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Essity B 218.5 (+1.7 SEK) on 14-Nov-2018 13:49

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Essity offers open baby diapers and pant diapers, as well as products such as wet wipes, shampoo, lotion and baby oil, and is the world’s fourth largest player in the area and the second largest in Europe.

In Europe, Essity markets baby diapers under its own Libero brand and under retailers’ brands. Essity’s strongest market is the Nordic region, where the Libero brand is the market leader. Examples of other strong regional brands are Drypers in South East Asia and Pequeñin in South America.

Strategy

Essity works to strengthen its branded positions in both mature and emerging markets and to improve the profitability in the Baby Care product segment. The strategy is to hold the number one or two position in the selected markets in which Essity is represented. For Baby Care, Essity believes it is important to have a premium or super-premium offering in order to be competitive. Through continuous innovation activities, Essity develops its customer offering for both its branded and retailer-branded product ranges. In 2016, the Libero brand launched a new premium offering, Libero Newborn and Libero Comfort. As part of its efforts to address weak market positions with inadequate profitability, Essity closed its baby diaper operations in Brazil in 2015, and also closed its Baby Care operations in Mexico during the fourth quarter of 2016. In addition, the hygiene business in India was discontinued during the first quarter of 2017, the majority of which was related to Baby Care.