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india.html

https://www.posist.com/restaurant-times/resources/find-about-investments-
licenses-location-type-restaurant-
formats.html?utm_source=blog_bakery_business&utm_campaign=various_restaur
ant_formats

https://www.indiamart.com/proddetail/sweet-bakery-confectionery-
2934815273.html

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https://www.google.com/search?safe=strict&ei=YZXxWvC9O8fvUOyQiMAE&q
=machines+used+to+start+a+bakery+in+india&oq=machines+used+to+start+a+ba
kery+in+india&gs_l=psy-
ab.3...75085692.75097777.0.75098539.42.31.0.0.0.0.852.2628.0j1j1j5-
1j2.5.0....0...1c.1.64.psy-
ab..37.5.2622...0j0i67k1j0i131k1j33i22i29i30k1.0.3I39s7uPFwI

https://www.posist.com/restaurant-times/features/restaurant-trends-2018.html

http://www.7thheaven.in/own-a-franchise

https://www.google.com/search?q=karachi+bakery+menu&safe=active&tbm=isch
&tbo=u&source=univ&sa=X&ved=0ahUKEwjo7uLc44TbAhVQnRQKHeQYAy4
QsAQIPg#imgrc=1iF7sru8b0p4ZM:&spf=1526286363748
https://knocksense.com/2017/06/02/cafes-lucknow-experience-worth-
remembering/

http://howtoexportimport.com/How-to-export--1571.aspx
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new-FMCG-product-from-a-small-company

https://www.nonwovens-industry.com/issues/2018-01/view_features/india-
hygienes-next-chapter/

https://www.quora.com/How-do-distributors-convince-retailers-to-sell-their-
products

https://www.quora.com/What-are-the-margins-given-to-distributors-wholesalers-
and-retailers-in-India-for-medical-products

https://www.quora.com/If-I-wanted-to-become-a-distributor-of-a-product-where-
would-I-start

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products/indexp_personal_care_products/index.htm

http://sellers.infobanc.com/trade-sell-leads-category-details/personal-care-
products/indexp_personal_care_products/index.htm
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http://www.falconfreight.com/product-sourcing-agent-from-china-to-india.html

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0for%20diapers%20in%20india

https://www.quora.com/What-is-the-procedure-for-shipping-goods-from-China-to-India

https://www.google.com.sa/search?q=diaper+market+in+india&safe=strict&sa=X
&biw=1366&bih=673&tbm=isch&source=iu&ictx=1&fir=UYnM5kfb6kQx8M%
253A%252COv1wiBQ3R0AYAM%252C_&usg=__95yUdFFpSpAySx5CUS7p5
DWMtKQ%3D&ved=0ahUKEwjFnoOMkaraAhXLmRQKHVQ0B-
oQ9QEIXjAK#imgrc=UYnM5kfb6kQx8M:

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market-in-india-2009

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ct&tbm=isch&tbs=rimg:CSBUsOYIU_1vnIji_1gGj37vQRSEJPF0hnn2XTqzUhkS
1oD4B45R-z7rIM-KyekS-qAGU9_1jBQT4a3OxX5pOx-F4vityoSCb-
AaPfu9BFIEYEh0K80EwZEKhIJQk8XSGefZdMRsV-
3h_1wGbqEqEgmrNSGRLWgPgBFVc8YnuwbUEioSCXjlH7Pusgz4EaRA1VZR
nclfKhIJrJ6RL6oAZT0RNRrmJJfGeuIqEgn-MFBPhrc7FRG7Eax-
X0xkuyoSCfmk7H4Xi-
K3ERMdnTCVXyvy&tbo=u&sa=X&ved=2ahUKEwiYhMenoaraAhWHthQKHR
61ApIQ9C96BAgAEBs&biw=1366&bih=673&dpr=1

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perform

https://www.google.com.sa/search?safe=strict&dcr=0&ei=Eg_KWqS3EImsUZ61n
6gB&q=how+to+become+a+dealer+or+distributor+in+india+for+fmcg+products&
oq=how+to+become+a+dealer+or+distributor+in+india+for+FMCG+&gs_l=psy-
ab.1.1.33i160k1l2.40914.55373.0.59312.56.50.0.0.0.0.679.8592.0j22j5j4j2j3.36.0..
..0...1.1.64.psy-
ab..20.27.6118...0j0i67k1j0i131k1j35i39k1j0i20i263k1j0i22i30k1j0i22i10i30k1j33
i21k1.0.Xzfk6Srvo2Y
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http://rchiips.org/NFHS/index.shtml

http://rchiips.org/NFHS/districtfactsheet_NFHS-4.shtml\

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company-that-reflects-the-companys-commitment-to-the-business

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project-report-profile-business-plan-industry-trends-market-research-survey-
manufacturing-process-machinery-raw-materials-feasibility-study-investment-
opportunities-cost-and-revenue?qid=21aac5db-b9fb-49f0-bd44-
8e9abe3e45d0&v=&b=&from_search=6\

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ary+napkin+market&ud=any&ft=all&lang=en&sort=

http://www.moradabad.org/directorysearch.aspx?catid=Export%20and%20Import
%20Industry

https://www.quikr.com/services/b2b-suppliers-lucknow-all

http://www.ladynapkins.com/?gclid=Cj0KCQjwhoLWBRD9ARIsADIRaxR7-
hlbAWDuWCTeGzPUmtEaI8gbTQbtwjXfGnTZLyVlO-
4DOa3Mm8QaAnOtEALw_wcB

https://www.nonwovens-industry.com/issues/2018-03/view_features/adult-
incontinence-growth-continues/

http://www.ladynapkins.com/tobeagent

Sanitary pads are currently available in different varieties with varied absorbency level
and sizes.

Some of the most popular ones include regular, thin, and ultra-thin pads.

According to the latest report by IMARC Group, “Indian Sanitary Napkin Market:
Industry Trends, Share, Size, Growth, Opportunity and Forecast 2017-2022”,

the Indian sanitary napkin market reached a value of nearly US$ 414 Million in 2016.

Over the years, sanitary napkins have gained much prominence in India as the
Government and NGO entities have been taking various initiatives and workshops

towards educating females about the importance of personal hygiene. Thus, increasing
awareness about personal hygiene among females remains one of the
primary factors facilitating the growth of the Indian sanitary napkin market. In addition
to this, elevating incomes and the availability of sanitary napkins at an affordable price
is another factor boosting the market growth.

Moreover, the manufacturers are also focusing on unique marketing strategies in order
to increase their consumer-base.

Further, the market is expected to reach a value of around US$ 596 Million by 2022,
growing at a CAGR of more than 6% during 2017-2022.

The report has segmented the Indian sanitary napkin market on the basis of type into
disposable menstrual pads, cloth menstrual pads and biodegradable

menstrual pads. Currently, disposable menstrual pads represent the largest product
type, accounting for the majority of the total share.

The market is also segmented on a regional basis, covering Maharashtra, Delhi NCR,
Tamil Nadu, Karnataka, Gujarat and Others.

Amongst these, Maharashtra is the leading market, followed by Delhi NCR and Tamil
Nadu. An analysis of the competitive landscape provides the details

of the key players operative in the market. Some of the major players include P&G,
Johnson & Johnson, Unicharm, Emami, ltd., Mankind, Kimberly-Clark and

Edgewell.

Key Questions Answered in This Report:

 How has the Indian sanitary napkin market performed so far and how will it
perform in the coming years?
 What are the different product types in the Indian sanitary napkin industry?
 What are the price trends of sanitary napkin?
 What are the various stages in the value chain of the Indian sanitary napkin
industry?
 What are the key driving factors and challenges in the Indian sanitary napkin
industry?
 What is the structure of the Indian sanitary napkin industry and who are the key
players?
 What is the degree of competition in the Indian sanitary napkin industry?
 What are the profit margins in the Indian sanitary napkin industry?
 What are the key requirements for setting up a sanitary napkin manufacturing
plant?
 How is sanitary napkin manufactured?
 What are the various unit operations involved in a sanitary napkin manufacturing
plant?
 What is the total size of land required for setting up a sanitary napkin
manufacturing plant?
 What are the machinery requirements for setting up a sanitary napkin
manufacturing plant?
 What are the raw material requirements for setting up a sanitary napkin
manufacturing plant?

Panty-liner and tampon are comparatively new categories for Indian women
consumers, where the consumption level is quite negligible. Moreover, other
feminine hygiene products such as internal cleansers, sprays, disposable razors and
blades are also an untapped segment in India
P&G, Johnson & Johnson, Unicharm India, Kimberly-Clark, etc are some of the
major companies operating in the feminine hygiene market. Whisper is a
prominent and trusted brand among Indian females. In many parts of India,
affordability of these sanitary napkins is still a major concern as rural Indian
women cannot afford such products due to its high prices

"Only 12% of India's 355 million menstruating women use sanitary napkins (SNs).
Over 88% of women resort to shocking alternatives like unsanitised cloth, ashes
and husk sand.Incidents of Reproductive Tract Infection (RTI) is 70% more
common among these women.”

This finding from a study in October 2011 by The Neilson Company and NGO
Plan India, has been quoted in almost every write-up about menstruation in India.
Yet, nobody has bothered to check its validity.
Till date, I haven’t found a single journalist, researcher or NGO who quoted this
study actually possessing a copy of it.

For example:

The latest National Family Health Survey (NFHS) 2015-16 report shows that the
use of Sanitary Napkins among Indian women is 48.5% in rural, 77.5% in urban
and 57.6% total.

As per existing published research across India, the usage of Sanitary Napkins
among rural Indian women ranges between 35% to 57%. It is higher among rural
adolescent girls and goes upto 80%.

Regarding school absenteeism owing to menstruation - 17% teenagers in Canada,

21% in Washington D.C, 24% in Singapore, 26% in Australia and 38% in
Texas miss school owing to menstruation. In India, this number is around 24%.

A few hundred rupees and a wedding ring

It was in the early nineties that Kartik's father Kamal came to Mumbai for the first
time. He just had a suitcase containing his clothes, a wedding ring and a few
hundred rupees on him. He hailed from a family of diamond merchants, but wanted
to do something different. In Mumbai he worked as a chartered accountant, all the
while looking for an opportunity to get into business.

He found the break in the late nineties as a product distributor, going on to manage
the mother godown for Samsonite. He then went on to become the distributor for
Pepsi, Nivea and many other brands.
The idea of Nobel Hygiene, in fact, came to Kamal after he met some employees
of a disposable diaper company. Using his personal savings, Kamal started Nobel
Hygiene with two brands: Teddyy baby diapers, and Friends adult diapers.

Cracking the market

For the next seven to eight years, Kamal focused on building the distribution
network, creating awareness about the product and building the demand. He didn’t
set up his manufacturing unit all this while though. He imported the diapers from
China, Taiwan, Israel and Thailand, repackaged in Goa and sold them at Rs 500
per pack, four to five percent less than the price at which Huggies was selling.

Recalling the journey, Kartik adds,

“In 2009, when we felt that we had a hold on the market, we set up a
manufacturing unit in Nashik. For eight to nine years, we worked on building
demand. When we put out our first ad in the early 2000s we got close to 150
phone calls asking about adult diapers.
My father understood that there was a need in the market and went after his
goal.”

Investment and market

The manufacturing plant took about two to three years to come up and started with
one machine; now the company sets up one machine every year. Today, Friends
adult diapers are priced at Rs 500-550.

A year after Nobel Hygiene set up its manufacturing unit, Access Fund invested
$11.5 million in it. And in February 2015, CLSA Capital pumped $10 million in it.

The Indian diaper market has grown at a CAGR of 22.23 percent in the past five
years, according to a report by India Diaper Market Outlook. The report also
suggests that Pampers dominates the overall diaper market followed by Huggies
and Mamy Poko. In fact Pampers, Mamy Poko and Huggies are believed to
account for close to 85 percent of the market.

The report, however, also adds that the adult diaper segment is dominated by
Nobel Hygiene and Actifit.
Kartik with Kamal Johari.

Cracking into the space

Kartik pegs the current adult diaper segment at Rs 500 crore. A nascent sector, one
of the biggest challenges that Kartik had to take on when he joined the family
business was the rebranding process. He says,
“It hasn’t been easy. When we did market research, we realised that the
biggest roadblock to the adoption of the product was the user himself or
herself. They would refuse to admit there was a problem and that they needed
to buy adult diapers.”

Soon, they realised that talking directly to the customer didn’t work. Hence, they
spoke to the caregivers–the family. The idea is to get the caretaker to buy the pack.
“After the pack is bought, the user uses it,” says Kartik.

The product has more users in the metro and urban areas. Kartik adds that a family
needs to have a disposable income and the ability to invest Rs 3,000-4,000 every
month on adult diapers. In the past five months, Nobel Hygiene has gone across
both retail and online channels.

Future

Kartik adds that in the five months they have tied up with Amazon, they have seen
a 40 percent month-on-month growth. The diapers are also designed keeping the
Indian girth and body frame in mind. Now there are two variants: tape style and
pant style diapers.

This year, the company is expecting to clock a revenue of Rs 210 crore. “Our
future plan is to look at five times the top-line revenue in the next three years.
Also, build complete awareness around the need and use of adult diapers in 2017,”
says Kartik.

Nobel Hygiene believes that with Friends, it is able to provide older people with
dignity. Kartik says, “No parent wants to be a child to their children; they want the
freedom and independence and that’s what we give.”
Website
Report an Issue

Calling social impact enterprises and corporates to explore partnerships via

funding/grants as well as deploying CSR funds to business incubators. Register
here,today for a one-day conclave being held in Bengaluru on Wednesday, April
11.
Calling all woman-founded startups in Hyderabad! Facebook and YourStory are
organising a meetup focused on helping women entrepreneurs grow and scale with
the help of technology. Book your spot for the meetup on 5th April at T-Hub,
Gachibowli. Use promo code FBHYD100 to avail a special discount. Limited seats
available.
In recent years, India, with a 1.3 billion population and booming economy, has
become a hot investment destination for global investors. From international giants
to Chinese manufacturers, industrial players from a wide range of markets have
expanded their footprints there, and the disposable hygiene market is no exception.
All the big international hygiene product brands like Procter & Gamble, Johnson &
Johnson, Kimberly-Clark and Unicharm have established facilities or operated
branches in India.

According to estimates from market research company Euromonitor, the India

tissue paper and hygiene product market will grow significantly until 2020. During
this time, the market size will increase from current 57.8 billion Rupee ($870
million) to 100 billion Rupee ($1.5 billion). Euromonitor points out that the strong
demand mainly comes from the increasing income of countryside consumers and
their pursuing of more comfortable and convenient lives.

The continuous improvement of literacy rates, the enhancement of consumers’

safety and sanitary consciousness, and extended lifespan, plus improvements in
conditions in rural areas, have all created opportunities for expansion of the
hygiene market. The Indian people want to improve their living standard and
incomes. They have increased the percentage of working females and upgraded
consumers’ consumption habits. These factors will help to fuel the development of
disposable hygiene markets. The Indian disposable hygiene market is consumer
dependent, quite similar to that of China, where people there also hope to use
necessary products to improve their quality of life.

General Economic Conditions

India occupies 2.3% of the world’s land area, and English is the official language.
Its popularization provides India with a big advantage in economic and trade
cooperation with other countries. Among its population, 72% are literate, 21.8%
live below the poverty line and 31% live in urban areas. Urbanization has
progressed at 2.4% every year. In 2015-2016, the Indian middle class accounted
for 20% of the population, but owned 49% of the cars, 21% of televisions, 53.2%
of the computers, 52.9% of the air conditioners, and 45.7% of the credit cards in
the country. By 2025, the proportion of the middle class is expected to rise to 37%.

India is gradually changing and moving toward a market economy. The

government adopted some economic liberalization measures, such as the
elimination of regulations and decentralization of power, privatization of state-
owned enterprises, reduced limitations and loosened control over foreign
investment. All these measures have boosted the development of the economy. In
2014 and 2015, its economy rebounded continuously, with an annual growth rate
above 7%. From a long-term perspective, India’s economic growth is positive,
because by 2030, its population will exceed China, making it the largest in the
world. Also helping India’s growth is the fact that the percentage of young people
is rising.

While the Indian economy is advancing in a good condition and with fast trend, the
actual economic growth is dependent on government policies, i.e., the ways to
solve a series of social problems, including how to build the necessary
infrastructures, improve the industrial capacities, etc. These problems have plagued
Indian government. However, the government has formulated a plan to make its
manufacturing industry account for a greater percentage of the national GDP. In
2015, India’s GDP was about $2 trillion and the manufacturing industry only
accounted for 16% of that figure. The government hopes to increase that
percentage to 55%.

A lot of Indian consumers are changing their consumption habits, with more
people willing to spend. In the next 20 years, India’s business environment will
improve dramatically, with key focus on sectors that closely connect to people’s
daily lives, including healthcare, food, education, housing, infrastructure
construction, etc.

Retail Trade and E-commerce in India

India’s e-commerce business is increasing 30% every year. The retail trade is also
growing at the same time. It is expected that by 2020 the retail revenue will
increase at the annual rate of 12% and will double to $1 trillion.

As consumer consumption continues to rise in India, the mother and baby market
will be another booming sector that may experience explosive growth rates. When
this same demographic becomes wives and mothers, they will help increase e-
commerce sales. According to a report, the India maternal and infant market will
grow 17-18% to $20 billion. On-line and off-line retailers are very interested in
this “big cake.” It is expected that the next retailing battle will be staged on this
market. These factors will boost the growth of the Indian hygiene market.

For example, Amazon has increased its SKU of infant consumer goods (0-2 years
old) to 160,000, including diapers. Saurabh Srivastava, the head of Fast Moving
Consumer Goods, Amazon India, said the sales of infant consumer goods increased
300% last year. “Infant product is about to be one of the top five best sellers
worldwide, and consumers of this category show the highest brand loyalty.”

Feminine Hygiene
Feminine sanitary products account for a significant proportion of the Indian
disposable hygiene market. According to Euromonitor, the Indian feminine
hygiene product market has reached 22.21 billion Rupee ($340 million) and is
expected to reach 34.68 billion Rupee ($522 million) in 2020. Euromonitor pointed
out that manufacturers should work along both lines—attract young consumers
through online purchases while at the same time penetrating small towns and rural
markets.

The upper class of Indian women are trying to find high quality hygiene products,
however, in poor rural areas, many women still haven’t start to use sanitary
napkins. In the past, Indian women used to use fabrics during their menstruation
period. In fact, 70% of women use rags because of poverty and lack of knowledge.

Being aware of the problem, the government has started to take measures to
promote sanitary products in poor areas. Today, sanitary napkins are increasingly
getting popular among women. Of course, continuous education and marketing
from big international brands has significantly contributed to this penetration.

According to data from BCH (Indian Nonwovens Industry Association), in 2014,

the female population among 12-54 was 375 million, and the penetration rate of
the sanitary napkins market was only 24%. In 2018, this figure is expected to grow
to 42%. Currently, sanitary napkins with fluff pulp as core occupies most of the
market share because of its lower price. Although the market for ultra-thin napkins
is expected to increase.

What needs to be noted is that India has invested little in the research and
development of sanitary napkins. Although upper class females hope to have
higher quality products, there are no innovative products available. Today, 95% of
India’s sanitary napkin market share goes to international companies like P&G and
Johnson & Johnson.

Baby Diapers
In 2014, the population of Indian infants between 0-2 was 43.16 million, which
means there is huge market potential for baby diapers. However, this market
penetration is very low, only 7.6%. People in the countryside mainly use cloth
diapers. People are concerned about disposable diapers since Indian society doesn’t
recognize these kind of products. In addition, the cost for potty training and baby
care is also quite low.

In 2014, high end hospitals in India started to provide diapers for infants. The sales
of disposable diapers in retail also helped the market to grow. These efforts are
expected to help the size of the Indian diaper market double by 2020, according to
Euromonitor.

The rigid market demand is robust, and international companies including P&G,
Unicharm and Kimberly-Clark still hold 92% of the Indian diaper market. In the
past couple of years, the market share of Kimberly-Clark started to drop.

Based on their comprehensive analysis of baby diaper sales in India, relevant

organizations pointed out that the market size will be 47 billion pieces per year,
which is very promising.

Pull-up diapers account for 36% of the total sales of baby diapers. Mothers in India
have given positive feedback on the ultra-thin pull-up diaper with an elastic waist
from Unicharm. Sales of these products were strong, influencing other companies
to follow Unicharm and launch similar products.

In 2016, the import volume of baby diapers in India started to reduce.

Adult Diapers
In 2014, the population older than 65 in India was 21 million. The usage of adult
diapers in India is very low, and only accounts for 0.6% of the total hygiene market
share; however, the demand of nursing pads started to increase.

Taking care of the elderly population is increasingly an acute social challenge.

Although the adult diapers market in India started at a low development level, it
has grown rapidly. The continuous construction of international hospital chains
helped many diaper manufacturers to promote their brands across India. Today,
70% of adult diapers are sold through hospitals and their affiliated stores, which
are welcomed by Indians. The majority of adult diapers are diapers, pads, and
nursing pads. Indian senior centers are also starting to promote adult diapers.

Currently, there are no international companies producing adult diapers locally.

However, international manufacturers like Unicharm, Procter & Gamble, and local
manufacturers like Emami Group, Rohit Group, Surfactants Limited, Mangal
Textile Mills (India) Pvt. Ltd., Nobel Hygiene Ltd., and Walmart all show great
interest in the market

As the second most populous country in the world, India’s population is expected
to exceed China by 2035. The GDP growth rate of the country for fiscal year 2012-
2013 was 5%, and is projected to between 6-7% in 2013-2014. Currently, India’s
economic growth rate ranks second among the world’s large economies, just after
China. For years, the world has held a positive outlook for India’s market-oriented
economy and its domestic consumption potential. The hygiene products market
here has shown an explosive growth in recent years. In addition to wipes, the
market for baby diapers, sanitary napkins and adult diapers are also growing
rapidly.

Meanwhile, the new economic policies launched by the Indian government, which
are designed to deepen economic reform, will shift its priority to develop
underdeveloped areas, increase support to industries, especially to manufacturing
industries, and the enhanced efforts to attract foreign investment. All these
examples demonstrate India’s determination to continue its opening up of its
domestic market. In addition, as English is one of the official languages used in
India, the popularity of English enables India to access the most cutting-edge
information technology promptly. Today, India continues to draw more and more
attention from the outside world.

Attractive prospects

In India, the middle class is expanding, the number of women and infants are
increasing, public health consciousness continuous strengthening, and purchasing
power is gradually improving, which in turn will help the country to achieve a
relatively high level of economic development. When the time comes, household
paper and hygiene products will transform from being “luxury” items in the home
into “necessities”, and as a result India’s huge market potential will be released,
with immeasurable space for development.

Currently, India’s disposable diapers market penetration rate is below 30%,

however, the number of middle-income earners is expanding rapidly at 30% a year
on average, which is a good sign for market growth.

The major driving force of India’s baby diapers market includes multinational
companies’ market cultivation, advertising campaigns via the internet, television
and other media platforms, and the steady decrease of the illiteracy rate in the
country. However, there are a lot of challenges in introducing baby diapers
products in the market, which are primarily related to the consumption capacity
and culture of the local consumers. On the one hand, Indian mothers
misunderstand that cloth diapers are better for babies’ skin. On the other hand,
local families prefer reusable products, and dislike waste. In many cases, baby
diapers serve only as alternatives when people go outdoors.
Despite these difficulties, considering the average 26 million newborns in India
every year, which is 1.6 times that in China, the baby diaper industry observers and
foreign investors agree that the market potential is enormous. The leading global
players’ aggressive contest here will heat up the competition in the coming years.

New investment in baby diapers market

Over the past three years, the Indian baby diapers market has increased rapidly,
with an annual growth rate of 15%, providing enormous opportunities for
international diaper manufacturers. Currently, the leading three brands in this
market are Huggies, Mommy Baby and Pampers, which have divided up the bulk
of the market share.

Small brands can only compete in low-priced regional markets. Key aspects of
India’s baby diapers market include relatively low prices, the lack of large buyers
and inconvenient transportation logistics. Furthermore, the import duties for these
kind of products are extremely high, which lift the market entry threshold for
foreign manufacturers. Also taking into consideration India’s vast territory and
poor road conditions and other infrastructure problems, international manufacturers
choose to build local manufacturing facilities so as to reduce costs and the time of
distribution.

Through Hindustan Lever, a joint venture of Kimberly-Clark in India, the company

has introduced products under the brand name of Huggies into the Indian market,
followed by other products, such as Kotex sanitary napkins and Depend adult
diapers. Since 1995, Procter & Gamble (P&G) has started to market diapers under
the Pampers brand in India, and finally set up a plant to produce sanitary napkins
under the Whisper brand.

In recent years, these major diaper manufacturers have invested to build new plants
in India one after another. P&G, who has already gained a foothold in the Indian
market, plans to invest more than US$1 billion in the next five years, with aims to
change the diapers imported today to local manufacturing and sales, so as to catch
up with Unilever, which ranks No. 1 in the Indian market.

Japanese manufacturer Unicharm set up their first diaper plant in India in 2010,
and is currently speeding up its market expansion in India. With their second plant
established in Chennai to be put into production in fiscal year 2014, their sales in
India are expected to double by 2015, at about 10 billion Japanese Yen. Unicharm
will also double its baby diapers and hygiene products production capacity in
India. Considering the underdeveloped logistics network in the country, Unicharm
needs to build its third plant as soon as possible to ensure its national sales
coverage of diapers in India.

In addition, SCA plans to invest about Kr150 million for the production of
nonwoven-based hygiene products in India, including Tena incontinence care pads,
Tork feminine care products, Libero baby diapers, and Tempo toilet paper. Located
in the southwest of India, the SCA plant is scheduled to go into operation in 2015.

Chairman of the board and CEO of SCA Jan Johansson said, “This investment will
establish a solid platform for us and enable us to seize the favorable growth
opportunities inherent in Indian hygiene products field, at the same time, the
investment is also in line with SCA’s strategy of strengthening our position in
emerging markets. Large population and low penetration of hygiene products in
India are the foundation for our future growth. SCA’s target is to introduce hygiene
products into the Indian market in the second half of 2013.”

Currently, as India’s logistics network is underdeveloped, international brand

manufacturers are joining hands with local regional diaper manufacturers by
commissioning these small plants OEMs to produce diaper products with the same
quality and packaging appearance, to meet the fast growing market demand.

A transforming market

Regarded as a kind of “luxury” without reuse value in India, diapers are

unaffordable for people in many regions. In addition, different from consumers in
other diaper markets, Indian mothers believe that the use of diapers for a long time
may damage their babies’ skin. However, with the changing socio-economic
climate and shifting cultural patterns, more and more Indian mothers are beginning
to accept baby diapers, which is helping to transform the market and bring it onto a
new stage.

However, it’s rather hard to change Indian mothers’ mindset. They need to verify
repeatedly the products their babies use to dissolve their concerns. Therefore, soft,
breathable baby diapers may fit the Indian market demands well. For example, in
order to help new mothers to recognize and accept the products, diapers produced
in Kimberly-Clark’s Indian plant will carry the note “clinically tested and verified”
on its packaging.
Sanitary napkin market: A long way to go

Discussion of menstrual health in public is a taboo in India, therefore, sanitary

products still exist as kinds of mysterious objects unknown to most people. The
market penetration of sanitary napkin in India is rather low.

The Indian sanitary napkin market is still in its infancy, with product recognition
much lower than that of diapers, not to mention sanitary pads. Most Indian women
living below the poverty line have no knowledge of these types of products and
couldn’t afford them even if they did. At the same time, sanitary napkins are not
available in most places in India, so for Indian women they are a luxury. There are
only 2 to 3 leading brands, such as Sophie, Whisper and Kotex in the market. Only
affluent women from the middle class can afford to buy them. Other regional
sanitary napkin products produced locally are simple straight/wingless products. It
will take more time for the sanitary pads market to develop and be recognized as
valuable products.

As feminine hygiene products such as sanitary napkins available in the market are
far beyond the affordability for some families, few girls have the chance to use
sanitary napkins after they enter puberty. As an alternative, they mostly use fabrics
and other objects during menstruation. According to “Times of India”, a latest
survey in India suggests that 70% of Indian women can’t afford to buy sanitary
napkins and more than 20% of adolescent girls drop out of school because of
menstruation issues. The survey shows that only 12% out of 355 million women in
the menstrual period use sanitary napkins, and the remaining 88% of women would
choose rags or ash as substitute.

With the increasing attention India’s government’s is paying to the issue of

women’s menstrual hygiene, and the growing awareness among Indian women
about sanitary napkin products, the sanitary napkin market in the country will
begin to take off gradually in the years to come.

Meanwhile, Procter and Gamble has continued its strategy of reaching young girls through its #LikeAGirl
social media campaign, which aims to keep girls active and confident. Finding that the start of puberty
and the first period marked the lowest moment in confidence for girls, Always launched #LikeAGirl in
2014.

The unmet potential is among low income women and, when looking for long term growth, the whole
subject of how to meet that demand for more affordable products is definitely going to be hot on the
agenda,” Uduslivaia explains.
diaper

In India, the middle class is expanding and the public health consciousness is continuously strengthening. This in
turn is helping the country to achieve a relatively higher level of sanitation awareness and thus the hygiene products
sales have shown an explosive growth in recent years. The market for wipes, baby diapers, sanitary napkins, adult
diapers etc. all are growing rapidly. With the increased awareness and increasing purchasing power, customers are
fast shifting from traditional cloth nappies to baby diapers.

The change in preference towards baby diapers is also because more and more consumers are realizing the health
benefits like cognitive and physical development due to overnight sleep. Indians give birth to more than 25 million
babies each year, yet the penetration rate of baby diapers remains very less.

According to “India Diaper Market Outlook, 2022”, diaper industry has mainly two segments, one is baby diaper
segment and the other is adult diaper segment. Baby diapers are the most widely used products whereas adult
diapers still hold less than 10% market revenues in the overall diaper industry of India. The baby diaper market is
highly consolidated with majority of market being controlled by top three players. P&G dominates the overall diaper
industry, followed by Unicharm India and Kimberly-Clark. Aggressive strategies adopted by Unicharm India to
increase its market share had resulted in Kimberly-Clark's loss in last few years. The company is now challenging
the leadership position as P&G's lack of innovation and focus on higher margins is expected to decrease its market
share in future. The market for baby diapers in rural India is registering much higher compounded annual growth
rate than urban India. This is a clear indication that consumers are choosing to buy branded good quality diapers for
their babies.

The "Diaper Market in India: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2017-2022"
report has been added to ResearchAndMarkets.com's offering.
The Indian diaper market reached a volume of around 4 Billion Units in 2016, exhibiting a CAGR of 8%
during 2009-2016. The market is expected to reach a volume of more than 6 Billion Units by 2022.

The report has segmented the Indian diaper market on the basis of product type. Some of the major product
types are baby disposable, baby training, baby cloth, baby swim pants, baby biodegradable, adult pad type,
adult flat type and adult pant type diapers. Currently, baby disposable diapers are the most popular type,
accounting for the majority of the total share. The report also analysed the market on the basis of region,
covering Maharashtra, Delhi, Tamil Nadu, Karnataka and Gujarat. Amongst these, Maharashtra represents the
largest market. An analysis of the competitive landscape provides the details of the key players operative in the
market.

This report provides a deep insight into the Indian diaper industry covering all its essential aspects. This ranges
from a macro overview of the market to micro details of the industry performance, recent trends, key market
drivers and challenges, SWOT analysis, Porter's five forces analysis, value chain analysis, etc. The report also
provides a comprehensive analysis for setting up a diaper manufacturing plant. The study analyses the
processing and manufacturing requirements, project cost, project funding, project economics, expected returns
on investment, profit margins, etc. This report is a must-read for entrepreneurs, investors, researchers,
consultants, business strategists, and all those who have any kind of stake or are planning to foray into the
Indian diaper industry in any manner.
How to Appoint Right Distributors
for your Products ...Step by Step
Approach
 Published on November 16, 2015

Senthilnathan Srinivasan

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Marketing Enthusiast | Business Manager | Aspiring Leader

55 articles

 Like 94
 Comment 19
 20

I want to discuss the steps to be taken before appointment of a right

distributor for company.
But I feel that before discussing the steps to be followed for appointment of
right distributor I think it is necessary to discuss the importance of appointing
right distributor for company.

So today let us discuss the importance of appointing right distributors for

company because right distributors help company march on path of progress
and growth whereas “Not Right” distributors take company backwards. So let
us now move on straight to the topic.

Pls note that Distributor or stockist or dealer means the same thing. Different
companies use different terms for their channel partners who help in the sales
and distribution of their products.

As I said earlier that the distributors play a very important role in increasing
the sales of a company’s products by ensuring the distribution of company’s
products in most of parts of their area thru the network of retailers and
wholesalers. A Distributor is closest link of the company with its end
customer i.e wholesaler and retailers. Retailer and wholesaler is the the most
important link of the company with the end consumer i.e the person who
consumes or uses the product made by company.

A good distributor on the basis of his ability to distribute the products of

company to most of customers (i.e retailers/wholesalers) in his area of
operation also helps in career advancement of the sales staff of that company.
How ?

Let me explain
If a distributor sells the products of company to more no of his customers
then it helps in increasing the sales of company . More sales by him of
company’s products helps the sales staff of company which has been
assigned to manage his operations, achieve their sales targets. And in private
world sales target achievement plays a very important role in the deciding the
salary hike the company employee will get and also helps the company sales
staff earn promotions and rise in their career.

Good distributors helps in career growth and thus salary hikes of almost the
entire sales staff of company at all levels right from Sales Rep up to G.M of
company.

Good distributors play an important role in helping their companies get more
market share and earning more profits.

Similarly on the other hand below average distributors is always a hindrance

to growth of company sales and growth of the sales staff of company. A
company and for that matter a sales professional can never grow if they have
not so good distributors in their sales & distribution chain.

But in spite of the very important role of distributor in the supply chain it is
matter of great concern that barring few top Indian and MNC companies,
most of Indian companies ( i.e sales staff of the company) do not take proper
care and do not do proper homework before appointing a distributor.90% of
the time the Distributors are appointed in a hurry just to meet month’s targets.
And this I am talking on the back of my more than 8 years of experience in
the sale field in FMCG sector.
Before proceeding further I would like to give you a glimpse into the
mistakes made by company staff in distributor appointment with my own
experience of my first distributor appointment.

At the very beginning of my sales career i.e within one month of my joining
the company I was handed over the task of appointing a new distributor for
my company. I was sent straightaway to appoint distributor without any
training and without any brief on how to search for and how to select the
right distributor. And so I appointed first distributor in my sales career in
Chennai (in TN) on the basis of my guts or say on basis of whatever
experience I had gathered in one month of my association with my company.

I came back from my business tour after tasting my first success in the target
achievement. I broke the news to my Boss and he was elated and patted my
back on how good job I had done on my very first assignment. My chest
swelled with pride on his encouragement and pep talk.

The goods were supplied to this distributor who was discovered by me. So
now the sales have also happened and played a part in helping me achieve the
sales target.

Next step was payment collection. I went to town to collect payment from my
distributor (we used to call him dealer in that company) against the stocks
supplied to him. He did not make payment citing some reason and asked me
to come next time . So my visit to him for payment was futile the first
time. O.k.Next time I will get payment, I re assured my self and continued
on my remaining tour. To cut the long story short I have to admit that it took
company more than six months to collect only part of payment from that
distributor. Balance payment from that dealer had to be waived off

That setback in distributor appointment made me a laughing stock among my

team members only for some time. I was held responsible for payment
loss. My Boss too blamed me squarely for the this very first fiasco of my
career.

But here the question is was I solely responsible for that fiasco?

Yes! And No!

Yes!

Because I went on to proceed to appoint new distributor without taking any

kind of knowledge or any advice from my Boss or my experienced
colleagues. I should have sought tips from my experienced colleagues on
distributor appointment but in my over enthusiasm I did not and that proved
counter -productive for my company.

No!

Because before sending a rookie, a novice in the sales line on business tour
for appointing company distributor it is moral responsibility of the superior to
train his ward on steps to follow before appointing a distributor . My superior
must have guided me on procedure for appointing new distributor . He should
have enlightened me on the qualities that I should have looked for in
prospective distributor. But he did not.

OK due to his busy schedule or his over confidence in my abilities he did not
think it necessary to train me before hand on steps and procedure to appoint a
new distributor. But after my selection of new distributor of my company he
must surely have taken time out of his busy schedule to talk to that shortlisted
distributor over phone and should have enquired about the necessary
credentials of the distributor selected by me. Here again he did not think it
necessary to talk to new member of company in its distribution chain. He
simply went on to invoice and send stocks to that distributor who ended up
swallowing company’s money.

Am I the only one who committed mistake in appointing a wrong distributor

for company without any training and guidance from company

Or Is my superior the last sales professional who did not bother to check on
quality of distributor selected by his subordinate?

Answer to both the above questions is big NO.

In most of Indian companies even today same carefree approach is taken

while appointing a new distributor.

Even now distributors are appointed by sales staff on basis of their gut
feeling without any help or guidance from their superiors.

A big setback of appointing a wrong distributor is that the company loses

out on sales that it would have got had a good distributor been appointed in
the very first place. Some time bad distributors once appointed remain
distributor of company for many years with the sales staff providing a big
cover up to their company for all the follies and unethical business practices
of company’s distributor. Why he does it, I will explain later.

Another setback for company is that the company may have to change wrong
distributor very soon or may be in a span of one to two years. And once a
company changes its distributor off and on then it affects the reputation of the
company in the market and good distributors may no longer be interested in
doing business with that company.

I took you through this rather long narration just to drive home the point of
importance of appointment of right kind of distributors for company.

After discussing the importance of appointing right distributors (stockists or

dealers each term means the same in FMCG Industry) now let us discuss the
steps that should be followed to appoint the right distributors.
Before I proceed further let me ask you a question : who chooses the MLA or
MP for their area. ?

Answer is simple : We, the people.

Why ?

Because an MLA or MP is elected to serve his society which comprises of

people. It is prime responsibility of an MLA or MP is to serve the people of
his area or his constituency. So people of an area are affected by the decisions
and way of functioning of an MP and MLA. If MLA/MP is good, honest
,ethical, and attends to problems of his area then aam Janta read common
man is benefitted and vice versa.

Why we are discussing MLA and MP here. Explanation follows:

All the retailers and wholesalers of a town or area of a town are affected by
the quality and functioning of distributor.So if the distributor does not supply
stocks on time or does not pass on company schemes, or charges rates higher
than company rates, or does not attend to problems of his customers then his
customers i.e. retailers and wholesalers suffer the most.
And when a distributor is good in all respects then his customers benefit the
most.

So if retailers and wholesalers are so much affected by their distributor then

they are the people who should choose their distributors.

As the people of a constituency know the reputation,style, way of working,

character of people fighting election of an MLA orMP, in the same way the
retailers and wholesalers of a town or area in a large town know very much
about all distributors of the products which they sell or deal in. They are very
much aware of distributors who are good or not good in terms of supply, in
terms of offering credit in market, giving accurate schemes in market, selling
at company rates in market. So they are the members of market who should
choose and decide distributor of any company's products.

To cut long story short, before appointing any distributor, company's staff
should go into the market and take feedback from retailer and wholesalers
about distributors of products related to their company's products.

First and the most important step in appointing right distributor is that
only ASM or person at supervisory level should search for distributor of
a company (be it new distributor or replacement of old ineffective distributor
). Under no circumstances front level field staff should be allowed to do
survey in market. SRs or TSIs have short term view and most of time do not
think beyond their current month's targets. There is always more chance of
their appointing wrong kind of distributors.

There should be synergy of distribution in their company's products

and products which are being sold by the distributor.Synergy of distribution
means that outlets being serviced by a distributor should be same at least 90%
with the outlets in which your products will be sold.

For example sales staff of a company which manufactures and markets

Biscuits should avoid appointing distributor of Asian paints or Fevicol, or a
distributor which deals in medical products, as in this case outlets which sell
or deal in Fevicol or Asian paints or pharma products do not sell biscuits.
Similarly an outlet selling biscuit will not sell Fevicol,or Asian paint or
pharma products.

So when a FMCG sales staff sets out for finding distributor for his company
then as a first step he must carefully select only those distributors who
reach,service and sell products in outlets where his products will be sold. So
sales staff of a company which manufactures Confectionery should shortlist
those distributors who distribute biscuits, or wafers or other confectionery
items as these distributors will help in making his products available at right
kind of outlets in less time.

So the next step in the direction of appointing right party as distributor

is to find and select five or six of such parties who have synergy of
distribution with products of a company. We will refer to such parties with
synergy of distribution as RELEVANT DISTRIBUTORS.

After shortlisting five or such relevant distributors, the next step for staff of
FMCG company is to take feedback of these parties from the retailers
and wholesalers who sell his company's products. Feedback of all these
relevant distributors should be taken on following parameters:

(a) Financial position of the distributor- Very important as distributor with

good finance can invest in company's stock and invest in credit in market.

(b) Relations of distributor in market: In today's competitive market with

very little difference in quality and pricing of different companies
manufacturing same products, relations of distributors in market play an
important role in ultimate success of any company's products in market.

(c ) Does he extend credit in market : Simple. If a distributor extends

credit to his customers as is being provided by distributors of competitor's
products then sales will grow faster.

(d) Distributor's own involvement in market : Here again if a distributor's

involvement in market is good then his relations in market will also be good.
The more he is involved in business of a company's products the better are
chances for the sales growth of that company.

Company's sales staff then should visit the market and do survey in market
of all the five or six relevant distributors selected by him.

To make his market survey (for new distributor or replacement of an old

distributor) effective,he should take feedback of all selected relevant
distributors from at least 30% of total outlets in a town or area of a large town
or minimum 30 outlets. So for example if he is looking for a distributor in a
town with up to 40 outlets then he should take feedback of relevant
distributors from at least 30 outlets of that town.

But if he is searching for a distributor in a town with more than 200 outlets
then he should take feedback about relevant distributors from at least 30% of
outlets i.e 60 outlets. The larger the sample size (more the no of retailers or
wholesalers from whom he takes feedback )for his survey the better are his
chances of finding right distributor for his company.

Again to make his market survey for distributor appointment , company sales
staff should cover small outlets (C class outlets who purchase very less
quantity of his products, give payment to distributor after more than 25 days),
medium class outlets ( B class outlets who sell maximum of his products,
who give payment in two weeks) and A class outlets (Who purchase in good
quantity, give payment in a week). Inclusion all types of outlets in his survey
(to take feedback about selected relevant distributors) will give him fair idea
about distributors who cover all types of outlets. There will always be
distributors who cover only C class outlets or who cover only A class outlets.
The success of any company depends on a distributor who covers and sells
company's products at all types of outlets.

Again to fully fortify his survey the company staff must ensure that he covers
some of outlets of each type in different markets or different areas of a town.
This type of coverage of outlets in most of parts of town or most of markets
of town will result in identification of distributors who cover all markets or
all areas of a town.

In this market survey he should take feedback of all relevant distributors from
retailers and wholesalers of a market on above parameters. He should ask
retailers and wholesalers to rank all shortlisted five or six relevant distributors
on a scale of 1 to 10 separately on each of above parameters.

After doing full market survey for all the selected Relevant distributors the
company staff should do total of total scores of all relevant distributos as per
marks given by different wholesalers and retailers to different relevant
distributors on a scale of 1 to 10.
On basis of total scores of these relevant distributors his next step should be
to shortlist at least three distributors ( Top three relevant distributors with
maximum scores). He must shortlist minimum three distributors as a
safeguard in case his top choice refuses to take distributorship of his
company because of whatever reason. Then in such a case he can choose
from the remaining two shortlisted distributors.We will call them Shortlisted
Distributors.

Now the role of ASM or supervisory sales staff ends with shortlisting of at
least three distributors.

The responsibility of appointing the right distributor out of three shortlisted

distributor should lie with senior managerial level minimum RSM. An RSM
with his experience and past mistakes can always select best of the three
shortlisted parties.

Next step Before apporaching shortlisted distributors for purpose of

appointing one of the shortlisted distributors as his company's distributors the
RSM should have done thorough homework on the following factors:

(i) Estimated business or sales that the company expects from the
distributor.

(ii)The investment that the company wants or expects from its distributor
in town.

(iii)The infrastructure requirement i.e. godown space, supply units,

salesmen etc from its
distributor.
 (iv) The support that the company will provide to distributor to generate
sales in market or town
i.e. no of days sales staff working, scheme, ATL/BTL support etc.

He should have concrete, specific and to the point answers and clarity on all
the above parameters. his clarity on above factors will help him convince the
shortlisted distributor on most of their queries.

The first question that RSM should ask each of shortlisted distributor is
whether the shortlisted distributor is ready to expand his business or whether
shortlisted distributor would be interested in taking distributionship of
products of his company.? Only if shortlisted distributor agrees to the same
then RSM should proceed with next step of evaluation of the shortlisted
distributor.

If the distributor is ready to expand his buisness then the next step for the
RSM or concerned mangaer should be do the thorough Need Analysis of
prospective Distributor. Need analysis is done to understand in detail the real
reasons why the prospective party wants to expand his business or wants to
start a new business. If the need of prospective distributor is long term in
nature and is not short term or is not impulsive only then the prospective
distributor should be considered for taking the discussion forward. To further
throw light on this factor if a distributor wants to settle down his son in
business then his interest in business will be more serious as compared to a
person who wants to get into business just because he has taken VRS and
now wants to do business. His interest will be more fickle.
So more serious and more long term the need for business of prospective
distributor better he will be as a business associate.
Then on next step ,RSM should judge and evaluate all three shortlisted
distributors on following criteria

Financial position-Asking and checking (if shortlisted distributor agrees) to

bank statements of shortlisted distributors. Checking his purchase and
payment record with other companies in which the shortlisted distributors
deals.

Checking his infrastructure: He should check whether infrastructure like

office or godown or suppy vehicles of shortlisted distributor is owned or
rented. If owned he can always ask for property papers (if shortlisted
distributor agrees for the same). He can chekc RC of supply vehicles of
distributors.

If a distributor owns supply vehicles then his chances of remaining in

distribution line are more as compared to distributors who operate thru rented
supply vehicles or who hire vehicles from market to supply stocks.

He can always informally ask the staff of distributor like salesmen, godown
keeper, accountant etc about their association with distributor, since when
they are working with distributor etc. These informal discussions with
distributor staff yield great insights and information about the shortlisted
distributor.

He should also take feedback of each of shortlisted distributor from sales

staff of other companies whose distributionship is being held or managed by
shortlisted distributor.

After satisfying himself on above parameters the RSM should take final
decision of appointing distributor of company.
The last and most important step in appointment of right distributor is to brief
the shortlisted distributor (who has agreed to take distributorship of products
of his company) about the following facts:

(I) History of company.

(II) Management of company.

(III)Distributor margin in %age.

(IV)Margin of retailers in terms of %age.

(V)Minimum Number of days stock that he needs to maintain in his godown.

Here most of sales staff lie. And this incorrect briefing to distributor in the
beginning result into long term problems in the times to come.

(VI)Minimum investment from him in company's business. Here correct

estimate of investment should be given to distributor so that he can plan his
funds and infrastructure accordingly. With objective of getting Yes from
shortlisted distributor most of sales staff lie here.

(VII)Requirement of godown space for keeping stocks of company.

(VIII) Minimum sales he will get from company in a month or in a year as

the case may be. Here genuine sales figure should be given to earn
distributor's faith in the long run. If sales staff give higher sales figure and
actual sales is less than the committed or promised sales figure then
distributor's faith in company sales staff will be reduced.And this is one area
where most of sales staff give wrong information deliberately just to trap
unsuspecting distributors.

Sales support provided by company (in terms of company's sales staff

working in his town or market).

Sales promotion support being provided by company ( schemes, BTL,/ATL

support which leads to sales growth in his market).

Damage policy of company i.e. how the company settles claims related to
unsold , expired or unsaleable products of company lying in market and at
godown of distributor.

Minimum order in quantity or value that distributor needs to place to

company or its SS or its CFA.

After briefing the shortlisted distributor on above factors, if the shortlisted

distributor agrees to join hands with his company as a distributor, RSM
should go ahead and appoint the shortlisted distributor as his company's
distributor.

So that's it on steps to be followed for appointing right kind of distributor in

right manner

Indian suppliers

https://mdhygiene.trustpass.alibaba.com/company_profile.html?spm=a2700.77248
38.2017115.4.2ec77d73KdyGv4#top-nav-bar

Diapers
http://digitaluncovered.com/baby-care-market-gold-rush-little-consumers/

It’s nearly impossible to fathom the depth of baby care market which makes it difficult to figure out where
does one start from. India is at a cusp of what could possibly be the best time that the segment has ever
seen. India has around 20% of the baby population of the world. Projected to have 135 million babies in the
age group of 0-4 years by 2020 and adding close to 26 million babies a year. Baby care market in India is
expected to be about $ 31 billion by 2020.

Research for baby products starts much before the baby is born and expecting couples rely on the internet for
research. Possibly the first brand that an expecting parent encounters is a hospital which then becomes the
epicentre for other brands to reach them. Generally, the first one to approach you would be a cord cell banking
provider which is a relatively new area at least in India.

An expecting mother visits a hospital at least 10 -15 times before actual delivery. The average delivery costs in
India are relatively lower at $ 650 while US is the most expensive at $ 9,000. The rising middle-class
consumer base and increasing disposable income are going to propel the average spending per child to 14,000
rupees per child by 2020.

Baby care market in India is largely dominated by three key players. Nestle in Baby Food & Formula, Johnson
& Johnson in overall market share and Kimberly Clark (Huggies) in diaper market. A multitude of categories
within the baby care segments means that the marketers can’t use the same mediums for all products.

Research from Google suggests that nearly 70% of mums use the internet to gather
information about baby & child care products and nearly half of the respondents take an
average of 3-4 days before they make the actual purchase.

No wonder that Johnson & Johnson with its massive marketing spends of $ 2.5 billion decided last year to
allocate 40% of its budget on online initiatives. Johnson’s Baby is a global initiative from Johnsons &
Johnsons to reach out to expecting couples and parents. The brand has several tie-ups in India with leading
parenting sites like Indus Parents, Baby Chakra and guessing from its 11 million fan base the content seems to
be resonating well with its audience. J&J also has done some really good homework to reach out to expecting
couples, in fact, Adage did a very exhaustive article on how they are taking the brand on digital in China here.

Nestle has Start Healthy Stay Healthy initiative that it uses to educate couples/parents to transition from
pregnancy to toddlerhood. The content also seems to be well crafted in fact the brand is celebrating
breastfeeding week with this really well-crafted video seen below this month. Other brands which have done
really well on social media include Himalaya Baby Care, Chicco India and Pampers to mention a few.

The other aspect of Digital is baby e-commerce which is a 120 crore market in India as per industry
estimates. With India expected to have around 730 million users by 2020, the number certainly seems to be a
lot short of what it really can be. Every key player in the baby care segment has its own e-store and has
presence on leading e-commerce sites like Amazon, First Cry, Baby Oye and the likes.
We have left out few segments including baby toys, baby apparels, baby furntiure, baby products and our
personal favourite baby detergent from this discussion. All the segments mentioned also have some really
interesting work happening both on digital and e-commerce front. We have tried to create a short snapshot of
what the baby care market looks like if we take the major categories into account in the below infographic.

Indian Diaper Market Expecting Growth

Unicharm’s Mamy Poko diapers surpass Kimberly-Clark’s Huggies brand in the country.

11.22.16

According to a new report from Bonafide Research “India Diaper Market Outlook, 2022,” the diaper
market in India is growing with more than 20% CAGR from the last seven years. The healthy growth rate
is driven by factors such as millions of babies born per year, higher disposable incomes and the
increased hygiene awareness of Indian mothers.

While India has a vast population of around 1.2 billion, uptake of disposable diapers is still low
compared with other developed markets. However, manufacturers believe that India could grow to
become an even larger market than China in coming years. This potential growth has led major players
to invest heavily on product innovation and development to get an upper hand over their competitors.
The major brands have been using television based advertising to their full advantage and have raised
the awareness of diapers in the country.

The Indian diaper market has long been characterized by large fluctuations in the market share within
short periods. Previously, the main players in the industry were Proctor & Gamble’s Pampers brand and
Kimberly-Clark’s Huggies brand. However, Unicharm’s Mamy Poko Pants, one of the latest entrants into
the market, has gradually developed into a major player now, according to the report. The company has
already overtaken Kimberly-Clark.

Unicharm India, a wholly-owned subsidiary of Unicharm Corporation, has two diaper brands in its Indian
portfolio, MamyPoko for baby diapers and Lifree for adult diapers. Unicharm has seen strong growth in
India since 2009, when it entered the disposable baby diaper market on a full-scale basis. In fiscal 2013
and 2014, the company's sales growth accelerated to almost 100% and 80% respectively year on year,
supported by efforts to promote economy pants-type disposable diapers. Unicharm India is further
targeting growth in India by extending their sales areas to secure new users and by promoting their pant
type disposable baby diapers, a category where the brand already has a strong position. The company's
second factory located in Southern India started operations in 2016. The new factory is a part of wider
efforts to strengthen their local manufacturing framework and give them the capability to serve all areas
of India.