Matthew Estes has bet his savings on mainland babies, Mark O'Neill writes

Until the end of last year, Matthew Estes was earning a five-figure salary as manager of Greater China for German cosmetics giant Wella. Then he resigned and put all his savings - US$400,000 - into a new company that opened its first store earlier this month.

Mr Estes, 33, is betting on mainland babies and the love and care parents and grandparents lavish on them, particularly as single children allowed under the strict family planning policy, will add up to a thriving business.

He has sold the idea to hard-nosed venture capitalists at home in the United States and to many of his staff who have also put much of their savings into the company, BabyCare.

It is offering a new concept in the mainland - free training for mothers from the time they become pregnant until their child is six, clubs where they can meet and support each other. The store's products - educational toys, nutritional and food products for mother and child and aids such as water and air filters and breast-feeding accessories made by some of the world's top manufacturers.

Mr Estes' project has been years in the making and he has persuaded big names in the venture capital world to bet on it.

His company has initial capital of $7.8 million, with money from Orchid Asia Partners, a San Francisco-based firm whose major investors include Bank of America and Tredegar Investments and several of the super-rich who do not wish to be named.

Its goals are ambitious - within five years, 86 outlets in the mainland's cities and turnover of $100 million, with expansion into India, Indonesia, Taiwan, the Philippines, Malaysia and Thailand and a stock listing in New York and Hong Kong.