Diaper profits of up to 40%? Why is it so difficult to make money when the profit is so high?

The number is huge, the local and foreign brands are moving forward, and the amount of capital is injected.... The domestic baby fast-moving consumer goods market is developing rapidly, and the changes are changing with each passing day. There are new opportunities and challenges for baby practitioners, diaper profits. Up to 40% or more, but with the influx of players, many diaper practitioners find that money is hard to earn, what is going on? Let's take a look at the industry trends!

Market size

The size of China's baby boy market is huge, including 80 billion infant formula milk powder and more than 40 billion diapers. With the increase of penetration rate, these two brands are still maintaining double-digit growth, and will soon exceed 100 billion and 50 billion. .

Infant milk powder and diapers are very high in the maternal and child stores, and the sum of the two is more than 30%, so both brand and channel dealers attach great importance.

More brands

In 2014, there were 255 imported powder brands registered by the General Administration of Quality Supervision, Inspection and Quarantine, and there were hundreds of domestic milk powder brands, which together added nearly 1,000. There were thousands of milk powder brands in the Chinese market before the country introduced a ban on licensing. At present, there are more than 90 enterprises in China that have the qualifications for infant formula milk powder production enterprises.

The infant milk powder market has improved access thresholds with state regulation. And diapers, because there is no constraint, the number of brands is still growing wildly. According to statistics, there are currently 1,200 brands in the Chinese diaper industry. From the beginning of 2013 to now, 200 new brands have entered the market.

With so many brands in the field of milk powder and diapers, the world is unique, absolutely worthy of Chinese characteristics.

Overcapacity

The amount of capital entered the baby industry, which has spawned so many brands, accompanied by severe overcapacity. Taking milk powder as an example, the current market capacity of domestic milk powder is 600,000-700,000 tons, and the combined production capacity of domestic milk powder and foreign milk powder will not be less than 1 million tons, and the production capacity is seriously surplus.

The milk powder industry is so, the diaper industry is even more so, and there is a serious overcapacity. But the upstream of the diaper is much simpler than the upstream of the milk powder industry, so the adjustment cycle is shorter and more flexible.

Foreign brand

In the infant and baby milk market in China, the market concentration is very high. The market share of the top ten brands exceeds 80%, and 50% of the market share is occupied by a few foreign brands.

Needless to say, diapers, although a number of excellent domestic brands have grown, but still have not changed the foreign brands almost monopolized the market, the market share exceeded 65%.

Price and profit

The profit margin of tissue paper is less than 20%, but the profit margin of diapers can be as high as 30% or even 40%, which is why many traditional tissue companies have added diapers. Not to mention infant milk powder, it is already an open secret, and the retail price is several times the cost price. In the terminal sales of 400 milk powder and the sale of more than 100 milk powder, there is almost no difference in cost.

Capital entry

The Chaoyang industry, with a scale of 2 trillion yuan and a good second-party new policy, these labels for infants and children have attracted more companies and capital.

Stimulated by various favorable factors, more and more domestic and foreign enterprises, especially listed companies with strong financial strength, have begun to join the battle for milk powder and diapers. Both Heng and Xin hope to sell milk powder, and Hesheng has also made diapers.

With the standardization of the baby market and the acceleration of industrial integration, the technical barriers to scale effect and brand competitiveness are constantly improving. Excellent companies in the industry will develop at a faster rate, and the demand for funds will increase, thus attracting more external capital investment.

Most baby-child enterprises are private enterprises. After reaching a certain scale of operation, they are faced with bottlenecks such as improving corporate governance and improving financial strength. Strategic investors have rich external resources to help enterprises carry out brand promotion and market expansion to varying degrees. , talent introduction, financing mergers and acquisitions, bring value-added effects outside the capital for enterprises, and help enterprises achieve model innovation and scale effect.

In 2014-2015, the maternal and child e-commerce industry has launched an investment boom, and the hot mom, babe, and honey bud nets have received financing.

However, in the field of manufacturing and service, due to low industrial concentration, market opportunities and gaps, the industry is not competitive enough. The company has no more advantages in terms of products, brands and channels. There are not many opportunities for integration. But when a market matures, it needs innovation to seek a breakthrough. Therefore, integrated mergers and acquisitions will be the ultimate direction of mature markets.

Future trend

The urbanization process, the growth of second- and third-tier cities and rural consumption capacity, and the improvement of national education level have all contributed to the increasing brand awareness of consumers, and the promotion of brand awareness will further promote market concentration. The increase in market concentration means that the second and third-line brand space is getting smaller and smaller.

In addition to these, we also have to face the global maternal and child market. There are also many excellent maternal and child brands abroad, and they may enter China at any time. As China gradually puts the threshold of switching taxes and imported products, cross-border e-commerce is prevalent, and the impact on domestic brands will be even greater.

In addition, the mother-infant channel with Chinese characteristics has created a number of brands, but after more than a decade of development, the mother-infant channel is undergoing profound changes. Soon, there will be a dramatic change in the maternal and child brand market.

Responsible editor: Miao

For reprint, please indicate the source

This article is posted on the website for the purpose of transmitting more information and does not imply endorsement of its views or confirmation of its description.

Article source address: http://

Synthetic Ponytail

Synthetic ponytail extension is a clip-in long wavy curly large volume fluffy hair, perfect for girls, lady, black woman to add your hair volume or change the style immediately.
The ponytail extension is made from premium synthetic fiber with matte finish. Soft and natural like human hair. It works with different hair lengths and can clip into thin or thick hair.
Create a high ponytail, a face ponytail, or just simply add the ponytail hairpiece for a different hairstyle. You can cut it shorter or thin it out. It can be also straightened or curled.
The tangled problem can be solved by mixing ponytail with vinegar, baking soda and water and soaking it with some conditioner.
The ponytail extension simply clips above a hair tie and adds a ponytail to your real hair. Just insert the clip above the hair tie and wrap your hair with the wide soft weft and use bobby pins if needed to keep in place.
Like all synthetic hairpieces, static & humidity may cause the ponytail extension to tangle. By using hair softening products to keep the texture of the clip-in ponytail smooth. If it becomes tangled, brush it from the bottom of the ponytail using a wide comb.

Synthetic Ponytail,Slicked Back Ponytail,Drawstring Ponytail,Synthetic Curly Ponytail

Xuchang Le Yi De Import And Export Trade Co., Ltd. , https://www.alileaderbeautys.com

Posted on