do market research, not to innovate, relying on simple bringing doctrine and blindly competing at low prices.


It is analyzed that the domestic market of children's cars has been greatly developed in the past three decades. I think this is mainly due to three reasons: first, the change of consumer target groups. The parents of the "post-80s" and "post-90s" came on stage and became the main force of children's car consumption. Second, economic development, people's ideas change. Children's cars in cities and towns have changed from luxury goods to household necessities, and the consumption of children's cars in rural areas has also developed considerably. Third, more convenient sales channels, such as e-commerce platform, have matured and played a great role.


Analysis 4 In the case of no change in the support of promoting the development of domestic sales of children's cars, I think the difficulties are temporary and are related to the response of the national economic pullback. It is believed that with the recent liberalization of the national two-child policy, there will be more opportunities for the development of the domestic market of children's cars in the future, and the market prospects are promising.





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