Babycare - China - November 2014

INTRODUCTION
Definition
Methodology
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Retail value of China’s babycare market, 2009-19
Figure 2: Retail value of China’s babycare market, by segment, 2009-14
Companies and brands
Figure 3: Market share of top companies in babycare, by value % share, 2013
The consumer
More room to grow usage rate in niche segments
Figure 4: Babycare products used in the last six months, August 2014
A signifcant gap in meeting ingredient needs
Figure 5: Consumer interest in ingredient innovation vs new product launches in babycare, China, 2011- Oct14
Offline purchasing channels remain important
Figure 6: Purchase channels for babycare products, August 2014
The must-have and nice-to-have product attributes in babycare
Figure 7: Must-have and nice-to-have purchase consideration factors for babycare products, August 2014
Peers and professionals are the most important information channels
Figure 8: Information search and awareness channels for babycare products, August 2014
Attitudes towards Babycare Products
Figure 9: General attitudes towards babycare products, August 2014
Key Issues
Will edible claim be the future trend?
Nurturing the usage habits of speciality babycare products
Is online shopping going to replace bricks-and-mortar stores?
What We Think
ISSUES AND INSIGHTS
Will edible claim be the future trend?
The facts
The implications
Nurturing the usage habits of speciality babycare products
The facts
The implications
Is online shopping going to replace bricks-and-mortar stores?
The facts
The implications
TREND APPLICATIONS
Life Hacking
Return to the Experts
Prove it
MARKET SIZE AND FORECAST
Key points
Market size
Figure 10: Retail value of China’s babycare market, 2009-14
Market drivers
More newborns expected with relaxation of one-child policy
Increase in disposable income further fuels the market
Increased product knowledge
Greater demand for better pollution protection
Online retailing powering consumption
Market barriers
Product safety issues still pose challenges
Gaps still exist across income levels and city tiers
Market forecast
Figure 11: Retail value of China’s babycare market, 2009-19
Methodology
MARKET SEGMENTATION
Key points
Non-soap and bath products lead the growth
Figure 12: China babycare segment size and growth, 2009-14
Figure 13: Retail value of soap and bath segment, 2009-19
Figure 14: Retail value of other non-soap and bath toiletries, 2009-19
MARKET SHARE
Key points
Top five companies account for about four fifths of the market
Figure 15: China babycare retail market share, by value (%), 2011-13
WHO’S INNOVATING?
Key points
Existing players increased investment in the market
Figure 16: New product launches in China babycare market, by launch type, 2012-14
Bodycare, shower products and facial care attract the most competition
Figure 17: Share of new product launches in China babycare market, by segment, 2012-14
Safety assurance still tops claim list
Figure 18: Top product claims in China babycare new product launch, 2012-14
Ingredient innovation
Figure 19: Babycare product ingredients innovation, China, 2011-Oct 14
More refined demographic targeting is on the rise
Multifunctional products for time-pressed mothers
What companies are doing
COMPANIES AND BRANDS
Johnson & Johnson Services, Inc. (J&J)
China Child Care Corporation Limited
Tianjin Yumeijing Group
Pigeon Group
Henkel (China) Co., Ltd.
THE CONSUMER – USAGE OF DIFFERENT BABYCARE PRODUCTS
Key points
Room for growing usage varies across segments
Figure 21: Babycare products used in the last six months, August 2014
Usage is driven by income and baby’s age
Figure 22: Selected babycare products used “once a week or more”, by age of children, August 2014
Tier one cities still lead product adoption
Figure 23: Babycare products used “once a week or more”, by city tier, August 2014
THE CONSUMER – INGREDIENTS INTEREST
Key points
A gap between consumer demand and marketing offerings
Figure 24: Consumer interest in ingredient innovation vs new product launches in babycare, China, 2011-Oct 14
Different age group, different preferences
Figure 25: Most interested babycare product ingredients, by mother and child age, August 2014
Higher earners favour more expensive ingredients
Figure 26: Most interested babycare product ingredients, by monthly personal income, August 2014
Higher income earners also desire a wider variety of ingredients
Figure 27: Repertoire of most interested babycare product ingredients, August 2014
THE CONSUMER – PURCHASE LOCATIONS
Key points
Greater competition between online and offline channels
Figure 28: Purchase channels for babycare products, August 2014
Who are more likely to shop online and overseas?
Figure 29: Online purchase channels for babycare products, by demographics, August 2014
Certain offline channels show city tier preferences
Figure 30: Selected offline purchase channels for babycare products, by city, August 2014
Offline channels are invaluable for younger, inexperienced mums
Figure 31: Selected offline purchase channels for babycare products, by mother’s age, August 2014
THE CONSUMER – KEY PURCHASING FACTORS
Key points
Ingredient safety stays utmost important
Figure 32: Must-have and nice-to-have purchase consideration factors for babycare products, August 2014
Nice-to-have factors reveal new opportunities
Higher income group look beyond “no irritation”
Figure 33: Selected must-have purchase consideration factors for babycare products, by monthly personal income, August 2014
Mothers with higher education look for more assurances
Figure 34: Selected must-have purchase consideration factors for babycare products, by educational level, August 2014
Differences among mothers of different ages
Figure 35: Selected must-have purchase consideration factors for babycare products, by mother’s age, August 2014
Baby’s age also plays a part
THE CONSUMER – SOURCE OF AWARENESS AND INFORMATION SEARCH
Key points
Peers and professionals become main sources of information
Figure 36: Source of awareness and information search channels for babycare products, August 2014
Multi-source information with an average of four channels
Differences across demographics
Figure 37: Information search channels for babycare products, by city, August 2014
THE CONSUMER – ATTITUDES TOWARDS BABYCARE PRODUCTS
Key points
International brand is no longer the only judgement
Figure 38: Attitudes towards babycare products, August 2014
Figure 39: Agreement buying international brands and using imported products, by city tier, August 2014
More demanding about functionality, but convenience stays important
Figure 40: Attitudes towards babycare products, August 2014
A higher interest in edible than organic
Figure 41: Attitudes towards babycare products, August 2014
Figure 42: Attitudes towards babycare products, by city tier, August 2014
APPENDIX – MARKET SIZE AND FORECAST
Figure 43: Retail value sales of babycare in China, 2009-19
APPENDIX – MARKET SEGMENTATION
Figure 44: Value sales of babycare in China, by segment, 2009-19
Figure 45: Retail value of soap and bath, 2009-19
Figure 46: Retail value of other non-soap and bath toiletries, 2009-19
APPENDIX – THE CONSUMER – USAGE OF DIFFERENT BABYCARE PRODUCTS
Figure 47: Usage frequency of different types of babycare products, August 2014
Figure 48: Usage frequency of different types of babycare products – Soap and bath products, by demographics, August 2014
Figure 49: Usage frequency of different types of babycare products – Baby shower gel, by demographics, August 2014
Figure 50: Usage frequency of different types of babycare products – Baby shampoo, by demographics, August 2014
Figure 51: Usage frequency of different types of babycare products – Baby hand wash/bar soap, by demographics, August 2014
Figure 52: Usage frequency of different types of babycare products – Skincare products, by demographics, August 2014
Figure 53: Usage frequency of different types of babycare products – Baby facial lotion/cream, by demographics, August 2014
Figure 54: Usage frequency of different types of babycare products – Baby body powder, by demographics, August 2014
Figure 55: Usage frequency of different types of babycare products – Baby body lotion/cream, by demographics, August 2014
Figure 56: Usage frequency of different types of babycare products – Baby oil, by demographics, August 2014
Figure 57: Usage frequency of different types of babycare products – Baby nappy cream, by demographics, August 2014
Figure 58: Usage frequency of different types of babycare products – Baby hand cream, by demographics, August 2014
Figure 59: Usage frequency of different types of babycare products – Baby suncare, by demographics, August 2014
Figure 60: Usage frequency of different types of babycare products – Other products, by demographics, August 2014
Figure 61: Usage frequency of different types of babycare products – Baby insect repellent, by demographics, August 2014
Figure 62: Usage frequency of different types of babycare products – Baby floral water, by demographics, August 2014
APPENDIX – THE CONSUMER – INGREDIENTS INTEREST
Figure 63: Most interested babycare product ingredients, August 2014
Figure 64: Most interested babycare product ingredients, by demographics, August 2014
Figure 65: Next most interested babycare product ingredients, by demographics, August 2014
Figure 66: Other interested babycare product ingredients, by demographics, August 2014
Appendix – The Consumer – Repertoire
Figure 67: Repertoire of most interested babycare product ingredients, by demographics, August 2014
APPENDIX – THE CONSUMER – PURCHASE LOCATIONS
Figure 68: Purchase channels for babycare products, August 2014
Figure 69: Most popular purchase channels for babycare products, by demographics, August 2014
Figure 70: Next most popular purchase channels for babycare products, by demographics, August 2014
Figure 71: Other purchase channels for babycare products, by demographics, August 2014
APPENDIX – THE CONSUMER – KEY PURCHASING FACTORS – MUST-HAVE
Figure 72: Purchase consideration factors for babycare products – Must-have, August 2014
Figure 73: Most popular purchase consideration factors for babycare products – Must-have, by demographics, August 2014
Figure 74: Next most popular purchase consideration factors for babycare products – Must-have, by demographics, August 2014
Figure 75: Other purchase consideration factors for babycare products – Must-have, by demographics, August 2014
APPENDIX – THE CONSUMER – KEY PURCHASING FACTORS – NICE-TO-HAVE
Figure 76: Purchase consideration factors – Nice-to-have, August 2014
Figure 77: Most popular purchase consideration factors – Nice-to-have, by demographics, August 2014
Figure 78: Next most popular purchase consideration factors – Nice-to-have, by demographics, August 2014
Figure 79: Other purchase consideration factors – Nice-to-have, by demographics, August 2014
APPENDIX – THE CONSUMER – SOURCE OF AWARENESS
Figure 80: Awareness channels for babycare products, August 2014
Figure 81: Most popular awareness channels for babycare products, by demographics, August 2014
Figure 82: Next most popular awareness channels for babycare products, by demographics, August 2014
APPENDIX – THE CONSUMER – INFORMATION SEARCH
Figure 83: Information searching channels for babycare products, August 2014
Figure 84: Most popular information searching channels for babycare products, by demographics, August 2014
Figure 85: Next most popular information searching channels for babycare products, by demographics, August 2014
APPENDIX – THE CONSUMER – GENERAL ATTITUDES TOWARDS BABYCARE PRODUCTS
Figure 86: General attitudes towards babycare products, August 2014
Figure 87: Most popular general attitudes towards babycare products, by demographics, August 2014
Figure 88: Next most popular general attitudes towards babycare products, by demographics, August 2014