Mr. Haojiu Takahara (Takahisha Takahara), CEO of Unitya (Unicharm), accepted the Outlook Asia Award from EDANA for its Moony Natural diaper product.
As the largest manufacturer of sanitary products in Asia and the third largest manufacturer of sanitary products in the world, Eunice (Unicharm) continues to devote most of its resources to the fast-growing Asian market. In this market, related technologies such as non-woven fabrics and absorbent materials continue to advance, enabling Eunice to continue to introduce high-quality products that are popular with Japanese and international consumers.
Due to the low birth rate in Japan's domestic market and the high market penetration rate of many hygiene product categories, Euneja has been striving to expand its market share in China, Vietnam and India in the past decade. And their sales outside of Japan continue to grow strongly, proving that this strategy has paid off. At present, Eunice's sales in Asia are comparable to its sales in Japan, accounting for less than 43% of total sales, while sales outside Asia account for about 14% of its business.
Mr. Haojiu (Takahisha Takahara), CEO of Uniga (Unicharm), has led the company since June 2004. Prior to that, he began serving as president of Eunice in 2001. In an exclusive interview with Nonwovens Industry magazine, Mr. Takahara shared his plans in the Asian market and his views on topics such as the changing needs of the diaper market and the growing importance of adult incontinence and pet care markets.
Choose the right pace
Nonwovens Industry (NWI): Eunice has been successful in the disposable hygiene market in recent years, especially in China. In the development of diapers business, your company adopted what kind of strategy?
Takahara: In Japan, babies use about 5.4 diapers a day before the age of three. Mothers and fathers will have an intuitive feeling of this product every time they change diapers and evaluate the diapers they use. Therefore, it is very important for us to continuously bring innovative and high-quality products to the market. A new value proposition has emerged in recent years-more and more consumers pay more attention to the "safety" of products, they believe that raw materials and origin are very important.
In Japan, the "high-quality demand" for diapers is rising every year due to phenomena such as late childbearing and declining birth rates. In order to meet this need for safety and security, we have launched a product that can meet the needs of this new value proposition-high-quality diapers "Natural Moony" using organic cotton and "Moony Air-fit" suitable for low-weight babies, which have been recognized by consumers.
In China, as consumers pay more attention to safety and security, their demand for high-quality Japanese diapers is increasing. The high-quality diapers "Natural Moony" sold in Japan are also exported to China and are well received by Chinese consumers. In double 11, China's largest e-commerce activity, the "Moony" brand ranked first in the sales of Tmall diapers in 2016 and 2017.
China's sales channels are rapidly shifting from offline stores to e-commerce. We will continue to increase cooperation with e-commerce and other channels to flexibly respond to changes in consumer buying behavior. Chinese consumer demand for safety and security will continue, so we expect "Moony" exports to keep rising. In addition, we also plan to increase the promotion of pull-up pants in China, and will also propose new value propositions.
NWI: How are trends in the Chinese disposable hygiene market, such as the pursuit of softness, impacting Eunice's diaper design in other parts of the world?
Gao Gaohao: The general requirement for disposable diapers is that they will not leak baby's urine or feces, and are gentle and non-irritating to baby's skin. These are common needs worldwide. "Soft" and "skin-friendly" are the basic functions of diapers.
We have established market research, R & D and marketing departments worldwide to explore localization needs. According to the information obtained from these areas, Eunice will provide the most suitable products for it. Also, the information obtained in each area is shared and utilized throughout the group.
NWI: Why are pull-ups so popular in Asia? Do you think this trend will expand to the European and North American markets?
Gao Gaohao: Long before the waist-mounted diapers in the United States and Europe were widely spread in the Asian market, we had already introduced pull-up pants products in this region, which allowed us to establish the consumption concept of pull-up pants in Asia as early as possible.
The pull-up pants fit the body perfectly, the baby can move easily, and it is difficult to leak, and it can be replaced even when standing. Users of disposable diapers are always changing, and we believe that appropriate marketing will continue to expand the use of pull-ups.
NWI: What other important challenges do you see in the hygiene products market and how should they be addressed?
Gao Haojiu: I think in the current environment, it is very important to detect changes in consumer choices and buying habits in a timely manner and make correct responses. In particular, Millennials and Gen Z are more interested in and trust information and experiences shared from friends and social networks, rather than traditional media messages. If we cannot meet this requirement, we may lose the opportunity to shape and maintain the brand image. We want to strive to maintain the right pace of continuous product development and brand building.
Focus on the adult incontinence market
NWI: Where do you see the most important growth areas for the adult incontinence market?
Takahara: At present, the total population of Japan over the age of 65 is about 34 million, accounting for 26.5 percent of the total population. It is a very aging society in the world. It is estimated that by 2020, 30% of Japan's total population will be over 65 years old, and a healthy increase in life expectancy is also a national goal. In this case, appropriate incontinence care is one of the important factors to maintain happiness in old age, so we expect that the market demand for adult diapers will increase accordingly.
In the adult incontinence business, three types of products will be provided for different daily life activities of users, namely mild, moderate and severe. Currently in the incontinence market, light incontinence products are in high growth. In a super-aging society, this type of product is popular among the elderly due to the desire for a healthy and independent life and the desire to deal with minor incontinence on their own.
With an adult incontinence business in 15 countries around the world (including Japan), Eunice pants are widely used to support users' independent living. The inner pad used in the disposable diaper can reduce the daily cost and the trouble of changing the diaper because it can be replaced separately. Japan's excreta care system has also been expanded in Taiwan, China.
In Asia, the growth of aging will become the norm, and the demand for adult incontinence care products is expected to expand across the board. Uniga's goal is to use this opportunity to extend the Japanese model of incontinence care throughout Asia.
NWI: How has your company changed or improved the design of adult diapers and other adult incontinence products?
Takahara: Since the launch of adult disposable diapers "Lifree" in 1987, our company has been promoting the development of the Japanese adult incontinence market by creating products with new value and enhanced functions.
In 1995, we introduced the concept of "achieving zero bed rest" through the launch of "Lifree Rehabilitation Pants", which helps reduce the physical, financial and mental burden on caregivers and caregivers.
In addition, in 1997, we first launched the "Charm Napkin SAWAYAKA Liner", which is a product for the care of mild urine leakage symptoms and is used in daily life.
We launched mild incontinence products for men in 2014 and mild anti-fouling products in 2017. These new incontinence categories are attracting consumer attention.
Southeast Asia is in focus
NWI: Your company has increased its expansion in Southeast Asia, such as the acquisition of Diana in Vietnam. How important are these initiatives to your development?
Takahara: Southeast Asian countries have a large young population, incomes are growing, and per capita consumption is also increasing. However, the market penetration rate of disposable diapers and other sanitary products is still not high, and high growth is expected. In this sense, the importance of Southeast Asian countries is high.
For example, India is a superpower with a population of about 1.3 billion, and the number of births has rapidly increased to about 27 million. We believe that in the future, the Indian market may surpass China and become the next generation growth hotspot.
Our business in India has been steadily expanding in recent years, both in terms of sales and market share, and we achieved a fiscal surplus in 2017. A third Indian plant is planned to operate in the western region this year. In India, the penetration rate of disposable diapers is still very low. We are promoting the spread of pants-type products, which is our company's advantage. In addition, as the share of hygiene products has expanded with the introduction of new value propositions, we have also expanded this market through promotion, early education and other activities to users who have not yet tried the product.
Implementation of diaper recycling technology
NWI: Your company is a leader in the recycling of absorbent hygiene products. Can you tell us about your situation in Japan and your new initiatives in Vietnam?
Takahara Haojiu: Raw material recycling is considered an important issue. In Japan, some of the waste materials in the manufacturing process of disposable diapers and hygiene products are used as raw materials for pet products. In Vietnam, we plan to separate some of the lost materials in the manufacturing process into pulp and polymer by separators and reuse them as raw materials.
Large-scale recycling of diapers is feasible. We are working hard to establish a cycle-oriented model, while also ensuring the hygiene and safety of our products.
We have developed a recycling technology for used diapers. It is the industry's first unique recycling technology that extracts sanitary pulp primarily from the pulp of used diapers. The recycling system helps to improve the environment on a global scale, such as reducing waste and carbon dioxide emissions, and recycling natural resources. According to the environmental impact assessment, this recycling technology can reduce carbon dioxide emissions by about 30% compared with traditional incineration.
At present, in Nibu City, Kagoshima Prefecture, Japan, we are working on the pilot operation of the recycling system in cooperation with the local government and recycling companies, hoping to commercialize the recycling system around 2020.
The realization of this recycling faces two major challenges: the first is the collection work, in which the cooperation of local governments and residents is indispensable; the second is how to eliminate the psychological resistance of consumers to the use of recycled pulp. We plan to work with local governments to promote the sorting and collection of waste and to raise awareness of the safety of products that use recycled raw materials.
Pet Care Business
NWI: Describe your company's pet care business? What are your plans and goals?
Takahara: We are working hard to develop products for the pet care and living market, such as toiletries and food for cats and dogs. In Japan, through the introduction of high value-added products, we maintain the first market share in the pet products and food market.
Sales in North America are also growing, and we focus on high value-added businesses such as flea and tick medicine, which is one of our core businesses, as well as cat treats produced with Japanese technology. Our goal is to expand our pet care business in Asia from now on.
In Japan, as the birth rate declines and the aging population continues to grow, dogs, cats and other pets have become irreplaceable members of the family. Recent studies have found that contact with pets has a positive impact on the health of older adults. Pets have proven to be useful in preventive medicine, such as preventing dementia, stabilizing blood pressure and pulse, and maintaining mental health, social involvement and identity through greater communication with other pet owners.
Our company is also committed to extending the healthy life of pets by achieving a "harmonious society of people and pets", thereby promoting the health and longevity of the elderly. Globally, with rising income levels and an aging population, consumer demand will be stronger than ever, which will clearly further drive the pet care market.
