Baby and Child-Specific Products in Argentina

PROSPECTS

Parents replace baby and child-specific products with cheaper alternatives

Although there is an emotional factor in buying baby and child-specific products, and parents try not to reduce their purchasing of this category in an adverse economic context, in 2016 and 2017 the drop in real wages was too sharp and consumers had to reduce their purchasing of category items and replace them with cheaper ones, usually used by the rest of the family. One of the most adversely affected categories was baby and child-specific hair care, which experienced double-digit falls in volume sales in 2016 and 2017.

Some categories are able to avoid the economic crisis by being practically irreplaceable

Some categories of baby and child-specific products better endured the economic crisis and even recorded slight increases in volume sales during 2017. Products that are difficult to replace or that require specific care are precisely those products that are able to withstand the economic crisis, especially those intended for babies.

Unilever de Argentina SA tries to gain ground with the launch of Baby Dove

Undoubtedly, the most important category launch in the late review period was made by Unilever de Argentina with the introduction of Baby Dove at the end of 2016, an extension of its well-known Dove brand in the country. This new line is composed of baby wipes, shampoo, bar soap and liquid soap in different presentations.

COMPETITIVE LANDSCAPE

Johnson & Johnson comfortably leads the category

Johnson & Johnson comfortably leads sales of baby and child-specific products. This leadership was built thanks to the tradition and strength of the Johnson's Baby brand in the country.

There is little space for national companies

National companies are absent in baby and child-specific products in Argentina. The top four companies in 2017 (Johnson & Johnson, Kimberly-Clark Argentina, Natura Argentina SA and Cosméticos Avon SACI) were large multinationals and collectively generated a high category share.

The outlook for the forecast period is encouraging and different

Over the forecast period, the economy is expected to be much more favourable than in the review period, which was marked by high inflation rates, loss of purchasing power and increased unemployment. With the recovery of purchasing power, it is predicted that categories that were severely hindered in previous years and replaced by alternative products will make a rapid recovery, especially baby and child-specific hair care.

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