Is it possible to produce baby strollers in Russia? Components of a baby stroller Baby strollers from Little Treck.

The stroller production sector is a profitable niche that can bring good profits. After all, parents are ready to buy the best for their children. Many young parents would rather save on themselves than on their child. Therefore, children always get the best. Business ideas that are in one way or another connected with the production of baby food and essential goods bring owners multi-million dollar income.

Take the stroller production industry as an example. To stand out among competing companies you need to provide something new and original. This is what the company that produces the smartest strollers in the world called “Smartbe” did.

Driverless wheelchairs.

The strollers use unmanned technologies that are now being actively tested for cars. It was not by chance that such strollers appeared. Young mothers need to spend a considerable amount of energy and effort to transport a stroller. You don't need to do this with a smart stroller. It uses special sensors to track movements. This allows her to move right behind you. It doesn’t matter which way you go, the smart stroller will adjust its movement and strictly follow you. For convenience, it is equipped with wireless speakers, a temperature control system, three removable visors and a special device for heating bottles. You can control the stroller in two ways: using the panel on the handle or through a mobile application. It runs on batteries. One charge is enough for 6 hours of continuous operation. The company is now raising money to produce this product.


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Nutricia, a company specializing in the production of baby food products, was founded in 1896 in the Dutch town of Zoetermeer. Its founder, Martinus van der Hagen, was the first in the world to obtain the right to produce special milk for infants, similar in composition to mother's milk. In 2007, Nutricia became part of Danone's infant nutrition division (Danone Nutricia Early Life Nutrition), and the company's products are now sold in more than 100 countries. Nutricia began operating in Russia in 1994, and in 1995 acquired a baby food production plant in the city of Istra and completely modernized it. Now baby formula and cereals under the Malyutka brand are produced here.

The milk base comes to Nutricia from Ireland. It is a dry powder obtained by mixing milk, whey and vegetable oils. The mixture is stirred and then sprayed using a nozzle. Under the influence of hot air, water evaporates from the formed particles and as a result a powder is formed. It is packaged in big bags, which are simultaneously filled with nitrogen, which displaces the air. This is done to prevent oxidation from occurring inside the package. The big bag is hermetically sealed, and then a second bag is put on it for transportation.




Other raw materials enter the plant in the same form: vitamins and minerals, which are delivered from factories in the Netherlands. Nutricia works with foreign suppliers because Russian farmers are not yet able to provide raw materials of adequate quality. All raw materials entering the plant are tested in a physical, chemical and microbiological laboratory. The second is taken outside of production, again to minimize risks.



Then the bags of raw materials are moved to a high-control area. To do this, they pass through a special gateway, in which the transport packaging is removed from them and transferred from wooden pallets to plastic ones. This area is protected from any harmful microorganisms. Local air passes through several stages of filtration. Purified air is supplied to the room through fabric sleeves; they are easy to remove and wash. All equipment and instruments passing through the gateway are disinfected. In addition, the high-control zone is completely free of water. They wash and clean here exclusively with vacuum cleaners. All plant employees undergo daily medical examinations and are not allowed to work if they show mild signs of illness. Those who drive vehicles also undergo a blood alcohol test.





Baby food has increased requirements for primary packaging (that which is in direct contact with the product). For this, foil is always used, which, in addition to its barrier properties, is also good because it does not interact with the product in any way. Each new supplier undergoes a quality test and each batch of material is tested for microbiology.



From here the raw materials are lifted to the fourth floor into the mixing area. There, the bags are opened, the mouth of the bags is disinfected and connected to the equipment, so that the ingredients enter it without contact with the external environment. The components are dosed using high-precision cells and then enter the blender. If there is any deviation, the process automatically stops. After the blender, the mixture falls onto a sieve with a mesh size of 1.4 mm. This is a barrier to possible third-party inclusions in the product. There is a giant magnet here for the same purpose. Dosing, mixing and screening take place on different floors, that is, the process is built vertically, from top to bottom. Usually compressed air is used to transport the product through pipes, but here it falls under its own weight.



Flour that has passed the incoming control is sifted and then, together with water, enters the extruder for processing. There, at a temperature of 180 degrees and high pressure, the molecular structure of the flour breaks down. This process is somewhat reminiscent of making popcorn. Each particle seems to explode and become like a corn stick. The flour is cooked, and at the same time, thanks to the high temperature, all extraneous microflora dies. The resulting pellets are then dried and ground. This process allows you to preserve many of the nutritional properties, taste and aroma of the product.






The mixed product passes through three floors and enters the packaging area. The contents are packaged into bags in a nitrogen environment. Nitrogen is a safe inert gas that displaces oxygen from the pack, creating a sealed environment and preventing oxidation. The percentage of oxygen in the pack is less than 2%. This packaging allows you to store the product for 18 months.


Then the packages are weighed and move to the low control zone, where they are packed into cardboard boxes along with spoons. Each box is marked with its own unique number, which encrypts complete information about the product. The boxes are then put through an X-ray machine where they are checked for foreign matter. If the camera sees a particle that differs in density from the rest, the pack is rejected.





Boxes of product are packed into transport boxes, which are then placed onto wooden pallets by an automatic stacking robot. The formed pallet is wrapped in a transparent protective film, marked and delivered to the warehouse in the quarantine zone. Within five days the product undergoes final checks. To do this, samples are taken from each batch and sent to the laboratory. Only after this the product leaves the quarantine zone and is sent to stores.

Business plan

"Production of transformable strollers"

Content
Summary………………………………………………………………………………3
1. State of affairs in the industry………………………………………….………..5
2. Description of the enterprise and its goals……………………………………..5
3. Product Description……………………………………………………….7
4. Marketing plan…………………………………………………………….8
5. Production plan………………………………………………………11
6. Investment plan……………………………………………………..16
7. Financial plan with calculation of project efficiency………………..18
8. Risks of activity……………………………………………………….22
Conclusion………………………………………………………………………………….23

Resume
Today, the Russian consumer has the opportunity to choose, but our market often suffers from the absence of the so-called middle sector. There are cheap but low-quality goods and high-quality but expensive goods. We decided to offer our customers high-quality products at affordable prices, and with optimal consumer properties for the baby and parents.
The company OJSC KurskAist plans to produce transformable strollers. The main factors shaping the market for strollers for children are functionality, convenience, quality and decorativeness. If the above characteristics are equal, price plays an important role. Transformable strollers are a convenient option, especially for those buyers who do not want to spend money twice by buying a cradle stroller and a stroller separately. Transformers weigh less than classic strollers. They are much more compact. The material from which the stroller basket is made with a special water-repellent impregnation.
Our goal: to produce beautiful strollers that meet all consumption and safety standards, and at the same time, provide a low price accessible to the mass Russian buyer.
The project is designed for 3 years and will pay off in 2009. From the financial forecast, the opening of production will require 450,000 - authorized capital and 750,000 borrowed. In the future, it is possible to expand production by producing other types of strollers and various products for children.

The authorized capital of the joint-stock company is 450,000, divided into 450 ordinary registered shares with a par value of 1,000 each.

1. State of affairs in the industry
OJSC KurskAist plans to sell its products on the regional market, the capacity of which allows for intervention in order to gain a foothold in this market segment. Sales volume directly depends on the birth rate. The Ministry of Health and Social Development of the Russian Federation predicts that thanks to measures to solve the demographic problem, by the end of 2009 the birth rate in Russia will increase by almost 26%. In addition, the one-time costs of parents at the birth of a baby in Kursk reach 10-30 thousand, because all newborns need strollers and cribs. Thus, working in this segment is quite promising and profitable.
In the production of cribs and strollers, competitors are both Russian and foreign companies. Despite the high quality of the world leaders in the production of these goods, their penetration into the Russian domestic market is a difficult problem associated with high cost. The most famous Italian strollers on the domestic market are the following brands: Inglesina, Cam, Peg Perego, Chicco. European manufacturers are also represented by the Dutch Maxi Cosi, the French Bebe comfort, the Portuguese Bebecar, and the Germans Zekiwa. Organizing production on the territory of Russia will reduce transport costs and allow OJSC KurskAist to set a price almost lower than that of foreign manufacturers.
Potential competitors are Russian manufacturers. You should pay attention to the Russian brand Little Trek. Their cradles combine reliability and durability with an affordable price. However, the advantage of OJSC KurskAist is that contracts have already been concluded with the main buyers. These include the Detsky Mir, Baby Boutique, and Happy Baby chain stores. These contracts eliminate uncertainty, make it possible to plan activities, reduce the risk of overproduction and, as a result, are “a powerful weapon in the competition.” Dominant market positions are ensured by high quality. OJSC "KurskAist" is subtly and accurately able to take into account consumer requests.
2. Description of the enterprise and its goals
Enterprise
The implementation of this project will be carried out by the open joint-stock company "KurskAist"
It was registered on 01/01/09. by decision of the Registration Chamber of the Kursk City Administration. Form of ownership: private.
The main activity is baby strollers.
Production activities are carried out on rented premises. Its total size is 555 m?.
Founders
The founders of OJSC KurskAist are legal entities and individuals.
OJSC "Aistenok" Moscow, st. Pokrovka, 7. The share in the authorized capital is 70% (RUB 315,000);
IP Lebedev V.A. – The share in the authorized capital is 30% (RUB 135,000).
The authorized capital of the joint-stock company is 450,000, divided into 450 ordinary registered shares with a par value of 1,000 each
The founders include an enterprise that has significant experience in the production and sale of children's goods. The initiators of the project have a good reputation in government, business and financial circles, which can serve as a prerequisite for the successful implementation of their goals.
Target
The main goal of this company is to obtain maximum profit without serious risks.
The main market purpose of the activity is the desire to provide a comprehensive solution to clients’ business problems through the production and supply of strollers for newborns.
Long-term goals of the company for 3 years:
1. Establish the production and production of baby strollers.
2. To soon take a dominant position in the market for the supply of manufactured goods.
3. Achieve maximum sales volume.
4. Expand production by producing other products for children.
Vision of the KurskAist company - “We support state demographic policy by supplying necessary, cheap strollers for newborns”
The main currency of the project is the Russian ruble.
Basic tax rates do not change by project year.
The calculations take into account the following basic rates of taxes and off-budget payments.
Table 1
Basic tax rates
Name of tax Tax rate Object of taxation Payment deadline
Income tax 24% profit quarterly
VAT 10% taxable turnover monthly
Unified social tax 26% payroll monthly
Property tax 2.2% property value semi-annually
Due to the fact that the project began in 2009 and all performance indicators are calculated for a 3-year period, inflation was taken into account in the calculations regarding the cost of goods in order to increase their accuracy for the long term. ..........

Conclusion
Having done this work and carried out the necessary calculations, we can conclude that the project for the production of transformable strollers is profitable and promising. Product profitability for 2009 will be equal to 45.9. Net profit from innovations is 26478.48
The financial and economic analysis of the project shows that the project for the production of transformable strollers is cost-effective. The payback period of the project is 1 year.
Of course, all sorts of difficulties are expected, associated both with organizing a business, drawing up the necessary contracts, and with gaining market share and competing in the provision of goods. The use of competitive advantages of production will facilitate the solution of these problems, these include high-quality products at affordable prices, and with optimal consumer properties for the baby and parents.

If we consider the market for goods for children, it is very attractive, because there is a large turnover of funds there, but at the same time it is one of the most competitive business options. And if in almost every shopping center you can find stores selling children’s clothing or toys, then the niche for selling strollers is freer, and that’s what we’ll talk about in today’s article. We will try to describe all the main points of opening a baby stroller store and look at what an entrepreneur who has decided to start in this direction needs to take into account.

Market overview

Everyone who starts a business first assesses the level of competition and this is an absolutely correct approach. Nowadays, it is difficult to find a completely new niche that is not yet represented on the market, so you have to discover already proven business ideas and choose from them.

In order to understand whether you can compete with other stores, you need to go through them all and evaluate them according to several basic parameters: wide selection, pricing policy and location of outlets. After analyzing all these areas, you can clearly determine whether it makes sense to open another store selling baby strollers in your city.

Search for premises

The second step is the proper selection of premises. Try to look for options that are located near already operating children's stores (clothing, toys) or near a clothing market where there is a large flow of visitors, especially your target audience - young mothers.

If we talk about the size of the room, then you need to look for a room from 40 square meters. m. since strollers, the goods are large, and in order to properly arrange the assortment you need a lot of space.

Equipment

In this regard, opening a stroller store is a very profitable option, since you will not need to buy a lot of display cases and other expensive things. The only thing is that you will need to organize the seller’s workplace.

Staff

Try to look for a seller who could not only sell the product well, but also be able to assemble it, since you will buy most strollers disassembled. This way, you can save your time on assembling and arranging goods. Also, do not forget to purchase all the necessary tools to carry out this work.

Assortment

Now we come to the most important thing - the range of strollers. Currently on the market we see a large number of different manufacturers of strollers, who produce them using different technologies and give them completely different shapes. To determine a popular product, you will need to work in the store on your own for some time, since none of your competitors will give you this information. The only thing you need to consider is that your assortment should include both cheap and expensive strollers. Try to take the most profitable decisions in terms of price/quality.

The main types of strollers include:

  • Stroller cradle.
  • Universal stroller
  • Transformable stroller
  • Stroller

Advertising

In order to promote a stroller store, in addition to standard advertising methods, a very profitable solution would be to open an online store for baby strollers, in which you can present a wider range of products, with the possibility of bringing them to order.

Having created a store, you can hire an optimizer to promote it in search engines, but at first you can run contextual advertising and receive clients on the same day. You need to look at the profit and draw conclusions. Try other advertising methods, perhaps advertising in a local newspaper is exactly what you need.

What are the costs of starting a business?

We will try to indicate the main points that you should take into account when calculating a business plan for a baby stroller store. We will indicate the purchase of Chinese strollers, since well-known brands cost completely different money. The calculation will be made for a small budget store and is purely for informational purposes.

  • Room rental – $350 – $400
  • Purchase of equipment and tools – $200
  • Taxes - $150
  • Salesperson salary – $200
  • Advertising – $150 – $300 (including online advertising)
  • Initial purchase of goods – $10,000 – $14,000
  • Shipping costs – $100

How much can you earn?

It all depends on how much you will work with. So the average markup on strollers is 30% - 40%.

As you can see, the markup is not too large, but the niche is also less competitive than, for example, in the same children's clothing.

A business selling baby strollers is a good solution even in times of crisis.

Do you have anything to add? We look forward to your comments below.

This, to some extent, determined the trends: both in the pre-perestroika period and at the moment, a significant part of the market is occupied by imported baby strollers.

In the 90s, Russian companies abandoned the production of strollers, and the market was almost completely captured by foreign companies. In the early 2000s, several enterprises for the production of baby strollers opened in Russia, but to date they have managed to win back only an insignificant market share from Western companies - imports in the baby stroller market remain at the level of 95-98%. The main suppliers from abroad remain Chinese - 70-80% of the market - and Polish manufacturers.

In Russia, several companies are engaged in the production of baby strollers, including Little Trek LLC (Mytishchi), STEKURAL (Ekaterinburg), Apex (Dubna), Votkinsk Industrial Company (Votkinsk).

The Little Trek company appeared on the baby stroller market quite recently - in 2002, and quite quickly captured about 20% of the market segment occupied by Russian manufacturers. During the crisis - 2009 - the company suffered serious losses, production had to be cut by more than half. In 2010, the company plans to increase the number of products produced by one and a half times compared to last year and reach pre-crisis production levels in 2011.

Unlike other companies, Apex not only did not reduce production rates during the crisis year of 2009, but also increased them by 8%, which allowed it to take first place. The Apex company's share is 60% of all baby strollers produced by Russian companies. The company was founded more than 50 years ago and at this stage, in addition to various types of baby strollers, it also produces other products: playpens, swings, chairs, etc.

The STEKURAL company also produces not only baby strollers, but also other children's products. In 2009, due to the crisis, the company had to reduce the production of baby strollers by almost half, and STEKURAL specialists do not see bright prospects in the near future: in their opinion, the end of the crisis should be expected no earlier than 2012, and imports will continue to amount to more than 90% of the market.

In 2003, the leaders of the Votkinsk Industrial Company decided to revive the production of strollers, launched on the basis of the Votkinsk Machine-Building Plant back in 1963. This is how the company organized the “Children’s Products” business direction. Now, however, the Votkinsk Industrial Company has completely stopped the production of baby strollers in our country, and all strollers entering the Russian market under the brand of this company are imported from abroad.

The production of baby strollers organized in our country is prefabricated. Components for strollers are imported mainly from China and Poland, however, some parts are still produced by manufacturers themselves. When asked about organizing a full cycle of production of baby strollers in Russia, representatives of all companies gave an unequivocal answer: at the moment this is impossible. The main reason for this state of affairs is that the goods produced will simply be uncompetitive. For this reason, the production of baby strollers at the Votkinsk Industrial Company was closed, its representative tells us.

Firstly, it is difficult for Russian companies to compete with Western ones in terms of the quality of the goods produced, since traditionally in Russia this production is focused primarily on convenience. In the market, models of baby strollers whose external beauty comes to the fore, to the detriment of convenience, are becoming more and more in demand. Thus, Russian companies are beginning to lose their consumers and the only opportunity to compete with imports, according to a representative of the Little Trek company, is in proximity to consumers and sales markets.

In terms of price - and most Russian companies are aimed at the so-called middle segment of the market - it is no less difficult to compete. Foreign companies produce baby strollers at lower prices, and several times faster. An example is the attempt of cooperation between the Little Trek company and the Votkinsk Industrial Company. The Little Trek company placed an order with the Votkinsk Industrial Company for the simplest chassis for strollers, after which, after some time, it ordered Polish manufacturers to design a new model of a baby stroller. According to a Little Trek employee, the Polish company completed its more labor-intensive task faster.

It makes no sense to organize your own production of components on Russian territory. Firstly, it has traditionally been the case that, for example, plastic parts, as well as textile material, are usually purchased from third-party manufacturers. In our country, not a single enterprise produces them, and producing them yourself turns out to be simply unprofitable: the demand for baby strollers, although remaining almost constant, is quite low - within a few thousand - and producing plastic components in such quantities is too expensive.

As for the sale of the manufactured product, most of it comes from the manufacturer to the buyer through small non-chain stores - about 60% of all baby strollers. Chains of children's goods stores, such as Korablik, Karusel, the Detsky Mir chain of stores and others, also participate in distribution systems. Manufacturers, in general, have no complaints about large retail chains, however, some manufacturers - for example, the Little Trek company - state that their work with chain stores has now ceased, and all strollers produced are sold through small non-chain stores. The reason is that chain stores impose rather strict requirements on manufacturers, trying to ensure 100% profitability. The market cannot provide it: the demand for baby strollers directly depends on the birth rate in the country and at the moment remains almost constant.

Another possible distribution route is through online stores. In online stores, strollers are sold out more readily, since their prices are 10-15% lower. This price reduction is explained by the fact that sellers in this case do not have the cost of renting retail premises; sales are carried out directly from the warehouse.

The current situation and forecast for the development of the Russian baby stroller market can be found in the report of the Academy of Industrial Market Studies
« Baby stroller market in Russia ».

Alexey Kashaev


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