Baby Grid: China’s leading cross-border e-commerce platform and innovative direct mail business
Baby Grid is a cross-border e-commerce platform focusing on Chinese consumers. It was officially launched in October 2014 and has opened overseas direct mail services since February 2015. By establishing an international logistics system, Baby Grid now provides overseas direct mail services in ten countries, including the United States, Canada, Australia, New Zealand, Japan, South Korea, Germany, the United Kingdom, the Netherlands and Italy.
Baby Grid offers a wide range of products, including baby milk powder, complementary foods, diapers, infant products, clothing, books, toys, and supplies for moms and dads. There are more than 10,000 products to choose from. At the same time, the platform supports convenient shopping applications on PC and mobile terminals, allowing users to have a shopping experience anytime and anywhere. Since 2015, Baby Grid has officially introduced the operating model of “overseas direct mail + global sales” to gain a higher market share.
In terms of logistics, Baby Grid has significantly shortened customs clearance time by optimizing direct mail procedures in various countries, ensuring that users can receive goods within 14 working days at the latest after placing an order. Data shows that packages sent from the United States can be delivered in as little as 3 working days. This efficient logistics system enables Baby Grid to perform well in processing orders, even rivaling that of domestic express trains.
With its unique business model and effective marketing, Baby Grid quickly occupied the market and achieved significant operating income growth. In 2015, Baby Grid’s operating income increased by 353% year-on-year, while its overseas direct mail revenue increased by 898% month-on-month in the first half of 2015. As of December 31, 2015, the number of registered users of Baby Grid in China reached 4,193,791, the number of APP downloads exceeded 18,341,231, and the repeat purchase rate of orders was as high as 74.02%.
In the future development process, cross-border e-commerce companies such as Baobaozi should focus on increasing the number of users and transaction volume on the basis of improving the supply chain, warehousing and logistics layout. This will not only help reduce margins costs and can further optimize logistics efficiency. As consumer needs continue to be diversified, personalized and fragmented, how to meet and effectively operate user needs will be a key factor in the sustainable development of direct mail model cross-border e-commerce.