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Baby Diaper Sales Channel Analysis

Baby diaper belongs to fast-moving consumer goods. At the same time, it is also a health care product. Compared with household paper, its sales channels are more complex. In addition to ordinary traditional channels and modern channels, it also has a special sales channel, that is, the mother and baby channel. This paper analyzes the various sales channels of baby nappy.

 

 

1.Traditional channels of baby diaper

Baby diaper's traditional channels have not disappeared, and there is still room for survival. For traditional channels, diaper manufacturers usually set up regional offices to batch goods uniformly, distribute them hierarchically through primary and secondary dealers, and finally sell them to consumers through terminal outlets such as small supermarkets and grocery stores. Therefore, the price increase link mainly includes three aspects: dealers, second batch merchants and terminal sales, and the total amount of Shunjia in the link is between 38% and 53%.

 

2.Modern channel of baby diaper

Modern channel is the main way of baby diaper sales, accounting for half of the total market sales. There are two main ways: direct sales and distribution. The proportion of direct sales is relatively small, mainly concentrated in the first and second tier cities, and the overall price increase space of diapers sold is about 33% to 43%. The distribution mode accounts for a large proportion. According to the actual situation of the products, the gross profit space is controlled at 18% - 25%. Therefore, the profit of diapers sold through modern channels from the ex factory price to the terminal retail price is 36% to 50%.

baby diaper

3.Mother infant channel of baby diaper

Baby diaper's mother and baby channel has obvious advantages, which is favored by consumers and should be valued by manufacturers. With the advantages of one-stop service, specialization and comprehensiveness, mother infant channel has won the favor of more and more young parents, from which they have received more professional services. At present, the sales of mother and baby channels have grown steadily, becoming the second largest channel after supermarkets. The markup rate of mother infant channel is slightly higher than that of stores and chain supermarkets. The profit of diapers sold through this channel from the ex factory price to the terminal retail price is 43% - 55%, which is the highest profit among all channels, and the sales growth is the fastest.

 

4.Baby diaper's e-commerce channel

Baby diaper's e-commerce channel is still in its infancy, and the final price increase rate is determined by the segmentation channel. With the increasing popularity of the Internet and online shopping, this channel has had an important impact on the sales of diapers. More and more brands begin to pay attention to online and offline sales. In order to avoid a run on offline products, online and offline products are distinguished by packaging. At present, the sales share of this channel is relatively small, accounting for only 5%. There are two sales modes in e-commerce channels:

(1) Tmall mall based consignment mode; (2) Jingdong Mall is the main purchase and marketing mode. The advantage of the consignment mode is that it does not bear the inventory risk. It is divided into flagship store official website sales and tmall supermarket sales. In the sales channel of the flagship store's official website, tmall only draws 2% of the sales amount on a commission basis; In the tmall supermarket channel, the consignment amount is 10%. In general, the dealer mark up rate of the consignment mode is 35%, the platform mark up rate is 10% - 12%, and the overall mark up rate is 45% - 47%. The purchase and sale mode needs to bear the risk of inventory, and usually sign a minimum deduction contract, that is, the gross profit margin that jd.com and other e-commerce companies need to guarantee. The dealer markup rate is 45%, the platform markup rate is about 11%, and the overall markup rate is about 56%. This also reveals the reason for the relatively high price of jd.com e-commerce.

baby nappy

To sum up, each sales channel of baby diaper has its own advantages and jointly helps its market development. Because consumers buy baby nappy in different ways, manufacturers should also improve their sales channels accordingly.

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