idea '04 slides

8/2/2019 IDEA '04 Slides

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GLOBAL DIAPER TRENDS

By Pricie Hanna

IDEA04

GLOBAL DIAPER TRENDS

By Pricie Hanna

IDEA04

John R. Starr, Inc.John R. Starr, Inc.

Resources for DecisionsNonwovens, Hygiene Absorbent Products

& Key Raw Materials


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JOHN R. STARR, INC.JOHN R. STARR, INC.

uManagement consulting firm

u Specialists in global hygiene absorbentproducts and their key raw materials

nonwovens, film, pulp, superabsorbents,elastics, adhesives and component systems

uConfidential client engagements

uMulti-client market and technology reports

uuManagement consulting firmManagement consulting firm

uu Specialists in global hygiene absorbentSpecialists in global hygiene absorbentproducts and their key raw materialsproducts and their key raw materials

nonwovens, film, pulp, superabsorbents,nonwovens, film, pulp, superabsorbents,elastics, adhesives and component systemselastics, adhesives and component systems

uu Confidential client engagementsConfidential client engagements

uuMultiMulti--client market and technology reportsclient market and technology reports


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KEY DIAPER TRENDS

uConsumers Priorities

uRetailers Objectives in Diaper Category

uManufacturers Competitive Strategies

uMaterial Suppliers Initiatives

uu ConsumersConsumers PrioritiesPriorities

uuRetailers Objectives in Diaper CategoryRetailers Objectives in Diaper Category

uuManufacturers Competitive StrategiesManufacturers Competitive Strategies

uuMaterial Suppliers InitiativesMaterial Suppliers Initiatives


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CONSUMERS PRIORITIES

u Functional Performance AbsoluteRequirements

Leakage protection Minimize skin irritation

uAesthetic Features Preferences

Snug body-fitting underwear

Cloth-like aesthetics, soft fabrics Baby-pleasing decorative printing, licensed

graphics Odor control

uu Functional PerformanceFunctional Performance AbsoluteAbsoluteRequirementsRequirements

Leakage protectionLeakage protection Minimize skin irritationMinimize skin irritation

uu Aesthetic FeaturesAesthetic Features PreferencesPreferences

Snug bodySnug body--fitting underwearfitting underwear

ClothCloth--like aesthetics, soft fabricslike aesthetics, soft fabrics BabyBaby--pleasing decorative printing, licensedpleasing decorative printing, licensed

graphicsgraphics Odor controlOdor control


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CONSUMERS PRIORITIES

u Value

Best price for diaper meeting functional

performance requirements

Aesthetic feature preferences primarily

influence diaper selection within same price

range (after promotional discounts)

uu ValueValue

Best price for diaper meeting functionalBest price for diaper meeting functional

performance requirementsperformance requirements

Aesthetic feature preferences primarilyAesthetic feature preferences primarily

influence diaper selection within same priceinfluence diaper selection within same price

range (after promotional discounts)range (after promotional discounts)


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FUNCTIONAL PERFORMANCE

u

Leakage Protection Optimized fluid acquisition, distribution andabsorbent core retention system Improved acquisition/distribution materials Customized superabsorbent to enhance ADL and

core material performance Nonwoven core wrap and dusting layers

Examples:

ADLs in upper and mid-tier diaper brands in LatinAmerica

Recent patents on SAP with nitrogen containingpolymer surface coating for high SAP concentrationcores

P&Gs Pampers Cruisers1/3 less bulk core wrap

uu

Leakage ProtectionLeakage Protection Optimized fluid acquisition, distribution andOptimized fluid acquisition, distribution andabsorbent core retention systemabsorbent core retention system

Improved acquisition/distribution materialsImproved acquisition/distribution materials Customized superabsorbent to enhance ADL andCustomized superabsorbent to enhance ADL and

core material performancecore material performance Nonwoven core wrap and dusting layersNonwoven core wrap and dusting layers

Examples:Examples:

ADLsADLs

in upper and midin upper and mid

--tier diaper brands in Latintier diaper brands in Latin

AmericaAmerica Recent patents on SAP with nitrogen containingRecent patents on SAP with nitrogen containing

polymer surface coating for high SAP concentrationpolymer surface coating for high SAP concentrationcorescores

P&GsP&Gs Pampers CruisersPampers Cruisers1/3 less bulk1/3 less bulkcore wrapcore wrap


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u

Leakage Protection Body fit

Elastic components stretch tabs, pants

Shaped cores narrow crotch

Examples:

Kimberly-Clarks Huggies Super-Flexin Europe stretchy waistband and curved leg elastics

Stretch tabs and elastic waistbands increasing inLatin American diapers: Kimberly-Clark de MexicosHuggies Ultra Confortwith Free-Flex waistband

P&Gs Pampers Cruisers waddle-free fit

uu

Leakage ProtectionLeakage Protection Body fitBody fit

Elastic componentsElastic componentsstretch tabs, pantsstretch tabs, pants

Shaped coresShaped coresnarrow crotchnarrow crotch

Examples:Examples:

KimberlyKimberly--ClarksClarks Huggies SuperHuggies Super--FlexFlexin Europein Europe

stretchy waistband and curved leg elasticsstretchy waistband and curved leg elastics

Stretch tabs and elastic waistbands increasing inStretch tabs and elastic waistbands increasing inLatin American diapers: KimberlyLatin American diapers: Kimberly--Clark de MexicosClark de Mexicos

Huggies Ultra ConfortHuggies Ultra Confortwith Freewith Free--Flex waistbandFlex waistband

P&GsP&Gs Pampers CruisersPampers Cruiserswaddlewaddle--free fitfree fit


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u Leakage Protection

Double Leg Cuffs

Kimberly-Clark initiative in North America

Followed by Procter & Gamble in Europe

Examples:

Kimberly-Clarks Huggies Supremeand Huggies

Ultratrim triple leak protection P&Gs Pampers Baby Dryin Europe new double

elastic leg cuffs

uu Leakage ProtectionLeakage Protection

Double Leg CuffsDouble Leg Cuffs

KimberlyKimberly--Clark initiative in North AmericaClark initiative in North America

Followed by Procter & Gamble in EuropeFollowed by Procter & Gamble in Europe

Examples:Examples:

KimberlyKimberly--ClarksClarks Huggies SupremeHuggies Supremeandand HuggiesHuggies

UltratrimUltratrimtriple leak protectiontriple leak protection P&GsP&Gs Pampers Baby DryPampers Baby Dryin Europein Europenew doublenew double

elastic leg cuffselastic leg cuffs


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u Leakage Protection

Improved Ultra-thin Absorbent Cores

Less bulky, soft and flexible cores

Improved superabsorbent utilization

Examples:

Wal-Marts White Cloud Training Pantmade byTyco with pulp-less cellulose acetate/SAP core

Procter & Gambles Pampers Cruisersin NorthAmerica and Pampers Active Fitin Europe withnonwoven core wrap and improved SAPfixation/reduced SAP shakeout

uu Leakage ProtectionLeakage Protection

Improved UltraImproved Ultra--thin Absorbent Coresthin Absorbent Cores

Less bulky, soft and flexible coresLess bulky, soft and flexible cores

Improved superabsorbent utilizationImproved superabsorbent utilization

Examples:Examples:

WalWal--MartsMarts White Cloud Training PantWhite Cloud Training Pantmade bymade byTyco with pulpTyco with pulp--less cellulose acetate/SAP coreless cellulose acetate/SAP core

Procter & GamblesProcter & Gambles Pampers CruisersPampers Cruisersin Northin NorthAmerica andAmerica and Pampers Active FitPampers Active Fitin Europe within Europe withnonwoven core wrap and improved SAPnonwoven core wrap and improved SAPfixation/reduced SAP shakeoutfixation/reduced SAP shakeout


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uMinimize Skin Irritation

Aloe, Vitamin E and other skin lotiontreatments on skin-contact nonwovens in

mainline and economy diapers

Examples:

P&G Mexicos Pampers Total Protectwith

DermaCrem con Aloe to naturally protect babysskin

Grupo P.I. Mabes Classicwith Aloe

uuMinimize Skin IrritationMinimize Skin Irritation

Aloe, Vitamin E and other skin lotionAloe, Vitamin E and other skin lotion

treatments on skintreatments on skin--contact nonwovens incontact nonwovens in

mainline and economy diapersmainline and economy diapers

Examples:Examples:

P&G MexicosP&G Mexicos Pampers Total ProtectPampers Total Protectwithwith

DermaCrem con Aloe to naturally protect babysDermaCrem con Aloe to naturally protect babysskinskin

Grupo P.I. MabesGrupo P.I. Mabes ClassicClassicwith Aloewith Aloe


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Soft, gentle elastics

Examples:

Kimberly-Clarks Huggies Adventurers designedto reduce chafing all oversnug, supersoft doubleleg elastics help to eliminate rubbing


Soft, gentle elasticsSoft, gentle elastics

Examples:Examples: KimberlyKimberly--ClarksClarks Huggies AdventurersHuggies Adventurersdesigneddesigned

to reduce chafing all overto reduce chafing all oversnug, supersoft doublesnug, supersoft double

leg elastics help to eliminate rubbingleg elastics help to eliminate rubbing


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Improved Skin Dryness with Dry Topsheetsand Effective Acquisition/Distribution

Layers

Examples:

Apertured film ADL on Wal-Marts Assurance

Refastenable Underwear Recent P&G patent applications on ADL containing

apertured film evaporation barrier


Improved Skin Dryness with Dry TopsheetsImproved Skin Dryness with Dry Topsheets

and Effective Acquisition/Distributionand Effective Acquisition/Distribution

LayersLayers

Examples:Examples:

Apertured film ADL on WalApertured film ADL on Wal--MartsMarts AssuranceAssurance

Refastenable UnderwearRefastenable Underwear Recent P&G patent applications on ADL containingRecent P&G patent applications on ADL containing

apertured film evaporation barrierapertured film evaporation barrier


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AESTHETIC PREFERENCES

u Snug Body-Fitting Underwear

Pull-Up Pants

New participants in diaper pants segment

Designed to look like childrens knit panties

Examples:

Arquest introduced private label training pant

Advertising focus for P&Gs Pampers Easy UpsPantsis looks like real underwear

uu Snug BodySnug Body--Fitting UnderwearFitting Underwear

PullPull--Up PantsUp Pants

New participants in diaper pants segmentNew participants in diaper pants segment

Designed to look like childrens knit pantiesDesigned to look like childrens knit panties

Examples:Examples:

Arquest introduced private label training pantArquest introduced private label training pant

Advertising focus for P&GsAdvertising focus for P&Gs Pampers Easy UpsPampers Easy UpsPantsPantsis looks like real underwearis looks like real underwear


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uCloth-like Aesthetics

Softer Cloth-like Backsheets

Examples: Excellent softness of spunbonded backsheet on

Aldis premium diaper in Europe P&Gs European Pampers Baby Dryadded full-

width spunbonded backsheet in place of center stripcarded laminate on full width film.

uu ClothCloth--like Aestheticslike Aesthetics

Softer ClothSofter Cloth--like Backsheetslike Backsheets

Examples:Examples: Excellent softness of spunbonded backsheet onExcellent softness of spunbonded backsheet on

Aldis premium diaper in EuropeAldis premium diaper in Europe

P&Gs EuropeanP&Gs European Pampers Baby DryPampers Baby Dryadded fulladded full--

width spunbonded backsheet in place of center stripwidth spunbonded backsheet in place of center stripcarded laminate on full width film.carded laminate on full width film.


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uDecorative Printing

Baby/toddler preferences for licensedgraphic characters

Examples:

Kimberly-Clarks Huggies Pull-Upstraining pants PGI Bonlam adding printing capability to laminator

in Mexico to provide decorative cloth-likebacksheets

uu Decorative PrintingDecorative Printing

Baby/toddler preferences for licensedBaby/toddler preferences for licensed

graphic charactersgraphic characters

Examples:Examples:

KimberlyKimberly--ClarksClarks Huggies PullHuggies Pull--UpsUpstraining pantstraining pants

PGI Bonlam adding printing capability to laminatorPGI Bonlam adding printing capability to laminator

in Mexico to provide decorative clothin Mexico to provide decorative cloth--likelikebacksheetsbacksheets


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uOdor Control

Improved odor control for baby diapers

Examples:

Ontexs O.D.S. 3-Active Systemfor optimal odourcontrol, faster absorption and better skin protection

uuOdor ControlOdor Control

Improved odor control for baby diapersImproved odor control for baby diapers

Examples:Examples: OntexsOntexs O.D.S. 3O.D.S. 3--Active SystemActive Systemfor optimal odourfor optimal odour

control, faster absorption and better skin protectioncontrol, faster absorption and better skin protection


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u Sell leading brands at competitive prices toattract store traffic

Exceed or match retail competitors on shelf

availability of leading brands andpromotional offerings

uBuild consumer trust and loyalty to store

brand by offering performance and featuresthat closely imitate leading brands andselling at lower price

uu Sell leading brands at competitive prices toSell leading brands at competitive prices toattract store trafficattract store traffic

Exceed or match retail competitors on shelfExceed or match retail competitors on shelf

availability of leading brands andavailability of leading brands andpromotional offeringspromotional offerings

uu Build consumer trust and loyalty to storeBuild consumer trust and loyalty to store

brand by offering performance and featuresbrand by offering performance and featuresthat closely imitate leading brands andthat closely imitate leading brands andselling at lower priceselling at lower price

RETAILERS OBJECTIVE IN DIAPER CATEGORY


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u Introduce innovations in store brands

Examples:

Wal-Marts White Cloud Training Pant

Aldisdiaper with very soft cloth-like backsheet

uu Introduce innovations in store brandsIntroduce innovations in store brands

Examples:Examples:

WalWal--MartsMarts White Cloud Training PantWhite Cloud Training Pant

AldisAldisdiaper with very soft clothdiaper with very soft cloth--like backsheetlike backsheet

RETAILERS OBJECTIVE IN DIAPER CATEGORY


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u Build market share and profitability byoffering competitive diaper value

u Introduce diaper innovations that:1. respond to consumer priorities,

2. can be offered at competitive price (based

on value of innovation to consumer) and

3. significantly differentiate their diaper fromcompetitors products in the eyes of

consumers

uu Build market share and profitability byBuild market share and profitability by

offering competitive diaper valueoffering competitive diaper value

uu

Introduce diaper innovations that:Introduce diaper innovations that:1.1. respond to consumer priorities,respond to consumer priorities,

2.2. can be offered at competitive price (basedcan be offered at competitive price (based

on value of innovation to consumer) andon value of innovation to consumer) and

3.3. significantly differentiate their diaper fromsignificantly differentiate their diaper fromcompetitors products in the eyes ofcompetitors products in the eyes of

consumersconsumers

DIAPER MANUFACTURERS OBJECTIVES


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u Maintain low product cost position relativeto competitors

u Stay ahead of competitors by leadinginnovations that are significantly valued byconsumers

u Maintain broad distribution channelavailability for all SKUs

uu Maintain low product cost position relativeMaintain low product cost position relative

to competitorsto competitors

uu Stay ahead of competitors by leadingStay ahead of competitors by leading

innovations that are significantly valued byinnovations that are significantly valued by

consumersconsumers

uu Maintain broad distribution channelMaintain broad distribution channel

availability for all SKUsavailability for all SKUs

MANUFACTURERS COMPETITIVE STRATEGIES


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uOptimized acquisition, distribution andabsorbent core materials

New ADL materials: Example apertured filmsublayer

Advanced SAP grades for high SAP contentcores

New fluff pulp grades for enhanced flexibilityand softness in densified cores

Pulp-less core materials for soft and flexibleultra-thin products

uuOptimized acquisition, distribution andOptimized acquisition, distribution andabsorbent core materialsabsorbent core materials

New ADL materials: Example apertured filmNew ADL materials: Example apertured filmsublayersublayer

Advanced SAP grades for high SAP contentAdvanced SAP grades for high SAP contentcorescores

New fluff pulp grades for enhanced flexibilityNew fluff pulp grades for enhanced flexibility

and softness in densified coresand softness in densified cores PulpPulp--less core materials for soft and flexibleless core materials for soft and flexible

ultraultra--thin productsthin products

MATERIAL SUPPLIER INITIATIVES


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u Effective barrier cuffs and backing for fluidcontainment

Dual leg cuffs soft spunbonded or SMS

Nonwoven core wraps and dusting layers for

superabsorbent containment and puncture

barrier

uu Effective barrier cuffs and backing for fluidEffective barrier cuffs and backing for fluid

containmentcontainment

Dual leg cuffsDual leg cuffs soft spunbonded or SMSsoft spunbonded or SMS Nonwoven core wraps and dusting layers forNonwoven core wraps and dusting layers for

superabsorbent containment and puncturesuperabsorbent containment and puncture

barrierbarrier


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uAffordable elastics to maintain snug fit ofbarrier components to enable fluidcontainment

u Lower cost, cloth-like elastic componentscustomized to provide the specific stretchand recovery properties needed for sidepanels, belly bands, waistbands, side wings

and stretchable tabs Stretchable film/nonwoven laminates Spandex yarn/nonwoven laminates

uu Affordable elastics to maintain snug fit ofAffordable elastics to maintain snug fit ofbarrier components to enable fluidbarrier components to enable fluidcontainmentcontainment

uu Lower cost, clothLower cost, cloth--like elastic componentslike elastic componentscustomized to provide the specific stretchcustomized to provide the specific stretchand recovery properties needed for sideand recovery properties needed for sidepanels, belly bands, waistbands, side wingspanels, belly bands, waistbands, side wings

and stretchable tabsand stretchable tabs Stretchable film/nonwoven laminatesStretchable film/nonwoven laminates Spandex yarn/nonwoven laminatesSpandex yarn/nonwoven laminates



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u Soft and cloth-like fabrics

Softer spunmelt nonwovens

Lightweight and soft nonwoven/film

laminates

Improved tactile and graphic aesthetics for

cloth-like backsheets

uu Soft and clothSoft and cloth--like fabricslike fabrics

Softer spunmelt nonwovensSofter spunmelt nonwovens

Lightweight and soft nonwoven/filmLightweight and soft nonwoven/film

laminateslaminates

Improved tactile and graphic aesthetics forImproved tactile and graphic aesthetics for

clothcloth--like backsheetslike backsheets



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VALUE CAPTURE FOR MATERIAL SUPPLIERS

uHygiene suppliers participate significantly invalue capture by:

Developing materials that provide distinctivevalue by clearly differentiating a diaper inconsumers eyes

Continuing to pursue innovation whileobjectively checking potential value (cost andperformance versus competitive alternatives)at each phase of development

uu Hygiene suppliers participate significantly inHygiene suppliers participate significantly invalue capture by:value capture by:

Developing materials that provide distinctiveDeveloping materials that provide distinctivevaluevalue by clearly differentiating a diaper inby clearly differentiating a diaper inconsumers eyesconsumers eyes

Continuing to pursue innovation whileContinuing to pursue innovation whileobjectively checking potential value (cost andobjectively checking potential value (cost andperformance versus competitive alternatives)performance versus competitive alternatives)at each phase of developmentat each phase of development


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NEW JOHN R. STARR, INC. REPORTS

u

Recent Developments in Global Markets forHygiene Absorbent Products

A quarterly Market Developments Advisorypublication that reports new product and

technology developments in the absorbentproducts and related materials industry andcurrent economic indicators.

u The Evolving Nonwoven Wipes Business inNorth America and Europe Market Outlookfrom 2002 to 2008

uu

Recent Developments in Global Markets forRecent Developments in Global Markets forHygiene Absorbent ProductsHygiene Absorbent Products

A quarterlyA quarterly Market Developments AdvisoryMarket Developments Advisorypublication that reports new product andpublication that reports new product and

technology developments in the absorbenttechnology developments in the absorbentproducts and related materials industry andproducts and related materials industry andcurrent economic indicators.current economic indicators.

uu The Evolving Nonwoven Wipes Business inThe Evolving Nonwoven Wipes Business inNorth America and EuropeNorth America and EuropeMarket OutlookMarket Outlookfrom 2002 to 2008from 2002 to 2008


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NEW JOHN R. STARR, INC. STUDIES

uAdult Incontinence Market Opportunity North American and Western EuropeanOutlook 2003 to 2008(joint study of John R.

Starr, Inc., USA, and Engqvist Consulting,Switzerland, coming July 2004)

uUpdated Global Hygiene Absorbent ProductsMarket Data 2003 2008(coming August 2004)

uu Adult Incontinence Market OpportunityAdult Incontinence Market OpportunityNorth American and Western EuropeanNorth American and Western European

Outlook 2003 to 2008Outlook 2003 to 2008(joint study of John R.(joint study of John R.

Starr, Inc., USA, and Engqvist Consulting,Starr, Inc., USA, and Engqvist Consulting,Switzerland, coming July 2004)Switzerland, coming July 2004)

uu Updated Global Hygiene Absorbent ProductsUpdated Global Hygiene Absorbent Products

Market Data 2003Market Data 200320082008(coming August 2004)(coming August 2004)

idea '04 slides

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