The rollercoaster ride of rising and falling U.S. tariffs last year, and resulting gyrations in Chinese imports to the country, is reflected in the latest quarterly results of Goodbaby International Holdings Ltd. (1086.HK), whose strollers and other baby products were affected by the trade war. But even as its exports to the U.S. plunged by as much as 30%, China still posted a record $1.2 trillion trade surplus last year as its exporters turned to other global markets.
That pivot is also reflected in Goodbaby’s results, as the company navigates choppy trade waters using a localization strategy involving earlier acquisitions in the U.S. and Europe. Even so, Goodbaby’s U.S. sales took a clear tariff hit in the first quarter, though its European sales are holding up better.
Goodbaby’s founder and President Song Zhenghuan, a former teacher, is known as China’s “stroller king” for turning a factory under the Lujia Middle School, located in the city of Kunshan near Shanghai, into the world’s largest stroller maker. The company currently sells to 110 countries, giving it roughly one-third of the global market.