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Business / Companies

Hygiene products maker looks to China

By WANG HONGYI in Shanghai (chinadaily.com.cn) Updated: 2012-11-05 15:17

The Swedish manufacturer of hygiene products Svenska Cellulosa Aktiebolaget (SCA) expressed its confidence in the fast-growing market for products for the aging population in China, following its acquisition of an Asian hygiene products company earlier this year.

"In recent years the Chinese government has paid much more attention to its growing number of elderly people. We will increase our focus on this emerging market that has great potential and become highly involved in its development," said Dr Stephan Dyckerhoff, president of SCA's hygiene operations in northern Asia.

SCA is one of the world's largest manufacturers of incontinence-care products. It entered the Chinese market only recently. Its Tena brand, one of the company's best sellers, was introduced into the Chinese market in 2009, but its market share is small.

"That might tie in with consumers' recognition and brand awareness," said Dyckerhoff, adding the company is now trying hard to educate the China market.

Earlier this year, the company acquired the Taiwan-based hygiene products company Everbeauty, which owns the Dr P brand of disposable incontinence care diapers and under–pads for adults.

"The acquisition is a key milestone for us. SCA's position in Asia will be substantially strengthened," he said. "The Dr P products will come to the lower level of the market. And the combination of Tena and Dr P, which target different consumer groups, will help SCA expand its penetration in the Chinese market."

According to the company, by 2015 SCA will rank first in China's incontinence care products market, with a share of 15 percent.

"In coming years, we will continue to invest significantly into this market and develop more products tailored for Chinese consumers," Dyckerhoff said.

Last year SCA launched its innovation center in Shanghai. The center, SCA's first innovation center outside Sweden, will operate as a core base for its research and development in the Asia-Pacific region.

"We will not merely bring European-developed products to China. We will also develop products based on the Chinese market and then bring them to the global market. So far, some products developed in the Chinese market have already gained excellent feedback in the global market," he added.

wanghongyi@chinadaily.com.cn

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