Businesses hesitant to invite capital investors
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E-mail CNTV, September 5, 2013
More and more investors in China are laying their eyes on kid-related industries. The reason being is that they prove a safe-haven in tough economic times. In today's episode of our "kidonomy" series, our reporter Feng Xin explores why kid related businesses are hesitant to attract capital investors.
NOT a father himself, 28-year-old Wang Wenji spotted market opportunities in early childhood education about two years ago. He developed the idea of a craft box that parents can order online. Each month, they receive a box containing different themes and tasks for their kids to work on. In less than a year, Wang's company registered more than 50,000 subscribers. And dozens of investors have approached him. But, Wang hasn't signed a single deal with any of them.
Wang is not the only one who questions the need for investors. Gao Ziyang's 50-people team is facing a similar dilemma. Founded in 2007, the Beijing Hand in Hand Children's Art Troupe stages more than 260 performances to children across the country every year, making multi-million profits. He has concerns about the investors approaching him.
Whether it's an online product or a multi-million theatre, matching what investors want with companies own pace of development becomes a big puzzle for children related businesses.Industry experts estimate that children related businesses currently account for 3 trillion yuan, or 500 billion US dollars, in China. However, they have not yet been able to identify the top players in the market.
As more and more investors from non-children sectors flock into this industry, their eagerness to invest can often pose problems.
Experts say although the children's industry is facing a crossroad in terms of financing, the time for large-scale joint ventures and acquisitions has not come yet. Therefore, it might not be a bad idea for both businesses as well as investors to take their time in this young industry.
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