Click to play videoMumbai: Brand managers are struggling to get the baby care products off the shelves. A year ago, Marico launched Sparsh baby care oil and soap. Now it has cut investments in the portfolio, which brings it revenues of Rs 2 crore.
Marico CEO-Consumer Products Saugata Gupta said, “It's a very difficult segment and we perhaps underestimated it. The reason for this is twofold. First, as far as a baby is concerned, mothers want only something, which is completely trusted and safe. Even a new product which is differentiated may not click, as she is unwilling to try it.”
No player has managed to break Johnson and Johnson's hold on baby products. It commands 80 per cent of the market in all categories except baby oil. That's because mothers pay a premium for this iconic brand.
But Wipro Babysoft, which accounts for 7 per cent market share, believes it can play the price card.
It's test-marketing a baby soap in Andhra Pradesh, and hopes to convince customers that a lower price need not mean lower quality.
Wipro Consumer Care & Lighting VP marketing Kumar Chander said, “Price is still a big deterrent, the diaper segment where lower pricing can lead to expansion of markets as we have seen in last four years prices down by 30-40 per cent, Market also exploded, we believe that can work in other segments too.”
An estimate suggests that in urban households parents buy baby care products until babies are 9-and-a-half months old. Then, they use their own personal care products on children. And that cross use of non-baby brands has restricted the category's growth to 7 per cent.
Even so, companies are betting on stores. They expect better visibility; competitive pricing and branding will help to grow the market and their market share.
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