Goodbaby Strollers on the Move

I would be willing to that bet you have never heard of Goodbaby. Yet they control 70% of the stroller store in China. They build two out of every five strollers sold in the U.S. And they have a 15% store share in Europe primarily in the luxury model category. There is a very good occasion that you have a Goodbaby goods in your home and do not even know it. Goodbaby makes 10,000 strollers a day, most of them for overseas brands. In all they make 15 different labels.

Song Zhenghuan was intent on becoming the world's amount one maker of baby and child products. But when he designed a rocking chair in 1989, one of his employees mistook it for a stroller. Song added wheels and the rest as they say is history. As of May 2009, the firm was still conspiratorially owned but the introductory public contribution was on many investor's radar.

Baby Strollers

Goodbaby opened its flagship store in Shanghai in 2006. Its targeted store is middle-class Chinese families. Ironically, not far away is a competitor who caters to wealthier Chinese families willing to spend big money on foreign label products. Goodbaby not only owns a share in this store too, but many of the products for sale there are made right in China by Goodbaby.

Goodbaby Strollers on the Move

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Customer Reviews

*** Product Information and Prices Stored: Jan 12, 2012 02:45:10

Song Zhenghuan's amount one challenge today is to make the Goodbaby label a top jobber in its own right. He faces the challenge of overcoming global bias, which he admits was brought on in part by unscrupulous Chinese clubs who produced shoddy and hazardous baby products. He knows it will take time but he is unavoidable that China will someday enjoy the same credit that Japan does for producing quality goods.

Song has taken an interesting route to baby stroller mogul. He began his work as a math trainer at last becoming a vice-principal. When China first began experimenting in capitalism, some schools were required to create businesses to fund themselves. So Song borrowed from his fellow teachers and opened a microwave oven factory which was a resounding failure.

Eventually, through alumni connections, the factory got work production stroller parts. Song quickly saw that profits would be higher on accomplished products. Over the last 20 years, Goodbaby has been innovating stroller design. They feel their R&D is what sets the firm apart from their competitors. That and the fact that they made a combo rocking chair/stroller work.

Goodbaby has produced strollers under the brand names of Cosco, protection First and Eddie Bauer to name a few. Other non-stroller brand names artificial by Goodbaby are Quinny, Nike Kids and Tommee Tippee. One incompatibility that has set them apart from other Chinese manufacturers of baby and child products is that Goodbaby has welcomed foreign investors and taken advise from their experience. This has helped them understand the expectations of the world market.

In 2006, a China focused underground equity firm, the Pacific Alliance Group, bought a 67 percent stake in Goodbaby, effecting what some call the first western style leveraged buyout of a Chinese company. It was this equity firm that was incredible to take Goodbaby public. But that has not happened. And instead, Pag has hired Morgan Stanley to sell their shares to other curious underground equity firms.

This sale is going to have a very high profile because traditionally, the Chinese government has not well stylish foreign investments and the underground culture of firm ownership in China is strong. What started as one factory is now more than ten specialty factories and they have their own commercial park employing over 16,000 people.

What's next? Goodbaby plans to grow its online nearnessy as many young Chinese parents like to shop on the internet. If history has been any indication, expect to see a lot more of Goodbaby in the years to come.

Goodbaby Strollers on the Move

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