Baby and Child-Specific Products in Singapore

PRE-COVID-19 PERFORMANCE

Effects of declining birth rate offset by parents looking for “natural” and “organic” products

Although Singapore continues to record a declining birth rate, this often means that parents are willing to spend considerably more on their babies. This does not automatically mean that parents are looking for premium or luxury baby products, often instead searching out products that they think will be better for their babies, such as organic products, which can be easily found in mid-tier price ranges in drugstores.

“Mummy influencers” hold increasing sway in baby and child-specific products

“Mummy influencers” are on the rise in Singapore. While most of them may not be full-time influencers, like other mainstream influencers for beauty or fashion, companies – both local and overseas players – are targeting these mummy influencers to promote their brands/products with “affiliate” schemes, eg for sponsorship of products and a certain rate of commission on every sale through their promotion, or a 50% discount on all product purchases and certain rate of commission on every sale through their promotion.

Johnson & Johnson continues to lead sales with a general mass positioning and familiar brands

Johnson & Johnson Pte Ltd holds a strong lead in baby and child-specific products through its popular Johnson’s Baby brand. However, the company has been experiencing declining value sales and value share in recent years in Singapore.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are expected to grow by 2% in 2020 at constant 2019 prices, in line with forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19. There is a general unwillingness among parents to compromise in terms of quality on their children’s products, while a desire to maintain good levels of hygiene and cleanliness around their children will mean that COVID-19 should have little impact on overall category sales in 2019.

Affected products within baby and child-specific products

One area that will see a marked downturn in value growth in 2020 is baby and child-specific sun care, with home seclusion the main reason at play here, with reduced outdoor activities and more time indoors due to COVID-19 meaning less need for this product in 2020. On the other hand, baby and child-specific skin care is expected to experience a slightly positive impact from preventative health concerns among parents, particularly as they look ensure that any face mask wearing outside the home does not create any new skin concerns among their offspring.

Recovery and opportunities

Overall, the forecast period performance for baby and child-specific products is expected to be very much in line with the most recent forecasts for this period. However, some areas will diverge from this, in particular sun care, which, after a sharp drop in growth in 2020, will return to recording healthy growth from 2021 and over the rest of the forecast period.

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