wet wipe market. Technology

Wet wipes manufacturing is a highly profitable manufacturing niche business that is in constant high demand among consumers.

Due to this, it is possible to quickly establish the sale of all manufactured products.

It is not difficult to start your own workshop in this niche. And here it is possible, both the production of wet wipes with a custom logo, and their mass production. Having developed a business plan and clearly following it, an entrepreneur will be able to quickly reach the break-even point, receiving consistently high incomes.

Wet wipes are hygiene products made of non-woven material and a special impregnating composition. So how to open your wet wipes production from scratch, which will be distinguished by high profitability?

Expanding the range of products

The main advantage of this direction is high consumer demand. But this also gives rise to one significant drawback - considerable competition in the segment. Take a look at the shelves of stores and pharmacies - there is always the widest range of wet wipes. And one of the most effective ways struggle with competing enterprises, in addition to the production of quality products - to offer consumers a large selection of products. So, from the very beginning it is worth focusing on the fact that within the walls of the workshop we will receive wet wipes in individual packaging for various purposes.

All wet wipes produced today can be divided into 2 large groups:

• Domestic use (glasses and mirrors, leather, office equipment);
• Cosmetic purposes (cleansing, antibacterial, hygienic, children's).

Baby wipes, in terms of technology, are produced on the same equipment and by the same method as other types of products. And the difference between them lies only in the formulation of the moisturizing composition.

In order not to spend impressive funds on the development of special recipes, it will be enough for a novice entrepreneur at first to work on only 2-5 impregnating compounds. And in the future, as profits grow, you can think about further expanding the range.

Manufacture of wet wipes. Raw materials

When setting up your wet wipes business, it is important to establish contacts with trusted raw material suppliers. And it is better if all components are supplied to the workshop in bulk - so there are less costs.

Non-woven material is the basis of future wipes, consisting of cellulose and synthetic fibers. And in order for the products to be of high quality, the material must be carefully selected, since its range is quite wide, and the ratio of natural and artificial fibers here can vary. And the "naturalness" of raw materials is largely reflected in its cost.

The choice will depend on what type of napkin is planned to be produced. For example, if you plan to make wet wipes for children, you should purchase only environmentally friendly material, but wipes for wiping glasses can contain more than half of artificial fibers.

none operating enterprise will not open its formulations of impregnating compounds. The liquid can contain a variety of components - fragrances, aroma congestion, disinfectants and antibacterial agents. And when selecting impregnating liquids from suppliers, one should focus on the type of product that is planned for release. For example, wet wipes for intimate hygiene in the composition of the impregnating liquid should not contain caustic and skin-irritating substances.

Package

Finished products can be packaged in different ways - from plastic bags and ending with plastic containers. To offer customers cheaper products, it is worth buying plastic containers.

By including the cost of purchasing raw materials in the business plan for the production of wet wipes, you can calculate how much money will be spent monthly on providing a raw material base.

Ten years ago, the production of wet wipes on a contract basis in Russia was seen more as a potential opportunity than a reality. Russian market. The order could be made in China, Turkey, Germany, but not with us. This was due to the fact that the product was also a novelty for our market, and there were not enough enterprises capable of providing quality services, there was no information, and also due to the unwillingness of new manufacturers to lose a significant part of their profits. However, quite a bit of time passed, and wet wipes from Russian and CIS manufacturers began to compete with imported analogues.

Today, virtually every wet wipes company has private label orders in its portfolio. Contract manufacturing is the fastest growing segment of the Russian perfumery and cosmetics market: its growth reaches 80-90% per year. And the growing demand for the production of products under the contract is largely formed by the growth of Russian retail.

The idea of ​​contact production at third-party facilities appeared almost simultaneously with the emergence of private labels. Initially, the private label was a tool to increase profits by increasing sales volumes with a small margin, but later the role and tasks of the private label became more complicated. The private label (PL) has become one of the ways to address target audience and a way to retain customers and increase their loyalty. In world practice, it has developed so that most private label products are cheaper than their counterparts, so they are more attractive. This also applies to wet wipes. After all, today wet wipes have become an indispensable attribute of our lives and are present in a young mother's handbag, driver's pocket or traveler's backpack.

To date, such domestic companies as Avangard LLC, Cotton Club LLC, Grand A.V., Moscow wet wipes factory, Efti Kosmetik CJSC, Vestar LLC, Zetel company, Maksan LLC "a company from Cherkessk LLC "Bumfa Group". Manufacturers from Ukraine are actively working - Biosphere Corporation, Delita LLC from Donetsk.

It should be noted that the range of capabilities of domestic manufacturers is very extensive - they are able to produce wet wipes of various formats, with different properties, fragrances and purposes. Although wet wipes have been on the market for a relatively short time, manufacturers have already gained experience in the wet wipes industry and offer mutually beneficial partnerships to all interested parties. Even now, new technologies, equipment fleet and modern processes used in production allow them to produce a wide range of high-quality, safe and efficient products.

Who is interested in contract manufacturing?

Today in Russia and Europe there is a trend of active development of private labels among large retailers. Many chains introduce new private labels into their assortment and are actively engaged in the development of Private label. This is due to the fact that the main percentage of the consumer audience is aimed at purchasing economy class products, although recently there has also been an increase in the consumption of middle class goods. Due to the lower price of the shelf (unlike branded goods), private label goods look more attractive, while in order to maintain and subsequently develop customer loyalty to a private label, manufacturers pay increased attention to the quality of goods. Thus, Private label products are becoming a better alternative to vendor-branded products, and for wet wipe manufacturers, this means an increase in the supply of manufactured products in the near future.

Network retailers resort to contract manufacturing to achieve the following results:
- promotion and popularization of the brand of its network;
- income growth due to lower input prices;
- increasing competitiveness;
- increase in the number of loyal customers;
- marketing support of own brand in the market.
Since contract manufacturing leads to a cost reduction of at least 25-30%, placing orders for the production of private labels has become an obligatory part of the retailers' development strategy.
In general, the development of own brands is of great importance for margin growth. By selling goods under its own brands, the seller improves his financial indicators. However, goods under the chain's private label are recognized by customers if they are impressed by the chain's brand itself and its values. And being loyal to him, the client transfers his trust to private label products.

Among the customers can be hotels, transport companies, air carriers, cafes and restaurants, enterprises of other industries. Contract manufacturing of wet wipes may also be of interest to companies operating in various industries and activities when they conduct promotions, sweepstakes and other marketing activities.

For example, the Avangard company produces wet wipes under a private label for such large retail chains, such as Auchan and Lenta, pharmacy chains - 36.6, First Aid, Doctor Stoletov and others, the largest foreign manufacturers of hygiene products - Johnson & Johnson, car dealership chains, companies specializing in household products, advertising agencies and other customers. The volume of manufactured products Private label occupies 42-45% of the total volume of wet wipes.

Producing private label wet wipes is extremely attractive to retailers who can create a brand name, have the ability to sell large volumes and want to capitalize on a mass product. In this case, there are two possible directions of development - contract manufacturing or development of own production capacity. If a decision has been made to develop own production, before launching your own line, it is logical to "test" the project. Thus, the most correct solution at the first stage will be contract manufacturing.

Let's compare the organization of own production and contract production. What is more profitable?

The main advantage of manufacturing products by third parties is the savings on equipment and rent or purchase of production and storage facilities. When producing a small batch of wet wipes and not knowing the exact frequency of batch release, the cost of production means can be orders of magnitude higher than the cost of producing this batch of wipes from a contractor. At the same time, the customer is not involved in the organizational aspects of production: personnel search, debugging technological process, logistics of raw materials and components.

As with any industrial production, when releasing wet wipes, there are "pitfalls" that may be invisible until you encounter them when starting production. For example, these may be features of importing ingredients from abroad, packaging production, certification features (for example, certification of baby wipes), etc. For a manufacturer with experience, the solution of these issues is a routine daily work that is done not for the first time, but for a beginner it is all new, and overcoming these difficulties takes a lot of time and money. Eliminating the hidden risk factor is one of the big advantages of working with a contract manufacturer.

But not only the technological process of production can cause difficulties for a beginner. In addition to production lines, laboratories are also required, and their maintenance is economically justified only in the case of the production of a large number of various products.

Thus, using the capabilities of experienced manufacturers, the customer receives serious competitive advantages– it saves time and resources by focusing on marketing and sales. In today's dynamically developing market, the loss of time is fraught with loss in competition, and contract manufacturing speeds up the withdrawal process. new products To the market.

So, working under a contract with a manufacturer of wet wipes, customers receive the following benefits, such as:
- exclusion of expenses of the company's resources for non-core activities;
- focus on your core business;
- increasing competitiveness;
- increase in the number of loyal consumers;
- cost reduction and predictable budget due to fixed cost;
- increase in profitability due to a decrease in the purchase price;
- flexibility and increased speed of response to changing market conditions;
- reduction of current investments and, as a result, leveling of risks;
- the embodiment of their ideas with the insufficiency of their own knowledge and resources.

However, is it always beneficial for the customer to place an order for contract manufacturing? Naturally, not always - like any other business decision, it has its limitations and optimal conditions. Restrictions can serve - circulation, specific requirements, production time.

The release of a batch of wet wipes below a certain amount becomes unprofitable. Different manufacturers have different lower production thresholds, and although the main limiting factor in the production of wet wipes in soft packs is the amount of polymer film, this should be checked with the manufacturer. Some manufacturers are trying by various methods to reduce the minimum possible circulation for the customer, thereby expanding the range of potential clients. In most cases, now to produce 10,000 packs of pocket-sized wet wipes, or 1,000 - can cost almost the same.

On the other hand, if the brand owner has confidence in regular stable sales, the ability to invest in the purchase of equipment and resources for the organization of production, in the long term it will be more profitable to own, internal production and this is determined by the strategic vision of the market by the company's management.

How do you become a "contractor"?

Before offering their wet wipes manufacturing services, a company must properly assess its capabilities. Does it have a reserve of production capacities, free storage and technological areas? Can the company take responsibility for the execution of the ordered work? Is the company able to handle the volume of orders and is it able to provide services for the production of products in the long term? After all, network fines for undersupply of products at the height of the season or for disruption of supplies can hit the manufacturer hard.

To date, among the manufacturers of important wipes, there are no companies working only under contract. All of them have their own brands and a portfolio of orders from private label owners. What is the benefit of a company that has its own, sometimes very strong trademarks, to take orders on the side? This is stability. Contract manufacturing is less profitable than selling your own products, however, contract manufacturing is more stable and can be used to insure against the risks associated with the release and sale of your main brands.

In addition, most manufacturers today have excess production capacity. Modern equipment is highly productive and loading it is the main task of any owner. Among other things, the production of custom-made wet wipes has good financial indicators: profitability is at least 15%. And it is better to earn these percentages on the contract than to service idle equipment and pay salaries to non-working employees.

Contract manufacturing is driving force and in such an important issue as improving the quality of products. Orders from large Western companies contribute to the improvement of the production culture at the enterprise to international standards - implementation modern technologies production and logistics, change of equipment, strict compliance with standards and the use of new materials when using raw materials and components.

Transnational customer companies attach great importance to the quality management system at the enterprise, the entire production system, as well as how the enterprise implements labor protection and environment, encouraging companies to conduct international audits and obtain certificates of conformity of quality management systems. Russian companies tend to be less demanding.

A striking example of placing a contract order for one of the largest Western players in the market of hygiene products is the production of Johnson & Johnson baby wipes by Avangard. A few years ago, company representatives began to work on a careful selection of a production site for the contract production of wet wipes, placing very high demands on manufacturers, both in terms of the management system and in terms of equipment. production areas. Vanguard was selected. Currently, partners are successfully cooperating, providing Russia and neighboring countries with children's hygiene products.

What do manufacturing companies offer in the framework of projects for the production of products under the customer's brand?

Today, in the contract manufacturing segment, there are the following types of services provided - full-cycle production or individual operations.

Today, the main method of production under a contract - outsourcing - is also the most in demand. It involves the production of a batch of wet wipes from scratch to the finished product and its turnkey transfer to the customer, the owner of the trademark. In this case, it is possible to obtain a low cost of packaging wet wipes due to the fact that the manufacturer immediately purchases large volumes of packaging film, material for napkins, fragrances and impregnation components, containers, and the larger the volume of purchases, the lower the cost.

In the second case, separate operations are performed, for example, only packaging. Everything else - the order of raw materials and various components, their delivery, storage, transportation of finished products and coordination between various suppliers and manufacturers is carried out by the customer himself. In this case, the final cost of products for the customer will be more likely to be higher than if production was carried out according to full cycle.

As a rule, when ordering a full-cycle production, manufacturers, if required, undertake the development of the original impregnation recipe, production, certification, packaging and delivery. At the same time, the availability of a choice of proven recipes allows customers to receive products quickly enough, with full compliance with the requirements of the technical specifications for production and maintaining quality.

If the customer needs to develop a packaging design, then this can be done full-time specialists manufacturing companies. And also the manufacturer can take over:
- development of the product concept taking into account the competitive environment;
- development of complex recipes that satisfy demanding customers;
- purchase of components and raw materials from leading world companies;
- selection and purchase of component materials, taking into account the latest fashion trends.

The range of manufactured wet wipes is already very wide. If at the beginning of its development, the product category - wet wipes - was represented by only a few positions (baby and universal wipes), now manufacturers are ready to offer wipes for various occasions. These are hygienic, automobile, napkins for animals, for plants, glasses and office equipment.

Sometimes customers ask to make an innovative product for them, trying to turn it into a unique product offer in the future. But the release of a truly innovative product - a new tissue material, impregnation formula or packaging - requires serious investments, which means huge costs of money and time that companies do not have at their disposal today. Therefore, as a rule, Russian manufacturers create novelties, only by combining already known components. Obviously, even this work can be performed by professionals who are fluent in production technologies, medicine and cosmetology, fashion trends and market needs. All this, as a rule, is not available to the customer.

In the latest trends that exist in the market of wet wipes, one of the largest manufacturers - the company "Avangard" produces products from materials with different composition of non-woven material, a different range of densities and textures (from 35 g / m 2 for economy class goods to 60 g / m 2 for premium goods), with a wide range of different formulations of impregnating lotion. The company pays great attention to the quality of packaging materials: to attract the attention of end users, the latest achievements in the field of color and print lineature are used.

Stages of private label production

The first step is an idea. It is very important to choose a direction. It is not difficult to produce a product now, it is more difficult to sell it, especially if it is not in demand. Therefore, the main task at this stage is to analyze the demand for the product. Whether to release wet wipes in economy, premium format or non-standard size wipes, whether it will be one type or a line with different fragrances - all these and many other issues must be resolved at the first stage even before the start of production.

At the second stage - product development, it is important to determine what you would like to get as a result - low cost, a product with a twist, choose the material of the napkin and fragrance, packaging. All this will further affect the preparation time for production and the quality of finished wet wipes.

The third stage is the sample. In accordance with the terms of reference, several samples are prepared. After their testing, the project is either approved or finalized to the final version.

The fourth stage is certification (registration). The manufacturer prepares the necessary package of documentation and conducts state registration.

The fifth stage is the production of the first batch. After approval of the samples and receipt of permits, an experimental batch of wet wipes is produced.

The last stage - the sixth - mass production.

Contract risks

The main risk for customers when selecting a manufacturer "for a contract" is the wrong choice of a contractor and an insufficiently carefully drafted contract.

When choosing a manufacturer for the production of wet wipes, each customer hopes to find a partner capable of guaranteeing high quality products, an acceptable cost, flexible production, capable of both increasing circulation and reducing it without significant losses. One of the important factors when choosing a contractor is the ability to strictly meet the delivery deadlines, especially during the high season of wet wipes sales. Compliance with deadlines is one of the most important factors in the competitive struggle among manufacturers.

The experience of the manufacturer in the implementation of orders also deserves attention. An experienced manufacturer, in addition to having all the equipment necessary for the production, must also have extensive connections among equipment manufacturers, suppliers of components and raw materials. This is a condition for the production of napkins with an optimal price-quality ratio in the shortest possible time, since time is not spent searching for components and materials.

It is advisable to find a contractor who will not approach the execution of the order formally, point out flaws and inaccuracies in the creation of the project, will participate in product improvement, strive to minimize costs, improve the quality of the product as if it were part of his own line. Providing comprehensive support at all stages of contract manufacturing, assessing manufacturability, compatibility with the equipment used and production modes, recommendations for improving parameters should come from the contract manufacturer, regardless of the size and importance of this order for him.

The contractor should not be bureaucratized. The rapid exchange of information when working on any order contributes to the speed of bringing the product to the market and, as a result, increases the competitiveness of both the customer's products and the contractor's services.

The calculation of the cost of producing wet wipes should be transparent to the customer. Any customer has the right to receive the following information from the contract manufacturer:
- calendar chart works describing the stages of production and delivery;
- calculation of raw materials, materials and components for the produced batch;
- time characteristics of the technological process of all major operations;
- list of used equipment.

Risks of a "contractor"
Reassessing your abilities. The manufacturer is gaining a large number of orders. At the same time, the transition from one type of wipes to another requires reconfiguring the equipment, washing the units, etc. These are additional costs and time costs - as a result, profits fall. And non-fulfillment of the order, disruption of supplies, drop in quality can lead to large financial losses.

Preparations begin for the implementation of a potentially large order, but the contract is not concluded. The problem in this case arises if special, rarely used components or packaging were purchased during preparation, which can not be used later.

Price risk: the manufacturer's profit cannot be too high, otherwise this order will become unprofitable for the client and he will go to another manufacturer offering a lower contract value.

The customer reduces orders, giving part of the volume for production to another company. As a result, production load falls and profitability decreases. The extreme case of this situation is the loss of a customer. If the customer's production portfolio is too large, and sales of own brands are not supported, then the loss of such a customer may lead to the closure of the company.

Continuous growth

Competition is intensifying and there are a number of factors that determine success in the competitive struggle: maintaining a common leadership position in the market in your industry, the quality of the raw materials of the product (the quality of the non-woven fabric, impregnating lotion), the quality of the packaging - colorfulness, brightness, spectacular design and functional properties) , supplier capacity, supplier flexibility to partner with buyer, clarity logistics schemes, the absence of defects in the goods during deliveries (even during a period of sharp seasonal increase in the volume of orders), an attractive price policy. All these components together play a decisive role in the choice of a supplier by the client.

On March 21-22, 2013, the VIII International Business Forum BBCG "Regional Brands and Private Labels in Modern Chains" took the first place among private label suppliers in the non-food category for one of the largest players in the wet wipes market, Avangard. The company not only occupies a leading position in the production of wet wipes, but also independently produces nonwoven materials both for its own production needs and for the purpose of selling them to other manufacturing companies.

The first prize at such a significant event is definitely an indicator high degree partnership trust; an assessment that characterizes Avangard LLC as a reliable and trusted supplier that builds continuous interaction with its customers on the basis of highest level and attaches great importance to the quality of cooperation. The company is constantly developing, giving paramount importance to the quality and range of the supplied product.

The company is constantly working to increase production capacity, improve production technologies and increase the range of products offered. Cooperation with both European and Russian suppliers of raw materials certified according to the main international standards(ISO, FASP, etc.) allows you to use only high quality components. Thanks to an integrated approach, the company successfully passes regular audits of production sites, supplied raw materials, management systems and product quality control systems by major customers.

In conclusion, it should be said that more and more more networks, large wholesalers and distributors produce wet wipes under their trademarks. As a result, competition among a dozen players is also growing. domestic market production of wet wipes. And although, with the current well-established production facilities, the availability of modern equipment, well-trained personnel, the production of products is quite fast and simple, it is becoming increasingly difficult to get an order. However, high competition in this industry helps to keep prices at a fairly low level. high quality produced wet wipes, and this is in the hands of ordinary buyers.