Does technology or fashion drive category results?
In case you haven’t raised infants in a couple of decades, today’s diapers have become techno marvels – thinner, lighter, more “ergonomic”. More recently, the humble diaper has almost become “iPod cool” with the launch of “designer diapers”. But, when it comes to covering bottoms, does fashion trump technology in driving category results that count?
CPG Categories are cut throat … and anything but boring!
CPG refers to the “Consumer Package Goods” categories. CPG categories are typically comprised of “fast moving” consumer goods and consumables, such as cereal, toothpaste or diapers. There are those that scoff at CPG categories as boring and mundane. CPG vendors, such as Proctor & Gamble (P&G), would argue that selling commodities at razor thin margins is highly competitive and requires great precision.
Differentiate or Die! This retail fundamental not only applies to retailers, but also to consumer products and vendors. By definition, CPG products are all about “price”, unless there is a demonstrable difference perceived as important by consumers.
To differentiate diapers and command higher prices, P&G developed and took market share with the launch of “Pampers Dry Max”. To any parent who suffered through actual cloth diapers, and the first disposable diapers that leaked like a sieve, it is easy to see why these new techno diapers quickly grabbed consumer attention and sales.
Diaper Fashion Wars – Who cares what’s on that little booty?
There are at least two ways to differentiate: function (technology) and “fashion” (style). It’s even more powerful if you can be like Apple and do both simultaneously, with products like iTouch and iPad.
P&G grabbed substantial share in the disposable diapers through “better technology in the Pampers Dry Max. Kimberly Clark (KC) has countered with a limited edition of denim diapers that literally make the kids look like they are wearing “jeans shorts”.
Got to love the names! In this corner we have P&G techno “Dry Max” … and this corner we have KC’s fashionista “Little Movers”. So who’s winning the war … does fashion really make a difference in diapers?
In the Diaper Wars, like all retail … Results Count!
It’s hard to draw definitive conclusions on the designer diapers after just a few weeks. Based on the short timeline, all of the initial results could be due to the “Hawthorne Effect”, and diminish once the novelty fades.
However, according to a recent Ad Age article on this topic, there are definitely trends that could lead to results that count big on the bottom line (sorry, pun intended):
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Designer diaper sales surged 17% in Israel & Australia tests
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Huggies picked up 2% US share with the launch designer denim
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Huggies denim has already sold 2 million diapers in just 4 weeks, with only 8 million potential mobile toddler bottoms in the US market
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P&G is now countering with designer diapers by Cynthia Rowley
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Huggies price per unit is up 3.1%, Pampers up 3.9% year over year
So what’s winning … Fashion or Technology?
Ask any parent who has changed a leaky diaper, and they will quickly tell you that fashion will not win over fundamental functional performance. But, if the diaper doesn’t leak, fashion appears to be a real differentiator, and one that can command higher prices per unit. In qualitative research, Mom’s reported an emotional attachment of seeing “their babies grow up in jeans”. They even purchase the denim diapers for babies before 6 months of age, well before the diapers will even fit that “designer tush” to be.
In many ways the diaper wars are much more interesting than the “spec wars” in technology. You just can’t beat a recent designer diaper ad tag line like: “The coolest you’ll look pooping your pants!”
So, the final answer to who’s winning the diaper wars probably is … “depends”. And, we’ll leave that pun for another blog, another day … at least another decade from now.
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