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Business Scope
- Main content of company’s business scope
A. Diaper manufacturing, representation, sales, import, and export.
B. Processing, manufacturing, sales, representation, and distribution of sanitary pads, health equipment, condoms, tissue paper, paper towels, cotton pads, make-up paper, tissues, paper cups, paper plates, paper hats, paper diapers, paper clothing, paper pants and all kinds of paper containers.
- • The company’s main products and their business ratio(Unit: NT$1,000)
| Item |
2007 |
| Amount |
Ratio |
| Adult diapers(diapers, cloths, and care pads) |
617,883 |
86.79% |
| Other |
94,041 |
13.21% |
| Total |
711,924 |
100.00% |
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• Our company produces menstrual and hygiene products for use by babies all the way to elders
(women and baby products, incontinence products, products for the elderly, mail order products).
- New products and services planned for development
A. Health care products.
B. Integration and development of healthcare platform.
Industry Overview
- Current industry situation
Our company’s business scope mainly focuses on production and sales of paper made hygiene products such as adult and baby diapers, wet nap, and also condoms. As these sorts of products are life necessities, they possess the advantages of being disposable and convenient. As national income increases, quality of life improves, and good hygiene habits are established, purchase and demand for these products exhibit an upward trend.
- A. Adult care series
Our company was the first to introduce adult diapers to the Taiwanese market in 1986. As the population structure ages with each passing day, welfare of elders is gaining more attention. Senior apartments and care facilities in the elder industry are seeing rapid development, and products for elders are also becoming a focus of attention for manufacturers. As chronic disease is increasing amongst the elderly population, the population of those who suffer from incontinence is also increasing. According to statistics from the Department of Health, 55% of elders above the age of 65 suffer from chronic diseases. 10% of them are unable to care for themselves and require long term care services. As patients are becoming more accepting of diapers, statistical data from the Taiwan Paper Industry Association (see chart below) indicates that sales volume in the adult diaper market increased by approximately 2 times from 2001 to 2007. In addition, according to the Ministry of Interior’s statistics, the population of elders above the age of 65 has increased from 1.973 million people in 2001 to 2.343 million in 2007. The trend of rapid aging amongst Taiwan’s population is apparent, which is why there is still room for considerable growth in this market.
In terms of care pads, they are used in combination with diapers or diaper pads and laid down on mattresses or chairs so that there is more complete protection against incontinence. Not only can elders use them, women can also use them after giving birth. This is why their market demand is also considerable in scale, as it increases with the demand of diapers.
| Item |
2001 |
2002 |
2003 |
2004 |
2005 |
2005 |
2007 |
| Population of elders above age 65 (by 10,000 people) |
197.3 |
203.1 |
208.8 |
215.0 |
221.6 |
228.7 |
234.3 |
| Sales volume for adult diapers (by 10,000pieces) |
1.4 |
1.7 |
1.9 |
2.25 |
2.85 |
2.93 |
3.34 |
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• Data sources:
1. Ministry of Interior’s Statistics Monthly, the MOI’s Department of Statistics
2. Paper Production Sales Statistics, Taiwan Paper Industry Association
- • B. Baby diaper and wet nap market
Diapers are a product that each newborn baby must use. As Taiwan’s birthrate is declining with each year, the ROC’s monthly statistical report pointed out that there are still roughly 200,000 babies born each year, so market demand is still fairly stable. As baby diapers are a mature product, there are a variety of brands in the market and competition is fierce as there is little product differentiation. Each company stresses product advantages such as being ultrathin, breathable, wetness indicators, strong absorption, and easily mobility.
Product packaging for baby wet nap products have progressed from cans to foil packages or environmentally friendly refill packs. Material-wise, a transition has also been made from non-woven fabric to environmentally friendly materials such as wood pulp and ultra soft nonwoven fabric. The market still has potential for future development, as this use this product has expanded from baby care to general use and use by caretakers.
- C. Condoms
As the plague of the century, AIDS, and other STDs are all transmitted through sex, this has become a contraceptive tool. In conjunction with active promotional efforts by the government and other organization and the increasingly more liberal attitude towards sex in Taiwan, usage volume of condoms is quickly growing
- D. Others
Our company still has other health care and nursing products. As diseases of civilization are increasing in the modern age and people have higher standards for environmental quality, this market holds development potential.
Future Supply/Demand Situation and Growth in the Market
- A. Adult care series
Products in the adult care series include: adult diapers, adult diaper pads, and adult care pads. Our company mainly focuses on sales of adult diapers, and less so on adult diaper pads and adult care pads. Thus we offer an explanation of the possible supply and demand of the adult diaper market below:
- a、Supply
In recent years, there has been space for increase of production volume on the market as companies have been expanding production capabilities. As there is still a large amount of space for growth in the Taiwanese market, in comparison to developed nations in Europe and America, there will be considerable room for a company to grow if it produces new products which meet demands.
- b、Demand
In terms of the Taiwanese market, sales volume for adult diapers is entering into a high growth period as the population structure ages. In recent years, the rate of growth has been more than 10% annually. When combined with more user-friendly, thoughtful product designs, market demand should continue this high growth. The evaluation of other companies in the industries is that future market potential will maintain a trend of steady growth.
In terms of foreign markets, we market throughout Asia with our own brand. We have already developed the Northeast Asia, Southeast Asia, and Hong Kong regions. Though it may be difficult to expand into the international market, our company makes active efforts to progress towards the goal of becoming the No.1 brand in Asia and a professional manufacturing company.
- B.Baby diapers and wet naps
- a.Baby diapers
(a)Supply
There are a large variety of domestic and foreign brands available on the market. Competition is fierce as there is little product differentiation. Supply volume in the domestic market wavers depending on demand volume. In the future, manufacturers who are able to develop products which meet consumer needs better while expanding marketing circuits will be able to increase their status in the market.
(b)Demand
in recently years, national income has increased along with the number of career women. Hygiene habits of changed, and roughly 200,000 babies are born each year. in the future, demand in the domestic market should remain stable.
- b.Wet naps
(a)Supply
there are also many brands available on the wet nap market, with little differentiation between products. Brand image and notability are deciding factors in consumer choices, so strengthening the positive image of a brand will be the focus of market competition.
(b)Demand
Wet naps can be viewed as a supplementary product which accompanies baby diapers. As a variety of functions are developed for the product, there is still considerable room for growth also.
- C.Condoms
- a.Supply
As Taiwan can be considered an emerging market for condoms, both domestic and foreign brands try every method to enter the market. There are a dazzling number of styles available. Apart from innovations in style, quality and safety are the keys to increasing consumer loyalty.
- b.Demand
Taiwanese people are becoming more liberal in terms of sexual concepts and more education in prevention of STDs. Condoms have also become easy to acquire as they are sold in a variety of locations, including 24 hour convenience stores. This has caused an increase in condom demand, so there is great growth potential for the future market.
Competitive Advantages
- A.Proactive investment in R&D to carry out R&D, develop, and ensure product patents
Our company has always held a leadership position in terms of price, quality, and characteristics in the Taiwanese market. Whenever we launch a new product, various other companies follow suit. Though we hold a number of patents current, we continue to research and submit other patent applications in order to product high quality products which are more economical and fit consumer demand better.
- B.More than ten years of production experience in adult diapers (pads)
Our company has more than ten years of experience in the production of adult diapers (pads). Machine operation rates and product defective rats have all reached reasonable ranges. In addition, as we work actively to nurture and recruit related professional talent, we have more of an advantage from the product production perspective when compared with other companies.
- C.Products with significant consumer approval
As the products of main competing companies are either launched later in time or suffer from quality issues, they are no threat to the market status of our company’s products as consumers still have firm loyalty in our products.
Advantageous elements
- a.As national income increases, hygiene habits are changing and there is much potential for product demand
As national income is increasing and hygiene habits are changing, there is a steady growth in incontinence hygiene products in the Taiwanese market right now. The demand for personal hygiene products which are disposable and convenient is continually increasing. For those who suffer from incontinence, it is clear that hygienic, convenient diapers will gradually be replacing diaper pads as a consumer trend. Demand volume is hardly ever impacted by economic prosperity or downturn.
- b.High degree of brand loyalty, product innovation, satisfied customer needs
AnAn has already become a synonym for adult diapers. There is high customer satisfaction as well as loyalty, making it the nest choice for Taiwanese customers amongst products of the same category. Despite this, our company still continues to develop new products with the principle of innovation and research in order to further fulfill customer needs and secure our leadership position in the market.
- c.Flexible utilization of marketing strategies and insistence on quality
Our company has always valued research and development and product quality. We have implemented the TGM plan in recent years, executed a plan to improve quality control in raw material suppliers, and worked towards quality assurance and environmental quality assurance certifications. Our insistence on outstanding quality has long since won the trust of our clients. In addition, we have created added value for customers with our cost lowering improvement projects. Through flexible marketing strategies, we leave a lasting impression on our customers, ensuring the leadership position of our products on the market.
- d.Positive outlook of foreign markets, much market potential
As there are large populations in the markets of Northeast Asia, Southeast Asia, and Mainland China, the potential of these markets should not be overlooked. With the dedicated efforts of our company’s business team, we now enjoy a certain degree of product notability and market status of Northeast Asia, Southeast Asia, and Mainland China.
- e.Formation of aging society, steady growth of demand
As the elder market is experiencing rapid growth, the market for adult incontinence products will emerge alongside an aging society. There is no dispute that there will be a steady growth in demand. There is immense hidden market potential in the demand for establishment of residential apartments and care facilities for elders. Our company is also continuing to develop products of this series in order to develop and maintain related markets so as to enable us to expand the customer base we serve and increase market share.
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