Diaper brands battle for market share amid growing demand

In recent times, there has been a surge in the number of Diaper brands making entry into the Nigerian market.

Of course the country’s growing population that crave for consumption offers opportunities for Diaper makers to tap into and increase their market share.

Increase hygiene awareness campaigns, high birth-rate, the convenience that it brings for the modern woman, especially working mothers, are some of the factors that have facilitated the paradigm shift by nursing mothers from the traditional use of clothes as diapers to disposable modern diapers.

Ifeoma Okon, a nursing mother said the number of brands in the market keeps increasing every day. She further noted that price is a major factor most nursing mothers consider when choosing their brands.

“The truth is some of these brands leave a skin reaction to babies and nursing mother must choose their brands carefully” she advised.

According to a retail owner, Godspower, the Nigeria market has over 15 diaper brands with each jostling for market share and dominance nationwide, while some have emerged as the go-to brands with a national spread, some are confined to regional play.

Pampers, from the stables of Consumer Goods giant, Procter & Gamble (P&G) is the first diaper brand ever produced and marketed in the country. The product made its entry into the Nigerian market in 2000, and over the years, the brand has dominated the market space and has also gone through various transformations and brand extensions.

However, the arrival of new brands into the market caused a disruption, challenging Pampers hold on the title of ‘market-leader’.

In response to the threat posed by the new entrants, and in a bid to increase patronage, Procter & Gamble (P&G), added Pampers Baby Dry and Pampers Premium to its diaper variants.

The company also commissioned a $300 million industrial plant in Agbara, Ogun State. However, in an unexpected turn of events, Nigerians woke up to the news that P&G has decided to shut down its plant in Agbara, Ogun State. While many attributed the closure to the inability of the company to cope with the growing competition in the market, management of the company said that it was part of its restructuring exercise in its Nigerian operations. An assurance was given that it would continue to operate in the country, albeit from its Ibadan plant only.

In a market survey by BusinessDay, another brand that has taken the market by storm is Molfix Diaper from the stables of Hayat Kimya Nigeria Ltd., the fifth largest producer of Diaper in the world. Since making entry into the Nigeria market, it has been well received by nursing mothers.

According to a market report by AC Nielsen, Molfix has taken over 44% diaper market share totally eclipsing Pampers.

In an effort to boost its market penetration, manufacturers of the Molfix brand adopted a lower pricing regime which makes it affordable for the middle-class mothers. It also has a strong distribution channel throughout all retail chains in both rural and urban areas, which makes it easily accessible.

To be able to challenge the Pampers brand, Molfix invested $100 million in constructing an ultra-modern diaper/tissue paper factory in Agbara Industrial Layout, Ogun State. The factory has the capacity to produce 1.3 billion units diaper and 13,000 tons of tissue paper per annum

In terms of price strategy, Molfix is doing well in offering lower prices for quality products, while investing in backward integration to cut costs. With the company generating its own power, the cost of production is lower and there is more control over pricing.

Another big player in the market is the Huggies brand from the stables of Kimberly-Clark, an American multinational personal care company. The company recently announced plans to close its factory in Lagos in the second quarter of 2019 and build a new factory with advanced technology in its place.

Findings by BusinessDay also showed that besides the children diaper, the use of adult diapers sale is also on the increase occasioned by persons with health challenges.

A retailer, at the popular Ikeja mall, Mrs. Benedict told BusinessDay that the competition taking place in the diaper market is hitting hard on premium brands, adding that the segmentation trend has forced manufacturers and consumers alike to begin to play at the low end of the market.

“This has put pressure on the market leaders like P&G, Huggies, and Hayat, who cannot compromise on quality because of the competitive strategies of fringe players in the market,” she said.

OLUFIKAYO OWOEYE