With a fall in disposable incomes and greater economic uncertainty, consumers are becoming increasingly cautious with their spending. They are reducing the purchase of non-essential products and instead opting for economy brands.
While cost factor is an important purchasing determinant, the baby’s welfare and hygiene is also important and one which parents are unwilling to compromise on. With family sizes decreasing and both parents often working, families are allocating larger budgets to baby and child-specific products.
A smaller but emerging category of parents, usually from higher-income groups, are also searching for products that are environmentally friendly. Within this niche group of consumers, it is also common to see them make their own baby products, such as skin care using only natural ingredients which can readily be found in one’s kitchen.
Johnson & Johnson retained its lead of baby and child-specific products with its well-known Johnson's Baby brand, followed by Tiger Consumer Brands Ltd with Elizabeth Anne’s. These two players have a long-standing presence in South Africa and being heritage brands, they benefit from a strong reputation amongst local consumers.
Although heritage brands have a strong grip on baby and child-specific products, private label from retailers such as Clicks have gained in popularity as they are competitively priced. Private label products from Clicks benefits from optimal shelf positioning and also run promotional offers throughout the year, making them a cost-effective option for cost-conscious consumers.
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This industry report originates from Passport, our Beauty and Personal Care market research database.