[photopress:itredbaby.jpg,full,alignright]Redbaby, one of China’s largest online maternity and baby products retailers, plans to expand its operations and seek an overseas listing within three years. Note carefully although it is online it also has branches in 16 Chinese cities. It does not list what percentage comes from online sales and what from over the counter but it is a fair assumption to make that the online sales are a but a small proportion of the whole.
Xu Peixin, chief executive officer of Redbaby said, ‘We plan to expand internationally from the beginning of 2008, starting with Asian countries. We’re looking at Japan and South Korea, and our overseas business model will be the same as that in China.’
The Beijing-based company is expected to double its net profit this year to RMB60 million, on sales of RMB1 billion. Xu Peixin said, ‘Our sales have been growing at around 300 to 400% each year since we were founded in 2004.’
Redbaby has its own logistics team of around 700 and local warehouses of over 30,000 sq meters. It has also set up a ‘family committee’ system on its website, which responds to customer feedback and complaints.
The company now has around 30% market share in the nation’s major cities, including Beijing and Shanghai. Online there appears to be little if no competition.
Source: People Daily Online