WHY CAN’T WE...

be stronger and more credible in Baby Care and Oral Care categories?

These two departments have multi-billion scope and some of the best CPGs in the business (P&G, Kimberly Clark, Colgate), but this should not deter private brands from winning, which we don’t. They have been historically devoid of own brand innovation and credibility, and it shows in the low penetration.

Target is one of the few to challenge this history in baby care, by exclusively marketing Millie Moon, positioned in the ultrapremium segment and launched in 2021.

Now one thing you must recognize is that even though this ultrapremium or “eco-chic” diaper segment is growing (hello bello, Rascal + Friends, The Honest Co, all good), it is still less than 4% of the U.S. market. It is niche. I also don’t like the word “luxury” as a prominent descriptor in Millie Moon, because it feels alienating in a category where the average consumer struggles and still spends $900 a year. Nevertheless, it is an attempt to go upmarket in own/exclusive brands where most retailers have not. Why can’t we…..develop a diaper that actually outperforms Pampers in dryness and absorbency, and market it heavily and consistently on the merits? Why can’t we (while we are at it), eliminate the brand Luvs from the assortment, which is designed to eat into private brand share?

Oral care has been another tough department for own brands, and there are retailers who have tried to penetrate it or even innovate within it. One of the biggest own brands in the world, Costco’s Kirkland Signature, tried to enter oral care with a toothpaste 5 years ago going right after Colgate and Crest. It didn’t last long…..you can see from the aftermarket Amazon reviews how consumers thought of it. The product functionally did not perform well.

CVS tried to pursue the category through innovation, launching a charcoal toothpaste through their Live Better brand, free of dyes/sulfates and “developed by dentists”. It is now relegated to aftermarket websites and has been discontinued.

With categories like Oral Care and Baby Care, there is an opportunity to develop products that are functionally superior, but for them to resonate, you cannot just put them on the shelf and expect them to automatically gain traction. The toothpaste section is renowned for its merchandising and sku density, where it is tough to even find the own brand selection. No, for any of these baby care and oral care offerings to really succeed, there needs to be a concerted marketing effort to explain the innovations and reasons-for-being. A great product alone will not sell just on the merits, especially going after CPG brands with long-standing equities.