As the Chinese economy continues to grow, so does the demand for baby products. This provides opportunities for foreign babycare brands to expand their operations in China and tap into this rapidly-growing market. In this blog post, we will take a closer look at the Chinese diapers market and discuss some of the key trends shaping it. We will also explore how foreign brands can capitalize on these trends to gain a foothold in the Chinese diapers market. So without further ado, let’s get started!
What Is the Size of the Market for Disposable Diapers in China?
The size of the market for disposable diapers in China is expected to grow at a CAGR of 8.69% from 2022 to 2026.
The market is dominated by foreign players such as Procter & Gamble and Kimberly-Clark. These companies have a significant share of the market due to their focus on innovation and marketing. Additionally, they have expanded their distribution networks significantly over the years.
Local players such as Hengan International and Wantong are also present in the market, but they lack the scale and resources of foreign players. This puts them at a disadvantage in the market.
The disposable diaper market in China offers great opportunities for brands operating in the market. This is due to the growing awareness about hygiene and the rising income levels. Additionally, the market is expected to grow significantly over the next few years due to the government’s investment in healthcare and the rise of e-commerce.
The Disposable Diaper Market Is Growing in China
For quite a while now, the Chinese have been relying on split-crotch pants, or Kai Dang Ku, to potty train their young. The split-crotch pants have a long and venerable history in China. They were reportedly first worn by the Emperor’s concubines, so they could answer the call of nature unobserved. These days, Kai Dang Ku is still popular with both sexes and all age groups for their comfort and convenience.
The disposable diaper is a relative newcomer to China, introduced in the early 1990s. At first, they were seen as luxury items and mainly used by the wealthy. However, with increasing income levels and more widespread marketing, disposable diapers are becoming more popular across all segments of Chinese society.
The Chinese disposable diaper market is forecast to grow at a CAGR of 8.69% during 2022-2026. This is due, in part, to the increasing number of young couples who are having children, but it’s also attributable to the growing awareness of disposable diapers as a more hygienic and convenient option than traditional cloth diapers.
Procter & Gamble (P&G), the world’s largest diaper maker, entered the Chinese market in 1995 with its Pampers brand. Since then, other international brands like Kimberly-Clark and Japan’s Unicharm have also set up operations in China. Local companies like Hengan and Vinda are also major players in the Chinese diapers market.
Reasons for the Growth of Disposable Diapers in China
Many factors are driving the growth of disposable diapers in China. For instance, the country has a huge population, expected to grow even more.
The Chinese government’s “One-Child Policy,” which was in place for over three decades, is no longer in effect. As a result, more couples now have more than one child.
In addition, Chinese parents are becoming more affluent and have higher disposable incomes. They’re also better-educated and have higher expectations for the quality of their children’s lives.
As a result of all these factors, the Chinese diapers market is expected to continue growing in the years ahead. If you’re looking to enter this market, now is the time to do it.
Disposable Diaper Brands Popular in China
Some of the disposable diaper brands that are popular in China include Pampers, Huggies, and MamyPoko. These brands have a strong presence in the country and enjoy a high market share. They are focusing on expanding their distribution networks to reach more consumers. Additionally, they are also introducing new products to cater to the needs of Chinese consumers.
For instance, Pampers recently introduced a new product called “Pampers Pure.” This diaper is made of cloth and is aimed at eco-conscious parents. It is expected to be popular in China as the demand for premium diapers is growing.
Other brands, like Hengan and Vinda, are also popular in China. These companies have a strong presence in the Chinese market and offer a wide range of products.
Challenges That the Disposable Diaper Industry Faces in China
There are some challenges that the disposable diaper industry faces in China. Brands need to be aware of these challenges and find ways to address them.
- High cost of production: Producing disposable diapers is high in China. This is due to the country’s lack of natural resources and the rising labor costs. Brands need to find ways to reduce the cost of production if they want to be successful in China.
- Environmental concerns: There are growing environmental concerns regarding the use of disposable diapers. The vast majority of these diapers end up in landfills, where they take a long time to decompose. As a result, brands are pressured to find sustainable alternatives to disposable diapers.
- Low penetration rate: Disposable diapers have a low penetration rate in China compared to other countries. This presents a lot of untapped potential for companies operating in the market. Brands need to focus on increasing their penetration rate if they want to succeed in China.
The Chinese diapers market is growing and presents a huge opportunity for companies operating in the industry. However, there are some challenges that brands need to be aware of, like those mentioned above. Despite these challenges, the market is expected to continue growing in the years ahead.
Opportunities for the Disposable Diaper Industry in China
There are several opportunities for the disposable diaper industry in China. Here are some of them:
- Expanding distribution networks: We need to focus on expanding our distribution networks if we want to reach more consumers in China. This is a huge market, and there is a lot of growth potential. Brands need to have a strong presence in the country if they want to succeed.
- Introducing new products: We also need to introduce new products that cater to the needs of Chinese consumers. This is a fast-growing market, and there is a lot of demand for premium diapers. Brands that can meet this demand will be successful in China.
- Focusing on e-commerce: E-commerce is a huge opportunity for brands operating in the Chinese market. This is because there are a lot of consumers who shop online. We need to focus on this kind of distribution to reach more consumers.
These are some of the opportunities that we can focus on. The disposable diaper industry is growing rapidly in the country. It presents a lot of potential for companies operating in the market. We need to focus on seizing the available opportunities.
How Did P&G Bring the Diaper Revolution to China?
In the early 1980s, P&G decided to bring the diaper revolution to China. At that time, there were no disposable diapers in the country, and parents were using cloth diapers.
P&G first introduced its flagship product, Pampers, in 1982. The company faced many challenges in the early years as it was trying to educate Chinese parents about the benefits of disposable diapers. Additionally, it had to establish a distribution network across the country.
P&G helped revolutionize the disposable diaper industry in China. The company was able to do this by understanding the needs of Chinese parents and introducing products that met their requirements. Additionally, P&G invested heavily in marketing its products and establishing a distribution network across the country. As a result, disposable diapers became very popular in China, and Pampers is now one of the leading brands in the market.
P&G’s Success in China
P&G’s success in China is a result of its continuous investment in the country. The company has been operating in China for 34 years and has established a strong brand presence. Additionally, P&G has a deep understanding of Chinese consumers and their needs. This has helped the company develop products that are very popular among parents.
P&G is expected to continue performing well in China as the disposable diaper market is expected to grow at a rapid pace in the coming years. The company’s strong distribution network and wide range of products will help it maintain its leading position in the market. Additionally, P&G’s continuous investment in China will help it capitalize on the growing opportunity that exists in the country’s diaper market.
The rapid growth of the Chinese diapers market presents a significant opportunity for companies operating in the market. P&G has been very successful in China and is well-positioned to capitalize on the growing market opportunity.
How to sell your disposable diapers brand in China
- Distributors: the most traditional way to sell your product in China. Although online retail has become mainstream in China, physical retail is still going strong, and having your diapers available in your customer’s favorite supermarket is an advantage. Diapers brands also have the possibility to work through online distributors, which would be rather similar to offline distributors. However, selling in China through distribution can be challenging to set up. Indeed, the demand for chinese distributors is high, which in turns make said distributors picky about the brands they work with. Chinese distributors will generally go for the already know brand in China, it is less risky and less work.
- eCommerce: Is now mainstream and offer brand total control over the distribution of their products and the marketing associated. A brand can sell directly to their customers through their own online flagship store on the platform of their choices. Ecommerce in China, is dynamique, and brands have varied option when it comes to selling online: from platform choices, stores types to local vs crossborder ecommerce. Tmall, JD and Pinduoduo are the TOP 3 chinese marketplace you want to check out. Each have their pros and cons and a huge customers base. You also have the option to join specialised online marketplaces such as Muyingzhijia and beibei.
- Brick & mortar: This one is a little awkward for a disposable diapers brand. But let’s say your brand fully covers maternity & pre and post-natal care then it would be totally legit for you to decide to go that route. However, your physical store should be more in an effort to offer a unique experience to shoppers and should be combined with an e-commerce or/and distribution effort.
Why & How to reach out to Chinese parents & convince them to purchase your diapers brands?
- It helps to create awareness for the product and build trust with potential customers.
- A strong brand can help a product stand out in a competitive market.
- Branding can help increase the perceived value of a product, making it more attractive to Chinese consumers.
- Build trust with customers in such a sensitive market (keep in mind we are talking about baby targetted products)
Branding is crucial for brands wanting to succeed in China, here is a list of steps you want to take:
- Use Baidu to Give your Disposable Diaper Brand Visibility: You should definitely promote your disposable diapers brand on Baidu to target Chinese parents. some general tips for promoting a disposable diapers brand on Baidu include conducting keyword research to identify relevant keywords and phrases, creating high-quality content that engages and informs potential customers about the benefits of using disposable diapers, and using effective Baidu SEO tactics to ensure that your website appears near the top of search engine results pages for relevant queries. Obviously, you’ll need a website in Chinese that is optimized to rank on Baidu meaning no google API and server located in china or close to china.
- Chinese social media: Social media is an incredibly popular channel in China. In fact, more than 700 million people use social media in China, which means there’s a large potential audience for your diaper brand. Chinese ocial media allows you to target parents specifically. This is important because Chinese parents are often extremely concerned with the quality and safety of their children’s diapers. By using social media to reach out to them directly, you can assure them that your brand meets all of their high standards. Social media allows you to create dynamic and engaging content that will capture the attention of Chinese parents. We suggest diapers brand to invest on Wechat, Weibo and Xiaohongshu marketing, through community management and paids ads, but also Kols marketing.
- PR & Kols: PR is one of the most cost-efficient ways to build a relationship of trust with Chinese parents. Indeed, having a trusted 3rd party aligning its name with your brand is a power move that official brand communication will never achieve. Repeat this with multiple media and KOLs in the maternity realm and you’ll not only be building a strong presence online but you’ll also benefit from the trust customers have in this media.
- Forums & Q&A: They serve a similar function to KOLs & PR marketing, building trust and visibility but instead of influencers and trusted media, you are levaraging the power of peer reviews and word of mouth. The bonus: after a while, you’ll benefits from UGC (user generated content) or in other word, organic content about your brand that will keep feeding the discussion about your brand and your visibility online in China.
Want to start selling your diapers brand in China?
GMA has been helping brands grow in china for 10 years now. Our team of experts will help you reach your goals, contact us and ask for a free consultation