January 13, 2012, 3:56 PM

Totsy takes on China’s $20 billion baby product market

Totsy will sell baby goods via the China-based flash sale site MamiBuys.com.

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Baby products e-retailer Totsy.com is going global via a deal to sell products through MamiBuys.com, a China-based flash sale e-retailer that imports baby products to sell to Chinese consumers.

The Chinese market is ripe for Totsy’s entry, both retailers say, as demand is strong there for newborn and infant products, but quality merchandise is in short supply. China is the biggest baby products market in the world with $20 billion spent annually and 17% annual sales growth, Totsy says.

"In China, imported products are aggressively sought after and sell out quickly,” says Lubin Zhang, CEO of MamiBuys.com.  “Our partnership with Totsy will help increase much-needed supply and enable us to introduce new brands to Chinese families that we know they will love."

Totsy.com will sell apparel, toys and accessory items on MamiBuys.com, which has three million active monthly users. This will be an expansion of the Chinese retailer’s existing product line of baby formula, diapers and nutritional supplements.

"Totsy is incredibly excited to provide our vendors with an opportunity to enter and expand sales in the Chinese market,” says Guillaume Gauthereau, CEO of Totsy. “This is a valuable opportunity for our company, MamiBuys and our vendor partners and we look forward to executing this partnership as Totsy’s first step in building global sales channels."

Totsy would not disclose the financial terms of the deal.

By 2015, China will outpace the United States in e-commerce spending, according to The Boston Consulting Group. E-commerce spending in China will reach 2 trillion yuan (US$315 billion) by 2015, a 320% increase from 476 billion yuan (US$75 billion) in 2010.  The research firm says China currently has 145 million online shoppers, the second highest in the world. The United States has 170 million.

Totsy.com is No. 664 in Internet Retailer’s Second 500 Guide.

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