Opportunities Abound

Changing demographics are having a major impact on the feminine hygiene sector. For example, girls are going through puberty at younger ages and entering the sanitary protection market earlier. And declines in childbirth are expanding the length of time women are in the market for sanitary protection products, reports global market researcher Mintel in its May 2014 “Feminine Hygiene and Sanitary Protection Products” report.

Such factors are helping to boost sector activity. Mintel forecasts sales of feminine hygiene products to reach $755 million by 2018, up from an estimated $658 million in 2014.

“The success of the feminine care market is intrinsically tied to the female population, which is on trend to increase 4 percent from 2014 to 2019, similar to the growth of the overall population,” Mintel notes.

Pursue young consumers

Retailers that are willing to update store brand feminine hygiene products to appeal to a younger generation of female consumers could benefit greatly from their loyalty.

Younger woman are a particularly attractive demographic, as those devoted to store brands are likely to stick with private label offerings throughout their lives, says Mem Legros, category business manager for Stamford, Conn.-based Daymon Worldwide Inc.

“Retailers need to think about creating products for them because they are a high-loyalty category,” she states.

Product claims that particularly appeal to younger shoppers include chemical-free and eco-friendly. For added activity, retailers also should give younger consumers — many of whom are uncomfortable purchasing feminine hygiene products — the ability to order the goods online, Legros states.

“There is a degree of confusion and embarrassment among younger product users when it comes to shopping for and using sanitary protection,” Mintel states. “These women are more likely than their older counterparts to be embarrassed about purchasing feminine care products in the store.”

Younger product users are also more likely than their older counterparts to be interested in multipacks that include pads and tampons in the same package, Mintel adds.

Indeed, younger consumers, in general, will likely be the ones to motivate retailers to innovate within the feminine hygiene category.

Innovate with functionality

The sanitary protection market is maturing, and an aging population is preventing significant volume expansion, says Svetlana Uduslivaia, head of tissue and hygiene research for Euromonitor International Inc., Chicago.

To grow the category, retailers will need to focus on developing innovative private label products rather than just looking to compete with the national brands on price, says Shervin Zade, CEO of U.S. Nonwovens Corp., a Brentwood, N.Y.-based supplier of feminine hygiene and other products.

“The trend is to improve the quality and features in order to upsell and increase the ring of the products,” he states. “Retailers that are forward thinking are breaking the mold of trying to be a national brand equivalent and instead let their partners improve and be ‘better than brand’ with rich features.”

Indeed, offering unique items also will enable retailers to have more enticing claims on product packages, Zade says.

“If retailers don’t innovate, they can’t say their product is better,” he adds. “And by innovating and raising the quality of store brands, they can charge more.”

Legros agrees that the feminine hygiene sector provides strong opportunities for store brand differentiation.

“Private label has been copying what the national brands are doing, and consumers see it as a ‘me-too’ product,” she states, adding that feminine pads, as the largest feminine hygiene segment, offer the best prospect for store brand innovation.

Functionality remains an important aspect to feminine hygiene products. Newer products are more absorbent, thinner for added comfort and designed for specific lifestyles, Legros says.

“Consumers also are expecting products in multi-packs that come in different sizes and shapes and are designed for lighter days and heavier days,” she adds. Working women also are seeking highperformance products as they “don’t want to change their lifestyle because of monthly interruptions.”

Improve the visual appeal

Retailers could innovate around the packaging they provide to improve the visual appeal of private label items.

“Packaging remains quite old-fashioned and dull,” Uduslivaia says. “Subsequently, it can be hard to stand out on a crowded store shelf featuring more attractive, sparkly and colorful packaging that key brands have been moving to.”

And packaging is an important element for attracting women to private label offerings via claims and other data, Legros says. Such messaging can note that a product is “super-absorbent” or that it tested well with dermatologists.

Other effective elements for engaging shoppers include easy-to-read package counts and designations as to the level of functionality, states Konnie Rutschilling, sales manager for Health Care Products Inc., a Coldwater, Ohio-based supplier of sanitary napkins and tampons, as well as adult incontinence items.

While some private label feminine hygiene packages mimic the colors and designs of the national brands, Rutschilling says having a familiar appearance “is not always necessary if the retailer wants to stand out and be noticed with a differentiating look.”

Promote store brands

Store brands also face the challenge of competing with national selections that are frequently promoted and offer discounts to draw consumer attention, Uduslivaia states.

It is important, therefore, for retailers to enhance the visibility of store brands and also differentiate the items by offering more eco-friendly products, including items that are sold in containers with fewer packaging materials and have bio-degradable elements, she says. Claims on packages and in-store merchandising could alert consumers to such features, she states.

To strengthen the overall feminine care segment, while building brand loyalty from consumers in various life stages, some retailers are marketing sanitary protection and light incontinence products side by side, Uduslivaia adds, noting that it also is important that products be priced appropriately for cost-conscious consumers.

“Having comparable quality products at a competitive price is the factor behind store brands’ appeal to many women,” she states.

Optimal product placement in stores also is crucial for boosting sales, Legros says. She recommends that retailers situate private label selections next to the leading brands and also cross-promote items. Retailers, for instance, could market pads in conjunction with panty liners as women often purchase both products.

In addition, there should be four or five facings of specific private label items on shelves for greater visual impact, Legros says, noting that store brands also will benefit from promotions on social media and the distribution of coupons.

Retailers could also benefit by asking suppliers for product development ideas and feedback to ensure they are developing the right products for their customer base, Legros states. Such a conversation could help retailers better understand their core shoppers and where there might be gaps in the products lines. It is crucial that retailers offer items with enough elements to create shopper loyalty.

“Trust is more important than price,” Legros says.

Do offer chemical-free, eco-friendly options.

Don’t ignore younger consumers.

Do innovate in product packaging.

Don’t forget to promote store brand tampons and pads.