BEIJING — A notable Chinese baby products manufacturer revealed on Tuesday its plans to expand into the United States, the largest consumer market globally, despite the ongoing trade disputes.
Bc Babycare, based in Shanghai, is banking on supply chain diversification and the significant potential of the U.S. market to mitigate the effects of persistent U.S.-China trade conflicts, as stated by Chi Yang, the company’s vice president for Europe and the Americas.
“Even if the political climate remains unstable, I am quite optimistic about our products,” Yang told Finance Newso, forecasting “rapid” growth in the U.S. market in the upcoming years. He expressed confidence that Bc Babycare’s flagship baby carrier could emerge as the best-seller on Amazon.com within six months, with a potential for U.S. sales to expand tenfold within a year.
The carrier, priced at $159.99 and currently eligible for a $40 discount, has earned an impressive 4.7-star rating on Amazon.com from over 30 reviews. The product claims to reduce pressure on a parent’s body by as much as 33%. A more affordable version of the carrier has already become a top seller in the travel products category for expectant parents on JD.com in China.
Bc Babycare has already stocked this carrier in its U.S. warehouses and has established a network of factories and raw material suppliers spanning the Americas, Europe, and Asia, according to Yang. “Building a global supply chain has been a priority for us over the last couple of years,” he remarked.
The Trump administration aimed to decrease U.S. dependence on products manufactured in China and to promote the revival of American manufacturing jobs. Recently, tensions escalated further as both countries imposed tariffs exceeding 100% on a range of each other’s goods. However, they agreed last week to a 90-day suspension on most new duties for negotiations towards a trade agreement.
Baby products are particularly sensitive to tariffs, with a substantial proportion sold in the U.S. being produced in China, as highlighted by U.S.-based Newell Brands, which owns stroller brand Graco, during an earnings call on April 30, according to a transcript from FactSet.
Newell Brands indicated that it raised prices on baby gear by nearly 20% in recent weeks, yet had not accounted for the additional 125% tariffs introduced in mid-April. The company stated it has sufficient inventory in the U.S. to last approximately three to four months and has put additional orders from China on hold.
No comments have been provided by the company regarding whether it has resumed orders from China or if it plans further price hikes.
U.S. Office Plans
Bc Babycare did not disclose its planned investment in the U.S., but Yang mentioned that the company aims to establish an office and recruit five to ten local staff members.
Initially, Bc Babycare intends to focus on online sales, with plans to invest in marketing and eventually collaborate with major retailers for in-store distribution. The company has partnered with three U.S. firms—Lyra, Dow, and Eastman—for raw materials and research.
Yang noted that the company actively monitors feedback on e-commerce platforms in both Chinese and U.S. markets to enhance its product offerings. Consequently, the U.S. version of the baby carrier is designed to be softer and larger than its Chinese counterpart, he added.
Bc Babycare’s ambitions to penetrate the U.S. market reflect a wider trend where major multinationals from the U.S. and Europe are not only facing increased competition in China but also in their own regions.
“Following significant growth driven by the premiumization of consumption in China, multinational brands are now entering a tough second phase in which they fiercely compete for market share,” asserted Dave Xie, a retail and consumer goods partner at Oliver Wyman in Shanghai, in a recent statement.
A recent report from Oliver Wyman highlighted that the Chinese market has become a breeding ground for premium innovations in products that are being marketed internationally. For example, Tineco floor scrubbers have risen to prominence as best-sellers on Amazon.
