Market Research India - Baby Care Market in India 2009

7/31/2019 Market Research India - Baby Care Market in India 2009

1/31

July2009
http://www.netscribes.com/


2/31

ExecutiveSummary

Market

TotalbabycaremarketinIndiavaluedatINR15bnin2008;EstimatedtoreachINR10.9bn

Marketdominatedbyunorganizedsectorwithorganizedsectormakingup39%oftotalmarket

Marketcomprisesoffoursegmentsbabyfood,skincare,toiletries&diapersandhaircare

Drivers&

Marketispresentlyrestrictedtourbanareasandfastexpandingtoruralareas

Drivers:

Increaseindisposableincome

Challenges:

Competitionfromcheapersubstitutes

Challenges rt rate

Increasingworkingwomenpopulation

Introductionofinnovativeproductsand

reductionin

prices

u tura aspects

RegulationsonInfantFoodPromotion

Trends ntro uct ono organ c a ypro uct

Introductionofpremiumrangeofbabycareproducts

Expansionofmarketinruralareas

Johnson&

Johnson

is

the

market

leader

in

total

baby

care

market

with

about

80%

market

share

Competition

Majorplayersindifferentsegmentsare

BabyFood SkinCare Toiletries &Diapers HairCare

Nestle Johnson&Johnson KimberlyClark Johnson&Johnson

2BABYCAREMARKET INDIA.PPT

oc ar t

Amul

pro

Godrej


3/31

MarketOverview

Trends

KeyDevelopments



4/31

BabycaremarketinIndiaisdominatedbytheunorganized

sector

TotalbabycaremarketisvaluedatINR15bn

in2008andisestimatedtoreachINR28bnb

Overview OrganizedBaby

Care

Market

Size

INR mn

2012

Risingincome

levels,

better

product

availabilityandincreasingawarenesslevelis

10,920

5,900

5,000

10,000

15,000+17%

r v ngt e a ycarepro ucts n ustry n

India

Atpresent

the

market

is

in

nascent

phase,

restricted to urban areas with tremendous OrganizedVsUnorganizedSplit

0

2008 2012

39%Organized

growthpotential

BabycareproductmarketinIndiais

dominatedbyJohnson&Johnsonwhich

61%Unorganized

enjoys80%marketshareinallcategories

exceptmassageoilanddiapers



5/31

Babyfoodisthelargestsegment

Segment Size(2008)Products Penetration

PC INR2280

BabyMilk

Bab cereals

Gaming mn

BabySnacks

Soap

SkinCareINR1840

mn

Powder

Creams

Lotions

Toiletries&

Diapers

INR1530

mn

Diapers

Wipes

BabyWash(liquid)

HairCareINR250

mn

HairOil

Shampoos


High Medium Low


6/31

BabyfoodsegmentisdominatedbyNestlewhileJohnson&

Johnsondominatestheskincaresegment

Babyfoodmarketcomprisesofproductslike

babymilk,cerealsandsnacks

BabyFood

Market Market

Size

and

Growth

INRmn

InIndiathebabyfoodindustryisgovernedby

InfantMilk

Substitutes

(IMS)

Act

BabyfoodIndustryisdominatedbyNestleand

4,686

2,2802,000

4,000

6,000 +20%

0

2008 2012

Marketcomprisesofproductssuchassoaps,

massageoil,powder,creams,andlotions

Ma or

la ersin

this

se ment

includes

3,2204,000

+15%

INR mn

Johnson&Johnson(J&J),Wipro,DaburIndia

andJLMorrison(India)

Productslikesoapandmassageoilhavehigh

1,840

0

2,000


2008 2012


7/31

KimberlyClarkleadsintoiletriesanddiaperssegmentwhile

Johnson&Johnsondominatesthehaircaresegment

Marketcomprisesofproductssuchas wipes

anddiapers

BabyToiletries

&

Diapers

Market Market

Size

and

Growth

INR mn

Disposablediapermarketisatanascentstage,

withextremely

low

consumption

Leadingplayersinthissegmentinclude

,

1,530

1,000

2,000

,

,

MajorityofDiaperbrandsareimported 02008 2012

Marketcomprisesofproductssuchashairoil

andshampoos

Leadin

la ersin

this

se ment

include

340400 +8%

INR mn

Johnson&Johnson250

100

200


2008 2012


8/31

MarketOverview

Trends

KeyDevelopments



9/31

Drivers&Challenges

Challenges

Drivers

IncreaseinDisposableIncome

Availabilityofcheapersubstitutes

Culturalaspects

BirthRate

IncreasingWorkingWomen

Population

RegulationsonInfantFoodPromotion

IntroductionofInnovativeProducts



10/31

IncreaseindisposableincomehasempoweredIndianparentsto

spendmoreonbabycareproducts

Witheconomicgrowthdrivingincomes,thepurchasingpowerwillincreasesignificantlyacross

allconsumergroupscreatingoneofthelargestconsumergroupsglobally

Increasein

disposable

income Impact

MajorityoftheIndianfamiliesdontconsiderbabyproductsasanessentialitemandprefer

usinghomemadefoodandadultpersonalcareproductsfortheirbabies.Butwiththeincrease

indisposableincome,themiddleandupperclasseswillbewillingtospendmoreontheirnew

borns

90

AggregateAnnualDisposable

Income(INRtn)

Perhouseholdannual

income(INR000)

Coretarget3%

281

TotalNo.ofHousehold(mn)

44

24%

23%

15%

Strivers

Globals

u

groups

>1000

5001000

2071%2%

23%

43%

12%

34%1%1%5%

44%

2015

34%

15%

3%

2025

7%13%49%

23%

24

2005

34%

33%

9%

Deprived

Aspirers 9%90200


11/31


12/31

Workingwomenarekeytargetsegmentforthisindustry

About17%oftheIndianwomenareworkingmakingup

31%oftheIndianworkforce

IncreasingWorking

Women

Population Impact

60%ofallMetrohomes

30%oftheITworkforce

Almost80%

of

urban

working

women

work

6days

aweek

and

90%

of

them

are

in

regular

full

timejobs

arespendingmoreonbabycareproducts

Disposablediapersareofferconvenienceandeaseofuse,theycanbedisposedoffin trashwhenthey're

usedand

they

eliminate

the

need

to

maintain

extra

laundry

thus

offering

savings

in

terms

of

time

Workin womeninITsector Meantimes entonchildcare

2,2372,1101,6212,000

3,000

0004.2

3.9

2

3

4

5

421

0

1,000

2008-09e2007-082006-07

1.1.

0

1

RuralUrban

Non- Working Mothers


Women Employees

Working Mothers


13/31

Reductioninpricesandintroductionofinnovativeproducts

drivingthegrowthinbabycaremarket

InnovationindiapershashelpedindrivinggrowthinbabycaremarketinIndia

KimberlyClarkLeverPvtLtd(KCL)isofferingitsDriFitdiaperswith50% moreabsorbentmaterialusing

Introductionof

New

Products

and

Reduction

in

Prices Impact

supera sor en ma er a or s ugg es ran

TheNewHuggiesdiapersnotonlyabsorbsmorebutalsolastslonger

KCLhas

innovated

with

cheaper

variants

of

diapers

in

the

form

of

Nappi

pads

which

can

be

inserted

inside

theclothnappies

DiaperswhenlaunchedinIndiawaspricedatapremiummakingtheproductbeyondthereach

ofmanycustomers

Reductioninpricesofdiapershasledtoexpansionofdiapersegment

Priceof

Diaper

per

piece

2020

-50%

INR

0

10

1987 2008



14/31

Competitionformcheapersubstitutesandculturalaspects

impedeindustrygrowth

Disposablediapersarestillnotaffordableasthemanufacturingrequireshugecapitalandhigh

endtechnology

Competitionfrom

Cheaper

Substitutes Impact

InIndia,costofdiapersareveryhighinrelationtothecostoflabor

Sixdiapersperdayonakid costINR 4060perdayworkingouttobeINR1200to2000permonthon

diapersalone.

That

is

amajor

expense

for

amiddle

class

family

Itisstillpossibletohireamaidat acostlessthanINR4800permonth

ManyIndianparents,inordertosavecost,usetheirownpersonalcareproductsforbabiesthus

restrictingthegrowthofbabycareproductsmarket

Indianconsumer,ingeneral,hasanattitudinalbarriertowardsdisposables,whichisoneofthe

mainimpedimentsinthegrowthofthismarket

Indianmothersarecostconsciousandpreferrecyclingmostoftheproductsusedforhousehold.Thesame

.

Manyparentsbelievethatclothdiapersarebetterchoiceanddoesnotcauseanyrashes

Disposablediapers'usageismainlyrestrictedtooutofhomeoccasions

Inbabyfoodsegmentalso,manyparentspreferfeedingbabieswithhomemadefoodrather



15/31

Regulationsonmarketingandpromotionofinfantfoodhinder

thegrowthofbabyfoodsegment

InIndia,marketingofbabymilkandotherinfantfoodproductsisrestricted

Regulationson

Infant

Food

Promotion Impact

InfantMilkSubstitutes,FeedingBottlesandInfantFoodsAct

Actdefines

infant

milk

substitute

as

any

food

being

marketed

or

otherwise

represented

as

apartialortotalreplacementformothersmilk, forinfantuptotheageoftwoyears

ActProhibitstheadvertisementofinfantmilksubstitutesandfeedingbottles

Actprohibitsmanufacturersfromusing healthcaresystemfordistributionor promotionof

theinfantmilksubstitutesorfeedingbottlesorinfantfoods

Actmakesitmandatoryformanufacturertodisplay:

Astatementmothersmilkisbestforyourbabyincapitalletters

awarningthatinfantmilksubstituteorinfantfoodisnotthesolesourceofnourishmentofaninfant

Instructionsfor appropriatepreparation&warningagainstconsequencesofinappropriatepreparation



16/31

Trends

Market

Overview

Trends

KeyDevelopments



17/31

IntroductionofOrganicBabyProducts

`

TrendsIntroductionofpremiumrangeofbabycareproducts



I d i f i b b d h h l d i


18/31

Introductionoforganicbabycareproductshashelpedin

expandingthescopeofthemarket

ManybabyproductmanufacturersareofferingorganicbabyproductsinIndia

Organicbabyproductsaresimilartotheregularones,exceptthatnochemicalfertilizers,

Introductionof

Organic

Baby

Products

Or anic babpesticides,preservatives,antibiotics,hormonesandothersareusedwhileproducing them

Company Products

AdityaBirlaGroup Puretta,100%naturalandbiodegradablebabycarewipes

careproductsin

demand

Wipesarealcoholfree,hygienic,hypoallergenicanddermatologicallytested

Wipesaremade fromCellulose,a100%naturalandbiodegradablefibre,itsoothes

thebabystenderskinwithitssoftandnaturefriendlyproperties

Emami Rangeofproductsmanufacturedusing naturalingredientssuchasneem,aloevera,, , , ,

chemicals

Kruter Rangeofherbalbabycareproducts

Herbalbabycareproductsarepriced10 15%higherthannonherbalproducts

Toensure

the

quality

of

its

products,

the

company

sources

70%

of

its

raw

materials

fromitsownfarmsinManesar,Najafgarhandafewotherlocations

PristineOrganics Theorganicbabyfoodsaresoldunderthebrandname'FirstBites.'

Theseincludemilkcerealandmultigrainproductsvarieties

Thebabyfoodcontainsnopreservativesoradditives


Pl i t d i i f d t d f i


19/31

Playersintroducingpremiumrangeofproductsandfocussingon

ruralareasforgrowth

InternationalbrandssuchasAvent,NubyandTenderilsareplanningtointroducespecialized

premiumbabycareproductsintheIndianmarket

Introductionof

Premium

range

of

Baby

Care

Products

Premium

roducts Nubyisplanningtolaunch 25premiumproductsunderthebrandNubyNaturalTouchinthe

Indianmarket

Consumerelectronics

and

lifestyle

products

company

Philips,

is

planning

to

launch

its

Avent

brandwithspecializedmotherandbabycareproductsinIndianextyear

broadeningthe

scopeofthe

market

liketheUK,US,SpainandItaly

AboutthreequartersoftheIndianpopulationresideintheruralareas


Indianruralmarketisgrowingat34%p.a.,addingmorethan1mnnewconsumerseveryyear

RuralIndia accountsforalmost50%ofthevolumeconsumptionoffastmovingconsumergoods

inIndia

ManyBabyCareProductmanufacturersaretargetingruralareasforfurthergrowth:

Market

expandingto

Dabur,isbankingonthecountrysruralandsemiurbanareasforgrowthinthebabycaresegment

Daburhasthreeproductsinitsportfolio,whichincludes DaburLalTel,whichhasanoverallmarketshareof

over25%

Daburisplanningtoincreaseitsspendinruralareasby15to20%inFY2010

Emamiis lannin toim roveitsfootholdinruralareasinthebab careran e



20/31

Market

Overview

Trends

KeyDevelopments



21/31

BabycaremarketisdominatedbyJohnson&Johnson

0thers

13%

Johnson&Johnsonisthemarketleaderintotalbaby

caremarketwithabout80%marketshare

CompetitionOverview Market

Share

Overall

7%Theleadingbrandsinthebabyfoodmarketincludes

NestleCerelacandNestum,WockhardtsFarex

Inbaby

toiletries

segment,

the

diapers

are

primarily

dominatedbyimportedbrands

Johnson and Johnson

ar etcompr seso ma n yur anareas owever

babyproductcompaniesarenowfocusingonrural

areas

MarketShare

Baby

Food

Market Market

Share

Diapers

Wockhardt

15%

Others

5%

Snuggy ( Godrej)

10%

Nestle

80%

Huggies (Kimberly Clark)

60%



22/31

Players(1/7)

CompanyName

Food

Skin

Care Toiletries Hair

Care Business

Description

Actifit ThecompanyisbasedinMumbai

Thecompany manufacturesandexports,babydiapers,adultdiapersandotherhygieneproducts

Amul Itmanufacturesbaby milkpowderwhichissoldunderthebrandnameAmulspray

Amulisplanningtoincreaseitsproductioncapacityitis

planningtosetupadditionalprocessingfacilitiesinDelhi

andMumbai

Dabur's bab ran e of roducts made with A urvedic herbs

andplantextracts

BabyproductsincludeDaburLalTel,JanmaGhuntiand

GripeWater

Daburis

targeting

rural

areas

for

expansion

FinancialPerformance:

Thecompanyreportedtotalincome ofINR3.16bnanda

netlossofINR777mninFY09


Note:Thislistisnotexhaustive


23/31

Players(2/7)

CompanyName

Food

Skin


Care Business

Description

Emami ItmarketsitsproductsunderthebrandnameTheHealthyandFair

ItenteredtheBabyCaresegmentinJune2009

In firstphaseithaslaunchedoil,soapsandtalcumpowder

Insubsequentphaseitwilllaunchcreams,lotions&

shampoos

Itsofferingsarepriced35%lesserthanitscompetitors

ThecompanyislookingtogarnerINR11.20bnfrombaby

caresegmentinnext34years


ItrecordedatotalincomeofINR6.04bnandnetprofitof

INR927mninFY08

Godrej GodrejmanufacturesdiapersunderthebrandnameSnuggy

It

lansto

extend

the

brand

to

other

bab

care

roducts

Financialperformance:

ReportedtotalincomeofINR9.2bninFY09andanetprofit

ofINR186.8mninFY09




24/31

Players(3/7)

CompanyName

Food

Skin


Care Business

Description

Hygiene

WearIntl

ItmarketDiapersunderthebrandnameKoochees

Itmanufacturesdiapersthroughajointventurebetween

HygieneWearInternationalandBracoManufacturing

Company,USA

ThecompanyisbasedinIndore

Infantino CompanyisbasedinChennai

ItmarketsitsproductsunderthenameAnakkubrand

Johnsonand

Itestablished

and

R&D

centre

in

Mumbai

in

April

2009

(J&J)

.

Thewebsiteistargetedatexpectantandnewmothersand

coversaspectsrangingfromthevariousstagesofpregnancy

tocaringofinfants.


ThecompanyrecordedtotalsalesofINR3060bnandanet

profitofINR622bninFY08




25/31

Players(4/7)

CompanyName

Food

Skin


Care Business

Description

JLMorrison ThecompanyisbasedinNewDelhi

JLMorisonIndiamarketsitsproductsunderbrandname

MorisonBabyDreams

ItsproductsincludeBabyoil,nappycream,soothing

powder,nourishingbathsoapandmoisturizingbabybath

Thecompanywas erstwhilelicenseeoftheNiveabrand

Kimberly

Clark Lever

Itisa50:50JointVenturebetweenKimbelyClarkand

Unilever

It

Sells

Diapers

under

brand

name

HuggiesThecompany hasinnovatedwithcheapervariantsinthe

formofNappipads

Thecompanyhasinnovatedits DriFitdiaperswith50%

moreabsorbentmaterialusingsuperabsorbentmaterial

Itis

aMumbai

based

com an

Pharmaceuti

cals

It hassignedanexclusivelicensingagreementwith Disney

ConsumerProductsinFebruary2009

Undertheagreement,itmarkets Symlerangeofbabycare

productsofthe DisneyBabybrand




26/31

Players(5/7)

CompanyName

Food

Skin


Care Business

Description

Marico ItenteredbabycaremarketinSeptember2005withtheintroductionofSparshbabyoil


Itrecordedatotalsalesof INR19.02bnandnetprofitof

INR1.43bninFY09

Nestle Itmarketsitsproductsunderthebrandnames

NidoandLactogen formilk

CerelacandNestumfor cereals

In

2003

Nestle

launched

Nestle

Development

Nutrition

Plan

forinfantsandhaslauncheditsinfantfoodsgradedtotheneedsofinfantsineachstageoftheplan

Financialperformance:

ItrecordedtotalincomeofINR43.89bnandnetprofitof

INR5.34bninFY08

Nobel

Hygiene

ThecompanyisbasedinMumbai

ItmarketsitsdiapersunderthebrandnameTeddyy




27/31

Players(6/7)

CompanyName

Food

Skin


Care Business

Description

Nuby Companyplanstocomeupwithcomprehensiverangeofbabycutleriesandtoiletries

Companyplanstocomeupwithorganicbabyfoodproducts

ItisintheprocessofsettingupnewfacilityinNoida

Thecompanyhastiedupwithretailmajorssuchas

Spencers,BigBazaar,ApolloPharmacy,Lifestyle,Heritage

Stores forexpandingitsreach

Procter&

Gamble

IntroducedPamperbrandinIndianmarketinDecember

2006

ThemanufacturingcentreforPampersisbasedinBangkok.

Diapersareavailablein3sizes

Thecompanyisplanningtoorganizedoortodooreffortsfor

consumereducation andorganizeeventswiththemedical

community


Thecompanyreportednet salesofINR6,450mnandnet

profitofINR1,314mn inFY08




28/31

Players(7/7)

CompanyName

Food

Skin


Care Business

Description

Raptakos,

Brett&Co.

ItisbasedinMumbai

ItmarketsitsinfantmilkunderthebrandnameLactodex

Wockhardt In2006itacquiredDumexIndiaPvtLtdalongwithitstwo

productsProtinex

and

Farex

ItalreadyownsDexolac,NusobeeandFirstfoodbrands

ItplanstolaunchFarexindifferentflavours

Wipro

Babysoft

WiproMarketsitsproductsDiapers,Soaps,oil,Talcum

Powderunder

brand

name

of

Babysoft

InordertobuilditsbrandWiproBabySofthaslaunchedan

informationprograminhospitals,providingvaluable

informationonpregnancy,childbirthandbabycarethrough

theuse

of

osters

and

leaflets.

It

is

also

s onsorin

re ular

'HealthyBabyContests'atretailoutletsFinancialPerformance:

ItrecordedtotalrevenuesofINR254bnandnetprofitof

INR34,415inFY09




29/31

Market

Overview

Trends

GovernmentRegulations

KeyDevelopments



30/31

KeyDevelopments

Date Development 17Jun2009 Emamilauncheditsayurvedic`Healthy&Fair'rangeofbabycareproducts

,

8 April2009 MahindraRetaillaunchedits"MomandMe"store,whichspecialisesinproductsrelatedtoinfantand

maternitycare,

in

the

national

capital

region

28Feb2009 ManeeshPharmaceuticalsLtd(MPL)hassignedanexclusivelicensingagreementwith DisneyConsumerPro ucts.Un ert eagreement,MPLwi mar etitsSym erangeo a ycarepro uctsunderthe DisneyBabybrand.The Babyrangeincludesoil,soap,babymassageoil,bath,shampoo,talcpowder,wetwipesandlotion

28Feb

2009 Johnson and Johnson, has launched 'Top

to

Toe' wash for the new born infants. The product prevents

',

maintained even after the bath



31/31

ThankyouforyourtimeForanupdatedreportoranycustomizedresearchrequirements,pleasecontact:

GauravKumar

EMail: [email protected];[email protected]

NetscribesServices:

Phone: +913340646214;+919830309715

InvestmentResearch

EnterpriseMarketResearch

PatentResearch

MarketMonitoring&Competitive

Intelligence

Sales&

Prospect

Intelligence

SocialMediaMarketing

MarcomSupportServices

ContentManagement

Services

yn ca e ar e esearc s en ng e a on or ng

BrandSurveillance

oo ac ag ng erv ces

Forfurtherdetails,visitusat:www.netscribes.com

AboutNetscribesNetscribessupportstheorganicandinorganicgrowthobjectivesofglobalcorporationsthroughacombinationofEnterpriseMarket,Investment&PatentResearch,Market&SalesIntelligence,SocialMediaMonitoring&ManagementandCustomPublishingsolution.

.however,Netscribes,Inc.orNetscribesisnotresponsibleforanylossordamagearisingfromuseofthisdocument.ThisdocumentisthesolepropertyofNetscribesandpriorpermissionisrequiredforguidelinesonreproduction.

Documents

Market Research India - Baby Care Market in India 2009