In 2013, Amazon led the e-retail business with over $74.45 billion in sales. Now, according to last week’s Nonwovens Industry article, the e-retail giant is dipping into the disposable diaper business. Amazon will now have a private label diaper that it will sell on the popular retail site. With more than 237 million active customer accounts who purchase everything from cell phone cases to televisions, the potential impact on the nonwoven diaper industry is enormous.
How do other diaper manufacturers compete with an industry leader like Amazon? Its sales platform seems effortless and Amazon’s ability to advertise to its customer base is unparalleled. But, with an already established high-volume market in big box retailers like Wal-Mart or Target, other diaper manufacturers certainly are still leading over the newly minted Amazon brand diapers.
How do you stay competitive in an increasingly competitive diaper market?
- Continue to appeal to parents. Parents are the ones who care about absorbency, flexibility and even the appearance of diaper products. Now is the time to hone these features and ensure that your nonwoven diapers are just want Mom wants.
- Develop your own e-retail market. If your products aren’t readily available to your end-user customers, work hard to get them there. Even though only 5% of diaper sales are currently conducted online, that number is certain to increase as people become more and more comfortable with buying staple goods away from brick-and-mortar stores.
- Be flexible with market demands. Amazon is touting its diaper products as an “ethical” diaper. They provide sourcing information, ingredient lists and other information to parents. If that’s what the market is demanding, you should pay careful attention and be prepared to meet market needs.
Diapers are big business. With over $15 billion in revenue generated from this chunk of the nonwoven products market, it’s sure to be a market segment that continues to be hotly pursued by the giants of industry as well as boutique manufacturers. Whatever the case, the introduction of Amazon into the game is sure to make all diaper manufacturers stop and consider what the ramifications will be to the marketplace as a whole.
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