How to Start Diaper Wholesale Business in Pakistan

With the growing birth rate in Pakistan, this may be one of the most demanding and lucrative businesses to pursue. But as always, starting from scratch doesn’t make you profitable. You must conduct market research to identify target demographics and potential customers. After that, securing a business registration and obtaining the necessary licenses helps build a client base and drive business growth.

In this blog, we have discussed how to start a diaper business in Pakistan. Here, we will discuss all the essential points that need to be considered for starting the business.

Diaper Market Overview

Before starting a diaper business, it’s essential to understand the current market trend. According to the StrategyHelix Group, Pakistan’s baby diaper market is expected to experience robust growth, with projections indicating an increase of USD 56.6 million and a compound annual growth rate of approximately 11.9% over the next five years. Even by 2029, the diaper market is expected to continue growing, with a CAGR of 8.2%. 

The various factors fuel this growth:

• Increasing Birth Rate
• Hygiene Awareness
• E-commerce Penetration
• Affordable and Local Production

In terms of expansion, its primary buyers include pharmacies, mother-and-baby shops, Kiryana stores, cash-and-carry outlets, day care centers, and online resellers. 

Register and Stay Compliant

To get started, it’s crucial to establish a legal entity that aligns with your business perspective. For instance, register your company with proprietorship, partnership, or a Private Limited Company with the relevant federal or provincial authorities like the Securities and Exchange Commission of Pakistan (SECP). Although you must obtain a National Tax Number (NTN) and Sales Tax Registration (STRN) from the Federal Board of Revenue (FBR) to handle all commercial and import/export transactions legally.

Furthermore, these hygiene products must be consulted with a legal or business advisor to ensure compliance with any specific regulations.

Choose Your Sourcing Path

You can build supply by determining your product offering, pricing, and overall competitiveness. Here you can build supply through one or a mix of the following:

• Establish Manufacturer

Sourcing from the established brand like Pampers, Huggies has been offering quality products for a decade. These manufacturers provide the diapers with reasonable pricing, and when it comes to profit margin for distributors, this business model is relatively low compared to the others.

• Local Manufacturer

You could become an authorized distributor by partnering with a local Pakistani manufacturer, such as a brand including Canbebe, Napi, or more. Which offer affordable pricing and support the push for local affordability.

• Private Label Manufacturer

You can get the highest profit by connecting with the private labelling manufacturer, where you work with brands like EcoBaby and CareComfort to create your products. However, sourcing from here requires a higher upfront investment in branding and Minimum Order Quantities (MOQ).

Use Alahdeen to Move Faster

Skip the hassle of going to the market, because now Alahdeen has introduced the opportunity to connect the suppliers with buyers. With the user-friendly website, buyers can directly connect with the suppliers through WhatsApp, call, or a ratelelo form. It’s a for sure statement that you found the desired diaper supplier and got the wholesale rate on the bulk order. Plus, you can also:

• Request a quote and ask for the exact sizes and packs that you need for your business.
• Providing the flexibility to compare prices, MOQ, lead time, delivery, and payment terms in one place.

Alahdeen, as a prominent B2B marketplace in Pakistan, serves as a comprehensive platform to list your diaper inventor, where you can expand your market reach far beyond what a traditional, physically limited sales force could achieve. 

Set the Right Pricing

Pricing is the game changer in the Pakistani market, especially between the premium imported brands and budget-friendly local options. You should have multiple pricing structures, including a Tiered pricing structure with significant volume discounts for high-volume customers, such as large retailers or institutions, incentivizing them to place larger and more frequent orders.

Plan the Smart Inventory

Smart inventory planning is crucial for maintaining healthy cash flow and ensuring consistent customer satisfaction. On the other hand, overstocking leads to low profits, while stockouts lead to losing customers and sales. 

So, it is crucial to manage inventory in a proper manner. Ensure your planning is based on accurate forecasting, utilizing demographics data, local birth rates and consumption patterns. Well, disposable diapers have a long shelf life; you must rigorously implement a First-In, First-Out (FIFO) system to ensure the freshest stock is always dispatched.

Store and Deliver Correctly

Diapers are highly sensitive hygiene products that need airtight storage and handling. To avoid moisture and package damage, store cartons on pallets/racks in a clean, dry, well-ventilated warehouse. To preserve absorbency and retail packs, train personnel to handle without compression, drops, or harsh stacking. Finally, ensure on-time, damage-free distribution with a reliable logistics network intended for high volume and bulk.

To sum up, it’s high time to take charge of right sourcing, right pricing, and make sure to maintain quality through regular checks. Check out Alahdeen to find verified suppliers, compare quotes, publish your SKUs, and attract bulk buyers. It’s a great way to grow your business more efficiently and keep everything under control.