Babycare, China's Leading Mother-and-Baby Company, May Enter Middle East Market

Consumer Staples Author: Muriel Meng Editor: Yiru Qian Dec 26, 2023 07:11 PM (GMT+8)

Growing demand for quality mother and baby products showcases the global growth potential of the mother and baby industry.

Mother and baby

Recently, EqualOcean exclusively learned that , Babycare, a leading company in the Chinese mother and baby industry, has launched its flagship store in the mother and baby area on the second floor of DUBAI MALL in Dubai, United Arab Emirates. Previously, it  successfully openned two stores in Sharjah and Abu Dhabi.

Adopting the agency system, it is currently in the process of attracting investment and plans to deeply enter the Middle East market.

"Babycare plans to purchase relevant products at the recent Dubai exhibition and actively make more localization adjustments," sources said.

In the first half of 2022, foreign media reported that Babycare was considering the possibility of listing in Hong Kong, with the earliest landing on the Hong Kong Stock Exchange in 2023, and the expected fundraising scale is estimated to be between USD 300 million and 500 million.

In September of this year, it was reported that Babycare's parent company, Hangzhou Baibeike Industrial Co., Ltd., signed a counseling agreement with CICC to formally initiate the A-share IPO process.

Babycare entered the mother and baby market in 2014, starting with baby carriers, and has now developed into a comprehensive mother and baby brand with multiple sub-brands including woobaby, wiya, mamicare, and BCKID. Its product range covers various fields including mother and baby supplies, baby food, children's clothing, early education, women's products, and personal care, with 150 secondary categories and approximately 30,000 SKUs. Its user base spans over 45 million across all channels.

Since its establishment, Babycare has completed a total of two rounds of financing, with a cumulative financing scale of approximately CNY 1 billion. In August 2019, Sequoia Capital China invested CNY 300 million in Babycare, acquiring a 10% stake in the company. After the financing, the company was valued at CNY 3 billion.

In February 2021, Babycare initiated its Series B financing and successfully raised CNY 700 million. DHVC was the lead investor in this round of financing, with participation from Huaxing New Economic Fund and Sequoia Capital China. Huaxing Capital served as the exclusive financial advisor for this round of financing. According to Babycare, the CNY 700 million funds from the Series B financing will be mainly used for product R&D, laboratory construction, talent recruitment, intelligent warehousing, and automated logistics. Following the completion of the second round of financing, the company's valuation soared to USD 3 billion according to reports.

In 2020, Babycare chose Southeast Asia as its first step in global expansion, collaborating with Lazada to reach a broader market and consumer base. As a brand focused on providing one-stop, comprehensive solutions for the new generation of mother and baby families, Babycare's products are now exported to over 30 countries and regions worldwide.

With the implementation of the "three-child policy" in China and the continuous improvement of per capita consumption levels, the quality demands of mother and baby consumers are increasing, and the added value of the mother and baby industry is steadily rising, showing a rapid growth trend in market size. According to relevant data, the scale of China's mother and baby consumption reached CNY 3.4591 trillion in 2021, and this number is expected to reach CNY 4.6797 trillion by 2025.

In terms of the Middle East market, the three-year-old Hibobi has stood out in the fiercely competitive Middle East market through precise market positioning and unique brand building. According to media reports, its app has accumulated over 4 million downloads, with a download rate of 30.8% among Internet users over the age of 25 in the Middle East region, contributing to the stable annual revenue at around USD 50 million.