The disposable baby diaper market in Brazil.
Brazilian diaper market will reach 1.4 billion units in 1995
The market for disposable baby diapers is increasing rapidly in Brazil. In 1990, 170 million disposable baby diaper units were produced, with Johnson & Johnson holding almost an 80% share. Due to the recession, the 1991 and 1992 markets grew only slightly, reaching 200 million units. In 1993, 400 million units were produced and 700 million units were reached in 1994. Figure 1 shows that the market was divided mainly by Proctor & Gamble and Kenko do Brasil (from Brasfanta Group), knocking Johnson & Johnson from its previous position.
On the investments side, the second leading company in the market, Kenko do Brasil, manufacturer of "Monica" and "Tippy tippy
said of wool that has an open loose tip so that weather stain goes a long way down the staple. May be a natural defect or be the result of a long period of heavy rain. ," held a market share of 28% in 1994. The company, which will duplicate its units in Eldorado City-Rio Grande do Sul State, invested approximately $40 million in the last two years and hopes, with continued investments, to reach 500 million units per year. Kenko do Brasil's 1994 sales reached $65 million and are expected to increase 35% in 1995.
Procter & Gamble - the leader in the market with its top selling "Pampers Pampers is a brand of disposable diaper (or nappy) marketed by Procter & Gamble worldwide. Product information
Pampers Diapers come in sizes going all the way up to Size 7. " - will invest approximately $100 million to build a new production facility in Louveira City-Sao Paulo state. Between May 1993 and January 1995, P&G jumped from 12% to 36%, achieving market leadership [ILLUSTRATION FOR FIGURE 2 OMITTED]. This strengthened position was a result of P&G's introduction of "Pampers Uni," one simplified style for both boys and girls boys and girls
mercurialisannua. , which was 50% less expensive than the traditional "Pampers Phases," developed in the U.S. and initially sold in Brazil. The success of Pampers Uni stemmed from P&G's move to manufacture the diaper in other countries such as Mexico, Formosa and the Philippines, exporting its Brazilian know-how to produce a single, low-cost product.
J&J is a company that was, in good faith, twice injured in·jure
tr.v. in·jured, in·jur·ing, in·jures
1. To cause physical harm to; hurt.
2. To cause damage to; impair.
3. . First, the Brazilian economy
This tremendous growth in the consumption of disposable diapers is due to the competitive market that has brought prices lower and lower in the last year. Since 1988 - when the market was led by J&J and a diaper had a cost of $1 - the price has fallen tremendously, so that today the same product costs $0.30 per unit. Another reason for this market's strong growth, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the manufacturers, is improved product quality. Six years ago, diapers were produced with cellulose cellulose, chief constituent of the cell walls of plants. Chemically, it is a carbohydrate that is a high molecular weight polysaccharide. Raw cotton is composed of 91% pure cellulose; other important natural sources are flax, hemp, jute, straw, and wood. for internal padding Bits or characters that fill up unused portions of a data structure, such as a field, packet or frame. Typically, padding is done at the end of the structure to fill it up with data, with the padding usually consisting of 1 bits, blank characters or null characters. See null and bit stuffing. , rayon viscose vis·cose
1. A thick, golden-brown viscous solution of cellulose xanthate, used in the manufacture of rayon and cellophane.
2. Viscose rayon.
2. as cover-stock and they featured little more than one hour of durability. Today the use of gel and other raw materials has increased product durability to more than 12 hours.
Imported diapers - which had a market share of 3% in 1993 and reached 5% in 1994 - are coming from the U.S. and France. Pom Pom, which had a significant share in Sao Paulo City, lost its place in the Brazilian market and in 1993 appeared together in the "other" category.
Finally, in terms of the future of the Brazilian baby diaper market, sales should reach 1.4 billion units in 1995, with sales of approximately $360 million.