Gymboree conquest of the education and childrenswear markets in China

Gymboree conquest of the education and childrenswear markets in China

With the economic development in China, family spending on education and children clothing is steadily increasing. Gymboree, known as 金宝贝 (jin bao bei : golden baby) in China is an american corporation owning both retail stores of children's apparel and Play and Music centers where parents go with their children for early-learning classes.

In 2003, Gymboree saw in China a huge potential for its Play and Music centers and brought the franchise to Shanghai. In 2009, noticing that only 20 % of the chinese parents enrolled their children in education programs, it decided to target the 80 % leaving one. Not only interested in top-tier cities,Gymboree aimed at setting up centers in smaller cities (around one million inhabitants), the strategy being to reach the bourgeonning middle class.

 There are no doubt that the education market is growing and that chinese parents are ready to do a lot to provide their children with the best possible education, namely because the birth control policy made children become the center of the family. But in 2003, entering the chinese market with play centers was challenging for Gymboree because Chinese parents were not familiar with the concept of children learning by playing in a funny environment, enjoying what they do and discovering what they really like. Today, with more than 200 centers, Gymboree's Play and Music centers are well established in China. The company now sees opportunities in the children's apparel and is starting from scratch a business in that area.

http://knowledge.insead.edu/economics-politics/why-gymborees-china-strategy-is-no-childs-play-1397