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Most of the working mothers are now turning to baby diapers as a large
number of women are doing jobs, he said, adding that as local manufacturing
companies cannot meet the total demand for baby diapers, the country
imports the product from abroad.
Mr Imam said local importers are importing low quality diapers by underinvoicing to evade duty and VAT and selling them at cheaper rates.
The government could take a set of initiatives to prevent mis-declaration on
the value of imported baby diapers to help the local industry flourish, Mr
Imam added.
Dr. Jesmin Zaman, Senior Marketing Manager of Square Toiletries Ltd, said
strong leadership in baby grooming products under Meril Baby brand against
global leaders inspired them to offer better quality baby diapers at affordable
prices.
"The objective is to ensure hygiene, health & convenience of Bangladeshi
mothers and babies." She expressed the hope that Bangladesh will be one of
top diaper consuming countries within next 5-6 years.
Dr. Zaman said local companies are now equipped to meet country's demand
for baby diapers. And the government should take protective measures for
Bangladeshi brands in this category by creating tariff & non-tariff barriers to
finished goods.
"Babies are most sensitive; setting a standard will surely force the companies
to manufacture or import quality baby diapers and help parents to rely on
available brands with trust," she added.
Baby diapers are used by the children under 4 years who are not yet fully
potty trained or who experience bedwetting.
The diapers are also used by adults with incontinence or in certain
circumstances where access to a toilet is unavailable. But this category is
still niche and dominated by imported brands.
These can include those of advanced age, individuals with certain types of
physical or mental disability, and people working in extreme conditions, such
as astronauts.
Baby diapers have been emerged as a new business opportunity for the local manufacturers to
capture domestic market through substituting imports.
A sharp rise in use of the product across the country has offered the opportunity, industry insiders
said.
Since most of the working women prefer to use the diapers for their babies, the demand for
nappies is on the upswing. Most interestingly, the number of the working women in Bangladesh
is also increasing day by day.
Around 70% of its total demand is met by imports while the local manufacturers contribute the
rest, said local manufacturers.
According to World Health Organismic report, Bangladesh will be the seventh largest users of
baby diaper among the world by 2025.
Out of 14 available brands in the Bangladeshi market, only four brands are locally manufactured.
At present, the market size of baby diapers in Bangladesh is around Tk400 crore, of which 70%
are totally captured by the multinational companies, according to an estimate by manufacturers.
At present, over 1% of total population uses baby diaper, while the country is witnessing a 50%
growth annually.
Currently, Chu-Chu of Bangladesh Silicon Corporation, Bashundhara Baby diaper of
Bashundhara, and NeoCareof Incepta are being sold across the country. Meanwhile, Square
Group, the flagship entrepreneur in the baby care, is all set to launch diaper in the name of
Supermom very soon.
The usages of the baby diaper are increasing day by day due to more womens involvement in
jobs, enhancement of purchase capacity and health awareness, Marketing Manager of Square
Toiletries Dr Jesmin Zaman told the Dhaka Tribune.
Considering the demands, we are very close to launch our products, she added.
The manufacturers demanded testing lab and import guidelines to ensure hygienic products as
there is no testing lab and other facilities for the baby products.
The government should set standard for the products as already some substandard products had
been marketed, they claimed.
The importers of the baby diapers are doing their business under invoice to pay lower tax to the
government whereas the imported product are being sold at higher prices, said Rashedul Imam,
senior Brand Manager. Incepta Hygiene and Hospicare Ltd.
If substandard products are used for sensitive babies, it can cause health hazards to the babies,
said Jesmin said.
As per the installed capacity of the countrys manufactures, they can produce double of the
domestic demands.
Though the market is currently dominated by the imported products, but the local producers
would be able to capture over 70% market by next one year, said Imam.
At the present context of Bangladesh, the use of baby diapers is not a luxury one, rather a
necessity to every one as the mothers are keeping her child either to grandmothers or others and
wants to avoid washing clothes, said Imam.
There should be a level playing field for the both importers and the local manufacturers. As the
100% raw materials are imported, the government should lower tariff to help the local industry
growth, noted Imam.
As a service holder, there is no other option for my kid, rather than using diapers as it helps me
to remain tension-free whenever I am leaving my child to domestic help, Afrin Mehrab, a banker,
told the Dhaka Tribune.
- See more at: http://www.dhakatribune.com/business/2014/dec/01/baby-diapers-open-newbusiness-window#sthash.jRrtSVkR.dpuf