As many business plan writers note, products whose popularity does not depend on seasonality have one significant disadvantage for a businessman. We will talk about great competition and the difficulties of conquering the consumer market. The entrepreneur will not have the opportunity to independently regulate the sales value, because it will be necessary to adhere to average market indicators. In addition, a businessman will have to constantly search for new sales channels and strive to reduce production costs.
But, on the other hand, some businessmen are attracted by difficulties and they strive to join profitable areas of entrepreneurship. These areas include production wet wipes.
At first glance, this line of business may not seem serious; this product is not considered very valuable. But, if you look from the other side, the overwhelming majority of the population uses this product for hygienic purposes.
Moreover, such products are manufactured not only for people, but also for Vehicle. The uses of important napkins are quite extensive. Today, the vast majority of important napkins are imported from abroad, which means that a budding entrepreneur can try to join this trend.
Among the advantages of this line of business, it can be noted that initial capital not too big. You don't need expensive materials to make wet wipes.
The popularity of this business line is due to the fact that the production of personal hygiene items in our country is not fully developed.
This means that for a businessman who is ready to participate in shaping the market, there is free space in this area. The specifics of this industry are quite diverse. Having occupied it, you can not only produce wet wipes, but also try your hand at making other personal hygiene items - toilet paper or feminine pads.
Despite the difficult economic situation, analysts note the development of this area of business today.
The market for hygienic wet wipes is gaining momentum and is reaching more and more new consumers. In the Central and Northwestern regions, this area of production is completely undeveloped, so it can be argued that wet wipes will be in great demand.
Before you start producing wet wipes, you need to decide what type of wet wipes you will produce. Many criteria depend on the specifics of the product, namely pricing and competition.
Wet wipes can be divided into the following types:
- Children's;
- Medical;
- Cleaning;
- Cosmetic.
In turn, these types of napkins are divided into subtypes:
- Cosmetic - perfumery(for removing makeup, after shaving, refreshing, with a deodorizing effect), hygienic(disinfectants, hand cleansing, intimate hygiene)
- Cleaning - household(for shoes, glass, furniture, mirrors, plastic), automotive(repurposed for cleaning dirty hands, leather and plastic interior parts, glass).
- Specialized— designed for optics, pets and repellent.
Necessary materials for making wet sanitary napkins.
The raw materials required for the production of sanitary wet wipes have a relatively low cost. Naturally, there is a difference in the cost of raw materials from suppliers in different parts of our country.
Pricing is also influenced by other factors - type of packaging, impregnation, material.
The highest cost are wet wipes made from Spilens. Such bulk material made from canvas fibers, compressed under strong water pressure. His main feature is that it is produced without the use of chemical elements and glue.
Airlaid- a material made from pine needle cellulose. During the production process, cellulose is combined with component materials blown with hot air at a temperature of 180 degrees. The manufacturer should know that it is necessary to add cotton to the raw material for greater softness and retention of impregnation.
Inexpensive napkins are made from thin fibers bonded together - spandbond, chemicalbond, thermalbond.
The low cost of raw materials will certainly affect the quality of the product and will be inferior to more expensive napkins.
Using impregnation for wet wipes.
For the most part, the manufacturer himself creates the impregnation technology and keeps its composition secret.
If you systematize the data, you will notice that each type of product has a certain impregnation.
- Cosmetic wipes have rejuvenating and moisturizing impregnation.
- Household napkins have disinfectant or polishing impregnation.
Other types of napkins are impregnated using the same principle. Also used in the manufacture of cosmetic wipes perfume additives.
The most expensive are cream impregnation. These wet wipes are designed for children or for removing cosmetics.
Wet wipes are packaged in hard or soft containers. The most common is soft packaging.
The manufacturer must be aware that the packaging film must comply with all sanitary and hygienic standards and, if necessary, have a quality certificate. The packaging must be sealed to avoid evaporation of the impregnation.
Equipment for the production of napkins.
An entrepreneur needs to choose equipment after he has decided on the type of napkins to be produced, impregnation and has found a clientele for selling the products. Also, to start a business, he will need premises for a workshop and warehouse.
IN production premises automatic equipment for the production of napkins is located. The production apparatus must have a saturation chamber, packaging knives and cutting knives. The average machine is capable of producing 20 packs of goods every minute. average cost for such a machine ranges from 25 thousand dollars. The equipment is quite expensive, but its performance is impressive.
If yours isn't big enough start-up capital, then you should choose another business project with less investment. It is not necessary to buy such equipment right away. You can rent it or use a form of leasing.
If you want to organize large-scale production, then give preference to an expanded line of equipment that can simultaneously produce 12 product streams. The price of such a line starts from 250 thousand dollars.
Hired personnel for the production of wet wipes.
No large team is required to start production hired workers. This is an additional benefit for the business because you can save on payroll costs. Each production employee is required to have a valid health certificate.
In addition to the operators servicing the production, it is necessary to hire several people.
Technologist. His responsibilities will include monitoring compliance with all stages of production.
Designer. His responsibilities will include developing new product options. The constant release of new products will help your products not to get lost among the whole mass of hygiene products.
Promotion of your brand.
Successful business activities require a constant search for new sales channels and an approach to solving non-standard situations. Take away a certain amount for promotion trademark and all accompanying stages - packaging design, logo, interesting offers. Use any tricks to make your product noticeable and different from your competitors.
Remember that at all stages of starting a business there is competition. To attract consumers, you need to come up with your own trick that no one else has. For example, foreign manufacturers produce double-sided wipes, one of the sides of which is intended for peeling.
Very popular now environmental direction. Products that do not harm the environment are in great demand these days. In order for the napkin business to continually grow, new products must be constantly developed. For large production volumes, it is possible to arrange the production of napkins for individual orders.
With the right approach, this can bring much more profit than the usual production of classic napkins.
Products can be sold through hardware stores and large supermarkets. In the future, you can think about releasing other hygiene products under your brand.
Costs of starting a business.
Financial costs are distributed as follows:
- Equipment - cost ranges from 75-300 thousand rubles.
- Advertising and promotion expenses - 100 thousand rubles.
- Fund wages — 70 thousand rubles.
- Purchasing consumables - 750 thousand rubles.
- Technology design and development - 200 thousand rubles.
The remaining costs include registering a trademark and obtaining all necessary certificates. Product packaging must display information about the purpose of the product, composition, and information about the manufacturer.
The estimated amount of investment in a napkin manufacturing business ranges from 20 to 100 thousand dollars. The costs of starting a business are recovered, on average, in a year. For such production this is a relatively short period of time.
The impregnating composition recipe is a trade secret and is developed either by the manufacturer itself or to order. In addition, you can purchase ready-made lotions for impregnation from European companies such as ISP Biochema Schwaben (Germany) and Univar (Austria), etc.
Typically, wet wipe lotion formulations vary significantly depending on their intended use. For example, cosmetic wipes often include cream or cosmetic milk. Sanitary napkins are impregnated with a solution of soapy and refreshing ingredients; they differ in varying degrees of humidity. The composition of intimate wipes can be very gentle; deodorizing substances are often added to it. Cosmetic wipes with plant extracts (chamomile, calendula, St. John's wort and plantain) are widely used. They protect the epidermis well, moisturize and disinfect the surface of the skin. Wipes with St. John's wort and plantain also help relieve itching after insect bites and act as an anti-inflammatory agent for redness and irritation.
Baby wipe formulations typically include herbal additives, such as chamomile extract and aloe vera. Such formulations are specially developed for children with sensitive and problematic skin. There are also impregnating compositions that relieve irritation of the skin of children after sunbathing, as well as specially designed for children prone to allergic reactions. Wet wipes may contain an antiseptic. Special place Oily wipes are used in baby care. The composition of the impregnation includes vegetable oils, thanks to this the non-woven base receives good cleaning properties. These wipes are designed to clean children's skin from dirt; in addition, they have protective properties and are indicated for lubricating damaged areas of the skin.
Oils are often included in the impregnation of wet wipes for animals - sea buckthorn oil, tea tree oil, etc.
Some chemicals are included in almost any wet sanitary and universal wipes: propylene glycol, PEG-40, EDTA, perfume.
Let's take a closer look at some of the components of lotions for wet wipes.
Propylene glycol
Propylene glycol is a colorless, thick liquid with a weak characteristic odor, miscible with water and alcohol, and has hygroscopic properties. Its boiling point at atmospheric pressure is 187.4 °C, its freezing point is -60 °C, and its density at 20 °C is 1,037 g/cm3. LD50 - 34.6 mg/kg. Self-ignition temperature 421°C. Aqueous solutions of propylene glycol are not flammable up to 60°C. Propylene glycol is used to produce the safest household coolants in terms of environmental and toxicological properties.
Propylene glycol is considered one of the best and most effective moisturizers used in cosmetology. In shampoos, it is also used as a means to stabilize the emulsion phase, improving the spreading properties of the cosmetic product, creating a pleasant sensation on the skin. It is a good solvent that does not cause skin irritation. Non-toxic. Caprylic/capric triglyceride is also a humectant. Since it has a plant base (triglycerides), it acts as an emollient, softening and moisturizing the skin.
Properties:
Country of origin: Germany
Empirical formula: CH3CHNOCH2OH
Appearance: Transparent liquid almost odorless
APHA Chromaticity: 1.433%
Density: 1.036
Water: 0.05%
Chlorides: 1 mg/kg
Sulfates: 1 mg/kg
Polyethylene glycol
PEG-40. Moisturizing, softening. Odor fixer. An effective cleaner. Antistatic. Solubilizer. Viscosity regulator. Does not have an emulsifying effect. Dispersing and gelling agent.
To produce branded goods, it is best to register an LLC. But the most difficult thing will not be registration or even obtaining permissions from fire inspection and SES. To protect yourself from competitors and make your products recognizable, you need to register a trademark.
This is done by FIPS (Federal Institute of Industrial Property).
The procedure itself can take up to one and a half years., so you need to take care of the logo and brand design, as well as submit an application in advance. The cost of all services related to registration ranges from $750 to $1,100.
Room
Making napkins requires minimal space. 60-70 square meters is enough. The plant must consist of a workshop (we take into account only one production line) and a warehouse for storing raw materials and finished napkins. Its rent will cost approximately 600-900 dollars per month.
Premises requirements:
- Ceilings from 3 meters;
- Electrical network 380 V;
- Availability of sewerage, ventilation system, water supply, fire system.
Don’t forget that repairing and preparing the premises for work will also require investment: about $1,000.
Wet wipes production technology
Production consists of several stages. First, the nonwoven material (raw material) together with the packaging material enters the same machine. At this stage, a design drawing is applied to the packaging. Next, the packaging material is positioned in such a way as to form a “sleeve” into which future napkins are placed. At the same time, the product is impregnated with cleansing and aromatic agents. The soldering machine cuts the resulting sleeve into pieces and joins the edges of the package using a heated knife. Then all that remains is to package the resulting products.
Equipment for the production of wet wipes
It is most advisable to use an automatic or semi-automatic equipment line. It includes:
- Automatic cutting machine;
- Saturation chamber;
- Packing and sealing machine.
To increase production volumes, it is not necessary to purchase several lines. You can select equipment that can control several production flows simultaneously. The cost of the line starts at $1300-1400 and can reach 7-10 thousand dollars for more powerful equipment.
It is worth paying attention to equipment from the following manufacturers:
- GDH MACHINE (Türkiye);
- ALKE Machinery (Türkiye);
- Chuangda (China);
- Dachang (China);
- Usulpak (China);
- STANPROM LLC (Ukraine);
- Omsk Paper Mill LLC (Russia);
- Omet (Italy).
The most attractive price is for equipment made in Turkey and China. You can also try looking for used machines to save 20-30%.
Raw materials for the production of wet wipes
Several are used to make napkins. different types raw materials, the quality of which determines the quality of the finished product. The most accessible and simple materials are considered to be thermal bond and spunbond.. This is a material based on propylene fibers.
Higher quality products made from spunlace and airlaid. This is a softer and more durable material that gently cleanses the skin. The most inexpensive base (thermobond) costs around $500-700 per ton.
Impregnation for napkins usually contains distilled water, glycerin, perfume compositions, sometimes vitamins, preservatives. It is not so easy to make it yourself, so it is better to contact manufacturers of impregnation for wet wipes. One napkin takes about 1 ml, so if you purchase in bulk, you will save yourself a lot of hassle with making it yourself.
You can purchase impregnations from the following companies:
- 2D-Farma;
- "ISP Biochema Schwaben";
- "Univer";
- "Penta";
- "Sapsan" and others.
Packaging for napkins is made of polyethylene, lavsan, polypropylene to prevent the napkins from losing moisture.
Costs and profits
In our calculations, we take as a basis the purchase of a single-flow automatic line. The plant will operate in two shifts, which means it is necessary to hire 6-7 people (technologist and workers, accountant, cleaner, manager).
Investments in the business will be 11-13 thousand dollars. This includes all costs for registration and obtaining necessary permits, for the development of packaging design, rental and renovation of premises, equipment, raw materials and salaries. And with a productivity of about 60 thousand packages per month, you can earn 8-10 thousand dollars. on wholesale. With monthly expenses of $5,000 (rent, raw materials, salary), your net earnings will reach 3-5 thousand dollars.
This is a great business idea for those who are not ready to make exorbitant investments. At the same time, there are many channels for selling products, because the product is really in demand.
The Maltimex company is one of the first and largest companies producing wet wipes in Russian market(TM Aquael, Nuance, Fresh Note, XDrive, Your Excellency). The specifics of our approach to building a loyalty program on the Russian market are associated with many factors 1. Wet wipes - impulse purchase 2. Wet wipes - seasonal product 3. Low culture of consumption of wet wipes 4. Features of the development of the Russian market of wet wipes Particular attention should be paid to the features of the Russian market of wet wipes
History of wet wipes Use in Ancient Rus' The history of wet wipes is very long. The first mention of something similar to wet wipes is found in documents from the 11th century. On a long hike, they could wipe a tired body or, if necessary, treat a wound. In ancient Rus', a warrior took with him on a campaign a leather bag containing scraps of linen fabric soaked in a decoction of celandine.
In China, in dining rooms there were bowls in which pieces of delicate cotton fabric lay in water with orchid petals. Use in Ancient China Guests could use pieces of cotton cloth soaked in aromatic water to wipe their face and body during long feasts and diplomatic meetings.
Use in the USSR In our time, people associated with space technologies were the first to take care of the return of good traditions. Thus, in the mid-60s. The first “cosmic wet wipes” appeared. Their production was established for the first time in the USSR for cosmonauts. Long stays in space flights raised the question of the need to create wet wipes for astronauts.
Use in the USA Following us, such napkins began to be produced for US astronauts. Until the mid-70s in the United States, napkins were used only at the table. Then they were converted into a hygiene product for children. History is silent about who exactly this brilliant idea belonged to. But the fact is obvious: by the 80s, most American mothers groomed their children with napkins. The quality of the products was far from first-class: the cellulose base was poorly saturated with moisturizers, quickly spread when used, the packaging was not “leakproof,” and cosmetic substances easily evaporated. But still, the napkins coped with their hygienic role.
Modern history of wet wipes The appearance of a new product in Russia was marked in 1997, when the founder of our company, visiting Israel, brought this idea to his homeland. It should be noted that in our country, as in the CIS countries, the wet wipes market is very young and quite promising. In the late 90s, we were a monopoly in the wet wipes distribution market, and our company did not set any strategic goals to build a customer loyalty program. But we knew that the Russian FMCG market in this segment is very capacious, and will repeat the growth dynamics of the European market. This was confirmed by the rapid growth of the product consumption culture and the emergence of new distributors on the market.
Role own production in brand management. In 2004, we founded one of the first production of wet wipes in Russia - the ZeteL company. "ZeteL" has the most high-tech equipment, modernized workshops, highly organized workforce that meets the most stringent European standards of quality and hygiene. Having a wide distribution structure and our own production, we can manage all processes associated with the brand, starting from the product development stage.
Research of the wet wipes market In order to create wet wipes that meet the requirements and preferences of the consumer, it was necessary to assess the level of consumer culture, market capacity in this segment and its development trends. And in 2006, we initiated the opening of a new direction in ACNielsen - research of this market. Last year, market growth was 27% in absolute terms and 31% in monetary terms, it can be assumed that this trend will continue in the next 2-3 years. This will allow you to count on increased sales. Due to our own production, at the end of last year we grew by 28% compared to 2005.
Internal statistics Dynamics of shipments of wet wipes AQUAEL, NUANCE, INTIME in the year. (rub.)
Place of the Maltimex company in the wet wipes market Among manufacturers, the Maltimex company has indisputably maintained its position as a leader for 2 years in 2006
The role of the manufacturing company in the formation of the Russian wet wipes market The role of the manufacturing company in the formation of the wet wipes market is very significant. We do not offer goods in a segment where price niches have already been formed, and where there are guarantees to remain in place due to the next dumping. We offer goods of impulse demand and do not search, but create price niches ourselves.
Determining price niches in the market First steps to building a loyalty program 1.Marketing research with the involvement of SOLDIS Branding&Communication Agency and ACNielsen 2.Analysis of internal statistics 3.Income level of the Russian population 4.Culture of consumption of wet wipes in Russia 5.Social psychology of the Russian consumer Allowed us to do conclusion that in our country there should be at least 3 price niches and 3 target audiences. The most important task of the manufacturer is to build loyalty in the product itself.
Economy class wet wipes (first price niche) We identified consumers with low incomes or uninformed potential buyers as one target audience and classified them as buyers of the product in the first price niche - economy class. Product requirements: Good material Pleasant scent Impeccable execution Our goals: Draw the buyer’s attention to the product Encourage them to make an initial purchase Instill a sense of necessity or convenience in using wet wipes
Wet wipes of the middle price segment (second price niche) In the middle price niche of the target audience are buyers who are already familiar with the products and, having average income, evaluate the consistency of quality and price before making a purchase. It’s more difficult to build a loyalty program here, because... many offers from manufacturers. When creating a product, we try to comply as much as possible with the following parameters: 1. high quality material 2. pleasant scent 3. attractive design
Premium wet wipes (third price niche) Consumers of wet wipes in the top price niche are consumers with an above-average income level. For this target audience, we offer premium wet wipes ( high price for high quality). The product must be unique and contain special, previously unused compounds.
Umbrella brand Its role in building a loyalty program Families have different budgets, and therefore napkins should be presented in different price segments. To increase the effectiveness of our loyalty program, we decided in 2007 to create the umbrella brand “Aquael”. Aquael (economy segment) Umbrella brand "AQUAEL" Aquael (mid-price segment) for 2 types of networks Aquael (premium)
Trade marketing as the main way to build a loyalty program Unfortunately, the products will not sell themselves, so we are very seriously involved in promoting the product. Considering that wet wipes are a product of impulse demand, the main way to build a loyalty program is trade marketing. Our loyalty program consists of many BTL promotions and is circular in nature:
Tools used in trade marketing Sell-in tools The greatest marketing activity for wet wipes occurs from May to October, because This is the sales season for these products. Therefore, before the start of the season, we must ensure the availability of goods in the warehouses of our regional partners. We use the following Sell-in tools: profitable bonus programs for volume of purchases free logistics discount for the first order, etc.
Sell-out Tools Next, the main Sell-out tool comes into the process. Incentive programs for sales staff of Mystery Shoppers distributors ( Mystery shopper), professional competitions, bonus systems. At the same time, our observations confirm the opinion of BTL market specialists - a team bonus is not effective, an individual bonus is. Personal motivation allows you to increase sales volumes by an average of 20% versus a 10% team bonus. In some cases, we hold competitions among sales managers of our partners.
Consumer-promotion tools We also approach subclients individually. These are mainly players in the retail market. 80% of purchasing decisions are made at the point of sale. For a product of impulse demand, an important factor successful sales V retail network is a competent consumer-promotion: merchandising, design of points of sale, POS materials, holding events with the involvement of promotional staff
Efficiency of merchandising Wet wipes are an impulse purchase, and in order to interest the consumer, it must be constantly in sight, that is, in the checkout area of stores, end display, and extended display. Using the example of our cooperation with the Ramenka chain, the effectiveness of placement at the checkout is confirmed by an increase in sales per day up to 6 times! In the Auchan hypermarket chain, end display ensures a significant increase in sales! After the promotion, sales increase by 15-20% compared to the period before the promotion. This indicates established loyalty to the product and brand.
Efficiency of designing points of sale with POS materials This event gives us up to a 20% increase in sales due to an increase in the number of initial purchases. Carrying out promotions with the involvement of promotional staff (tastings, sampling, gift for purchase, etc.) is very effective method promotion, but very expensive. Experts believe that it will soon lose its relevance at points of sale; this is already happening in Moscow; in the regions this process will emerge later. This is explained by the fact that the cost of a place in Moscow has increased on average several times over the past 2 years. We believe that this tool in the consumer promotion structure is effective only when introducing a new product, when you need to introduce the client to the product.
The problem of educating the population Event-marketing Now there is a unique situation on the market when more attention can and should be paid to the issues of education and training in the use of wet wipes. We participate in publications at the regional level. We use Event Marketing in promotion: Sponsorship of sporting events in the regions, school holidays, city days
Features of the loyalty program in the young Russian wet wipes market To sum it up, I would like to emphasize once again what is necessary to build a loyalty program, in our case for wet wipes. This is Market Research and Observation economic development in the country. Now the increase in the solvency of the population will stimulate the emergence of consumers with high requirements for product quality. Russian manufacturers we need to follow the path of improving products and expanding production with new lines. Consumer education
Coalition of Manufacturers Education through ATL for one company is a very large budget. The creation of a coalition of manufacturers would make it possible to conduct joint advertising and educational events, and the buyer would be able to decide for himself which product to give preference to. Then not only the price, but also the quality of the product will become a serious organizing principle, which is what the current trend is towards in the Russian market.
Government program The government must be interested in the health of the nation. In modern environmental conditions, this issue is very relevant. An increase in the number of diseases sometimes occurs due to pathogenic bacteria entering the body with unwashed food or hands. The range of wet wipes makes it possible to keep your hands clean in any situation and also neutralize wounds with the antibacterial composition of lotions. In our opinion, the government that has the power should organize a “Health of the Nation” program, similar to the program to create loyalty to paper handkerchiefs in the United States.
The role of the manufacturer in the development of the wet wipes market A successful manufacturer will anticipate the market situation and attract new target audiences. Now we are trying to reposition the value of wet wipes in the bright minds of our population. We offer wet wipes as an accessory, which are so abundant in women's handbags. We are working on the design and material of wet wipes. We are also opening a new direction - the production of wet wipes with therapeutic and cosmetic effects. At the end of 2007, we will offer consumers wet mattifying facial wipes and impregnated wipes for problem skin.
