Market Infrastructure
The current market infrastructure in India in the feminine hygiene product industry includes health and beauty retailers, modern grocery retailers, independent small grocers and internet retailing sales (Tissue and Hygiene, 2016). In recent years, online sales have spiked due to the discretion that online purchasing provides the women as they no longer must go to the store in person. This is extremely important to note as it seems to be the future of sales in this industry.
Women are currently buying sanitary protection most commonly through these retailers but the government and non-governmental organizations (NGOs) are distributing sanitary pads for free across the country (Tissue and Hygiene, 2016). Using the distribution channels in place by the multinational companies in India, the strategy is for manufacturers to spread awareness about existing products to encourage consumers to try and potentially buy. Brand loyalty and awareness are the main drivers of purchase for the BOP market so Lunapads would need to take advantage of all opportunities in the supply chain to demonstrate the value of Lunapads and create a strong brand awareness in the market.
Consumption Rates & Trends
Standard towels (without wings) accounted for 54% of retail value sales in sanitary protection in 2015 because it was a low-cost solution and preferred by consumers in rural areas and small towns (Sanitary Protection in India, 2015). There is also a current trend in the market for local groups to create small manufacturing operations to supply low-cost sanitary pads to women in rural areas. For example, National Jute Board launch operations in their local areas to provide low-cost sanitary products to women. General consumption of tissue and hygiene based products increased, especially in urban areas, due to increasing disposable incomes and exposure to sophisticated lifestyles (Tissue and Hygiene in India, 2016). By 2025 the Indian consumer market will largely be an urban story, with 62 percent of consumption in urban areas versus 42 percent today (Ablett, 2007).
Furthermore, there is a growing trend of government intervention and education initiatives to increase awareness about feminine hygiene supported by government bodies in India, non-governmental organizations and companies engaging in business in India. This trend of education will increase consumption rates and serve as a huge opportunity for Lunapads to increase their market share in this growing industry. If Lunapads can capitalize on the education behind feminine hygiene products and gain support from the government, their business model will be sustainable to help India’s sanitary pad sector.
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