When performance counts the most

As the American economy climbs upward again, so does our population. According to a June report from the National Center for Health Statistics, the United States’ birthrate actually increased in 2014 for the first time since 2007.

But we are also getting older, too. According to the Washington, D.C.-based Pew Research Center, about 10,000 baby boomers turn 65 every single day.

For retailers, these population growth areas mean a potential increase in sales of both baby diapers and adult incontinence products. Retailers can’t afford to ignore either demographic.

“Both categories offer significant opportunities for store brand programs,” says Mem Legros, category business manager for baby and personal care for Stamford, Conn.-based Daymon Worldwide, pointing out that the U.S. market for adult incontinence products is projected to reach $1.7 billion by 2017, while diapers will see “modest growth” through 2019.

For adult incontinence, “the good news for store brands is that the category is very much in the growth phase of the product lifecycle,” says Chris Nippert, vice president of marketing for Peachtree Corners, Ga.-based HASO, which manufactures private label adult incontinence and wipes products. “There are still few major national brands in the [adult incontinence] segment, and most product users admit current products on the market are not yet comparable to regular underwear.”

Quality is critical

Although shoppers of store brand products might be looking for a lower price, they aren’t looking for cuts in quality. Baby diapers and adult incontinence products have to work as promised. This is particularly true for adult incontinence consumers, with Nippert noting that shoppers will spend an average of $128 on different products until they find the ones that really work for them.

In terms of conveying quality for store brand adult incontinence products, fit, performance and comfort are all equally important, and a retailer needs to deliver on all of them if it wants repeat store brand sales.

“Adult incontinence pull-up products should be designed to look, feel and ‘sound’ like underwear” Nippert advises. “Product characteristics include making the materials form-fitting, flexible, thin and quiet — no ruffling sounds when moving,” he says, pointing out innovations from HASO that include a mini-wave structure to the fabric that allows it to feel just like cotton, as well as a pad that attaches to the inner liner of the underwear, similar to bathing suits.

According to Legros, key claims in the adult incontinence category include maximum absorbency, ease of use, odor-neutralizing technology and thinner materials that fit more closely to the body to improve comfort and aid discretion.

As for baby diapers, Legros says the No. 1 diaper gripe for consumers is leakage, meaning that store brand baby diapers have to keep babies dry.

“There’s an increased focus on materials and performance, with a strong emphasis on … absorbency and leakage protection such as ultra-absorbent cores, ‘super’ absorbency options with leakage protection and ultra-dry thin cores with a hypoallergenic liner,” she says.

Comfort is also important and can be alluded to through claims about softness or cotton. Top claims in the category include high absorbency, protection that lasts up to 12 hours, overnight protection and a snugger fit. Parents are looking for innovation, too, with Legros citing lotion at leg openings to prevent chaffing and customizable diaper fits as some new features being seen in the category.

“A key focus for future private brand development should be developing superior product functionality, as well as affordably priced diapers and training pants,” she says, adding that examples of superior features include wetness indicators, easy-open sides for quick diaper changes and more eco-friendly options.

Market diapers right

The right marketing plays a huge role in the successful selling of baby diapers. According to “Oh, Baby!: Trends in the Baby Food and Diaper Markets Around the World,” an August report from New York-based Nielsen, more than a third of North American survey respondents said they learned about diapers from looking at what was on store shelves. So retailers have an opportunity to get their store brand diapers noticed via on-shelf marketing.

And Legros points to a number of other strategies retailers could employ to gain sales for store brand diapers, including baby registries that offer new parents perks such as coupons, discounts and samples; in-store diaper “fit” guides and stations that allow parents to feel the product; and product messaging that highlights both benefits and points of difference from other brands.

With the Nielsen report also noting that store brands have a 19 percent share of diaper sales in North America, higher than any other region of the world, retailers could also potentially win on the pricing front. Performance still comes first, however.

“Price can be a powerful motivator to encourage trial, but functionality will always outweigh price,” says Liz Buchanan, director of global professional services at Nielsen. “If the less-expensive product fails to deliver on basic expectations of leakage protection, gentleness, comfort and absorption, consumers will not likely buy it again.”

Lessen the stigma

When it comes to adult incontinence products, the category has its own set of marketing issues, and retailers really need to be sure they are approaching it from the right angle. Specifically, they need to be aware of the stigma surrounding the category and look for ways to address it.

“Understanding consumer trends, but also their concerns, can truly help private brands deliver customized, relevant solutions,” Legros says.

There are different types of incontinence and various causes, including childbirth and prostrate issues, meaning that incontinence is more common than many might realize. In fact, the Centers for Disease Control and Prevention reported last year that more than 50 percent of uninstitutionalized older Americans age 65 and up experience some degree of it.

Half of those living with stress incontinence, caused by physical exertion, are under the age of 50, Nippert points out. Understandably, many of these shoppers don’t want to feel as though they are buying products for babies or products for “old” people.

“Baby boomers present a new view on getting older,” he says. “Being a product of the counter-generation, growing up in an era of less sacrifice than previous generations, being active and being the biggest generation in the history of North America, they are unwilling to accept stereotypes and a change in lifestyle. They demand quality in products for this category and refuse to feel ‘old.’”

Gender-specific designs and colors on both the product and packaging could help retailers reach out to shoppers with offerings that feel more personal, while offering a range of products, including pads, liners and pull-on underwear in different pack sizes to meet different needs, also could help, Legros notes.

Regardless of which products retailers choose for their store brands, customer satisfaction really pays off.

“Store brands that carry products with major innovations will definitely gain a competitive advantage and given the emotional impact of the product, loyal return buyers,” Nippert says.

Do emphasize quality, as performance is critical in these categories.

Don’t ignore the stigma associated with adult incontinence — address the need for discretion.

Do consider adding in-store diaper “fit” guides and stations to allow parents to feel own-brand diapers.

Don’t take a one-size-fits-all approach to adult incontinence products; offer different formats and pack sizes.