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Baby Care Market In India Background Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 3903 words Published: 1st Jan 2015

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The reason why this research topic has been chosen is that the baby care market is growing at a fast pace in India and not much research has been carried in this area before. The increasing awareness of the availability of wide range of baby care products has been helping drive Indian Baby Care Market at a good pace. This sphere of operations of marketers is quite unexplored compared to one in developed countries like USA and United Kingdom. The scores and fields that will be focused on and extensive research will be done would be of great help and pave ways for a new market growth which is yet unexplored. The Indian economy is on a sustainable developing phase and lot of potential exists for a new segment. This also is facilitated due to high GDP, higher disposable income and dual income that leads to lesser time for mothers to take care of their newly- born.

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This research topic entails to a lot of scope due to the above mentioned reasons. The Indian baby care market has emerged as one of the most profitable markets and has seen phenomenal growth over the last few years. Moreover, entry of new players and competitive pricing, the market is expected to emerge further in the years to come. The market consists of baby care products like baby hair and skin care products, toiletries and diapers. It is expected that the Indian baby care market will surge at a compounded annual growth rate of around 11% during 2011-2013.

The area of concerned research would comprise of mainly exploring new geographical market in the Indian soil and understanding how up scaling of line extension in the baby- care market. Though the current debate in the Indian segment of nutrition value of baby foods and quality of the baby care products are sometimes in question yet these debates do not alter the demand for these products. The market is mainly dominated by some big established players who have been there for a long period of time. Companies like Johnson & Johnson, Dabur, Procter & Gamble and Kimberley-Clark dominate the baby care market in different segments of baby care products. However, in many semi urban areas of the country it has been noticed that the market is dominated by unorganised sector. The drivers to this market are increasing disposable income, high birth rate and increase in the number of working women and healthy lifestyle that leads to a healthy mother- baby relationship. Though the market is currently restricted to urban areas it is fast expanding to semi- urban and rural areas. The baby care market in India is expanding like never before, thanks to the initiative taken by increasing number of retailers in this regard. It is no more just the usual players like Johnson and Johnson or P&G which have been offering baby products since long, but also new players like Lilliput (a popular kidswear retailer), Chicco (Italy), Mothercare (Great Britain Retail Giant), Mom and Me among others who are also joining the brigade in India along with many other unorganized retailers. While Chicco and Mothercare have recently entered the Indian market, Lilliput also has huge plans when it comes to making a foray in the Indian baby care market. There was a time in India when formal shopping for baby care as a routine shopping was unheard of. Today retailers are bringing the trend as one of weekly basis shopping putting the emotional psychographic as a frontrunner selling proportion. http://retail.franchiseindia.com/articles/Retail-Trends/Retail-Industry/Booming-Baby-Care-Market-316/


According to a research report called “Indian Baby Care market to 2013”, the baby care market in India has experienced exceptional growth over the past few years due to changing consumer mindset and increased penetration of baby care products. At present, the market is in the nascent stage of development and it will emerge as one of the world’s fastest growing baby care markets. This report contains comprehensive research and rational analysis on various segments of the baby care market in India, including massage oil, skin care, diapers and baby food. Moreover, large population base in 0-4 years and parents increasing preference to spend more on baby products will drive the market to new horizons in near future. India has emerged as the most preferred market for the companies that manufacture baby care products, says RNCOS report. RNCOS is a market research consulting Services Company that specialises in BioPharma, IT & Telecom, and Retail and Services industries. According to this report several international players are planning to introduce specialised products in a bid to grab market share from well-established players like Johnson & Johnson and while India represents huge growth opportunities, there are certain challenges for the industry. The Indian baby care market is restricted to just urban areas, despite accounting for majority sales, the urban areas are still under penetrated as compared to other developed and developing markets in the western countries. “Indian Baby Care Market to 2013” is an exhaustive research and objective analysis on the growing baby care products market in India. The report also evaluates the factors critical to the success of baby care products market in India and deeply analyzed the market trends. Detailed data and qualitative analysis help investors to understand the latest trends in the baby care industry. The report also provides the segment-wise analysis, forecast and information of emerging areas.  The information in the report covered in the report helps in understanding the market dynamics and the corresponding factors responsible for transformation of the industry. The report also mentions the challenges that face the baby care market in India. The Indian baby care market is restricted greatly to urban areas. Despite accounting for majority of sales, the urban areas which include big cities like Mumbai, New Delhi, Kolkata and Bangalore are yet to be fully penetrated compared to the western countries. The challenges facing the market are competition from cheaper substitutes and cultural aspects of the people in the country.

There is another research report on the Indian baby care market by Bharat Book Bureau which states that India is one of the retail destinations around the world, represents a high potential and untapped market for baby care products. The research is called Indian Baby Care Market Analysis. With growing awareness and rising income level Indian baby care market is quickly transforming into the world’s fastest growing baby care market. n addition, vast population base in the age group of 0-4 years and parents preference to spend more on baby products will further boost demand for baby care products in the country. According to this research, the Indian baby care market has substantially grown over the past few years and caught the attention of international players. It showed impressive performance last year (2009), which indicates to the nonexistence of economic slowdown effects. Aggressive marketing strategies and consumer acceptance of branded premium baby care products (especially in baby food and baby skin care segments) to register a high compounded annual growth rate. The report also says that competitive pricing and product awareness have increased the intensity of marketing activities to attract more customers. According to the research carried by Bharat Book the Indian baby care market will witness a great deal of change in competitive landscape. The research says that large numbers of international companies are planning to enter the Indian market with their diversified product portfolio. This report also focuses on the importance of rural market in the Indian bay care market for all the companies. According to this research More than 70% of consumers reside in rural areas and almost 50% of the national income is generated here. The study indicates that the consumer base for baby care products in rural areas in India is expected to reach around 109 Million by 2015. The report identifies that a vast prospect population will provide enough growth opportunities to new and existing players and will position India as one of the world’s biggest and fast growing baby care markets. In addition, the government support to agriculture and rural economy will create a profitable downstream opportunity for the baby care industry. As the government supports the rural employment schemes like NAREGA, it provides rural consumers an opportunity to earn more and empower them to spend more. On the back of these developments, we expect that the rural market will trigger growth in this industry during the coming years. This report also presents business profile and strategic moves of the leading players of the Indian baby care industry. In addition, the report provides future outlook for all the important aspects of the industry considering the effects of global economic crisis on base drivers, opportunities, and challenges faced by the Indian baby care industry.


The Italian health and wellness products manufacturer Artsana opened a Research and Development centre in June2010 to develop products for infants as it looks to expand its operation. The company is already involved in the Indian baby care market as it sells the ‘Chicco’ brand of baby care products in India. When they started their research on the baby care market in India they found out that when it comes to pampering the little ones, only the French do it better than Indian and on the other hand, South Korean parents pamper their offspring the least. Now add to that the fact that more and more urban Indian parents are evolving into a discerning, sometimes picky, set of consumers with increasing incomes. Just the sort of people who are willing to pay for products from Chico’s stable. Like a baby pillow with a simulated heartbeat. Or clothes that have passed through metal detectors to detect and remove microscopic metal shards, making them absolutely safe before they hit shop shelves.


In short, both the previous researches mentioned above say that the baby care market in India is developing rapidly because of various reasons. The demand for baby food and other baby products are increasing and many international companies are getting attracted. These researches discuss information on market performance, recent market developments, and trends for all these market segments. 

Gaps in the previous research

Both the previous researches done i.e. The Indian Baby Care market to 2013 and Indian Baby Care Market Analysis focus on baby care products like baby food, skin care, toiletries and massage oil. However, baby care market includes many other products like buggies, car seats, prams, baby carriers and baby toys. The previous researches has hardly mentioned about the products. The usage of products like cars specially designed for infants, baby care CDs and baby buggies is comparatively less in India compared to United Kingdom and USA. If you travel in cities like London and New York you can see at least one baby buggy in a bus whereas in a city like New Delhi and Mumbai you might see one in an area of 2 miles. The difference is because of the Indian culture where in a mother prefers to carry the child herself rather than using a carrier or a buggy. However the demand for these products is increasing slowly because of increase in the number of working women and awareness of safety. The previous researches on Indian baby care market have narrowed the concept of baby care by keeping it limited to baby food, toiletries, skin and hair care. Baby care does not start when the baby is born but since the baby is conceived. A would-be mother taking care of herself is also a part of baby care. So the food she should consume, the clothes she wears, parenting advice, all form a part of the baby care market. If we compare the baby care market in India to the UK baby care market, we can see that latter has a broader view. Companies like Mothercare are the best examples of baby care products & services provider. They have hundreds of baby care products which include feeding, clothing, baby carriers and buggies, bedding, pushchair, toys, and also other counselling services. Mothercare has its own online community for parents providing information and advice about conception, pregnancy, birth and baby.  Mothercare has entered into a joint venture with India’s largest real estate company to ramp up its expansion into the country. Mothercare has identified that there is a large scope for growth in the Indian market because there is no proper company providing products like maternity clothes and advice service.


Industry Background

The concept of baby care in India has been a family matter over decades, but as discussed earlier, due to rapid rise in number of nuclear families, mothers are finding it difficult to cope up with the child care single- handedly. It would be quite surprising these days to turn the television on and not find a number of adverts featuring babies or baby brands commercials highlighting the features and advantages of various products like baby food, diapers, baby hair oil and toiletries. Baby care products are all over the market i.e. in the malls, shopping centres and pharma shops. Parents are keen to give their child the best for his/her comfort and healthy growth and the market is booming with products to meet with the parents’ expectations and demands like never before. India has emerged as the most preferred market for the companies involved in baby care product manufacturing and marketing, says RNCOS report. The baby care market in India is valued at $132 million in 2008 and is expected to reach around $250 million by 2012. The hair care market for babies is valued at $5.5 million for 2008, and is growing at a compounded annual growth rate of 5 per cent. The skin care market is valued at $40 million for 2008 and is growing at a rate of 15 per cent. The baby toiletries market is estimated at $3.5 million for 2008 and is also growing at 15 per cent.

Research aim

The aim of this research would be to identify new market for baby and mother care products in India. Also, to understand how domestic players of related segments can enter into this lucrative market. It would be interesting to know how these sections of business would prosper in the long run and if there are any major obstacles in the way to the aforementioned objectives, thus to check feasibility of such operations of retailing. The research aim would also be focused to understand the reasons why the industry has not been able to be one of the highly rated growth segments. It would also entice the path for exploring the market to be opened in the lesser lucrative looking areas like the semi- urban markets and henceforth.


H 1. There is a vast scope of baby- mother care market catering to become a mass segment rather than a niche one in India.

H 2. The baby-mother care market can be extended profitably to a variety of products rather than confining to the current offerings in India.

Research Objective:

The objective of the research would be to find out the reasons why in India, there is no focus given on the mother-care compared to the baby-care market.

To explore what different companies in the baby care market can do take the market to a next level like U.K and U.S.A i.e. from a niche market to a mass market.

To identify the competition of established players like Dabur, Johnson and Johnson and Procter and Gamble with the likes of new international players like Mothercare and Artsana (Chicco) in the baby care products and services.

Research Methodology

The research philosophy adopted for a piece of primary research under pins the way that research is carried out by defining “the way [the researcher] think about the development of knowledge (Saunders et al 2003). Collating data is a complex part of any research work and it provides the base to achieve the research objectives and proving the above hypothesis. The objectives included in this proposal would be achieved by using both primary and secondary research techniques. The methodology would also entail the conclusion of the hypothesis through collective means of qualitative and quantitative analysis. The primary data collection for this report would include a wide range of techniques like online surveys by marketing research executives and also experienced employees of companies like Johnson and Johnson, Dabur and Mothercare (India) who are major players in this sector. The online surveys would consist of both open and close ended questions which will give not only give precious information but also some personal opinions of some knowledgeable people. The primary research for this report would also involve group discussion by collaborating executives from various companies that are a part of the Indian baby care market. The primary research would also involve interviewing mothers and women who buy the baby and mother care products. Questions can be asked to them about the current products and services available in the market and what new can be introduced. The information that will be generated can be used for innovations in products and services. The secondary data would be collected from resources like journal articles from online databases, annual reports from Indian and foreign companies that are there in the market. Previous researches can also be used in this case. Business newspapers like Economic Times and Indian express would also be used. The objective of this research, which is mentioned above when achieved would help to identify why the baby care market in India is not quite explored in India compared to western countries. It would help to find out how Indian companies can take this market to a next level by not only making more products but also provide counselling services like companies like Mothercare in UK. According to our objective set for the study of the baby care market in India, the hypotheses would be proved by the mix of both quantitative and qualitative techniques. In quantitative analysis, the numerical data that will be obtained through questionnaires and online surveys would be plotted in an excel spreadsheet. The number of positive and negative respondents interpreted from this spreadsheet will be taken into consideration for drawing the conclusion and proving the hypothesis. The research objectives and accepted hypothesis will be further backed by constructing analytical charts such as bar graphs, pie charts and line graphs. In context of qualititative analysis the validity and quality of statements provided by the respondents will be considered. In this case, the respondents will include both experts and customers in the industry.

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The survey will be conducted will be conducted in India and in U.K because India is chosen as the target market market for the research and U.K is chosen because a comparison will be drawn between consumer behaviour of Indian and U.K customers in both the markets. In India, the surveys will be conducted in tier 1 cities like Mumbai, New Delhi and Bangalore and tier 2 cities like Pune, Indore and Jaipur. The reason why tier 1 and tier 2 cities are chosen for this research because the baby care industry is in a nascent stage and only high and medium group customers living in such cities are aware of the market. In tier 3 and tier 4 cities the market is quite unorganised and fragmented. People in these cities buy baby care products from mom and pop stores. Hence tier 3 and tier 4 cities are discarded in the research. In U.K the surveys would be conducted in the capital city of London as it has a diversified market and the customers have different cultural backgrounds.. In India, the surveys would be conducted in shopping malls where companies like Johnson and Johnson, Dabur, Procter and Gamble and Mothercare sell their products or have their outlets. In U.K, the surveys would be conducted in baby care stores like Mother care and Mommas and Papas. The researcher has decided to have face to face interaction with the store manager of Mothercare at Wandsworth Southside shopping centre in South London in order to get transparent inputs.

Triology between objective, hypotheses and methodology:

As mentioned above as the objective of this research is to find out the reasons why baby care market in India is considered as a niche market unlike the market in USA and U.K. The success of any market would be determined by the increase in market share. Hence the hypotheses stated above for this research is in tandem with the objective of the research. Thus itself explanatory that that methodology would be collection of data from reliable resources and through people who are associated with this market.


For any successful research, time is a very crucial aspect. Hence it is essential that a proper schedule is made to carry out various tasks. All the tasks need to be completed within the said time frame.

As soon as this report is submitted the working on this research will start. The research will be completed within fourteen weeks. The activities that will be included in this research will be literature review, framing of survey questionnaire, interview framing, framing of online surveys, data collation, and data interpretation and finally drafting of the final report.

Given below is a chart that would illustrate the activities that will be carried out by the researcher.

Literature Review

Questionnaire framing

Interview framing

Conducting online survey

Conduction of Interview

Data collation and Analysis

Data interpretation

Drawing conclusions

Making final report

Printing and submission of the final report


The resources to be used for this research would be both online and offine.

Online databases to be used:

University of Wales online library

EBSCO host

Online Journals and Articles (Indian and UK)

Annual reports of the companies in the baby care market


Data provided by the executives of different companies like Johnson and Johnson, Mothercare and Artsana who will be interviewed. It would be ensured that confidential information is not published in the report. Business newspapers like Economic Times and Indian Express would also be used a resource to collate data related to the baby care market. These papers can be access online and also in Indian libraries.7


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