About those unborn potential buyers?
The fertility rate just hit a new low, how would baby food & supplies manufacturers cope with it?
About those unborn potential buyers?
Every year, there are always statistics posted to show Taiwan's low birth rate and the increasingly serious trend of aging society. According to the official monthly report, the birth rate in Taiwan has dropped by 5% in 2018 compared to 2017. And in Chinese culture, whether or not to get married and have children are somehow related to the Chinese zodiac. In fact, the birth rate in Taiwan has kept dropping for three consecutive years (the year of Monkey, Rooster and Dog) and has just hit a new low.
According to Kantar's observations, judging from the number of new marriages and the birth ratio posted by the government, it is speculated that the newborn market in 2019 will still remain a slightly negative growth curve. As for the consumer market, many baby food & supplies manufacturers couldn't help wondering: as more and more Taiwanese choose to be "DINK", is my target market getting smaller?
Here are Kantar's advices on the future of baby food & supplies manufacturers:
1. Low birth rate leads to smaller consumer group - it's all about competition
The right thing to do is knowing your competitors better and enhancing communication with your potential buyer groups. As babies grow up, how to make consumers stay loyal to your brand throughout their babies' growth, and get connected with those modern moms through more consumers' point of contacts should be the primary concerns of marketing.
2. Communicate product lines and increase sales in the high-priced segment
Babies are becoming more precious to families. This is reflected in the purchase of baby diapers in recent years. "Training pants (a kind of diapers)", as a new growth driver, are becoming more and more important to those manufacturers in their product portfolios – we see new training pants continue to come out while the manufacturers are exerting all their strength to get modern mons to adopt their products. Even if the average price is 1.6 times that of the general tape type, it still achieved a growth rate of 40% in the purchasing power, no wonder there are sayings like "golden baby butt" and "diamond baby butt" in the baby diapers market.
3. Follow hot sales channel, get ahead in Internet sales
According to Kantar's consumer index study, the proportion of Internet sales has been increasing year by year in the overall FMCG market. The latest data in 2018 indicates that the Internet sales have grown by 31%. One of the key categories that drive growth is the food & supplies for babies and young children. The new generation of mothers are familiar with Internet and also very busy taking care of their children, so they always go for what is most convenient for them, which leads to the fact that the Internet sales of overall baby diapers category have grown by 35%. And some infant formulas with legal restrictions, also grew by 19% in the Internet sales channel.
Mo ziping, Kantar's consumer index researcher, pointed out that the low birth rate and the high price in the baby food & supplies market are actually a circular issue, similar to the "which came first, the chicken or the egg?" situation. The big society environment causes late marriages and less marriages, which further leads to less newborns. For people that already have babies, of course they would put in more resources and care on their newborn babies. Today's manufacturers in the baby food/supplies market have smelled the chance in high-priced segment, and are all rushing to communicate and highlight brand value and product reliability with consumers, undoubtedly the competition will get more and more intense in the high-priced segment.