- Kolkata based Emami group has launched a kids-only variant of its popular Zandu Balm
- Last month, Mahindra & Mahindra integrated its Mom & Me brand with its online baby products' portal Babyoye; M&M acquired the portal early this year
- In May this year, FMCG major Dabur created a sub-brand Dabur Baby saying that there was an increasing number of parents looking for branded quality baby care products in India
- According to a recent study by IMRB, spending on children has grown faster in Sec C towns as compared to Sec A towns, especially the baby care category
- Technavio Research estimates that the baby care segment in India will grow at the rate of 17 per cent between the years 2014-19
In the metros, kids have become decision makers; similarly with rising affordability and exposure, those in the smaller towns have become equally aspirational (and are) driving this segment," said Pinaki Ranjan Mishra, partner and national leader, EY. Consider sunscreen lotions, for instance. It was a product bought mostly by adult women and now, men. But companies are launching special lines for children too. Industry experts say that kids-only sunscreen lotions and perfumes have a relatively small market size now, sub-Rs 50 crore, but annual growth is between 15-20 percent. These traditional adult products customised for children will soon claim a bigger share of the Rs 2,000 crore childcare market of India, they predict. A similar story is unfolding in other product categories too. Kolkata-based Emami launched a balm under its Zandu brand exclusively for kids. "We have received a very encouraging consumer response for Zandu Gel Balm Junior. The segment has potential for growth and we are watching it closely," said an Emami spokesperson. While the metros are seeing increased spending on branded products, in tier two and three towns, the amount spent on children is increasing as is the quantum spent on baby care, soaps and oils categories. A recent report from market research firm, IMRB says that as compared to 2010, the spending on kids has grown faster among SEC C towns as compared to SEC A towns in 2015 (89 per cent and 73 per cent respectively). "This trend can be attributed to the fact that with increasing education, more women are now taking decisions in the family, leading to more active parenting," says Deepa Mathew, group business director at IMRB International. Pradeep Kashyap, CEO of MART - a consulting firm on emerging markets offers an interesting perspective. "The rate of growth of sign-ins on social media platforms like Facebook is greater in rural India than in urban areas, this depicts change in rural consumer mindsets," says Kashyap. While this is true, it also offers us a clue as to why more and more companies are building a robust digital footprint for their baby care products. Take Mahindra and Mahindra for instance, it has integrated its Mom & Me brand with its online portal Babyoye, indicating perhaps that the marketing thrust for its baby care lines will be online. Supam Maheshwari, founder of Firstcry.com says that the portal has seen a huge surge in interest for bay care products from Tier B and C towns. "Parents, regardless of the level of wealth, always want to give the best to their children We see a huge scope in the online segment in India," says Maheshwari.