Rates or not, a Chinese baby products company increases its American expansion

BEIJING – A Chinese baby products company announced on Tuesday that it is officially entering the United States, the world's largest consumer market – regardless of the trade war.

BC BabyCare, based in Shanghai, expects the diversification of the supply chain and the American market potential will more than compensate for the impact of the current American China trading voltages, according to Chi Yang, vice-president of Europe and America of the company.

“Even [if] The political things are not stable … I have a very confidence about our product at the moment, “he told CNBC, adding that he anticipates” very fast “growth in the US in the coming years. That includes his daring predictions that the flagship of BC Babycare Baby Carrier can grow the best seller in a year and that American in a year and that American.

The $ 159.99 carrier, eligible for a discount of $ 40, already has 4.7 stars on Amazon.com on more than 30 reviews. The device claims to reduce the pressure on the body of the parent by a maximum of 33%. A much cheaper version of the baby carrier is a top seller under travel products for pregnancy and delivery on JD.com in China.

BC Babycare already has the courier in his American warehouses and has a network of factories and suppliers of raw materials in North and South America, Europe and Asia, Yang said. “The global Supply Chain is one of the things we have been building in the last few years.”

The Trump government has tried to reduce the American dependence on goods made in China and to encourage the return of production paths to the US in a rapid escalation of tensions last month, the US and China had added rates of more than 100% on each other's goods. Last week the two parties corresponded to a 90-day break for most new tasks to discuss a trade agreement.

Baby equipment is particularly sensitive to rates, because the majority of those sold in the US are made in China, the US said Newell -brandsThat owner is of pram company Graco, on a profit call of 30 April. That is according to a fact transcript.

The company said that the prices of baby equipment increased by around 20% in recent weeks, but had not included the extra 125% rates announced in mid -April. Newell said that during the call it had about three to four months of inventory in the US and had paused extra orders from China.

The company did not respond to a request for comments about whether it had resumed orders from China and whether it had planned more price increases.

BC BabyCare refused to share how much it was planning to invest in the US, but Yang said the company is planning to open an office in the country and rent around five to 10 locals.

The company is initially planning to sell online, spend on marketing and ultimately to collaborate with large retailers for offline retail sales. Her partners for raw materials and research include three American companies: Lyra, Dow and Eastman.

The Chinese company, which entered the baby products in 2014, claimed a financing round of 700 million Yuan ($ 97.09 million) from investors in 2021, including Sequoia Capital China.

Yang said that the company is investigating the commentary section on Chinese and American e-commerce websites to improve its products. As a result, the American version of the baby carrier is softer and larger than the Chinese version, he said.

The American market ambitions of BC Babycare indicate how great the American and European multinationals are not only dealing with growing competition in China, but also at their home markets.

“After having experienced considerable growth due to the premiumization of consumption on the Chinese market, multinational brands are now going in a challenging second phase in which they fiercely compete for market share,” said Dave Xie, retail and consumer goods partner in Shanghai at Consultancy Oliver Wyman, said in a statement last week.

Oliver Wyman said last month in a report that the Chinese market has become the incubator for premium product innovations that are exported. The authors, for example, noted that Tineco Floor Scrubbers have become Best Sellers.