Professional Documents
Culture Documents
July2009
ExecutiveSummary
TotalbabycaremarketinIndiavaluedatINR15bnin2008;EstimatedtoreachINR10.9bn Marketdominatedbyunorganizedsectorwithorganizedsectormakingup39%oftotalmarket Marketcomprisesoffoursegmentsbabyfood,skincare,toiletries&diapersandhaircare Marketispresentlyrestrictedtourbanareasandfastexpandingtoruralareas
Market
Drivers:
Challenges:
Competitionfromcheapersubstitutes C l Culturalaspects l RegulationsonInfantFoodPromotion
Drivers& Challenges
Trends
Competition
HairCare Johnson&Johnson
BABYCAREMARKET INDIA.PPT
BABYCAREMARKET INDIA.PPT
BabycaremarketinIndiaisdominatedbytheunorganized sector
Overview
TotalbabycaremarketisvaluedatINR15bn y in2008andisestimatedtoreachINR28bnby 2012 Risingincomelevels,betterproduct availabilityandincreasingawarenesslevelis drivingthebabycareproductsindustryin di i h b b d i d i India Atpresentthemarketisinnascentphase, restrictedtourbanareas,withtremendous restricted to urban areas, with tremendous growthpotential BabycareproductmarketinIndiais dominatedbyJohnson&Johnsonwhich enjoys80%marketshareinallcategories exceptmassageoilanddiapers
OrganizedBabyCare MarketSize
INR mn
15,000
+17%
10,000 5,900 5,000 0
10,920
2008
2012
OrganizedVsUnorganizedSplit
Organized
39% 61%
Unorganized
BABYCAREMARKET INDIA.PPT
Babyfoodisthelargestsegment
Segment PC BabyFood Baby Food Gaming Products BabyMilk Babycereals Baby cereals BabySnacks Soap MassageOil Massage Oil SkinCare Powder Creams Lotions BabyWash(liquid) Toiletries& Diapers HairCare Diapers Wipes HairOil Shampoos
Medium Low
Penetration
Size(2008) INR2280 mn
INR1840 mn
INR1530 mn INR250 mn
High
BABYCAREMARKET INDIA.PPT
BabyfoodsegmentisdominatedbyNestlewhileJohnson& Johnsondominatestheskincaresegment
BabyFoodMarket
Babyfoodmarketcomprisesofproductslike babymilk,cerealsandsnacks InIndiathebabyfoodindustryisgovernedby InfantMilkSubstitutes(IMS)Act BabyfoodIndustryisdominatedbyNestleand Wockhardt
MarketSizeandGrowth
INRmn
+20%
4,686
2,280
2012
+15%
1,840
3,220
2,000
2008
2012
BABYCAREMARKET INDIA.PPT
KimberlyClarkleadsintoiletriesanddiaperssegmentwhile Johnson&Johnsondominatesthehaircaresegment
BabyToiletries&DiapersMarket
Marketcomprisesofproductssuchaswipes anddiapers Disposablediapermarketisatanascentstage, withextremelylowconsumption Leadingplayersinthissegmentinclude KimberlyClark,P&GandGodrej Kimberly Clark P&G and Godrej MajorityofDiaperbrandsareimported
MarketSizeandGrowth
INR mn
3,000 3 000 2,000 1,000 0 1,530
+15%
2,670 2 670
2008
2012
+8%
340
2008
2012
BABYCAREMARKET INDIA.PPT
BABYCAREMARKET INDIA.PPT
Drivers&Challenges
Challenges Drivers i
IncreaseinDisposableIncome BirthRate IncreasingWorkingWomen Population IntroductionofInnovativeProducts Availabilityofcheapersubstitutes Culturalaspects RegulationsonInfantFoodPromotion
BABYCAREMARKET INDIA.PPT
IncreaseindisposableincomehasempoweredIndianparentsto spendmoreonbabycareproducts
Increaseindisposableincome
Witheconomicgrowthdrivingincomes,thepurchasingpowerwillincreasesignificantlyacross allconsumergroupscreatingoneofthelargestconsumergroupsglobally MajorityoftheIndianfamiliesdontconsiderbabyproductsasanessentialitemandprefer usinghomemadefoodandadultpersonalcareproductsfortheirbabies.Butwiththeincrease indisposableincome,themiddleandupperclasseswillbewillingtospendmoreontheirnew borns
TotalNo.ofHousehold(mn)
281 207 5% 1% 1% 44% 244 2% 1% 23% 3% 12% 34%
Impact
Perhouseholdannual income(INR000)
AggregateAnnualDisposable Income(INRtn)
90 24% 23% 44 15% 24 13% 49% 23% 2005 9% 7% 34% 33% 9% 2015 9%
43% 33%
49%
30% 2015
18% 2025
2005
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Increasingbirthratehasledtoanincreaseindemandforbaby careproducts
Birthrate
Indiahasabout25%moreinfantsthanChinaandalmostsixtimesmorebabiesthantheUS ThoughIndianbirthratereducedslightlyin2008,Indianparentsarespendingmoremoneyon theirchildrencomparedtotheirearliergenerations Numberofbabies
India China Indonesia USA Pakistan
0 50 359.6 270.1 67.5 60.9 60.8 100 150 200 250 300 350
Impact
mn 400
%
30 20 10 0 23.28 22.32
Birthrates
22.32 22.01 22.69 22.22
2003
2004
2005
2006
2007
2008
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Workingwomenarekeytargetsegmentforthisindustry
IncreasingWorkingWomenPopulation
About17%oftheIndianwomenareworkingmakingup
31%oftheIndianworkforce 60%ofallMetrohomes 30%oftheITworkforce
Impact
Almost80%ofurbanworkingwomenwork6daysaweekand90%ofthemareinregularfull timejobs Steady increase in the working women have helped the baby care industry as working mothers Steadyincreaseintheworkingwomenhavehelpedthebabycareindustryasworkingmothers arespendingmoreonbabycareproducts
Disposablediapersareofferconvenienceandeaseofuse,theycanbedisposedoffintrashwhenthey're usedandtheyeliminatetheneedtomaintainextralaundrythusofferingsavingsintermsoftime
WorkingwomeninITsector g
000
3,000 2,110 2,000 1,621 2,237
Meantimespentonchildcare p
5 4 3 3.9 4.2
1,000
421
563
671
2 1
1.3 13
1.1
0 2006-07
2007-08
Total Employees Women Employees
2008-09e
Urban
Rural
Non- Working Mothers Working Mothers
BABYCAREMARKET INDIA.PPT
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Reductioninpricesandintroductionofinnovativeproducts drivingthegrowthinbabycaremarket
IntroductionofNewProductsandReductioninPrices
InnovationindiapershashelpedindrivinggrowthinbabycaremarketinIndia
KimberlyClarkLeverPvtLtd(KCL)isofferingitsDriFitdiaperswith50%moreabsorbentmaterialusing superabsorbentmaterial(SAM)foritsHuggiesbrand b b t t i l (SAM) f it H i b d TheNewHuggiesdiapersnotonlyabsorbsmorebutalsolastslonger KCLhasinnovatedwithcheapervariantsofdiapersintheformofNappipadswhichcanbeinsertedinside theclothnappies
Impact
1987
2008
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Competitionformcheapersubstitutesandculturalaspects impedeindustrygrowth
CompetitionfromCheaperSubstitutes
Disposablediapersarestillnotaffordableasthemanufacturingrequireshugecapitalandhigh endtechnology InIndia,costofdiapersareveryhighinrelationtothecostoflabor
SixdiapersperdayonakidcostINR4060perdayworkingouttobeINR1200to2000permonthon diapersalone.Thatisamajorexpenseforamiddleclassfamily ItisstillpossibletohireamaidatacostlessthanINR4800permonth
Impact
Cost conscious parents often use cloth diapers in the day and non woven diapers in the night Costconsciousparentsoftenuseclothdiapersinthedayandnonwovendiapersinthenight ManyIndianparents,inordertosavecost,usetheirownpersonalcareproductsforbabiesthus restrictingthegrowthofbabycareproductsmarket
Impact
Inbabyfoodsegmentalso,manyparentspreferfeedingbabieswithhomemadefoodrather thanbuyingbabyfoodproductsfromthemarket than buying baby food products from the market
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Regulationsonmarketingandpromotionofinfantfoodhinder thegrowthofbabyfoodsegment
RegulationsonInfantFoodPromotion
InIndia,marketingofbabymilkandotherinfantfoodproductsisrestricted Babyfoodmanufacturershavetoadheretotheregulationslaiddownunder The Baby food manufacturers have to adhere to the regulations laid down under The InfantMilkSubstitutes,FeedingBottlesandInfantFoodsAct
Actdefinesinfantmilksubstituteasanyfoodbeingmarketedorotherwiserepresentedas apartialortotalreplacementformothersmilk, forinfantuptotheageoftwoyears ActProhibitstheadvertisementofinfantmilksubstitutesandfeedingbottles Actprohibitsmanufacturersfromusinghealthcaresystemfordistributionorpromotionof theinfantmilksubstitutesorfeedingbottlesorinfantfoods Actmakesitmandatoryformanufacturertodisplay:
Astatementmothersmilkisbestforyourbabyincapitalletters awarningthatinfantmilksubstituteorinfantfoodisnotthesolesourceofnourishmentofaninfant Instructionsforappropriatepreparation&warningagainstconsequencesofinappropriatepreparation
Impact
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Trends
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IntroductionofOrganicBabyProducts
Trends
Introductionofpremiumrangeofbabycareproducts
Expansionofmarketinruralareas
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Introductionoforganicbabycareproductshashelpedin expandingthescopeofthemarket
IntroductionofOrganicBabyProducts
ManybabyproductmanufacturersareofferingorganicbabyproductsinIndia Organicbabyproductsaresimilartotheregularones,exceptthatnochemicalfertilizers, pesticides,preservatives,antibiotics,hormonesandothersareusedwhileproducingthem Company
AdityaBirlaGroup
Products
Puretta,100%naturalandbiodegradablebabycarewipes Wipesarealcoholfree,hygienic,hypoallergenicanddermatologicallytested WipesaremadefromCellulose,a100%naturalandbiodegradablefibre,itsoothes thebabystenderskinwithitssoftandnaturefriendlyproperties Rangeofproductsmanufacturedusingnaturalingredientssuchasneem,aloevera, honey,saffron,gold,silver,almondandoilusingayurvedicrecipesasopposedto honey saffron gold silver almond and oil using ayurvedic recipes as opposed to chemicals Rangeofherbalbabycareproducts Herbalbabycareproductsarepriced10 15%higherthannonherbalproducts Toensurethequalityofitsproducts,thecompanysources70%ofitsrawmaterials fromitsownfarmsinManesar,Najafgarhandafewotherlocations Theorganicbabyfoodsaresoldunderthebrandname'FirstBites.' Theseincludemilkcerealandmultigrainproductsvarieties Thebabyfoodcontainsnopreservativesoradditives
Emami
Kruter
PristineOrganics
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Playersintroducingpremiumrangeofproductsandfocussingon ruralareasforgrowth
IntroductionofPremiumrangeofBabyCareProducts
InternationalbrandssuchasAvent,NubyandTenderilsareplanningtointroducespecialized premiumbabycareproductsintheIndianmarket Nubyisplanningtolaunch25premiumproductsunderthebrandNubyNaturalTouchinthe Indianmarket ConsumerelectronicsandlifestyleproductscompanyPhilips,isplanningtolaunchitsAvent brandwithspecializedmotherandbabycareproductsinIndianextyear
The brand includes products ranging from milk bottles to skin care range and is currently sold in countries Thebrandincludesproductsrangingfrommilkbottlestoskincarerangeandiscurrentlysoldincountries liketheUK,US,SpainandItaly
Expansionofmarketinruralareas
AboutthreequartersoftheIndianpopulationresideintheruralareas Indianruralmarketisgrowingat34%p.a.,addingmorethan1mnnewconsumerseveryyear RuralIndiaaccountsforalmost50%ofthevolumeconsumptionoffastmovingconsumergoods inIndia ManyBabyCareProductmanufacturersaretargetingruralareasforfurthergrowth:
Dabur,isbankingonthecountrysruralandsemiurbanareasforgrowthinthebabycaresegment Daburhasthreeproductsinitsportfolio,whichincludesDaburLalTel,whichhasanoverallmarketshareof over25% Daburisplanningtoincreaseitsspendinruralareasby15to20%inFY2010 Emamiisplanningtoimproveitsfootholdinruralareasinthebabycarerange p g p y g
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BabycaremarketisdominatedbyJohnson&Johnson
CompetitionOverview
Johnson&Johnsonisthemarketleaderintotalbaby caremarketwithabout80%marketshare Theleadingbrandsinthebabyfoodmarketincludes NestleCerelacandNestum,WockhardtsFarex Inbabytoiletriessegment,thediapersareprimarily dominatedbyimportedbrands M k Marketcomprisesofmainlyurbanareashowever i f i l b h babyproductcompaniesarenowfocusingonrural areas
MarketShare Overall
0thers Wipro Babysoft 7% 13%
MarketShare BabyFoodMarket
Others Wockhardt 15% 5%
MarketShare Diapers
Snuggy ( Godrej) 10%
80% Nestle
Huggies (Kimberly Clark)
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Players(1/7)
CompanyName Food SkinCare Toiletries HairCare BusinessDescription
Actifit
ThecompanyisbasedinMumbai Thecompanymanufacturesandexports,babydiapers, adultdiapersandotherhygieneproducts Itmanufacturesbabymilkpowderwhichissoldunderthe brandnameAmulspray Amulisplanningtoincreaseitsproductioncapacityitis planningtosetupadditionalprocessingfacilitiesinDelhi andMumbai Dabur's baby range of products made with Ayurvedic herbs Dabur sbabyrangeofproductsmadewithAyurvedicherbs andplantextracts BabyproductsincludeDaburLalTel,JanmaGhuntiand GripeWater g g p Daburistargetingruralareasforexpansion FinancialPerformance: ThecompanyreportedtotalincomeofINR3.16bnanda netlossofINR777mninFY09
Amul
Dabur Dabur
22
Players(2/7)
CompanyName Food SkinCare Toiletries HairCare BusinessDescription
Emami
ItmarketsitsproductsunderthebrandnameTheHealthy andFair ItenteredtheBabyCaresegmentinJune2009 Infirstphaseithaslaunchedoil,soapsandtalcumpowder Insubsequentphaseitwilllaunchcreams,lotions& shampoos Itsofferingsarepriced35%lesserthanitscompetitors ThecompanyislookingtogarnerINR11.20bnfrombaby caresegmentinnext34years FinancialPerformance: ItrecordedatotalincomeofINR6.04bnandnetprofitof INR927mninFY08 GodrejmanufacturesdiapersunderthebrandnameSnuggy p y p Itplanstoextendthebrandtootherbabycareproducts Financialperformance: ReportedtotalincomeofINR9.2bninFY09andanetprofit ofINR186.8mninFY09
Godrej
23
Players(3/7)
CompanyName Food SkinCare Toiletries HairCare BusinessDescription
Hygiene WearIntl
ItmarketDiapersunderthebrandnameKoochees Itmanufacturesdiapersthroughajointventurebetween HygieneWearInternationalandBracoManufacturing Company,USA ThecompanyisbasedinIndore CompanyisbasedinChennai p y ItmarketsitsproductsunderthenameAnakkubrand ItestablishedandR&DcentreinMumbaiinApril2009 It has a website babycenter in for promoting baby care Ithasawebsitebabycenter.inforpromotingbabycare Thewebsiteistargetedatexpectantandnewmothersand coversaspectsrangingfromthevariousstagesofpregnancy tocaringofinfants. J&JplanstointroduceanonlinestoreinitsIndianwebsite J&J plans to introduce an online store in its Indian website FinancialPerformance: ThecompanyrecordedtotalsalesofINR3060bnandanet profitofINR622bninFY08
Infantino
24
Players(4/7)
CompanyName Food SkinCare Toiletries HairCare BusinessDescription
JLMorrison
ThecompanyisbasedinNewDelhi JLMorisonIndiamarketsitsproductsunderbrandname MorisonBabyDreams ItsproductsincludeBabyoil,nappycream,soothing powder,nourishingbathsoapandmoisturizingbabybath ThecompanywaserstwhilelicenseeoftheNiveabrand Itisa50:50JointVenturebetweenKimbelyClarkand Unilever ItSellsDiapersunderbrandnameHuggies p y p Thecompanyhasinnovatedwithcheapervariantsinthe formofNappipads ThecompanyhasinnovateditsDriFitdiaperswith50% moreabsorbentmaterialusingsuperabsorbentmaterial
25
Players(5/7)
CompanyName Food SkinCare Toiletries HairCare BusinessDescription
Marico
Nestle
Nobel Hygiene
ThecompanyisbasedinMumbai ItmarketsitsdiapersunderthebrandnameTeddyy
26
Players(6/7)
CompanyName Food SkinCare Toiletries HairCare BusinessDescription
Nuby
Companyplanstocomeupwithcomprehensiverangeof babycutleriesandtoiletries Companyplanstocomeupwithorganicbabyfoodproducts ItisintheprocessofsettingupnewfacilityinNoida Thecompanyhastiedupwithretailmajorssuchas Spencers,BigBazaar,ApolloPharmacy,Lifestyle,Heritage Storesforexpandingitsreach IntroducedPamperbrandinIndianmarketinDecember 2006 ThemanufacturingcentreforPampersisbasedinBangkok. Diapersareavailablein3sizes Thecompanyisplanningtoorganizedoortodooreffortsfor consumereducationandorganizeeventswiththemedical community FinancialPerformance: ThecompanyreportednetsalesofINR6,450mnandnet profitofINR1,314mninFY08
Procter& Gamble
27
Players(7/7)
CompanyName Food SkinCare Toiletries HairCare BusinessDescription
ItisbasedinMumbai ItmarketsitsinfantmilkunderthebrandnameLactodex In2006itacquiredDumexIndiaPvtLtdalongwithitstwo productsProtinexandFarex ItalreadyownsDexolac,NusobeeandFirstfoodbrands Wochardt plans to reposition the Farex brand WochardtplanstorepositiontheFarexbrand ItplanstolaunchFarexindifferentflavours WiproMarketsitsproductsDiapers,Soaps,oil,Talcum PowderunderbrandnameofBabysoft It launched an economy range of diapers in June 2008 ItlaunchedaneconomyrangeofdiapersinJune2008 InordertobuilditsbrandWiproBabySofthaslaunchedan informationprograminhospitals,providingvaluable informationonpregnancy,childbirthandbabycarethrough theuseofpostersandleaflets.Itisalsosponsoringregular p p g g 'HealthyBabyContests'atretailoutlets FinancialPerformance: ItrecordedtotalrevenuesofINR254bnandnetprofitof INR34,415inFY09
Wipro Babysoft
28
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KeyDevelopments
Date 17Jun2009 1May2009 8 April2009 28Feb2009 Development Emamilauncheditsayurvedic`Healthy&Fair'rangeofbabycareproducts NubyofUSA,amanufacturerofinfantcareproductslauncheditslatestbabycareproductsinIndia Nuby of USA a manufacturer of infant care products launched its latest baby care products in India MahindraRetaillaunchedits"MomandMe"store,whichspecialisesinproductsrelatedtoinfantand maternitycare,inthenationalcapitalregion ManeeshPharmaceuticalsLtd(MPL)hassignedanexclusivelicensingagreementwithDisney ConsumerProducts.Undertheagreement,MPLwillmarketitsSymlerangeofbabycareproducts d d h ll k l fb b d undertheDisneyBabybrand.TheBabyrangeincludesoil,soap,babymassageoil,bath,shampoo, talcpowder,wetwipesandlotion Johnson and Johnson, has launched 'ToptoToe' wash for the new born infants. The product prevents trans epidermal water loss in infants which means that the moisture of the baby's skin will be infants, baby s maintained even after the bath
28Feb2009
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