When the post-90s and post-00s began to become Bao Ma, the business of the Confinement Center became more and more popular.
Unlike the previous generation of parents, Generation Z young people's concept of childbearing has changed, and their health needs are also increasing, and the confinement center has become a "safe haven" after childbirth.
Behind the strong demand, the business of Yuezi Center has formed a new outlet. Among them, Aidi Palace, as the head enterprise of the Confinement Center, has risen in stock price after the end of May this year.
On the homepage of the official website of Aidi Palace, photos of Stars such as Huang Lei, Sun Honglei and Mei Ting were placed in a central position, and the service of Aidi Palace was praised in the comments.
These celebrities have been customers here, and they have chosen the top packages worth 360,000 yuan. So many stars have said yes, and the Love Emperor Palace has become a place of yearning for new treasure mothers.
But behind the Aidi Palace, the seemingly "stable and profitable" confinement center is really a good business to make money?
Becoming the "Best Mediator" of the Confinement, the track ran out of the "First Share of the Confinement"
The emergence of the confinement center has become the "best mediator" for family conflicts.
Nowadays, on short video platforms such as Douyin, many short videos about family marriage are flying in the sky, making many girls afraid of marriage and childbearing, of which confinement is one of the important influencing factors.
Because confinement will cause many family conflicts, in the past, newborn mothers were taken care of by their mothers-in-law or mothers, but their "confinement law" made many newborn mothers miserable, such as confinement can not wash their hair, can not blow air conditioning. There are conceptual differences between the young people of Generation Z and the parents of the previous generation, because the contradictions caused by the "confinement" continue to intensify.
Due to the lack of scientific and professional nursing knowledge, many newborn mothers have suffered losses in their physical recovery during confinement, so they need more professional nursing care, and the demand for confinement centers is gradually flourishing.
According to Ai Media Consulting, in 2021, 54.4% of Chinese women spend 28-42 days, 34.2% of them have 42-56 days, and 11.4% have a duration of more than 56 days.
At the same time, with the improvement of residents' living standards and the improvement of health needs, the consumption capacity has been further strengthened, and many families have sufficient spending power in confinement.
In addition, at present, China's fertility rate is under the serious aging of the population, so China further optimizes the birth policy, implements the three-child policy, and gradually liberalizes the birth policy.
Therefore, while benefiting the mother and baby related industries, the confinement center, as one of the subdivided services under the maternal and infant industry chain, has entered a rapid stage of development.
According to data provided by China's National Health and Family Planning Commission, the number of newborns in the country exceeded 18.67 million in 2016, the largest number of births since 2007. Therefore, the maternal and child care industry has developed and grown in response to market demand, and confinement centers have blossomed everywhere in various cities in China.
According to ai media consulting data, in 2013, there were only 550 well-sized confinement centers in Chinese mainland, but by 2021, the number is expected to reach 4578, and the confinement centers have become a significant growth trend.
As a result, it has attracted the attention of capital, and the high-end confinement center market has flourished. According to the incomplete statistics of New Eyes, since 2015, there have been 130 domestic confinement center investment and financing incidents, with a total amount of nearly 5 billion yuan. With the help of capital, Aidi Palace was successfully listed in 2017, and this track also ran out of the "first share of the moon".
So, what is the development potential of the confinement center?
Confinement Center, is it really making money?
It is said that women and children's money is best earned, and the emergence of the confinement center just puts the money of both into the pocket.
In recent years, searching for "Confinement Center" on social media such as Xiaohongshu and Station B has basically been greeted by floor-to-ceiling windows with invincible vision, luxurious and bright big bed rooms, high-tech fetal baby beds, nutritious meals made by five-star chefs, and the consequent sky-high service packages with a price of 200,000 or even 480,000 a month.
Such a high customer unit price is at least a few years of wage income for an ordinary family, which also makes the confinement center gradually become a "status symbol". Despite such high consumption, it still supports a huge market.
According to Ai Media Consulting, the market size of hotel-style/single-family confinement centers in 2020 reached 7.1/3.1 billion yuan respectively, and the CAGR in 2014-20 was 21.2%/16.4% respectively. According to Liding quoting Frost & Sullivan, it is expected that the market size of the mid-to-high-end confinement center cagring in 2020-25 will reach 24.4%, which is higher than the growth rate of 9.2% of the ordinary type, accounting for 63.4%.
The yuezi center industry market is constantly expanding, and the head enterprise Aidi Palace has also ushered in development opportunities.
Aidigong Brand Confinement Center is a direct-operated confinement center, positioned as a high-end, has formed a professional care system with an expert team and nurses as the core, and its services include five major businesses: maternal and infant basic care services during confinement, postpartum rehabilitation, yoga shaping, breast management and baby photography.
In the fourteen years since its establishment, Aidi Palace has cast the core capability of Aidi Palace" "Maternal and Infant Health Care System", which can effectively improve the operation and management efficiency and service quality of the Confinement Center, which is also the fundamental reason for its rapid replication and expansion in the country, and its revenue has also grown rapidly in recent years.
According to the data of The Royal Palace's semi-annual report, for the six months ended 30 June 2021, the revenue of the confinement service business increased by 2.67% over the same period of the previous year to approximately HK$315 million. During the reporting period, the company achieved revenue of HK$324 million, gross profit of HK$128 million, profit attributable to owners of the Company of HK$23.582 million and basic earnings per share of HK$0.61.
However, on this seemingly very profitable track, many companies are still unable to achieve profitability, and the problems of the industry are gradually exposed.
The data shows that China's confinement centers expanded rapidly from 2014 to 2018, and there are currently more than 4,000, but 70% of the confinement centers are in a state of loss.
In addition, behind the fact that everyone in the confinement center needs to make an appointment for half a year, everyone sharpens their heads and squeezes in, there is also some chaos in the confinement center, and complaints are not uncommon.
Since the domestic confinement center is still an emerging industry, the national regulatory system for the maternal and infant care service of the confinement center is still in its infancy, and the lack of specific management regulations has led to the barbaric growth of the market. In the past two years, the hygiene of confinement meals in the confinement center industry has not been up to standard, the qualifications of staff are questionable, infant infection with rotavirus, false publicity, invisible consumption and other phenomena have also emerged in an endless stream.
At the same time, the current development status of China's confinement center shows a regional decentralized competition pattern and is in the expansion stage. According to the data of insight research report, the number of confinement centers in Shanghai and Beijing accounted for 15.6% and 13.3% in 2019. In 2018, the CR5 of China's confinement center industry was 11.2%, of which the market share of Aidigong was 4.3%.
Under this background, the market concentration of the current confinement center industry is low, and with the gradual tightening of the regulatory side, the "Matthew effect" in the industry will be further intensified. The position of the head enterprise is relatively stable, and in the future, high-end institutions are expected to expand the market with brand and scale advantages and build higher competitive barriers. However, a large number of regional small-scale confinement center enterprises are fiercely competitive, but it is difficult to develop and grow.
It can be seen that Yuezi Center is a considerable business, but the difficulties faced by its industry cannot be denied. If the business of Yuezi Center wants to further expand, it may be possible to consider the low-end consumer market with demand but insufficient consumption capacity, and "popularization" is also a feasible path.
epilogue
In any case, head enterprises such as Aidi Palace are expected to gradually establish industry standards, and in the context of the opening up of birth policies, emerging industries such as confinement centers have been spawned, and with the tightening of supervision, the concentration of the industry will also be greatly improved.