cmr baby diapers report 2016

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  • Copyright 2016 Cyber Media Research and Services Ltd. Reproduction is forbidden unless authorized. All rights reserved. India | Asia-Pacific | North America

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    BABY DIAPERS

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    India: Emerging Trends

    Increasing presence of women in workforce with urban female work-force par7cipa7on rate growing 5.6% annually.

    Increasing purchasing power, customer aspira7ons and reduc7on in diaper prices

    26M Babies are born in India every year.

    5.6%

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    India: Market Size

    [Source: CMR Analysis and Industry Es7mates]

    Indian Baby Diapers Market Size

    US $ 300M

    3% Penetra7on of Disposable Diapers in India

    80-85% Market controlled by top 3-4 players.

    B R A N D E D D I A P E R S

    I M P O R T E D D I A P E R S

    Market Segments:

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    COST CONVENIENCE COMFORT SUCCESS

    Value Proposition in India

    In India, parents look at three factors when buying a diaper:

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    India: Market Share

    56%

    2013

    [Source: CMR Analysis and Industry Es7mates]

    The Mamy Poko Pant capitalized on its simple pull-up kind of diaper, instead of tape like s7ckers. Lower price and higher margins catapulted the brand to the top.

    18%

    18%

    47% 17%

    34%

    2015

    ShiQing Fortunes: 2013 to 2015

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    India: Market Share Breakdown

    34% 57%

    17% 3% Others

    [Source: CMR Analysis and Industry Es7mates]

    In 2015, Unicharm gained ground, while P&G and K-C lost their market share.

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    Demand/Supply Side Drivers

    Increasing awareness and penetra7on in rural markets

    More women in the workforce than ever before

    Greater hygiene awareness

    Increase in purchasing power

    Thrust on innovaUon and cost efficiencies by new market entrants.

    Improved supply-side infrastructure

    Awareness generaUon by diaper manufacturers on TV

    Digital is boosUng diaper sales with next-day deliveries

    D S

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    Taped Diapers

    Diaper Pants Swim Diapers

    India: Diaper Types

    Cloth Diapers

    Sizes: S, M, L and XL.

    Prices (in INR): 270 to 2000

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    India: Competitive Landscape

    MARKET L EADERS

    PR I VATE L ABE L S

    ECO - FR I ENDLY BRANDS

    OTHER BRANDS

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    Diaper: Material Trends

    SOFTNESS ABSORBENCY BODY-

    HUGGING FIT

    Three key thrust areas for diaper manufacturers

    Con7nuous challenge for non-woven suppliers to deliver cost compe77ve fabrics with the specific func7onal performance and aesthe7c proper7es.

    There is a clear focus on achieving op7mized absorbent cores with improved performance in fluid acquisi7on/distribu7on materials.

    Suppliers have secured flexibility from diaper manufacturers to change raw material formula7ons to accomplish cost efficiencies while maintaining high performance standards.

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    India: Key Influencers

    Family and Friends

    TV Adver7sements

    Internet: Social Media and Websites

    Paren7ng Magazines

    [Source: CMR Analysis and Industry Es7mates]

    The key influencers driving diaper sales in India include:

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    Digital Diapers

    Greater convenience and lower costs are driving diaper sales on ecommerce placorms.

    eCommerce in India is emerging as a channel for premium imported diaper products, catering to rich Indians.

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    India: Diaper Capacity Expansions

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    India: Diaper Market Forecast

    [Source: CMR Analysis and Industry Es7mates]

    2016 2018 2020

    [In US $/Million]

    2017 2019

    CAGR 21%

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    CMR Cognitive 360

    DEMAND

    The baby diaper market in a country takes off when per capita GDP breaks through the US $3,000 level. India is an afrac7ve market, and poised for take off. With increasing awareness, this is the right 7me for new companies to enter India.

    DE L I V E RY

    Companies with premium diapers will achieve success even with ecommerce only channels. Same-day diaper delivery will be a game changer in the India market.

    D I S COV E RY

    In diapers, brand loyalty is fickle. Its useful to constantly assess and discover drivers underlining customer behavior through user research studies.

    Note: CMR Cogni7ve 360 provides a clear view and guidance on whats next for businesses focused on the target market.

    DE L I V E RY

    India is ripe for a door-to-door diaper-delivery service, shipped weekly or fortnightly, in Tier- 1 and Tier-2 ci7es.

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    About CMR

    CMR is a vibrant bou7que firm that enables its clients to find answers to its most pressing business concerns and challenges, through market research, market intelligence and go-to-market services.

    This is us, at a glance:

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    Prabhu Ram

    E: pram@cmrindia.com

    M: +91-9899440380

    CMR INDUSTRY CONSULT ING PRACT ICE

    Contact

    Apalak Ghosh

    E: aghosh@cmrindia.com

    M: +91-9971548392

    P: +91 124 482 2222 Extn: 162

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