Chinese baby products companies are increasing U.S. expansion, regardless of tariffs or not

Beijing - A Chinese baby products company announced Tuesday that it will officially enter the U.S.’s largest consumer market – regardless of the trade war.

Shanghai-based BC BabyCare expects its supply chain diversification and U.S. market potential to offset the impact of ongoing U.S.-China trade tensions, Chi Yang, the company’s vice president of Europe and America.

He told CNBC: "Even if (if) things aren't stable...I'm very confident in our products, adding that he expects "very fast" growth in the U.S. in the coming years. This includes his bold prediction that BC BabyCare's flagship baby airline could become a bestseller on Amazon.com in half a year and that U.S. sales could grow 10 times in the year.

The $159.99 carrier qualifies for a $40 discount, and out of more than 30 reviews, there are already 4.7 stars on Amazon.com. The device claims to reduce stress on parents' bodies by 33%. Baby carriers are much cheaper and are a bestseller among travel products for pregnancy and childbirth on JD.com in China.

Yang said BC BabyCare already has operators in its U.S. warehouses and has a network of factories and raw material suppliers in the Americas, Europe and Asia. “Global supply chains are one of the things we have been building over the past few years.”

The Trump administration has tried to reduce U.S. reliance on Chinese-made goods and encouraged manufacturing jobs to return to the U.S. as tensions escalated rapidly last month, with the U.S. and China adding more than 100% tariffs on each other’s goods. Last week, the two sides agreed to a 90-day pause for most new responsibilities to discuss the trade deal.

Newell Company Graco, which owns strollers, said baby gear is particularly sensitive to tariffs because most sold in the U.S. are made in China. This is a transcript based on fact sets.

The company said it has increased the price of baby equipment by about 20% over the past few weeks, but has not announced an additional 125% tariff in mid-April. Newell said during the call that there were about three to four months of stock in the United States and suspended other Chinese orders.

The company did not respond to a request for comment on whether the request resumed orders in China and whether it planned to increase the price increase.

BC BabyCare declined to share how much it plans to invest in the U.S., but Yang said the company plans to open offices in the country and hire about five to 10 locals.

The company initially planned to sell online, spend on marketing, and eventually partnered with major retailers for offline store sales. Its raw materials and research partners include three U.S. companies: Lyra, Dow and Eastman.

The Chinese company entered the baby products field in 2014 and received 700 million yuan (US$97.09 million) in 2021 from investors including Sequoia Capital China.

Yang said the company reviewed the review section of e-commerce websites in China and the U.S. to improve its products. He said that the U.S. version of the baby vector is softer and larger than the Chinese version.

The US market ambitions of BabyCare in BC reflect that U.S. and European multinationals are facing growing competition not only in China, but also in their own markets.

"Multinational brands are now entering a challenging second phase as they compete fiercely for market share," a statement last week said.

In a report last month, Oliver Wyman said the Chinese market has become an incubator of advanced product innovations being exported. The author notes that, for example, the Tineco floor scrubber has become an Amazon bestseller.