Wipes in India-Market Report
Headlines
·
Wipes grows 10% in value terms
to reach sales of Rs69 million in 2007.
·
Increased product
sophistication stimulates consumer interest.
·
General purpose wipes exhibits
the fastest growth at 11% in 2007.
·
Average unit prices increase
marginally in 2007.
·
Tainwala Personal Care Products
Ltd leads the category.
·
Wipes is expected to grow by a
CAGR of 6% in value terms over the forecast period.
Trends
·
With increasing disposable
incomes, consumers are slowly becoming conscious about personal hygiene and are
more open to experimenting with tissue products such as wipes. Changing
lifestyles, greater time spent commuting from home to work and a general
increase in time spent outside of the home spurred demand for convenient tissue
products such as wipes. An increase in the standard of living and exposure to
wipes in institutional segments such as airlines and hotels has led to
increased awareness about wipes amongst retail consumers.
·
The growth in wipes in 2007 at
10% was slightly faster than the review period current value CAGR of 9%, as
wipes are slowly gaining acceptance amongst consumers. Over the course of the
review period, price-conscious consumers failed to recognise the need for
wipes, as substitutes such as washing with water or cleaning with a dry tissue
are readily available. However, with an increase in the presence of wipes in
modern retail channels such as upmarket health and beauty retailers and
supermarkets/hypermarkets, consumers have become more willing to purchase
wipes.
·
General purpose wipes exhibited
the fastest growth in 2007, as the category is not yet developed enough for
consumers to fully appreciate the nuances of specialised wipes. Most consumers
are content to purchase general purpose wipes which retail at lower prices
compared with specialised wipes such as cosmetic wipes and baby wipes, and use
these for all their cleaning needs. While general purpose wipes are available
at approximately Rs1.50 per sheet, baby wipes retail at more than double this
price. Thus, price-conscious consumers prefer to use general purpose wipes for
their needs.
·
Household wipes has a
negligible presence in India, as most households are readily able to employ
domestic help to clean the house and for other domestic chores, which
eliminates the need for household wipes.
·
The key purchasers of wipes are
working women and upper middle class women looking for a convenient way to
freshen themselves while they are outside of the home or travelling. In
addition, working women belonging to upper middle class families also purchase
wipes for cleaning their babies during nappy changes.
Competitive Landscape
·
Wipes is dominated by Tainwala
Personal Care Products Ltd, which was one of the pioneers in wipes with its
brand Fresh Ones. In 2007, the company held a share of 88% of wipes. The
company faces competition from a plethora of imported and regional brands,
including Clarus from Pristine Care Products Pvt Ltd, Teddy Wet Wipes from
Nobel Hygiene Pvt Ltd, Tollyjoy from Tollyjoy Baby Products Pvt Ltd, Pigeon
Baby, Mittus Baby Wipes, Canera Baby Wipes, Johnson’s Wet Wipes and Pampers Wet
Wipes.
·
Fresh Ones, from Tainwala
Personal Care Products Ltd, saw the greatest increase in share in 2007 as a
result of the strengthening of its distribution network and greater presence
across retail outlets. The company also introduced different variants under the
Fresh Ones brand, such as rose and lime, in red and green boxes respectively,
to further segment the market on the basis of fragrance and colour. These
initiatives helped Tainwala Personal Care counter competition from regional
brands.
·
Wipes is primarily dominated by
domestic players such as Tainwala Personal Care Products Pvt Ltd and Nobel
Hygiene Pvt Ltd. However, there have been fairly new product variants which
have been established. Other brands available in the market are Tollyjoy Baby
Products Pvt Ltd (Tollyjoy), Mother Care’s Soft Baby Wipes, Pigeon Baby, Mittus
Baby Wipes, Canera Baby Wipes, Johnson’s Wet Wipes and Pampers Wet Wipes.
·
There were no significant
launches in wipes in 2007.
·
Since wipes is a very small
category, manufacturers have so far focused on increasing distribution and
building up presence of wipes in retail channels. With consumer promotions
being used as the major tool to drive sales, advertisements have not been used
by most players, as the relatively small category does not justify such
extensive marketing expenditure.
·
There were no innovations in
packaging in 2007.
·
There is no presence of private
label products in wipes.
Prospects
·
Evolving consumer lifestyles,
greater demands on time, nuclear family structure and an increasing number of
working women are all expected to lead to consumers looking for disposable
products offering convenience, ease of use and time saving. As wipes offer such
benefits, the category is expected to benefit as a result of this trend.
Besides, consumers are increasingly concerned about personal hygiene, which
will be complemented by the presence of these products in the market. Moreover,
distribution channel development, with the emergence of more supermarkets/hypermarkets
and convenience stores is expected to increase the visibility of wipes,
encouraging more consumers to try out these products.
·
The growth rate of wipes is
expected to fall over the forecast period, as adding to the consumer base each
year will make it difficult for the category to keep up with the previous
years’ growth rates. Nonetheless, more female consumers seeking quick solutions
for freshening up while outside of the home will sustain the growth of wipes in
the forecast period.
·
The potential forecast threat
to the growth of wipes comes from dry tissues, which are priced cheaper than
wipes and will turn out to be a more economical option for price-conscious
consumers. High price is a major threat to this category, as consumers are
quite price-sensitive, and flooding the market with cheaper imported brands
from neighbouring countries will pose a threat to wipes in the forecast period.
With consumers placing priority on price over convenience, they may continue to
find substitutes for wipes in the form of dry tissues and cleaning with water.
This might pose an obstacle to growth in wipes in the forecast period.
·
General purpose wipes is
expected to post the strongest growth over the forecast period, as
price-conscious consumers are expected to favour these products due to their
relatively cheaper pricing. Consumers are not expected to be too discerning
when it comes to different types of wipes, given the lack of advertising and
brand building activities around wipes, and are thus expected to substitute
cosmetic wipes and baby wipes with general purpose wipes.
·
The unit price of wipes is
expected to decline in the forecast period, as manufacturers will have to lower
prices in order to boost usage. In order to increase sales further,
manufacturers will be forced to reduce prices and increase the distribution of
wipes. In such a competitive scenario, manufacturers are expected to refrain
from increasing unit prices of wipes.
·
Ginni Filaments, a relatively
new entrant in wipes, is expected to focus on strengthening its distribution
network and planning consumer promotions in order to reach a wider consumer
base.
Sector Data
Rs million
2002 2003 2004 2005 2006 2007
-- Starter kits/ - - - - - -
sweepers/sticks
(excluding wipes)
-- Wipes (excluding - - - - - -
starter kits/sweepers/
sticks)
-- Floor cleaning systems - - - - - -
-- Impregnated wet wipes - - - - - -
-- Dry electro-static - - - - - -
wipes
- Household care wipes - - - - - -
and floor cleaning
systems
-- Cosmetic wipes - - - - - -
-- Baby wipes 4.3 4.6 4.9 5.2 5.6 6.0
-- Feminine hygiene wipes - - - - - -
-- General purpose wipes 39.7 43.6 48.0 52.5 57.0 63.1
- Personal wipes 44.0 48.2 52.9 57.7 62.6 69.1
Wipes 44.0 48.2 52.9 57.7 62.6 69.1
Source: Official
statistics, trade associations, trade press, company research, store checks,
trade interviews, Euromonitor International estimates
% current value growth
2006/07 2002-07 CAGR 2002/07 TOTAL
-- Starter kits/sweepers/sticks - - -
(excluding wipes)
-- Wipes (excluding starter kits/ - - -
sweepers/sticks)
-- Floor cleaning systems - - -
-- Impregnated wet wipes - - -
-- Dry electro-static wipes - - -
- Household care wipes and floor - - -
cleaning systems
-- Cosmetic wipes - - -
-- Baby wipes 7.1 6.9 39.7
-- Feminine hygiene wipes - - -
-- General purpose wipes 10.6 9.7 58.9
- Personal wipes 10.3 9.4 57.1
Wipes 10.3 9.4 57.1
Source: Official
statistics, trade associations, trade press, company research, store checks,
trade interviews, Euromonitor International estimates
% retail value rsp
Company 2003 2004 2005 2006 2007
Tainwala Personal Care 85.7 86.6 87.5 87.5 87.9
Products Ltd
Pristine Care Products 8.3 8.4 7.5 5.8 4.4
Pvt Ltd
Procter & Gamble 0.9 0.9 0.9 0.5 0.5
Hygiene & Health Care Ltd
Others 5.0 4.0 4.1 6.3 7.2
Total 100.0 100.0 100.0 100.0 100.0
Source: Official
statistics, trade associations, trade press, company research, store checks,
trade interviews, Euromonitor International estimates
% retail value rsp
Brand Company 2004 2005 2006 2007
Fresh Ones Tainwala
Personal Care 86.6 87.5 87.5 87.9
Products
Ltd
Clarus Pristine
Care Products 8.4 7.5 5.8 4.4
Pvt
Ltd
Tempo Procter
& Gamble 0.9 0.9 0.5 0.5
Hygiene
& Health Care Ltd
Others 4.0 4.1 6.3 7.2
Total 100.0 100.0 100.0 100.0
Source: Official
statistics, trade associations, trade press, company research, store checks,
trade interviews, Euromonitor International estimates
Rs million
2007 2008 2009 2010 2011 2012
-- Starter kits/ - - - - - -
sweepers/sticks
(excluding wipes)
-- Wipes (excluding - - - - - -
starter kits/sweepers/
sticks)
-- Floor cleaning systems - - - - - -
-- Impregnated wet wipes - - - - - -
-- Dry electro-static - - - - - -
wipes
- Household care wipes - - - - - -
and floor cleaning
systems
-- Cosmetic wipes - - - - - -
-- Baby wipes 6.0 6.3 6.5 6.7 6.9 7.1
-- Feminine hygiene wipes - - - - - -
-- General purpose wipes 63.1 67.7 72.2 76.5 80.7 84.7
- Personal wipes 69.1 74.0 78.7 83.2 87.6 91.8
Wipes 69.1 74.0 78.7 83.2 87.6 91.8
Source: Official
statistics, trade associations, trade press, company research, trade
interviews, Euromonitor International estimates
% constant value growth
2007-12
CAGR 2007/12
TOTAL
-- Starter kits/sweepers/sticks (excluding
wipes) - -
-- Wipes (excluding starter kits/sweepers/sticks) - -
-- Floor cleaning systems - -
-- Impregnated wet wipes - -
-- Dry electro-static wipes - -
- Household care wipes and floor cleaning
systems - -
-- Cosmetic wipes - -
-- Baby wipes 3.3 17.6
-- Feminine hygiene wipes - -
-- General purpose wipes 6.1 34.3
- Personal wipes 5.8 32.9
Wipes 5.8 32.9
Source: Official
statistics, trade associations, trade press, company research, trade
interviews, Euromonitor International estimates
