Is the Era of Huge Profits in Imported Mother and Baby Agency Over?

"Mr. Zhang recently noticed that there have been a sudden increase in the number of people doing imported mother and baby agency in his WeChat Moments. From Australian milk powder to Japanese diapers, it seems that everyone can get the 'first-hand sources'. This makes him wonder: Is this industry really that profitable? Or is it already saturated?"

In recent years, with the improvement of domestic consumers' requirements for the quality of mother and baby products, the market for imported mother and baby products has witnessed explosive growth. Data shows that in 2022, the scale of China's imported mother and baby market has exceeded 100 billion yuan, and the annual growth rate has remained above 15%.

This growth mainly stems from three factors:

• Consumption Upgrading: Parents born in the 1990s are more willing to pay for quality.
• Information Transparency: Cross-border e-commerce makes global good products within easy reach.
• Trust Crisis: Some domestic mother and baby brands have been exposed to quality problems.

Ms. Li has been doing German milk powder agency since 2019. She has summarized several key points:

• Stable Source of Goods: Direct cooperation with the brand side or first-level agents.
• Complete Qualifications: Customs declaration forms and inspection and quarantine certificates are indispensable.
• Logistics Guarantee: Cold chain transportation is crucial for some products.
• After-sales Service: The return and exchange policies should be clear.

Although the prospects are broad, imported mother and baby agency is not without risks:

• Policy Risks: New policies for cross-border e-commerce are frequently introduced.
• Price Wars: The agency profits of some categories have dropped to less than 5%.
• Fake Goods Problem: The mixed market affects credibility.
• Inventory Pressure: Products with a shorter shelf life are at higher risks.

Industry insiders predict that in the future, imported mother and baby agency will present two major trends:

One is Specialization. The simple model of buying and selling will be difficult to sustain. Agents need to master professional knowledge and become parenting consultants for customers. The other is Differentiation. Focus on niche markets, such as organic foods, special formula milk powders, etc.

If you are considering entering this industry, you might as well ask yourself a few questions first:

• Do you have stable customer sources and sales channels?
• Can you afford a capital turnover period of 3 to 6 months?
• Do you understand the consumption habits of the target market?