Diaper manufacturers fight for consumers with more attractive price

The fight for market price of diapers is more fierce this year. According to executives heard by the DCI, with more income down, the price gains more importance in deciding the final consumer.
The Diapers Whim is stepping up work with distributors, promotions in points of sale and distribution of free samples from last year, to bypass the slowdown in consumption in the category.
"We saw the market more withdrawn, if this keeps up, we may have a year of revenue decline for the first time in our history," says company President, Dirceu Forti Son.
According to him, the forecast high of 5% in turnover this year is being revised and will depend on sales in the coming months.
"We saw the first signs of deceleration at the end of the year, when the turnover of 2014 drew with the previous year. We know that consumers are looking to save as much as possible with diapers, "he says.
The company's sales volume fell 10 percent last year and is forecast to have indenting in equal proportion by 2015.
The competitor Procter & Gamble (P&G), which owns Pampers brand, leader in the segment, is also intensifying dispute in retail.
"Our guidance [for retailers] is less marks [on the shelves] and, in the next few months, the brand will focus on campaign: Pampers diapers is worth two, to communicate superiority, show confidence and performance for consumers," says brand manager, Marina Mizumoto.
She acknowledges that competition is great and that retailers tend to bet on sales growth of diapers cheaper in times of slowdown, but reinforces that the sale of premium products remains a P&G bet.
Already the Kimberly-Clark (KC), owner of the brand Huggies and Plenitud, mira in unconsolidated segments in the Brazilian market, as the category of adult disposable underwear, to grow.
In the first quarter, sales of organic nappies of the company recorded high of 15%. With the children's brand Huggies, the company is the market leader in volume and the runner-up in value, according to data from Nielsen released by consulting company.
"We want to grow with the launch of a new product in your underwear," says the spokesman for the brand, aimed at the adult audience Plenitud, Carolina Gormezano. With the investment in the product line for adults, Kimberly-Clark expects to raise 10% in the volume of sales of the brand Plenitud this year.
"We have four categories in this market, but although diaper is the main product, is not what has grown. In our case, the category which is underwear, for people with urinary incontinence, "says the Executive. Despite this, Carolina notes that sales of the diaper market, in General, grow.
In the company's portfolio, the disposable underwear represent 50% of the volume sold in the Country. As part of the products is imported, the devaluation of the real has pressured prices.
"The high-dollar impact part of the portfolio that is imported and this has reduced the profitability of a few lines, but I produce an underwear model similar to diaper in Brazil", he points out.
Carolina notes that the main competitors in the segment also have high prices. "We have many players in the market who work with low prices, but already we see Hypermarcas and SCA [Svenska Cellulosa Aktiebolaget] increasing prices."
Wanted by the report, the SCA cannot meet. Already highlighted in Hypermarcas note sent to the DCI, which has more than 15% in value in the children's category, according to Nielsen.
Consolidation
For the ceo of Kimberly-Clark, the sale of diapers Hypermarcas, announced in May this year, must move the market.
"We still don't know who's going to buy, but when the sale occurs can have a price increase in the products of their portfolio or a sudden drop of distribution, but in the short term there's no way to know. But it's an important change, since the brand Bigfral is a leader in the category in which it operates, "details her.
Hypermarcas owns the brands Pom Pom and Cremer, the children's segment and the Bigfral in the adult segment.
"The sale of the diaper thing [Hypermarcas] was expected, because since last year we have seen a different movement, with their products gaining market share with discount 30% average in price," Forti Filho, from Diapers Whim.
The manufacturer competes with the hygiene industry giant in three product lines. "This more aggressive price strategy undermined the performance of some products," he says.
In his assessment, the sale of the Division Hypermarcas is a reflection of the consolidation process in the sector. "We've had more than 100 companies in this market, now have about 60 and over the next five years should reach 20. The smaller ones tend to close and others to sell its operations to the great ", he believes.