s accelerate investment in China's demand. According to Japan's "Asahi Shimbun" website, many Japanese diaper
companies are accelerating their investment in China. Dawang Paper and Kao have officially started local production and perfected the “localization and production” management system in this huge market in China. Japanese companies have begun to adjust their export-oriented strategy to reduce production costs and increase price competitiveness by reducing transportation costs.
Dawang Paper, which owns the GOO.N brand, announced on the 25th that it will build a new factory in Jiangsu Province with a total investment of about 6 billion yen. At present, the diaper products sold by Dawang Paper in China are imported from Japan, but from November onwards, it will be able to produce 30 million pieces per month.
Kao, which built a factory in Anhui Province in the inland region last year, has already sold the “Merries” brand diapers from January this year. By achieving localized production, its sales price can be reduced to about 60% of imported products.
Japan's Unitek, which has entered the Chinese market since 1995, has built four factories in Shanghai and Tianjin, and its products have a market share of about 12%, which is higher than some local companies. In addition to maintaining sales channels in the previous coastal areas, Eunice plans to develop inland areas in the future, and will build new factories in Jiangsu Province this year.
The reason why Japanese companies have increased their investment in the Chinese market is because the consumption of diapers in China is rising sharply. According to Dawang Paper, the consumption of diapers in China is about 1 billion pieces per month, about twice that of Japan. As the population increases, and some families gradually change their cloth diapers to paper diapers, the market demand is expected to reach 2 billion pieces per month by 2020.