In the past ten years, driven by the multiple bases of population base, second child policy, and consumption upgrade, the diaper industry has developed rapidly. In recent years, the diaper industry has begun to enter the Red Sea market, and competition has become increasingly fierce. And when everyone thinks that the industry trend of diapers is moving towards high-end, the intensification of day-to-day competition has actually led the market to a different situation ...
First, the sudden price war!
Recently, a reporter visited the baby diaper manufacturers and learned that the diaper market is currently facing a fierce price war. In addition to domestic brands and Weishang brands participating in the war, even big foreign brands, including Pampers, Curious, etc. have carried out price reduction strategies. Some people in the industry said that the sharp turn of prices has made those local diaper companies that were eager to rush into the high-end racetracks caught off guard. Some people in the industry said that the intensification of the price war will accelerate the reshuffle of the industry.
Second, the scourge of the rise of domestic products?
The mother-to-child population in China has a large base and a wide coverage, but the penetration rate of diapers is still low compared to developed countries. At present, the main battlefield of baby diapers in China is mainly concentrated in some of the larger cities in high-tier cities and low-tier cities. In counties and rural markets with higher birth rates, especially in rural areas in the central and western regions, many families do not even use them to save money Diapers, lower penetration. Therefore, in this case, price has become an important factor affecting their choice. Coupled with the county and township markets, mother and baby stores are more concentrated, and the phenomenon of price fights between stores is more obvious. In terms of price, domestic brands are more attractive than foreign brands, and in the market where prices are compared, foreign brands are not Very willing to enter, which has also created opportunities for the rise of many domestic brands and Weishang brands.
With the continuous increase in penetration, the diaper market has increased in large numbers in these sinking areas. The demand for low-end diapers in the market has naturally risen, and competition between the rising brands in the sinking market has emerged. The price war starts from here Development, and spread from bottom to top, gradually affecting foreign brands. Domestic brands have lowered their prices and launched low-end products, mainly in low-tier cities, while high-tier cities have increasingly tight market stocks, and foreign brands have to join the price war.
Third, low-end products regain market?
In fact, with the increase of per capita income in society and the downward impact of consumption upgrades, the overall national consumption concept is also constantly upgrading. Consumers' requirements for various aspects of products, especially for quality, are generally getting higher and higher, and their purchasing power is also improving. This is an important background for the high-end trend of diaper products.
However, competition between brands for low prices is becoming increasingly fierce, and foreign brands that once stood high have begun to step down from the "sacred altar" and launch low-price products. Low-end diaper products have returned to the market with a stance to seize the mainstream market. The high-end trend of diapers seems to have become a false proposition. It is understood that in the current situation of the overall slowdown of the mother and baby market, many diaper manufacturers have stated that their performance in the high-end market has been unsatisfactory, especially in terms of volume. The main product of business development. In the eyes of many mother and infant consumers, diapers are high-frequency products, and lower prices are undoubtedly a fatal attraction. Many consumers are applauding the low price of diapers, but is it really a good thing that diapers are getting cheaper?
Fourth, where is the balance between low price and high quality?
Fish, what I want, bear's paw, what I want, neither can be obtained! The temporary price reduction of goods is certainly a good thing for consumers. However, under the intensification of the price war, what problems will occur when the cost of goods> sale price?
According to a reporter's visit, the current price of diapers is very close to the cost price. Many domestic diapers have a single piece price of 0.5-0.6 yuan, even the relatively well-known brand single piece price is about 1 yuan. The prices of foreign brands are also constantly decreasing. For example, Pampers has a single-piece price of 2-3 yuan, but there are also pull-up pants that cost as low as 1.06 yuan per piece and diapers products that cost 0.77 yuan per piece. Curious diapers began to cooperate with Pinduoduo to launch customized diapers last year. There are also products with less than 1 yuan per piece.
In the face of losses and profits, many companies will cut corners, and make articles from materials, glue, length, thickness, etc., diapers are not up to standard, which is normal. Prices have come down, but quality has gone backwards. Is this something consumers are willing to accept?
5. Who hurt the low-price competition?
The more the product is sold, the lower the price, the lower the profit, the less money is made. Under the low-price competition without a bottom line, brands and enterprises are the first victims. The price war is to sacrifice profits for the purpose of gaining revenue growth, which is tantamount to drinking, quenching thirst, and exhausting. If an enterprise engages in low-price sales for a long period of time, profits will decrease, and correspondingly, investment in research and development, technology, marketing, and management will also decrease, resulting in insufficient development stamina. Inadequate stamina for development will in turn further affect the business performance of the enterprise, causing the enterprise to fall into a vicious circle.
Last year, Pinduoduo was caught in a long period of negative ??百乐宫网上游戏?? because of the problem of counterfeit goods, and many companies also "siege" it. Among them, Jingdong founder Liu Qiangdong said: When a product is cheap to a certain extent, it is not good for consumers. Alibaba CEO Zhang Yong also said: One dollar for those things is not in line with the law. In fact, the meaning of the big brothers is that the value of low-priced products must be inferior to high-priced products. When the price of products falls below the market rules, the quality of the products will definitely have problems. The consumer is the end user of the product. If any problems occur during the use of these "inferior" products, the consumer must be damaged.
Many people believe that the current increase in the mother and infant industry is sinking the market. Therefore, the strategy of "capturing the countryside to capture the world" has become a new proposition for many companies. Therefore, many low-end Price products. However, with the acceleration of China's urbanization, the improvement of national education and income, low-tier cities will gradually approach high-tier cities. High-quality products are still the products that consumers are ultimately willing to accept, and the low-price war among diaper companies It is likely to make the industry retrogressive and not conducive to the healthy development of the industry.
Do you think it ’s a good thing that diapers are getting cheaper? Welcome everyone to leave a message to discuss.