By Saurabh Goel

Baby care Products Market in

India

Contents

• India and Retail• Baby care products market• Major National Brands• Major National Retailers• SWOT• Conclusion

India and Retail

Disposable incomes are expected to rise at 8.5% till 2015

The aggregate personal disposable income of the entire population went up by 57% between 2003 and 2008.

During 2007-08 the per capita income rose 33% over 2003-04. The consumption level grew by 22% from INR 14,011 in 2003-04 to INR 17,107 in 2007

India recorded a gross domestic product (GDP) growth rate of 6.7 per cent in rupee terms during the year 2008–09.

Indians can spend over $30,000 per year on conspicuous consumption

The median age of 23 years, opposed to the world median age of 33, sets the emerging young India apart.

India and Retail

The industry is expected to grow at rate of 19% over the next 5 years with organised retail increasing to 7% by 2012-2013

Only about 5%-6% of total $385 billion retail industry is currently organised

Retail revenues are expected to reach $460 billion by 2010-2011 with the organised sector contributing $41 billion by 2012-2013

FDI norms currently allow 100% investment in Cash & Carry format with up to 51% investment in Single Brand Retail formats

JV, Franchising, Cash & Carry, Strategic Alliances, Manufacturing and Distribution Centers are some of the routes used to enter the Indian market

The favorable retail climate led to India being ranked as No.1 in the 2009 Global Retail Development Index by AT Kearney

Baby care products market

Baby care products market• According to an AC Nielson survey, the education and/or

welfare of the children is still one of the biggest concerns for the average Indian

Baby care products market

• Baby hair care, skin care and toiletries market worth INR 5.89 billion– Expected to grow to INR

10.92 billion by 2012• Combined with baby

foods sector is worth INR 15 billion growing at 17%

Hair Care 7%

Skin Care 51%Toiletries 42%

BabyCare Products Market

Hair Care

Skin Care

Toiletries

Baby care products market

• Baby apparels industry worth INR 35 billion– Famous brands include Lilliput, Ginni and Johnny,

others• Less focused sector of Travel aids, furniture,

toys and many others– Total market could therefore be worth well over

INR 50 billion ($1.14 billion)

Major National Brands

Major National Retailers

Major National Retailers

SWOT Analysis

Conclusion• The people of not only India but every part of the world

always want the best for their children • “Parents were much more willing to substitute name brands

with store brands for themselves than for their children; in fact respondents with children ranked baby products as the category for which they would be least willing to switch” – Interbrand on effects of Recession

• Opportunity lies in scope of improvement and expansion in this industry

• Foreign companies looking to come in • Not much involvement by Tata’s, Reliance and Future Group

References• https://www.cia.gov/library/publications/the-world-factbook/geos/in.html as on November 13, 2009• “The Retailer”, Ernst & Young internal Publications, January 2009 Edition • http://economictimes.indiatimes.com/News/News-By-Industry/Cons-Products/Garments-/-Textiles/Kids-w

ear-market-growing-healthy-and-fast/articleshow/5178446.cms as on November 13, 2009

• http://businesstoday.intoday.in/index.php?option=com_content&task=view&id=9938&sectionid=4&issueid=48&Itemid=1 as on November 13, 2009

• http://www.commodityonline.com/news/India-still-tops-consumer-confidenceNielson-Survey-22605-3-1.html as on November 13, 2009

• http://www.business-standard.com/india/news/kitbaby-care-market-in-india-2008/334451/ as on November 13, 2009

• http://babycare.headlinesindia.com/baby-brands/ as on November 13, 2009• http://www.allardpartners.com/upload/documents/allard/case%20studies/NestleAGF.pdf as on

November 13, 2009• http://www.bonnebabycare.com/about-us.html as on November 13, 2009• http://www.lifestylestores.com/pages/about_us.htm as on November 13, 2009• http://en.wikipedia.org/wiki/Mothercare as on November 13, 2009• http://economictimes.indiatimes.com/News/News-By-Industry/Services/Property-/-Cstruction/Mothercar

es-India-ops-get-DLF- push/articleshow/4987941.cms?curpg=1 as on November 13, 2009

• http://www.reuters.com/article/pressRelease/idUS199050+20-Apr-2009+PRN20090420 as on November 13, 2009

• “Consumer spending in a recession”, Interbrand publication