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Domestic startups challenging foreign condom brands

By Yang Wanli | China Daily | Updated: 2017-11-03 07:55

Domestic startups challenging foreign condom brands

A member of staff at Beijing Lulu fills a vending machine with the company's products.[Photo by Wang Zhuangfei/China Daily]

Market potential

With a population of more than 1.3 billion, China is one of the world's largest markets for condom makers, and some experts estimate that it is worth about 5 billion yuan ($756 million) a year.

According to statistics from the National Health and Family Planning Commission, the numbers for both condom use and production place the country at No 4 in the world, after the United States, the United Kingdom and Japan. About 2 billion condoms are sold every year, and the number has risen by 15 percent annually since 2014.

Transparency Market Research, a US market researcher, estimates that annual growth will be about 12 percent until 2024. The NHFPC says more than 3 billion condoms are produced every year and the country is now home to about 300 facilities that either manufacture or package prophylactics.

Data supplied by A.C. Nielsen, a global information, data and measurement company, suggest that the market potential in China is huge, with double-digit growth registered in both of the past two years, according to Vincent Wong, marketing director of RB and Manon Business, a Sino-British joint venture that is the exclusive agent for Durex in China.

"Consumers are now choosing condoms on the basis of greater diversity and personalization. That means that in addition to the basic safety aspects, consumers now have a wider choice of condoms - for example, the ultrathin series, the fun series (dots and ribs), and the longer-lasting series," Wong said.

"Moreover, consumers now care more about sensation; so men prefer thinner condoms while women focus on adequate lubrication. With regard to personalizing the products, since consumers are getting younger they have their own unique opinions about product positioning and packaging, and identify with the products they buy. In other words, the idea of 'a product for me' is the reason they choose a certain item."

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