Baby and Child-Specific Products in the Czech Republic

PROSPECTS

Consumers increasingly seek baby and child-specific dermo-cosmetics

Medicated baby and child-specific products is still a relatively small category, but with the rising number of children suffering from atopic skin and eczema, the potential is beginning to unlock. Consumers are becoming better informed and educated about the available options in terms of treatments and active ingredients, which is leading to a preference for herbal/natural products on the one hand.

Generation X and millennials present both challenges and opportunities

The Czech Republic, the same as many other EU countries, is facing a rapidly ageing population and late marriage, which are bringing both challenges and opportunities for baby and child-specific products. Overall, the birth rate saw a slightly positive trend in recent years, which was mostly attributed to generation X and millennials settling down and starting families.

Product recommendations and online sales play an important role

Internet retailing has gained strong ground amongst consumers in the Czech Republic, as baby and child-specific products are increasingly ordered together with nappies/diapers and various other baby-related products, such as clothing, toys and accessories. Apart from the dynamic development of online shopping in 2018, drugstores/parapharmacies and chemists/pharmacies remained the two most trusted distribution channels for consumers.

COMPETITIVE LANDSCAPE

Premium and prestige products are gaining a wider consumer base

The offer of premium and prestige baby and child-specific toiletries and dermo-cosmetics in chemists/pharmacies and online stores increased rapidly in recent years, supported by increasing awareness amongst parents about medicated products and clinical testing, together with rising disposable incomes. As a result, prestige dermo-cosmetic brands for babies, such as Klorane and Mustela, have been particularly successful.

Discounters and private label are on the rise

Despite the premiumisation of the category and increasing disposable incomes, Czech consumers continue to seek value for money and adopt private label lines. Private label caters for consumers’ price-sensitivity by offering a wide range of products with a good price/pack size ratio.

Indulona and Hipp enter baby and child-specific cosmetics

Creams from the Indulona Original series have passed stringent safety tests and have received a childcare-safe certificate. Amongst the few creams and lotions on the market, they contain no preservatives and are therefore ideal for the most sensitive skin types.

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