What's Covered in This Article
Starting a Diaper Business in Kenya: Diaper Business Plan Kenya
Investing in a diaper business in Kenya isn’t something you just wake up to.
There are many factors to take consider before you start a diaper business in Nairobi or a diaper business in Kenya in general.
What’s Covered in This Article?
What can YOU do?
Obviously, the best way is to do your homework and figure out what and create a diaper business plan in Kenya. And this has to happen way before you think of opening the door to your first diapers customer in Kenya.
Developing a feasible diaper business plan in Kenya will help you determine both potential risks that could negatively impact your diaper business plan in Kenya, as well as any potential opportunities that you could take advantage of to increase the odds of your diaper business in Kenya’s success.
In this free diaper business plan tailored to a diaper business plan in Kenya, we include the top success factors your diaper business plan needs to include if you want your diaper business in Kenya to succeed.
Diaper business in Kenya: Tip #1
Create your business plan before you buy start the diaper business, so you can honestly judge if it is worth taking the risk and making the investment.
Diaper business in Kenya: Tip #2
Talk to those who have walked the diaper business in Kenya journey before and have succeeded in their own diaper businesses in Kenya.
Sample Diapers Business Plan Kenya
Executive Summary
Diaper Location
- Is it in Mbita, Kendu Bay, Nairobi, etc, in the countryside?
- Is it in the CBD?
- Is it in Kibera – hapo laini saba?
- Is in Embakasi – a walking distance to many high-rise apartments?
- Is it around Kenyatta market, Pumwani hospital, etc. near many maternity hospitals?
- Is it in Kisumu? Nairobi? Eldoret? Mombasa?
Which best diaper brands in Kenya will you be selling?
- Is it Pampers Original?
- Is it Molfix?
- Is it Softcare?
- Is it Pretty Baby?
- Is it NIPNAP Premium Baby diapers?
- Is it Bouncy baby diapers
- Is it Kisskids Diapers?
- Is it Snuggles diapers
Who is the potential customers for your diapers business in Kenya?
- Families with small children for your disposable baby diapers in Kenya
- Adults – geriatric/adult diapers
Diaper business in Kenya Analysis
Here, you basically explain the Unique Value Proposition (UVP) of your diaper business in Kenya.
UVP is the unique benefit of your diaper business in Kenya. That is, the unique way in which you solve your target customer’s problems; or improve their current situation. This is what sets you apart from the competition. The competition here includes everyone else currently solving the problem for your customer.
Your UVP must answer the following questions: What is it, for whom and how is it useful?
In short, what I’m saying is that finding the UVP for your diaper business in Kenya is much easier than it sounds.
All you have to do is ask yourself how much more different and better will you deliver than the other diaper businesses in Kenya out there?
Let’s give it a try:
Is my diaper business in Kenya different and better because of location?
- Is it in the countryside, in the village?
- Is it in the CBD?
- Is it in Kibera – hapo laini saba?
- Is in Embakasi – a walking distance to many high-rise apartments?
- Is it around Kenyatta market, Pumwani hospital, etc. near many maternity hospitals?
- Is it in Kisumu? Nairobi? Eldoret? Mombasa?
Is the price of the diapers you sell in Kenya better than that of the competition?
- pampers original and Huggies are more on the higher end compared to Softcare, Pretty Baby, etc. for instance.
- Moflix for example do deliveries free of charge
The options are endless!
Diaper Business in Kenya: Industry Analysis
If you want to be successful in the diaper business in Kenya, you’ll need to have an in depth understanding of what the landscape of the industry in Kenya and globally looks like in terms of current trends and expectations.
For the industry analysis, you will need to look beyond diapers and at the industry at large, which includes population growth, gentrification, social media trends, aging trends, disposable income, etc.
This essentially involves looking at other diaper businesses in Kenya, Africa and globally and assessing them.
Most of the disposable diaper penetration opportunities for growth today are in Africa and rural Asia.
In these markets, the biggest questions relate to affordability—whether there is steady economic growth where consumers feel that their standard of living can increase and they are optimistic, and whether they are living in a secure environment.
A major positive influence in these regions has been access to the internet. “The internet is really making a difference in consumers becoming aware of products and understanding their benefit, and the global leaders are doing a great job communicating to consumers.”
Growth in Africa and Asia markets is changing, because of the ability of consumers to become aware of the benefits and features of quality diapers.
Consumers, even if they are low income, are making decisions about what they understand is the best for their baby, and how they will allocate the limited income that they have.
Once they can try a high quality diaper brand, they typically remain loyal purchasers as long as their income growth is secure.
Baby diaper sales continue to grow with double digit numbers in some emerging countries in Asia. Africa is also picking up steam.
The COVID-19 crisis accelerated e-commerce sales of diapers.
Online also distributors witnessed an increased interest as home-bound consumers explored retail alternatives for purchasing diapers.
Owing to the increasing awareness regarding maintaining the hygiene of infants, parents have strongly adopted the usage of baby diapers.
The global baby diapers market size was valued at $52.6 billion in 2019, and is projected to reach $68.3 billion by 2027, registering a CAGR of 5.0% from 2021 to 2027.
Following are some sample questions that will help you understand the industry you’re looking to get into:
What do diaper sellers in Kenya in my proposed shop location charge?
- Would you classify it as budget, luxury, cheap, etc?
- Which sizes are moving?
- Based on size, the market is divided into size small & extra small (S & XS), medium (M), large (L) and extra-large (XL). By age group, the market is segmented into infants (0-6 months), babies & young toddlers (6-18 months), toddlers (18-24 months) and children above 2 years.
- What is the price range? Get prices for bales, sizes (Jumbo, high count, small count, pieces, etc.)
- You can buy a bale of diapers in Kenya for as low as Ksh 1,800 and sell it for Ksh 3,000.
- Consider the value your potential competitors are charging. This will help you in your pricing strategy.
To do this,
- simply visit diaper sellers in your proposed location, ask the price.
- Check out delivery apps e.g. Glovo, Jijipay, etc. for average prices of Diapers in Kenya.
- Check out online platforms/websites diaper sellers use e.g. Facebook, TikTok, Instagram online shops selling diapers in Kenya
Diaper Business in Kenya: Customer Analysis
Guests to your potential diaper shop in Kenya are going to be the source of your diaper business income.
That’s why it’s so important that you understand them in as much detail as possible so you can effectively and efficiently meet their needs.
This will help you in terms of pricing your diapers business in Kenya, diversify your diaper business in Kenya, and also identify your target customers for your diaper business in Kenya.
For example, nearly all diaper buyers in Runda estate in Nairobi will buy their diapers from a supermarket. It therefore may not business sense targeting them unless of course you’re a supermarket.
You are however more likely to make money with a diaper business in Kenya if you start a diaper business shop in Nairobi in high density estates such as Embakasi, Rongai, Athi River, Kitengela, Kangemi, etc. where there is a lot of foot traffic.
Millennials Lead the Way
Without a doubt; today’s parents—many who are part of the millennials—have driven some of the latest trends in baby diapers, including ingredient transparency from baby diaper brands.
In addition, the more the number of working mothers, the more the growth of the diapers in the market. Moreover, disposable diapers are convenient, safe and time saving materials is a boon for working women as these are disposable and do not require washing nappies for reuse purpose. Therefore, the demand for diapers by the households has been increasing even among the consumer who are less affluent.
Diaper Business in Kenya: Competitive Analysis
Conducting a competitive analysis for your diaper business in Kenya involves identifying your direct competitors, analyzing their business, to better understand your chances of survival in the space.
The main difference between a competitive analysis and an industry analysis is that for the competitive analysis, you’re going to narrow down from the industry and focus on your immediate competitors.
For example, if your target diaper business shop location is at Kendu bay market, your direct competitors would be other diaper sellers in and around the Kendu bay area.
With a competitive analysis, your goal is to find out all the reasons why a potential customer would by a diaper from the next hawker, shop or supermarket over your, then you figure out ways to make your diaper shop in Kenya more attractive.
This may be in terms of offering the cheapest price per diaper bale or diaper packet, or diaper piece, if everyone else is charging an arm and a leg per diaper bale, packet, or piece.
It could also be in terms of your shop standards. For example, if all diaper sellers or diaper shops in Embakasi sell diapers with vumbi all over in dusty, dingy shops without proper lighting. Be the game changer.
Make sure your shop is clean, well stocked, properly arranged, clean, etc.
Talk to a company like RetailPay Ltd who supply goods on consignment, and help you arrange your shop.
Other factors to consider include whether your competitors offer services such as delivery? Find out if it is complimentary or paid for?
Find out if they also sell diapers on credit, etc.
You can also look at the range of other products your competitors sell in their diaper businesses in Kenya.
Diversification is one of the factors you need to consider for a successful diaper business in Kenya. So in addition to diapers, you can sell toys, crocs, pencils, water bottles, umbrellas, sanitary pads, condoms, tissue papers, serviettes, paper kitchen towels, baby toiletries etc.
Anything to keep your target customer coming back after they have bought their diapers for the month is part of the other products you can sell in diaper shop.
To serve your potential customer better than the competition, go where they are already being served and find out what other things they are buying.
Go to your neighborhood store, walk around the supermarket and check what other diaper related items are in those trolleys.
Whatever other diaper related items they are buying, make sure to include in your diaper business in Kenya shop.
See what I mean? This is just one example. If you conduct the same analysis for other diaper shops in your proposed location, you will come up with many more ways to top your competitors.
Diaper Business in Kenya: Operations Plan
Quite simply, a diaper business operations plan is a step by step process of how you are going to operate your new diaper business on a daily basis.
It involves things like researching and setting up a physical shop, if it will be an online shop researching available online platforms you will use (Facebook page, Instagram, Whatsapp, YouTube, etc), buying the diapers on wholesale, deliveries for your diapers, dealing with sales and customer complaints, handling accounting and the filing of KRA returns, responding to customer questions, hiring a shop assistant, etc.
You also need to figure out issues such as where to buy diapers in wholesale in Kenya, etc.
- I found Kamukunji OTC, and retail market to have very high quality diapers and at very affordable prices.
- Molfix usually deliver free of charge. Check out their wholesale shops
What are the best brands of diapers in Kenya that you can stock in your diaper business in Kenya?
Where will you purchase diapers in Kenya that you can stock in your diaper business in Kenya?
My advise for you is to buy in bales to get wholesale prices. Start with 1 or 2 bales of the fast moving diaper brands you will have already identified from your market research and competitor analysis above.
Also take advantage of customer feedback. If customers keep asking for given diaper brands in Kenya, or a particular diaper brand in Kenya is fast moving, start bringing more of that diaper brand.
As a smaller diaper business, major challenges you will encounter include pricing because you may not (yet) have the lowest pricing to compete and probably visibility if you don’t find a strategic location right off the bat like the major physical retail stores and supermarkets.
My advise for you is to simply be super patient, be committed to your loyal customers and continue to focus on bringing them the most comfortable diaper brands to wear so their baby can move freely and not be bothered by the diaper.
Some key questions you need to ask yourself include:
Whether you’re going to hire help or not?
If you’re busy and don’t have too much time to manage your diaper business, you may need to consider hiring help.
My advise for you, avoid your relatives at all costs.
Better hire a person whose relationship with you will be employee employer. Make sure to take a copy of their ID and issue them with a contract to keep things official. Otherwise character development unaeza fanyiwa kwa hizi streets, utalia na jicho moja.
Diaper Business in Kenya: Marketing Plan
This involves the tactics you will use to advertise your diaper business to get customers – both online and offline.
This is where the customer analysis you did earlier on will really come in handy.
If you know who your potential customer is, then its easier targeting them as you know where to find them and what type of marketing will be most effective.
- Having your diaper shop in a strategic location close to foot traffic of your potential customers
- Sharing the link to your online diaper shop in Kenya on various social media platforms. Post your shop details on your Instagram, Whatsapp status, TikTok, etc.
- There is an increase in the number of social media users owing to rise in internet penetration. Considering this, most of the key players in the diaper market strategize on promoting their products and services on these social media platforms.
- Another option is to create a stand alone website for your diaper business in Kenya using hosting platforms such as BlueHost.
- Some people also take advantage of Google Ads and such like advertising providers.
In my experience thought, the most effective kind of advertising is word-of-mouth from satisfied customers. This was both offline in the form of customer feedback and reviews, as well as offline.
Diaper Business in Kenya: Distributions Plan
Your distribution plan essentially takes into consideration the locations where your diaper business is going to be, the inherent costs, and how you’ll receive payment for diaper sales.
Most businesses accept cash and M-PESA payments (consider Pochi la Biashara, Buy Goods, or Paybill. Several others accept credit cards.
Are you going to sell the diapers in wholesale or retail? Per piece, package, or bale?
Diaper Business in Kenya: Revenue Management Plan
Revenue management of your diaper business in Kenya is much simpler than it sounds.
Its all about managing the income and expenses.
Specifically it includes your target income as well as expected expenses and how you will pay for them. Are you going to rent out a physical shop, set up a Facebook page or Instagram page for your diaper business, how will you top up your KPLC metre, pay for your Water bills, Kanjo licenses, etc.
How will you set diaper prices? Per bale, per packet, per piece?
Another issue to consider is how you want to legally operate your diaper business in Kenya. This will affect how you file your tax returns.
Diaper Business in Kenya: Financial Plan
How will you finance your new diaper business in Kenya?
Are you going to use your savings, or take out a loan (chama loan, bank loan or mobile loan).
If buying, will it be self-funded or you will take out a bank mortgage?
For basic stocking of diapers in your business, you will need anything from KES 15,000 to KES 20,000.
A financial plan basically shows how you’re gonna take care of all these initial costs, project income, as well as estimated expenditures.
I suggest you make up a 3-5 year financial forecast.
So, what kind of information makes up a financial plan?
Diaper Business in Kenya: Key Milestones
Put down, in writing, what your plans and goals are for starting your diaper business in Kenya.
Make sure to include the key milestones that will take you there.
This is the only way you will be able to effectively track if you’re making any progress.
Some key milestones to consider include:
- project monthly income
- Number of diaper bales per month? first month? first quarter? first year?
- Rate of growth for your sales month on month or year on year? 5%? 20%?
- Number of returning customers? 40%? 10%
Diaper Business in Kenya: AOB/Appendix
Running a diaper business is no joke.
If its busy as it should be, you need to have all necessary information at your finger tips otherwise you risk having things fall through the cracks.
In the appendix of your diaper business plan is where these kind of information goes.
This is where all those important details that you will need to keep your diaper business running smoothly comes in.
Bonus Tips for your Diaper Business Listing
- Keep your diaper shop spotless clean.
- What you may lack in location, make up for with excellent customer experience.
- Focus on quality over quantity. A high quality can attract a higher price.
- Be kind and respectful to your customers. They will never forget how you made them feel.
- Diversify your diaper shop with other diaper – related products e.g. children’s crocs, children’s toys, sanitary pads, kitchen paper towels, toilet papers, children toiletries (baby lotions, baby soaps, baby powder etc.)
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