Karen McIntyre, Editor01.06.22
The frenetic pace of new product introductions in the disposable diaper market has continued during the past 12 months. Smaller start-ups with new product and marketing concepts have taken advantage of contract manufacturers, social media outlets and the consumers’ appetite for more choices to launch new diaper brands both online and in brick and mortar retailers.
In many cases, these brands have proven successful. The Honest Company recently went public; Hello Bello started up its own manufacturing site in Waco, TX, and Dypers continues to add subscriptions to both its diapers and its composting program. Not only do these brands prove that parents want alternative products in the diaper market, in many cases they are willing to pay more for innovation.
This change in consumer behavior has significantly altered the role of the private label products in the baby diaper market. Where once, stores used private label products to provide a low cost—and often lower quality—alternative to customers, now these retailers are creating higher quality products that speak to the needs of consumers to entice them into stores. Oftentimes, price is not even a factor.
In some cases, retailers are achieving this with exclusivity agreements like Walmart’s deal with Hello Bello or Target’s Millie Moon brand. This gives the retailer exclusive access to a premium brand without having to handle the manufacturing and marketing for it. Meanwhile, other companies are creating their own premium tier brands to welcome customers to the store. Either way, it’s clear that price consciousness no longer defines the private label baby diaper market.
That’s not to say this strategy is fool-proof, Walmart’s White Cloud brand has disappeared from the market; so has Target’s Cloud Island. A few years ago, Amazon entered and then quickly exited the disposable baby diaper market with a private label brand after negative consumer reviews. The online retailer later returned to the market (quietly) with its Mama Bear and Earth + Eden brands, which continue to be available.
Not only have these private label brands changed the way this market does business, it has helped redefine the diaper market, which has become a place where innovation and competition thrive and value is appreciated.
Karen McIntyre
Editor
kmcintyre@rodmanmedia.com
In many cases, these brands have proven successful. The Honest Company recently went public; Hello Bello started up its own manufacturing site in Waco, TX, and Dypers continues to add subscriptions to both its diapers and its composting program. Not only do these brands prove that parents want alternative products in the diaper market, in many cases they are willing to pay more for innovation.
This change in consumer behavior has significantly altered the role of the private label products in the baby diaper market. Where once, stores used private label products to provide a low cost—and often lower quality—alternative to customers, now these retailers are creating higher quality products that speak to the needs of consumers to entice them into stores. Oftentimes, price is not even a factor.
In some cases, retailers are achieving this with exclusivity agreements like Walmart’s deal with Hello Bello or Target’s Millie Moon brand. This gives the retailer exclusive access to a premium brand without having to handle the manufacturing and marketing for it. Meanwhile, other companies are creating their own premium tier brands to welcome customers to the store. Either way, it’s clear that price consciousness no longer defines the private label baby diaper market.
That’s not to say this strategy is fool-proof, Walmart’s White Cloud brand has disappeared from the market; so has Target’s Cloud Island. A few years ago, Amazon entered and then quickly exited the disposable baby diaper market with a private label brand after negative consumer reviews. The online retailer later returned to the market (quietly) with its Mama Bear and Earth + Eden brands, which continue to be available.
Not only have these private label brands changed the way this market does business, it has helped redefine the diaper market, which has become a place where innovation and competition thrive and value is appreciated.
Karen McIntyre
Editor
kmcintyre@rodmanmedia.com