“Kommersant”: Russian diaper brands ousted American Pampers products from the market
For the first time, diaper brands of Russian retail chains outstripped foreign brands in terms of sales share – in particular, the American brand Pampers was displaced from the leading position, informs “Kommersant”. Russians began to give preference to domestic products after the number of foreign goods on the market declined sharply, as many manufacturers limited or completely stopped their activities in the country.
The most popular diaper brands among Russians are private labels (PTMs) of local retailers, such as Casper and NaNi from the Magnit network. According to Magnit and Lenta, the share of sales of STM diapers in total sales has reached 40 percent.
Many retailers have seen an increase in demand for private label diapers since spring 2022. Magnit reported that since the beginning of the year, private label products have replaced foreign brands, their share in total diaper sales has increased by 16 percent. Lenta noted a 70 percent increase in sales of these products. Retail chain diaper brands came out on top in terms of sales value, with a share of over 30 percent, according to market research firm NielsenIQ. At the same time, sales of private label diapers increased by 130 percent in monetary terms compared to the previous year, and by 60 percent in physical terms.
Market participants attributed the interest of Russians in private label products to the fact that it has recently become more difficult to purchase diapers from foreign brands, in addition, prices for popular foreign brands have risen sharply. At the same time, the products of Russian retailers are distinguished by their availability and lower pricing. At the same time, if the economic situation in the country begins to improve, and foreign brands resume marketing activity, consumers are likely to return to buying goods from familiar brands even in a higher price category, says Roman Kvinikadze, co-founder of NappyClub.
Most of the private label goods that are supplied to the shelves of Russian stores are made in China, and the current exchange rates contribute to a more comfortable price for such products, Kvinikadze said. He also notes that this year, sales in the Russian market have fallen not only for Pampers, but also for diapers from the American brand Huggies (Kimberly-Clark) and Japanese Merries.
Procter & Gamble, a manufacturer of Always, Naturella and Discreet pads, Pampers diapers, Tampax tampons and other products, announced a reduction in its product portfolio in Russia after the outbreak of hostilities in Ukraine. The supplier decided to sell only essential goods in the country.
In response to sanctions prohibiting the import of a number of goods into Russia, local manufacturers decided to start producing pads and diapers from domestic raw materials. Products are made from Russian pulp.
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