Chongqing-Following the designation of Chongqing as a pilot zone in cross border e-commerce five years ago, and in tandem with the development of the Chongqing-Europe freight railway, Yu-Ou Ltd 重庆渝欧跨境电子商务股份有限公司简称:渝欧股份 股票代码 873017 )established the commercial mother-infant brand Momtime(宝妈时光), for which the Online to Offline (O2O) business model was purposely designed.

The mother-infant product store chain brand Momtime was established by Yu-Ou Cross Border E-Commerce Ltd and follows the O2O business model they developed to satisfy consumer demand for product experience and consultation service.

The first major challenge was to identify a market that would be successful. While luxury goods, accessories, clothing, and general merchandise had been the main focus of Chinese e-commerce over the past 15 years, the quantity of market players has since resulted in stagnation.

Market research into consumer habits revealed low sales figures for non-essential imported goods, and that many individuals chose to physically travel abroad to buy products rather than entrust the task to merchants. However, such actions were not feasible in the case of high demand necessities, a fact which indicated great potential as a source of growth. It was for this reason that items of necessity became the focus of attention.

While demand for quality infant milk formula and other products of interest to this demographic were extremely high, consumer confidence was very low. The main reason was the lack of opportunities for direct experience before deciding whether to purchase, and a further demand was for the availability of professional staff in order to explain product features and dispel concerns.

Having identified potential in the mother-infant product market, Yu-Ou(渝欧股份) promptly filed an application with the relevant government department to operate on a trial basis, in line with the status of Chongqing as a pilot city in e-commerce.

The response was highly supportive, and as a result, Yu-Ou Ltd(渝欧股份) established the chain of Momtime(宝妈时光) branded stores. Products could then be imported from countries worldwide and physically displayed so that customers may experience them before deciding whether to purchase.

Yu-Ou is among the earliest companies to explore and apply the O2O (Online to offline) model. While competitors set up experience stores in the central locations of cities, they lacked substantive value because too few stores served too large a geographical area. In light of this, the strategy of Yu-Ou Ltd(渝欧股份) was instead to open stores in suburbs and malls nearer to their target clientele.

To date, a network of 1700 Momtime (宝妈时光) stores spanning 26 provinces has gained the wide trust of families. In fact, company analysis shows that about 60% of mother-infant product consumers still regard the offline experience as highly important, so further expansion in this respect continues to be a priority.

In 2020, Yu-Ou Cross Border E-Commerce Ltd held a conference for worldwide global partners with the aim of reducing the financial burden on parents when purchasing imported mother-infant products.

Overseas manufacturers wishing to access the Chinese market appreciate how mass production and circulation affects market prices within China. As a result, they approached Yu-Ou(渝欧股份) to assume the role of domestic marketing in the capacity of a supply chain business partner. At last year’s Import Expo, for instance, a deal worth 300 million dollars was signed with Danone.

The ultimate vision of Yu-Ou (渝欧股份)is to realize a one-stop service platform beginning at the production line, and continuing through the stages of importation, customs, warehouse storage, marketing, and sales. Overseas manufacturers need a partner in China that understands the domestic market environment in order to succeed in this manner.

A track record of successful partnerships in tandem with optimized customer service has in turn drawn the attention of further big-name brands willing to enter into cooperation. This is good news for future development because around 80% of the infant formula market is dominated by a small number of industrial giants who set industry standards.

At the heart of the Yu-Ou(渝欧股份) business model is a desire to make child-rearing in China both practical and affordable, especially in the first and second-tier cities where the high cost of living is a major consideration when planning a child.

On the question of logistics, both land and sea routes have been used for importation, but the Yuxinou Europe-Chongqing Freight Railway has made a great contribution to reducing both the cost and time involved during the overall importation process. This route has also proven to be reliable during the pandemic, a time when supply chains in this particular industry didn’t suffer an adverse impact, either.

The recently formed Chengdu-Chongqing Economic Circle is home to the highest concentration of Momtime(宝妈时光) stores, numbering in excess of 400. There is also cooperation between logistics Ps in the circle because of their suitability towards different categories of goods, which in turn can offer more economical storage options.

While the Economic Circle is still in an early stage of development, it is certainly an exciting prospect for the near future.



CQ Innovates Cross Border O2O Business Model for Mother-Infant Products


网站声明:本站除原创内容外, 注明稿件来源为其他媒体的文/图等稿件均为转载稿。转载出于非商业性的教育和科研、学习之目的,如转载稿涉及版权等问题,请来函联系,邮箱