The Baby Care market in India is expected to grow significantly at a CAGR of 17 per cent in terms of revenue over the period 2014-2019
Baby Care Industry is one of the rapidly growing industries in India. In fact, the number of baby care products in India has almost doubled in recent years.
The Baby Care market in India is expected to grow significantly at a CAGR of 17 percent in terms of revenue over the period 2014-2019. Most parents want to be sure that they are investing in the safest and most secure products for their babies.
One of the oldest and leading players in the baby care market, Johnson & Johnson (J&J) has been the most trusted brand and the first choice for parents all around the world. But a recent controversy has caused a sudden decline in their sales.
Johnson & Johnson Controversies
According to the Reuters report, the company deliberately hid the fact that its talc powder contained asbestos, violating safety regulations. A US court has recently passed a verdict against J & J. The popular baby powder brand was ordered to pay $ 72 million in damages to the family of a woman whose death from ovarian cancer due to prolonged use of the product.
This is not the only issue which has surrounded J&J. A few years ago, Maharashtra drug regulators cancelled their license after it was found out that the baby powder plant was sterilised ethylene oxide. In 2018, J&J was asked to pay compensation by drug controller general of India for selling faulty hip implants to Indian Patients.
Due to these allegations surfacing Johnson & Johnson, the company has lost its brand value. People are now sceptical of using the brand’s products for their infants. The company have witnessed an instant dip in their sales.
Opportunity for Other Baby Care Brands
Owing to these controversies, Parents are switching to other, safer alternatives. According to reports, 65% of mothers are distressed about the quality of ingredients being used in the baby care products, 55% of them are worried about the product function and its effect, and 50% say that they are apprehensive that the product does not have any additives.
This clearly indicates the huge market potential for trusted organic baby care products. There is immense scope for competition and the products to evolve as safe, natural and eco-friendly leading to a sudden surge in investment in baby care market. The Johnson & Johnson controversy has added fuel to fire and paved way for many baby care brands, as people are now starting to move to organic & safer products for their babies.
Varun Alagh, Co-Founder MamaEarth, said, "Trust is a very important component in a brand promise and even more critical when it comes to the baby category. I believe the controversy has clearly shaken the centuries-old trust amongst parents like us who now want safer products which don't have such harmful chemicals. This and lack of innovation in the category has surely paved way for brands like MamaEarth which have a shared purpose with the consumers"
Rishu Gandhi, Founder & Head Brand Strategy, Mother Sparsh, said "The current age of connectivity & information will damage the reputation of the brand built over decades. It is like what happened to Maggie (Nestle) when they were banned other instant noodle companies sales went up so it is very much expected to boost sales of other brands. Ours being a completely natural and environment-friendly product portfolio we do see our sale going up as the concerns of the normal populace will be addressed by our brand."
Given the favourable outlook for such a market and the demographic wave, many startups have already emerged that promote this concept.