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According to Bain's 2020 China Shopper Report, in the long run, "two-speed growth" will continue, and the two major trends of high-end and cost-effective will coexist. In the competitive diapers market, this trend is more obvious.

This is also reflected in the research report of Zhongtong Observation. Take the high-growth Luanshi, King, Curious and Q-MO Chimo as an example, winning high-end and precision marketing is the core factor for them to win the competition. In 2020, Curiosity has launched Curiosity Drill Pack Small Forest Series, Ultra-High-End Line Royal Platinum Pack, High-End Line Platinum Peach Pants and other products. At the same time, curiosity is more flexible in terms of channels and marketing, and a large number of accurate delivery is carried out in trembles to achieve the integration of product and effect.

Last year, King also launched a new gold-plated series of light feather, constantly tamping the high-end product line. In addition, Beaba diapers break through with their unique "IP color value" and quickly occupy the minds of young family users. The babycare of the layout of the whole category, the rapid growth of the diaper category, the double eleven list, has entered the top three diapers.

At the same time, some small brands rely on their tenacious vitality to "live in a corner" in China's vast market. Countless domestic diaper brands survive in different levels of markets, or they are active in mother and infant stores in sinking markets such as villages and towns, and are highly recognizable in the regional market. Either it is flourishing online, such as micro-businesses and communities, with cost-effective advantages on the Internet.

The low threshold of the diaper industry has attracted a large number of "gold diggers", especially in 2020 when the epidemic is spreading, and the rapid death of brands is almost simultaneous with the new life. The survival logic of these small and miscellaneous brands is closely related to the division of consumer trends after the epidemic.

Since the outbreak of the epidemic, the impact of consumer degradation extends to the maternal and child sector, from milk powder, diapers to toiletries price diving has become the norm, cost-effective advantage of the rise of more obvious national powder, diapers 1 yuan a few pieces of consumer market ...... are consumer consumption degradation of the clear evidence, which is also the space for the survival of miscellaneous small brands.

At the same time, the market also does not lack for high-end, high-quality consumption, the epidemic under the pressure of the downgrade trend, there is no lack of consumer strength, consumer goods in the position of high-end consumers, its high-quality adherence to the baby has not changed.

Brand ranking competition is fierce, new and old "head" performance is different.
According to incomplete statistics, there are more than 2500 brands in China's diaper market. Nevertheless, the brand concentration of the whole industry is still relatively high, the head brand occupies a large market share, and the small and medium-sized brands survive in the cracks.

From first-tier cities to fourth-and fifth-tier markets, from online e-commerce platforms to offline mother and infant shops, supermarkets, etc., the market rate of diapers just needed is very high. Imported big brands such as Pampers, Hua Wang and Curiosity can be seen almost everywhere. Profound brand strength, flexible marketing strategies and solid logistics supply chain make the designated purchase rate of consumers extremely high.

In addition to the five traditional foreign brands of Pampers, Curiosity, Hua Wang, Da Wang and moony, babycare will break through against the trend. While continuing to deepen its online activities, it will also continue to expand its product boundaries in 2020, making concerted efforts online and offline. Babu beans have accumulated a lot and developed steadily. Brands such as Yiying and Anerle will also continue to innovate products, channels and marketing methods in 2020 to bring forth new life. It is worth mentioning that Biba Baby's online growth in 2020 is high, with a growth rate of 371.9 percent. In contrast, the diaper brand with the highest online growth rate in 2019 is babycare.

Specifically, Pampers accounts for 14.8 of the online market share and is still the king of diapers, but the growth rate is not obvious in the growth, and the curiosity in the second place is eyeing and attacking fiercely. In addition, a large number of local brands, The rise of cutting-edge brands also makes Pampers face a great impact.
Curiosity will grow 16.9 percent in 2020, the best growth trend among the top five foreign investors. Keep innovation in products and channels, and play a lot of tricks in marketing in 2020.

Kao, Eunice continue to decline. Earlier, according to the Nihon Keizai Shimbun, Eunice's investment strategy underwent major changes in fiscal year 2020, reducing investment in infant care businesses such as diapers, which accounted for about 40% of operating income. To invest 40% of the overall investment in women's care business, 30% in health care business, 30% in pet food and other pet care business.

Babycare, Babu beans by virtue of the online market deep plowing, during the outbreak to get more rapid development. In 2020, the babycare brand GMV exceeded 5 billion yuan, with a compound annual growth rate of more than 100. On February 3, 2021, the Babycare completed 0.7 billion yuan B round of financing, with more than 10 million registered members and opened offline stores in Shanghai, Hangzhou and other places.

Diaper consumption online migration trend is obvious
Nielsen retail market research data show that the trend of online migration of diaper consumption is very obvious, with e-commerce accounting for 54% of the share and a considerable growth rate. For consumers, diapers are high-frequency fast-moving goods, and the convenient and fast purchase methods of e-commerce and frequent promotional activities are in line with the consumption habits of young parents.
According to the latest data from ECdataway Data Wei, the online size of baby diapers (including diapers, pull-ups, diapers, etc.) integrated Tmall, Taobao and Jingdong platforms in 2020 is 24.01 billion, showing a slight increase over the same period in 2019.

According to Nielsen's data, specific to the performance of each platform, a significant change compared to 2019 is that the overall proportion of head foreign brands in Jingdong in 2019 is higher. However, in 2020, in terms of channel distribution, the proportion of major brands in Tmall has been significantly ahead. Taking TOP10 brands as an example, Pampers, Curiosity, Kao, babycare, Baby-friendly and Anerle are all larger than Jingdong and Taobao in Tmall.

New trends such as live delivery and social e-commerce, as well as diversification of consumer information and fragmentation of channels, all provide more opportunities for the development of new brands. At the same time, the epidemic has accelerated the pace of migration to online and the landing of digital transformation, more brands see the importance of laying out online, and a number of practitioners have agreed that "online channels are a must for all diaper brands."

Of course, it is only one aspect that online occupies the majority and the growth rate is considerable. In the diaper market composed of thousands of brands, offline is also a very important part. The situation of diapers online and offline is different. The well-known brands online and offline maternal and infant stores may not be popular. Many unknown local brands and new brands may be the king of hot sales in a certain region.

Segmented categories see growth, pull-up pants into the trend of large single products.
The trend of subdivision of maternal and child categories is becoming more and more obvious, as is the diaper industry. ECdataway Data Wei's latest data show that the entire category of baby diapers includes diapers, pull-up pants, diapers, cloth diapers and other categories, of which diapers are still the big head, accounting for more than 70%.
Data show that from 2013 to 2018, the market share of pull-up pants increased from 8.7 to 27.2, a growth rate much higher than the average level of the diaper industry.

However, in terms of popularity, the market size ratio of China's pull-up pants and diapers is 3:7, and that of the United States is 7:3. Compared with countries such as Europe, America and Japan, the popularity, market share and penetration rate of China's pull-up pants are relatively low, and the market space in the future is very large.

Source: Jung-International Nonwovens Industry