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Li Kuo, founder of BabyCare diapers: only enterprises with values have value

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With favorable policies, the domestic mother and child track is becoming one of the hottest tracks at present. However, the mother infant track with traditional industrial genes will still face many challenges in the process of new retail transformation. After the research, Huaxing found that the new generation of parents have & ldquo; One stop & ldquo; Strong demand for purchase; In addition, consumers' new demands for appearance and function, as well as the maturity of modern e-commerce and marketing channels, give emerging brands the opportunity to play a differentiated competitive advantage. BabyCare, the invested enterprise of Huaxing new economic fund, as the head full category mother and baby brand, just grasped the opportunity and built a strong brand influence with years of extreme product experience.

babycare

BabyCare from the perspective of users

In 2014, He Lin, the post-80s generation, welcomed her first baby in Hangzhou. In order to give the baby a comfortable, safe and healthy growth environment, He Lin, like many young parents in first and second tier cities, embarked on the & ldquo; Overseas shopping & rdquo; From visa card to transshipment company, Baidu's various & ldquo; Introduction to overseas shopping;, Guide ordinary parents to take off from rookies and really buy all over the world on their own.

“ The reason for choosing overseas shopping is that the quality of diapers bought on the domestic mother and baby platform is particularly rough, resulting in baby red PP, so they began to study various overseas shopping strategies& rdquo; He Lin said that she would buy it once a month or two, involving more than a dozen brands of products at a time. Diapers are heavy. Generally, she would choose sea transportation. Sea transportation and customs clearance are also common for last month or so, but safety is enough.

At this time, BabyCare, a new consumer brand for mother and baby, has just officially entered the mother and baby track with a baby strap. In the next eight years, this baby strap has been upgraded nine times and obtained 27 patents. Its market share has ranked first in the industry for many consecutive years. What many people don't know is that in order to make a harness without thread, BabyCare built a factory by referring to the requirements of luxury goods.

But this is not the most & ldquo; Crazy & rdquo; What to do: Use & ldquo; Thickest & rdquo; Wet wipes change the tide direction of the industry and leverage the global supply chain to make a diaper for 3 countries and 6 Enterprises & hellip& hellip; BabyCare always seems to change the original ecology of the industry in an extreme way.

Today, BabyCare has 45 million users and 10 million members in all channels. The number of fans of tmall's official flagship store exceeds 16 million, ranking first in the industry.

In 2016, with the full opening of the two-child policy, He Lin ushered in the second treasure of her family. She lived a busy life with children, with almost no space.

“ I began to try the cutting-edge brand of mother and baby. The first time I bought a folding stroller from BabyCare, I was amazed when I really got it. The quality is not inferior to that of foreign brands. The focus is that the appearance is especially online, and the main color is the new green color. For the first time, I have seen a stroller with such foreign color, which is also very special in design. It can be opened and folded with one hand, and will always be the most beautiful baby in the park& rdquo; He Lin said that the shopping experience made her feel that the cutting-edge brands of mother and baby were really different and had their own style and tone.

In the just past school season, He Lin put two BabyCare thermos cups into Li Jiaqi's live studio as the opening gift of the two children. He Lin said: & ldquo; Because there are a lot of shopping in the live studio. Now one of the babies is in grade two and the other is in middle class. Whenever we see BabyCare products, we can use them almost with our eyes closed! It's very easy and reassuring. I'm very happy after receiving the goods& rdquo;

母婴室

BabyCare experience

BabyCare founder and CEO Li Kuo said that BabyCare has three moments of truth& ldquo; When a user browses the web and finds that our product design and functional selling points just meet his / her needs, such as zero paint crib, this is the first truth moment; This is the second truth moment when users find that what we are talking about is true rather than false marketing copy in the process of using the product; When he / she buys our other products again and still has a good experience, this is the third moment of truth& rdquo;

BabyCare's & ldquo; Consumer truth moment & rdquo; The model divides the contact points with consumers into three & ldquo; The moment of truth;, Products and services can be used to penetrate every moment perfectly, so as to upgrade the user experience to the extreme, prolong the user life cycle and precipitate the user value.

Over the years, both Chinese and foreign-funded consumer goods have followed the concept of category brand. On He Lin's parenting list, the milk powder is aitami, the bottle is Beiqin, the straw cup is the chef, and the diaper is unijia & hellip& hellip; Many parents need to spend more time and energy on strategy and cross platform brand procurement.

“ The business model of category brands is based on the B2C model of the supply side. The barriers between different categories are too deep, and the talent, technology and supply chain are separated like mountains, resulting in brands being & lsquo; Birds of a feather flock together & rsquo& rdquo;, Li Kuo said that the new generation of mothers and infants look forward to more efficient and relaxed & ldquo; One stop shopping & rdquo& ldquo; Divide people into groups & rdquo; Is the correct way to open the consumption demand of mothers and infants. The best way to fill the gap between supply and demand is to provide a full range of high-quality products. BabyCare provides childcare solutions rather than individual products.

Bao fan, chairman of Huaxing capital group, founding partner of the fund and chief investment officer, also said: & ldquo; The new generation of parents have & lsquo; One stop shopping & rsquo; The emergence of full category brands caters to this trend, which is one of the reasons why Huaxing chooses BabyCare.

BabyCare has started the layout of the whole category since the baby strap was cut in, and chose a & ldquo; Few people take the road & rdquo;. The advantages and difficulties of doing a full range of business are obvious. After all, mother and child consumption has the characteristics of high-frequency iteration. The whole category can not only meet the needs of the new generation of parents & ldquo; One stop shopping & rdquo; But how to break the barriers of talent, technology and supply chain among categories is the key and difficult point.

BabyCare's internal supply chain resource matching process perfectly solves this difficulty. BabyCare is more like a director, listing all raw materials, processes, technologies and production equipment that will be involved in making a product one by one, and then using the brand influence to connect, integrate and deeply connect global resources, and even reverse promote the transformation of the supply chain to achieve a breakthrough in product quality and meet the needs of users. Li Kuo called this model of BabyCare & ldquo; C2B2M”。

C is the thinking of users. Users are not the first or second comparative level. It is the starting point and end point of all problems

B is that the brand side needs model innovation, and the existence is unreasonable

M is & ldquo; Connect & rdquo; The ability of is greater than & ldquo; Own & rdquo; Ability of

“ C2b2m is to & lsquo; Existence is unreasonable & rsquo; For the design concept, put forward & lsquo; 10 times better & rsquo; And rely on the connection ability of the global high-quality supply chain to realize the landing of products & rdquo;, Li Kuo said that this business strategy based on users makes BabyCare naturally close to users and has a distinctive & rdquo; Juvenile Gas & rdquo;. Dare to challenge industry stereotypes, dare to break the inherent design, and dare to subvert themselves.

Through the c2b2m model, reviewing BabyCare's category expansion route, we can see a law: first, follow the growth curve of users and transition products from infants to young children; The second is the transition from low-frequency durable goods to high-frequency consumables. If the strap as a durable product makes BabyCare stand firm, the development of wet towel products means that BabyCare expands its product line to FMCG, touches more consumers and changes the trend direction of the industry.

Before BabyCare, baby wipes on the market were generally thin. At that time, in the baby wipes market, the competition of various brands mainly focused on the unit price of the film, and the pursuit of the unit price of the film continued to squeeze the cost space, further leading to the thinner and thinner products& ldquo; Existence is unreasonable & rdquo;, Li Kuo decided to be the one who broke the cycle and asked for a thick wet towel.

Due to the lack of successful precedents, it is very difficult to find a suitable cloth supplier, & ldquo; The fabric chamber of commerce thinks that it's unnecessary to make such a thick one because it can't be sold& rdquo; The R & D team spent four months traveling all over the country. It was not easy to find the cloth, and there was a problem with the cutting tool. Because the cloth became thicker, the traditional cutting tools used to cut cloth at high speed could not meet the requirements. Several of them were cut out, and BabyCare spent a lot of time on debugging. In order to solve the problem that the sealing paste is easy to fall off, BabyCare boldly adopts the design of special-shaped cover. From the drawing to the actual product, three sets of molds have been upgraded for the cloud shape, which is only for the smooth hand feeling of opening and closing with one hand. The liquid adding rate of ordinary wipes is 3.2 times, which is not clean enough and easy to dry. BabyCare wipes adjust the liquid adding amount to 3.8 times. The water in the liquid preparation is EDI pure water with 7-fold filtration, which is cleaner than mineral water.

Breaking the routine and promoting the transformation of the supply chain in reverse, the process of making a wet towel is like breaking through customs. In this way, the R & D team persevered in repeated failures, retries, failures and retries, but the test has just begun & mdash& mdash; In the era of no live broadcast, how to make consumers recognize & ldquo; Thicker & rdquo; Wet wipes?

For a long time, BabyCare can only send samples for free, and the sales volume gradually increases with the accumulated reputation of users. In 2021, BabyCare's wipes accounted for 21.7% of tmall channel market, far higher than the second place.

In 2021, in addition to wet wipes, BabyCare occupied the top three positions in many secondary categories such as braces, toothpaste and toothbrushes, water cup tableware, sleeping bags and bedding, and the number of top categories increased by 86% year-on-year. The diaper category is highly competitive and surrounded by international giants. In the third year after BabyCare entered the diaper market, it stood firmly at the head of the top 3 on tmall's double 11 and achieved 116% growth in omni-channel sales. The retail and auxiliary foods that were launched at the end of 2020 have also sold more than 100 million in one year.

At present, BabyCare, which covers 33 secondary categories and nearly 600 tertiary categories in all channels, has created a rich product pool for consumers. In the product development stage, BabyCare has studied various shopping strategies and pit avoidance guidelines for parents, from the material of milk bottles, the thickness of wet wipes, the model of milk nipples to the water absorption of diapers and the material of educational toys & hellip& hellip; It is no longer a necessary knowledge for parents to master, because in the world of BabyCare, they provide default options, and users only need & ldquo; Close your eyes and buy, that's right& rdquo;

Although low-key, Li Kuo's designer identity as an entrepreneur is well known. BabyCare is deliberately passing on its own design genes, including slogan, which also emphasizes & ldquo; Redesign for love & rdquo;.

High appearance value is the cognitive orientation that consumers feel the strongest about BabyCare. Many people pay attention to BabyCare from appearance value and create & ldquo; High color value & rdquo;, BabyCare has always spared no effort. The newly launched maternity clothes combine the international cutting-edge designers who once cooperated with Hermes to sweep away people's impression that the maternity clothes are loose and fat and have no sense of beauty.

“ We have done a great job in dismantling colors. In our eyes, red can be divided into more than 100 kinds, and blue can also be divided into more than 100 kinds, and we are very concerned about the harmony of various colors& rdquo; Li Kuo believes that high appearance value is not only for parents, but also for two or three-year-old babies who have become aware of aesthetics, and the baby's sense of aesthetic excellence also needs to be cultivated from an early age.

In addition to color matching, in terms of modeling, BabyCare's products also tend to make concrete products concise and abstract, making them more artistic.

No matter how trendy parents are, the demand for mother and baby products is impossible & ldquo; Stop at the appearance value & rdquo;. Similarly, in addition to the ultimate pursuit of aesthetics, BabyCare's design also carries the multi-dimensional needs of function, quality, safety and experience.

Ordinary children's thermos cups generally have exhaust holes to avoid hot water gushing out of the straw when the cup cover is opened due to inconsistent pressure inside and outside the cup. But if the baby forgets to cover the thermos when putting it on the bed, water may flow out of the vent and wet the sheets. Therefore, BabyCare specially designed a bouncing structure, which divides the key into two sections, opens the exhaust hole when pressed and closes when bouncing back, which perfectly solves this problem.

Similar details abound. Even for some extremely small probability risks, they are predicted and avoided by the design level.

“ The quality of products is designed& rdquo; Said Li Kuo.

In 2021, the R & D investment of BabyCare increased by 55% compared with that in 2020. At present, the number of R & D and design personnel has exceeded 200. It is not too much to say that it is a design driven company, but the design is more than appearance. Li Kuo told 36 krypton that the appearance of the design is only a technical skill, but the core behind it is user thinking.

BabyCare's products can jump out of the inherent cognition and make unconventional changes. In essence, they are also mining users' vague, potential and unrepresented needs. They are full of love for users. This is the starting point and origin of BabyCare.

The whole category planning ability and supply chain integration ability based on user thinking not only build a moat for BabyCare, but also endow it with high growth and high ceiling.

At the product level, the strong supplement of the zero complementary food puzzle has further consolidated the product matrix of BabyCare's whole category. In October 2020, after buying a New Zealand food brand, Babycare's brand name "photosynthetic planet" was officially launched. Now it has launched more than 100 SKU, namely rice noodles, biscuits, fruit paste, sugar free lollipop.

The ability of global supply chain integration has become the quality blessing of new products. For example, the factory is located in Spain, where there is a very scarce apple variety, & ldquo; Blind taste is the best & rdquo;, Li Kuo said that in the field of zero complementary foods, we are confident to create a BabyCare in the future.

From the perspective of performance growth, BabyCare's greater growth space in the future may come from the refined operation of private domain users.

According to the data provided by BabyCare, at present, nearly 4.5 million users have settled in its private domain, nearly half of the ordering users will repurchase, and the transaction volume of all repurchase users accounts for nearly 90% of the total private domain trading volume. Compared with 2020, BabyCare's private Gmv in 2021 increased by more than 100%.

Moreover, the offline layout of BabyCare has long been launched. The service scenarios provided by offline stores will bring in-depth interaction with users, and new ways of playing in new channels may also become new performance growth points.

According to the data analyzed by Analysys, from July 2020 to June 2021, online sales of mother and baby categories accounted for 38%, while offline hypermarkets and mother and baby stores remained the mainstream, with sales shares of 7% and 55% respectively.

“ In the future, offline can reach 1:1 with online, which is our expectation& rdquo; Li Kuo revealed.

Looking back on the past few years, Li Kuo believes that BabyCare's success is & ldquo; The victory of values;, Not something technical. The exploration and understanding of values can be summarized in 12 words: why exist, what are the differences, and where to go. Understand & ldquo; Why does it exist;, You can penetrate the phenomenon, see the essence, find a different world, and then & ldquo; Find a 10 times better solution & rdquo;, This scheme is the Research Institute & rdquo& ldquo; What's the difference & rdquo;.

As for where BabyCare will go, Li Kuo said that a brand with a world outlook has a world, and a brand with values has value. BabyCare's vision is to become the world's No. 1 mother and baby brand, but in the past two to three years, it will still dig deep into the domestic market and continue to broaden the moat.

奶嘴瓶

In & ldquo; No. 1 in the world; Before the big goal of, BabyCare is still in its infancy, but the seeds of globalization have long been planted. When an enterprise has deep demand insight, product planning ability of all categories and supply chain integration ability of global vision, it may only be a matter of time.

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