Unicharm's diaper business focus has shifted in China! Domestic brands are shaking the dominance of foreign brands！
According to the British "Financial Times" website reported on November 29, China is about to experience a major but cautiously discussed demographic inflection point, and diaper manufacturers are beginning to pay more attention to the increasingly large ageing group. This projected inflection point will affect marketing and manufacturing investments by some of the world's largest consumer goods groups.
Diaper makers, analysts and investors all say the size of China's adult diaper market could surpass that of children's diapers by 2025, underscoring the rapid pace of demographic and social transformation.
CLSA analyst Jun Kato said the inflection point "may come sooner" given the rapid growth in adults and "almost no growth" in infants.
The trend in the populous country emerged in Japan a decade ago, when sales of adult diapers began to outstrip baby diapers.
According to research data from Natixis, in 30 years, one in four Chinese will be elderly.
In response to the demographic shift, Unicharm, one of China's leading sellers of diapers and hygiene products, has made a silent marketing shift in recent months, analysts and investors said. The Tokyo-based company has spent more of its marketing budget on adult diapers than baby diapers, according to people familiar with the matter.
Unicharm declined to confirm the shift in its advertising budget, but a spokeswoman said the company was less aggressive about Chinese baby products than its previous marketing policy. The spokesman also said that since last year, the company's lucrative profits in the field of feminine care products in China have been used to promote adult diapers.
CLSA predicts that the value of China's adult diaper market could increase from more than $1 billion last year to $16 billion in just eight years. Its market size could grow to $30 billion by 2040.
More and more Chinese companies are shaking up the industry dominance of some foreign diaper makers, including Unicharm, the report said. While foreign companies have enjoyed a premium over local diaper brands for years, there are signs that such premiums may not apply to the adult diaper market.
"Chinese (consumers) are increasingly feeling the rise of domestic brands," Kato said. "New products (of domestic brands) will be discussed immediately after they are released, and if the product is good, word of mouth will spread quickly."
