cmr baby diapers report 2016

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

Integrity | Insights | Independence | Excellence

Cyber Media Research Ltd. An ISO 9001: 2008 Company

BABY DIAPERS

Copyright 2011 Cyber Media Research Ltd. Reproduction is forbidden unless authorized. All rights reserved. 2 Copyright 2016 Cyber Media Research. Reproduction is forbidden unless authorized. All rights reserved. 2

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%


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:


COST CONVENIENCE COMFORT SUCCESS

Value Proposition in India

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


India: Market Share

56%

2013


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


India: Market Share Breakdown

34% 57%

17% 3% Others


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


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


Taped Diapers

Diaper Pants Swim Diapers

India: Diaper Types

Cloth Diapers

Sizes: S, M, L and XL.

Prices (in INR): 270 to 2000


India: Competitive Landscape

MARKET L EADERS

PR I VATE L ABE L S

ECO -‐ FR I ENDLY BRANDS

OTHER BRANDS


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.


India: Key Influencers

Family and Friends

TV Adver7sements

Internet: Social Media and Websites

Paren7ng Magazines


The key influencers driving diaper sales in India include:


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.


India: Diaper Capacity Expansions


India: Diaper Market Forecast


2016 2018 2020

[In US $/Million]

2017 2019

CAGR 21%


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 what’s 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.


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:

Business Channel Partner Ecosystem Research

User and Demand-‐side Research

Industry VerUcals / Business Domain Research Informa7on Technology * Telecommunica7ons *

Semiconductor & Electronics * * Life sciences * Government

Industry ConsulUng and Advisory Services

Go-‐To-‐Market Services


Prabhu Ram

E: [email protected]

M: +91-‐9899440380

CMR INDUSTRY CONSULT ING PRACT ICE

Contact

Apalak Ghosh

E: [email protected]

M: +91-‐9971548392

P: +91 124 482 2222 Extn: 162

cmr baby diapers report 2016

Lifestyle