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The place where quality is not compromised: Baby product survey - Walla! Of money

2021-10-14T12:57:18.589Z

Unlike other areas of consumption, we do not compromise on baby products and are willing to pay a high price to provide our children with the best. We went out to check prices and compare



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The place where quality is not compromised: a survey of baby products

Unlike other areas of consumption, we do not compromise on baby products and are willing to pay a high price to provide our children with the best.

Despite this, there have been some significant changes in the market.

Here are the main ones and of course - price comparison

Tags

  • Materna

  • Pampers

  • Huggies

  • Similac

  • Shufersal

  • Rami Levi

  • victory

Dr. Hezi Gur Mizrahi

Thursday, 14 October 2021, 14:28 Updated: 15:45

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As adults we can make the buying and consuming decisions ourselves, but when we consider the consumption of babies, our children, the buying processes are completely different, we should choose and decide for a person who can not share with us opinions like whether the food tastes good, whether the clothes are comfortable , That is - he usually communicates his opinions in a negative way.



Do not worry, this is not a lecture in the course "Introduction to Parenting" but a consumer analysis whose bottom line is simple: the limited communication of babies with us Our high sensitivity towards them, causes us to choose for them the best, which is often also expensive - and not compromise as in other cases For our personal consumption.



The world of retail for baby products in Israel has changed in recent years. A network of "pacifiers" for its own changes.



Other stores and chains that engaged in baby products became extinct, not necessarily because of competition from Shilab or pacifiers, but because of competition from online shopping channels, which offered alternative products at competitive prices.


The market for baby and toddler products is worth more than NIS 1.2 billion - and that is without baby food, diapers and wipes. EBay, Amazon, Ali Express and the rest of the e-commerce arenas have not only managed to make the market difficult but have also led to price competition, which has not been practiced in the past.



Most of the purchases for daily consumer products we make in the retail chains, usually in a clear number of areas: breast milk substitutes and baby food, diapers and wet wipes, care and hygiene products.

The market's leading brands have shown relative stability over the years and the penetration of new and lesser known players is almost impossible even though in recent years little competition has grown.

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(Photo: image processing, Daniel Malakhovsky)

Baby food

The main products in the field of baby food are breast milk substitutes, porridge and animals. Milk substitutes roll about NIS 600 million a year, whether those who receive the substitute in addition to breast milk or in its place.



The Remedia affair, which is remembered as a trauma, has raised parents 'awareness of the substitutes and business competition begins in the delivery room, with companies competing over who will be the first to be exposed to the newborns, as their chances of being the parents' preferred choice improve dramatically.



The three leading brands in the local market are:


• Materna - marketed by Osem


• Similac - marketed by Newprom


• Neutralion - marketed by Diplomat



About five years ago, the Shufersal chain launched a private label in the breast milk substitutes segment, but even though the product competed Prices and quality It has not been able to capture the market shares that the chain expected and in recent months a decision has been made to end the marketing of the product.

(Photo: image processing, Daniel Malakhovsky)

The Materna brand accounts for over 50% of sales of food substitutes in Israel, followed by the Similac brand with about 30% market share and the Neutralion brand has grown to 20% market share.

The Neutralion brand from Teva is the new brand among the brands, and managed to capture a significant market share after for a very long time, new players were unable to penetrate the market.

(Photo: image processing, Daniel Malakhovsky)

Despite the high prices of milk substitutes we encounter on the shelves of retail chains, retailers report that this is one of the areas where they are fighting for the benefit of the consumer and therefore the profitability of the category is nil and sometimes even negative.

In a conversation with the CEO of one of the small retail chains, he claims that the consumer prices in the large retail chains are 20% lower than the price charged by the marketers of those products.

(Photo: image processing, Daniel Malakhovsky)

Diapers and wipes

Just as the baby eats several times a day as a way of drowning Hershey as long as there is no reward from diapers, so too these should be changed several times a day.

Consumption patterns and buying decisions in diapers are typical of consumption patterns in baby products.



Although diaper consumption is more flexible than baby food consumption patterns, and in a market study conducted by the Institute for Retail Research in 2019 (a study that dealt with brand loyalty in the field of baby products among customers who regularly bought one of the two leading brands). % Of all consumers indicated that they would purchase the competing brand at least once.

(Photo: image processing, Daniel Malakhovsky)

The diaper is peace of mind for the parent, comfort for the baby and most importantly: that rolls about half a billion shekels a year.

Absorption technologies are evolving day by day, and today even the "cheap" diapers know how to do proper absorption work.

There are two international players leading the global market: Pampers and Huggies.

(Photo: image processing, Daniel Malakhovsky)

Unlike the world of milk substitutes, the price of diapers has dropped significantly in recent years, despite the different packaging and the reduction in quantity.

Today, the price for packaging can reach NIS 34.90 in exceptional deals, while we knew prices of NIS 69.90-79.90 for packaging diapers.



Competition and consumer wars have led to change in the field.

The complementary product to diapers are the wet wipes.

In this market we see dozens of different brands and prices.

Sometimes the difference between branded wipes and those made by a lesser known manufacturer, can even reach 100% difference.

(Photo: image processing, Daniel Malakhovsky)

Grooming and hygiene

Just as we do not compromise on baby food or even in a diaper, it turns out that we do not compromise on grooming products either.

The leading brands in the baby care products market are Dr. Fisher, Softker, Johnson & Johnson, Azora and more. The Johnson & Johnson brand leads the world market in baby products, but in Israel the leading brand is actually from an Israeli company. Dr. Fisher.

The



Softker brand marketed by Snow presents a parallel product line at more competitive prices to the local consumer and in the last two years we have seen price reductions in the Johnson and Johnson brand products marketed by the Stowitz company, due to the penetration of parallel imports at discounted prices to the local market.

(Photo: image processing, Daniel Malakhovsky)

The author is the director of the Institute for Retail Research.



The survey will also be published in Maariv's "Business" issue. 15.10.21



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Source: walla

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