Baby Personal Care - China - August 2015

INTRODUCTION
Definition
Figure 1: Definition of low/mid/high MHI groups, by city tier
Methodology
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 2: Total market value sales of baby personal care market, China, 2010-20
Companies and brands
Figure 3: Top 10 companies’ market share in baby personal care market, by retail sales value, China, 2012-14
The consumer
Brand difference
Figure 4: Brand awareness of baby personal care products, May 2015
Figure 5: Correspondence map of product perception, May 2015
Figure 6: Correspondence map of brand personality, May 2015
Consumers’ overseas purchasing behaviour
Figure 7: Baby-related products purchased from overseas online, May 2015
Figure 8: Reasons of purchasing baby personal care products from overseas, May 2015
Figure 9: Brands bought most often from overseas, May 2015
Key issues
Make babies stronger through baby personal care products
Other than “botanical” and “no additives”, what else can be used to assure safety?
Vast market potentials in rural area
What we think
ISSUES AND INSIGHTS
Make babies stronger through baby personal care products
The facts
The implications
Figure 10: Examples of baby personal care products which can make baby stronger, Turkey and India, 2015
Other than “botanical” and “no additives”, what else can be used to assure safety?
The facts
The implications
Figure 11: Examples of products which contain “human affinity ingredients”, Thailand and Japan, 2013-15
Vast market potentials in rural area
The facts
Figure 12: The number and the percentage of 0-4-year-olds in China, by urban and rural, 2000 and 2010
The implications
Figure 13: Per capita annual income, by urban and rural China, 2010-13
Figure 14: The fertility rate in key cities
MARKET SIZE AND FORECAST
Key points
Continuous double-digit growth in the market
Figure 15: Total value sales of baby personal care market, China, 2009-15
Figure 16: The number of new born babies in China, 2009-14
Figure 17: New product launches in baby personal care market, by sub-category, 2009-14
Baby personal care market in China is far from saturation
Figure 18: Per capita spending on baby-related products, China and UK, 2013
The forecast – robust growth in the next five years
Figure 19: Total market value sales of baby personal care market, China, 2010-20
Forecast methodology
Market factors
More investments in consumer education
Overseas purchasing could be a threat for local market
MARKET SEGMENTATION
Key points
Baby skincare segment accounts for nearly 60% market share
Figure 20: Sales value and growth of baby personal care market, by segment, 2012-15
Figure 21: Total market value sales of baby skincare segment, China, 2010-20
Bath and soap is estimated to have a better performance than haircare
Figure 22: Total market value sales of baby bath and soap segment, China, 2010-20
Figure 23: Total market value sales of baby haircare segment, China, 2010-20
MARKET SHARE
Key points
Johnson and Johnson still holds its dominant position but lost 6.1% pts of market share in 2014
Figure 24: Top 10 companies’ market share in baby personal care market, by retail sales value, China, 2012-14
WHO’S INNOVATING?
Key points
Increasing NPD in baby shower, shampoo and soap
Figure 25: Level of NPD activity in baby personal care, China 2013-15 (up to June)
Figure 26: Baby personal care new product launch, by sub-category, China 2013-15 (up to June)
Figure 27: Examples of 2-in-1 shampoo and shower products, China, 2015
Figure 28: Baby personal care new product launch, by brand, China 2013-15 (up to June)
Figure 29: Baby personal care products from Ddung, China, 2014
Ingredient trends
Figure 30: Baby personal care new product launch, by ingredients, China 2013-15 (up to June)
Figure 31: Examples of products which use rice bran as ingredient, China, 2015
New ways of reassuring product safety
Figure 32: Top five claims in baby personal care new product launch, China 2013-15 (up to June)
Figure 33: Safety-related claims in baby personal care new product launch, China 2013-15 (up to June)
Are claims about protection and Asian skin just a marketing gimmick?
Figure 34: Other claims in baby personal care new product launch, China 2013-15 (up to June)
Figure 35: Examples of products with claims on protecting against environmental aggressions, China, 2013-14
COMPANIES AND BRANDS
Johnson & Johnson Services, Inc.
China Child Care Corporation Limited
Pigeon Group
Biostime International Holdings Limited
Jahwa Group
Carefor Co., Ltd.
THE CONSUMER – BRAND AWARENESS OF BABY PERSONAL CARE PRODUCTS
Key points
Johnson’s Baby still tops the awareness list
Figure 36: Brand awareness of baby personal care products, May 2015
Figure 37: Time of being in China’s babycare market, by leading companies
Demographic differences
By household income
Figure 38: Brand awareness of baby personal care products, by household income, May 2015
By city tier
Figure 39: Brand awareness of baby personal care products, by city tier, May 2015
Figure 40: Brand awareness of Giving, by city, May 2015
By education level
Figure 41: Brand awareness of baby personal care products, by education level, May 2015
Key information sources also have an impact on brand awareness
Figure 42: Brand awareness by key source of influence on product choice, May 2015
THE CONSUMER – PRODUCT PERCEPTION BY BRAND
Key points
Product perception associated with different brands
Figure 43: Correspondence map of product perception, May 2015
Figure 44: Product perceptions of different brands, May 2015
Johnson’s Baby and Prince Frog
Haiermian
Pigeon
Giving
Elsker
Figure 45: Product perception among mums with low household income, May 2015
Future development of baby personal care products
Figure 46: Average rating of product attributes across all brands and gap of the best and least performing brands, May 2015
THE CONSUMER – BRAND PERSONALITY
Key points
Characteristics of different brands
Figure 47: Correspondence map of brand personality, May 2015
Figure 48: Brand personality of different brands, May 2015
Figure 49: Brand personality of Johnson’s Baby, by age, May 2015
Figure 50: Brand personality of different brands among mums with low household income, May 2015
What kind of brand personality can drive the growth?
THE CONSUMER – BABY PRODUCTS PURCHASED FROM OVERSEAS
Key points
The number of online buyers has reached to more than half of offline buyers
Figure 51: Baby-related products purchased from overseas online, May 2015
About one fifth of mums purchase haitao baby personal care products
Figure 52: Baby-related products purchased from overseas online, May 2015
There is a market for high-end baby personal care products
Figure 53: The percentage of mums who have purchased baby-related products purchased from overseas and have High MHI, May 2015
One in two online buyers has shopped from overseas
Figure 54: Baby-related products purchased from online and from overseas, May 2015
THE CONSUMER – REASONS OF PURCHASING BABY PERSONAL CARE PRODUCTS FROM OVERSEAS
Key points
Ingredient quality ranks first when asked why mums purchased from overseas
Figure 55: Reasons of purchasing baby personal care products from overseas, May 2015
Figure 56: Safety-related claims in baby personal care new product launch, China, USA and Japan, 2014-15 (up to August)
Figure 57: Free-from claims in baby personal care new product launch, China, USA and Japan, 2014-15 (up to August)
THE CONSUMER – BRANDS BOUGHT MOST OFTEN FROM OVERSEAS
Key points
Brands from US and Japan are most welcomed by mums
Figure 58: Brands bought most often from overseas, May 2015
City difference
Figure 59: Brands bought most often from overseas, by city, May 2015
Brands from US and Japan have different merits in mums’ opinions
Figure 60: Brands bought most often from overseas, by purchasing reasons, May 2015
APPENDIX
Product portfolio of brands
Figure 61: Product portfolio of brands in baby personal care market
Market forecast
Figure 62: Value sales of total baby personal care market and subdivided segments, China, 2010-20