XiaoTong Column · 2025-06-13

Risk Compass”Maternity and baby products in China”

1. Industry Risk Analysis

(1) Policy Risk

The policy risks faced by the maternal and child products industry are concentrated in the policy – making and implementation stages: Recently, the government may introduce stricter product quality and safety standards (such as ingredient testing and label specifications) and cross – border supply chain supervision, leading to an increase in corporate compliance costs; the State Administration for Market Regulation has intensified the crackdown on false advertising and price monopolies, forcing enterprises to adjust their marketing strategies and face higher compliance risks; the tightening of tax incentive policies (such as the reduction of VAT exemptions) has compressed the profit margins of small and medium – sized brands, and the decline of the birth subsidy policy in some regions has indirectly weakened consumer demand. Entrepreneurs need to be vigilant about the risks of supply chain transformation, sudden changes in cost structure, and channel compliance caused by policy iterations.

(2) Economic Risk

From the perspective of entrepreneurs, the maternal and child products industry currently faces multiple risks of economic cycle fluctuations: Under the downward pressure of the economy, the shrinkage of consumers’ disposable income and the low fertility rate directly impact the demand side, with mid – to high – end non – essential product categories being the first to be affected; on the cost side, affected by supply chain fluctuations and inflation transmission, the rigid costs of raw material procurement, warehousing, and logistics continue to rise; the industry has entered the stage of stock competition. Leading brands are reducing prices to clear inventory, squeezing the living space of small and medium – sized players. At the same time, the diversion effect of second – hand trading platforms and near – expiry product channels is intensifying; the tightening of the credit environment has increased the difficulty of corporate financing, and the cash – flow pressure caused by the slowdown in inventory turnover has severely tested the risk – resistance ability of entrepreneurial projects.

(3) Social Risk

The maternal and child products industry currently faces the social risk of intensified generational consumption differences: The post – 90s and post – 00s new – generation parents prefer “less but better” parenting consumption, with significantly higher requirements for product personalization, safety, and emotional value. However, they are generally squeezed by mortgage pressure and parenting costs, resulting in a lower actual consumption conversion rate; at the same time, the “experience transmission” model of traditional maternal and child products has failed, and there is a generational cognitive gap between the parenting consumption concepts of the older generation and the younger group, leading to the break of the inter – generational family decision – making chain; the generational gap in the population is accelerating, and the competition in the stock market is intensifying under the low fertility rate. International brands are seizing market shares in the domestic market through generational aesthetic iterations. Entrepreneurs are facing the double traps of the misalignment of generational consumer group demands and the overestimated consumption ability.

(4) Legal Risk

The legal risks currently faced by the maternal and child products industry are mainly concentrated in three aspects: product safety compliance, advertising and promotion regulations, and cross – border business supervision. Products need to strictly follow domestic and international quality standards (such as China’s “Safety Technical Code for Infant and Toddler Textile Products” and the EU’s REACH Regulation). Non – compliance in details such as raw material ingredients and label markings may trigger product recalls or penalties; the Advertising Law strictly restricts efficacy claims. Using absolute terms such as “medical – grade” and “zero – addition” or false advertising may result in high – value fines; cross – border e – commerce enterprises also need to meet the different requirements of customs, taxation, and data privacy protection (such as GDPR) in different countries. Imperfect supply chain traceability may lead to customs clearance risks. Entrepreneurs need to strengthen supply chain compliance reviews, establish a dynamic regulatory monitoring mechanism, and set up pre – risk control processes in marketing language, product certification, and other aspects.

2. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

The core opportunities in the current maternal and child industry lie in the intelligent upgrading of precise niche parenting scenarios, the innovation of high – cost – performance functional products, and the optimization of the supply chain in the sinking market. It is recommended to prioritize the layout of niche demands: 1) Develop intelligent parenting hardware based on AIoT technology (such as precise feeding reminder devices and children’s health monitoring wearable products); 2) Create maternal and child personal care products with transparent ingredients and authoritative certifications (such as hypoallergenic diapers and organic cotton newborn clothing); 3) Build a data – driven parenting knowledge service platform (such as customized feeding plans combined with growth curves); 4) Establish a strict selection and subscription system for maternal and child products in county – level markets. Pay special attention to the needs of post – 90s and post – 95s parents for “scientific parenting + ultimate cost – performance”. Rely on the precise operation of maternal and child vertical communities to quickly verify products, and at the same time, pay attention to the incremental market of nursery services released by the supporting welfare policies for the three – child policy.

(2) Suggestions on Entrepreneurial Resources

Entrepreneurs in the maternal and child products industry should prioritize the integration of high – quality supply chain resources, focus on niche fields (such as organic cotton and intelligent feeding) to build differentiated product capabilities, accurately reach users through in – depth cooperation with maternal and child communities/KOLs, and use the DTC model to reduce channel costs; at the same time, apply for policy subsidies from maternal and child industrial parks, introduce partners with parenting experience or medical backgrounds to strengthen trust endorsement, adopt the membership system + private domain operation to improve the user lifetime value, and prioritize the allocation of resources to polish a single explosive product rather than铺货 all product categories.

(3) Suggestions on Entrepreneurial Teams

Entrepreneurs in the maternal and child industry should focus on the complementarity and industry expertise of the team. Prioritize recruiting core members with insights into maternal and child consumption, supply chain management, and digital marketing experience. The founder needs to maintain a keen sense of the needs of maternal and child users and build a triangular ability structure including product R & D (familiar with infant and child safety standards), community operation (good at creating parent – child content IP), and channel resource integration (offline maternal and child stores/online private domains). It is recommended to adopt a flat decision – making mechanism to quickly respond to market changes, regularly verify product and service designs through user co – creation meetings with moms, and the founder needs to personally participate in the docking of key resources (such as pediatric experts/KOL resources). The team incentive mechanism should be strongly linked to user repurchase rates and word – of – mouth communication data, and focus on cultivating the professional knowledge reserves of team members in niche maternal and child scenarios (such as scientific feeding/early education companionship).

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the maternal and child industry need to prioritize the control of product quality and safety, strictly implement national certification standards, and establish a full – process traceability system for the supply chain; use digital tools to accurately predict demand, avoid the risks of inventory overstock or stock – out, and give priority to cooperation with flexible supply chains; diversify traffic risks through multi – channel layout, focus on maintaining private domain user repurchase, pay attention to policy changes (such as the new national standard for infant formula milk powder) and adjust product structures in a timely manner; control initial investment costs, avoid heavy – asset expansion, and use light – mode tests such as pre – sales and co – branding to test the market; establish a professional parenting content output system to enhance user trust, simultaneously strengthen data compliance management, and prevent risks of user privacy and after – sales disputes.

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