The diaper industry is no longer worthy of novice entry?Vietnam Sanitary napkin machinery
In the past, the diaper industry was regarded as a stable and profitable business because of its low barriers to entry and high profit margins. Especially in 2015 -2017, many enterprises rushed to enter the market regardless of whether they were involved in the maternal and child industry or not, and there was a surge in the diaper industry. However, nowadays, with the shrinking diaper market and the acceleration of industry reshuffle iteration, the first to go out is the ticket-playing players. In the past two years, we can clearly feel that the diaper craze has cooled down significantly, and the number of novice players has decreased significantly.
It is worth noting that since 2019, the domestic birth rate has dropped significantly, and the reduction of diaper users not only means that new players will face a more severe market environment, but also poses higher challenges to the development and growth of existing enterprises.
At the same time, the brand pattern of diapers has also changed. On the one hand, the situation of head foreign brands in China continues to change, among which the market share of Kao, which used to have great influence in China, is declining year by year, while the curiosity of foreign-funded enterprises has broken through the shackles of “the second child in ten thousand years”. Many practitioners tell us that by integrating online and offline channels, the curious sales have surpassed Pampers in 2021, and it has successfully topped the domestic diaper market. On the other hand, domestic brands have also accelerated their rise, winning the favor of consumers with excellent quality and innovative technology while gradually increasing their market share. According to the market intelligence data of Magic Mirror, from January to December, 2021, the sales of domestic brands such as Beaba, BabyBean, Yiying, etc. Although the concentration of diapers is not as good as that of milk powder, with the accelerated change of the industry, the siphon effect of the head becomes more and more obvious.
In addition to the brand structure, the sales channels of diapers have also accelerated, and the online trend is obvious. According to the data released by Nielsen, as of June 2021, the online sales of baby diapers accounted for more than 50%, and the online growth rate was not low. The online trend continues to impact the brand structure, and the offline channels of the diaper industry are also in constant price wars. With the shrinking market scale, the low-end brands, mainly in the third-and fourth-tier cities, have to take low prices as a killing advantage in order to compete for market share, further lowering the product profits and disrupting the market order.
As far as diaper brands are concerned, the fierce competition in the industry is not only due to the continuous changes in brand and channel pattern, but also the drastic changes in the upstream market, which is a headache for them. It is reported that after the epidemic in 2020, upstream raw materials such as paper pulp, non-woven fabrics, polymer water-absorbent resin, etc. have risen in price many times, and problems such as shortage of raw materials and narrowing of profits have followed, which has accelerated the elimination of small and medium-sized diapers. In order to stabilize the market position and avoid losing consumers due to product price increases, big brands will also invest more cost funds.
Post time: Jul-17-2022