The overall scale of China's diaper market is 50 billion, with more than 2,200 brands. Many of them have chosen OEM. From domestic brands in China, to domestic products with foreign brands, to some foreign brands, many of them have passed the hands of Chinese diaper OEMs. And diaper OEM has become a very common phenomenon in China's diaper industry.
The main reason why diaper OEM has become the choice of many brands is that it is simple, convenient and saves money. Because the production of diapers requires a lot of heavy assets, however, the raw materials, selling prices and profits of diapers are relatively low, and the various costs invested in the upstream part far exceed the profitability of small brands in the middle and lower reaches. For foundry companies, from the model, as long as there is an order to make a profit, it is important to keep the machine running, and the type of order received by the foundry will not be limited to the category of diapers, which is relatively simple.
Has established its own brand foundry:
At present, the diaper industry is in a fierce price war. The profits of domestic diaper foundries are declining, and the overall living space is constantly being compressed. On the other hand, this has also led to the wave of industry reshuffles, forcing factories and enterprises to think and change. Among them, many factories are focusing on their own brand strategy.
As the first company in China that cannot independently produce a core body, the earliest domestic company to use 3D embossing technology, and the first company in the world to develop high-waist stretch waist diapers, Yusheng holds more than 20 patents. Among the foundry customers, Yusheng owns domestic well-known brand customers such as Lu Anshi, Kyle Dele and Xiaomeng Xiao. On the establishment of its own brand, Yusheng currently owns many private brands such as DRESS Ji Shi, Baby Goods, Shu Shi Bao, Kent Kang, Tim Kang, Tim Bao, Keroo, etc., with annual production of more than 2 billion A piece of paper diapers is in a leading position in China's high-end diaper market.
Hangzhou Haoyue was mainly foundry in the early days. Currently, it has established ODM business cooperation with Fortune 500, Kimberly-Clark, SCA and other Fortune Global 500 companies. Its own brands have also established Hope Baby, Mamamia, White Cross, Huiquan, etc. In addition, Sunny Baby baby diapers, Comfrey adult diapers and other products are also exported to Europe, the Middle East, South Asia, Africa and other markets.
Hangzhou Qianzhiya was founded in 1998. The well-known domestic micro-business diaper brand “SOLOVE Miffy” is its own brand. In addition, Qianzhiya also has celebrities such as celebrity baby, wonderful children, Qianzhiya, and Dove. It is a private label, and it also manufactures for many brands such as Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Ding Dang Qianzhiya's Miffy diapers have opened a successful road in the domestic diaper market by cooperating with the Dutch national treasure-level animation image MIFFY. According to the 2018 TOP20 Ranking of Diapers released by the Mother and Baby Research Institute last year, Miffy's comprehensive strength market ranked 9th.
Founded in 2014, it is a joint venture established between Reliable and Hong Kong Biostime, positioning itself as a global high-end baby diaper ODM production and processing. Diapers have been produced for Lu Anshi, Dodie, Philharmonic and Paragon. On its own brand, it already has a series of cool diaper diapers and adult products such as reliable and absorbent treasures.
Self-built brands must cross these barriers:
In the rolling red sea of diapers, the foundry is not an easy way to become a brand with an independent brand. Big factories naturally have more capital and strength to complete the transformation and upgrade of the brand, and the chances of success are also greater. However, no matter the big factory or the small factory, the foundry must cross these hurdles if it wants to build its own brand:
1.Lost OEM customers
Once a diaper foundry has its own brand, many OEM customers will avoid this in order to prevent market conflicts and other business considerations. OEM orders are the most important economic source for foundry companies. Losing OEM customers is undoubtedly a huge loss and risk for foundries.
2. Channel construction
In China's diaper industry, local brands are still in an era where channels are king. The foundry establishes its own diaper brand, which means that it must rebuild a different channel layout. Even in the early stage, it still needs to invest a lot of cost on the channel. Even if the self-built brand product sales are not bad, the profit is still relatively short in a short time.
Although, today's consumers are more rational, when choosing products, quality and cost performance have become very important factors. However, brand awareness and word of mouth are still the primary factors in consumer spending decisions. The foundry's own brand name is unknown, and the diaper brands on the market are saturated, so consumer acceptance is naturally not high.
4. Brand marketing
In the era of new media under mobile internet, marketing has become an operating method that every brand must focus on. Regardless of whether they are foreign brands, domestic big brands, or Weishang brands, in order to stand out in the fierce market where thousands of brands compete on the same stage, they are doing everything in marketing, social fission, cross-border marketing, content marketing, etc It has become a common marketing method for today's brands. If the foundry's self-built brand wants to open a way in this market, it must make determination in marketing.
5.Independent production process
In addition to brand awareness and word of mouth, the product itself is actually the core competitiveness of a brand. There is still a serious product homogeneity phenomenon in the diaper industry. Foundry brands may wish to start with product differentiation. In addition to ensuring product quality, they also need to have independent production processes and intellectual property rights, launch new products, and broaden The market just needs categories, and it is also one of the means to break the private label.
Whether it is a foundry company or a new entrant, developing a new brand is not an easy task. At present, the diaper industry is undergoing a rapid reshuffle. The collective rise of domestic products and the discoloration of foreign brands are actually a good time for foundries to establish their own brands.