Baby and Child-Specific Products in Venezuela

PROSPECTS

High prices and limited supply push sales farther down in 2017

Venezuelan parents regard baby and child-specific products as essential and irreplaceable, but high prices and tight household budgets pushed volume sales further downwards in 2017. The negative retail volume trend began in 2014, driven by lower product availability caused by price ceilings on hair products and some toiletries.

Consumers appreciate natural ingredients

Venezuelan parents look for products containing natural ingredients as baby skin is sensitive and delicate. Natural ingredients such as aloe vera, chamomile, argan oil and lavender are common in baby and child-specific products and highly appreciated by Venezuelan parents.

Volume and variety somewhat recovered but consumers are unable to make purchases

An increase in the supply of hair care products that was expected in 2017 after the government relaxed price controls over shampoos was too little and too late. Major companies withdrew their products in 2015 and 2016 and did not return even after the price ceilings were lifted.

COMPETITIVE LANDSCAPE

Local companies and brands dominate the category in 2017

Three local companies were leaders in this category during 2017. Pharsana de Venezuela – the leading company, which manufactures international brand Chicco – lost value share for the last three years of the review period, whilst Valebrón & Cia (Melody) gained value share over the same period and especially in 2017.

Segmentation wanes, giving way to homogenisation

Traditionally, companies involved in baby and child-specific products used to manage wide product portfolios across the various categories. Johnson & Johnson de Venezuela used to have the best segmented portfolio in products targeting children (not babies) with an offer of shampoos and conditioners for different hair types.

Private label continues to gain, whilst Beiersdorf holds its ground

The leading private label in baby and child-specific products is Farmatodo, the largest drugstore/parapharmacy chain in Venezuela. The products offered under the Farmatodo private label include body moisturiser (one with valerian and others with chamomile, oats and honey), cologne and body oil with aloe vera, as well as hair care products and nappy rash treatments.

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