Procter & Gamble (P&G) has introduced a new luxury diaper range, Pampers Prestige, in China, as the company seeks to offset declining demand in its baby-care business. China is P&G’s second-largest market, but a declining birth rate has led to slowing diaper sales. To combat this, P&G is focusing on product innovation rather than price discounts. The new Pampers Prestige range features silk-infused diapers, which are designed to differentiate the product from standard cotton or synthetic alternatives.
The use of silk in the diapers is significant, as it is a luxury material that is abundant in China and has long been associated with high-end products. The silk-infused diapers also offer hypoallergenic and moisture-wicking properties, making them an attractive option for parents seeking high-quality products for their babies. P&G’s CEO, Shailesh Jejurikar, explained that the company’s R&D team worked to integrate silk into the diapers to create a unique and premium product.
The Pampers Prestige range is targeted at affluent, highly educated millennial parents in China, who prioritize quality over price. These parents, known as “kenjaoshi,” are willing to pay a premium for the best products for their babies. The silk-infused diapers are priced at a premium, retailing at 20-50% above mass-market alternatives on e-commerce platforms such as Tmall and JD.
Despite the challenges facing the baby-care market in China, P&G has seen strong results from its premium products, with double-digit organic sales growth over the past 18 months. The company believes that its focus on product innovation and premiumization will drive growth in the market. Jejurikar described the launch of Pampers Prestige as “the next important phase of constructive disruption” in P&G’s growth strategy, indicating that the company is committed to innovating and adapting to changing consumer needs in order to drive success.