With Second Births Increasing, Funding Doubles... Wadiz 'Brightens' with Birth Rate Rebound

Recovery in Birth Rate and Practical Consumption in Q3
Kids Category Funding Transaction Amount Surges by 134%
Transaction Volume and Number of Participants Also Soar

The 'Kids' category on the crowdfunding platform Wadiz is rapidly growing. Last year, a rebound in birth rates combined with the practical consumption tendencies of millennial parents led to nearly double the funding transaction amount and number of participants. The Kids category is emerging as a new growth engine for Wadiz.

According to Wadiz on the 21st, last year's funding transaction amount in the Kids category was 7.894 billion KRW, a 91.8% increase compared to the previous year (4.115 billion KRW). By quarter, the third quarter recorded the highest annual figure with a 134.2% increase compared to the same period last year. The first quarter (116.9%), second quarter (98.4%), and fourth quarter (60.1%) also showed strong growth. Last year, there were 343 funding projects, a 30% increase from the previous year (264 projects), and each project attracted significant funding, achieving qualitative growth as well. The number of participants in funding also increased significantly in line with the increased transaction amount. Last year, the number of participants in Wadiz's Kids category funding reached about 60,000, nearly double the previous year's 31,000.

This upward trend is also analyzed to be related to the rebound in birth rates. According to Statistics Korea, the total fertility rate in the third quarter of last year was 0.76, higher than the second quarter (0.71), marking a rebound. The proportion of second child births also slightly increased to 32.5% during the same period, compared to 31.9% in the previous year, marking the first rebound since 2018. Wadiz believes that the recovery in birth rates has driven an expansion in childcare and child-related consumption, influencing the increase in participation in Kids funding.

Moreover, millennial parents in their 30s and 40s, the main consumers of childcare products, tend to prioritize practicality and functionality. This means they may be more interested in practical products introduced through funding rather than famous brands. A Wadiz representative analyzed, "The childcare and maternity products market favors products with special functions or differentiated value," adding, "Customer responses resulting from promoting products with excellent quality but low brand awareness have become the driving force behind the growth of the Kids market."

This trend is also reflected in performance. The rapidly growing Kids category has contributed to improving Wadiz's profitability, which had been suffering losses for several years. A Wadiz representative stated, "We succeeded in turning operating profit positive in the third quarter of last year and are also approaching profitability on a half-year basis."

This content was produced with the assistance of AI translation services.