Core Insights - The article discusses the competitive dynamics in the North American baby diaper market, particularly focusing on the emergence of Millie Moon, a brand under Zuru Edge, which is challenging established players like Procter & Gamble (P&G) and Kimberly-Clark [5][10][21] Group 1: Market Dynamics - Millie Moon has rapidly gained market share in the U.S. baby diaper segment, achieving a growth rate of over 300% and capturing 2% of the market within three years [5][14] - P&G's Pampers brand has seen a decline in market share, dropping from 32.5% in 2022 to 32.3% in 2024, while its budget brand Luvs fell from 9% to 6.9% during the same period [13][14] - The competitive landscape is characterized by a shift towards high-quality, aesthetically appealing products, with Millie Moon leveraging social media trends to enhance brand visibility [6][21] Group 2: Competitive Strategies - Millie Moon's success is attributed to its innovative product features, such as "CloudTouch™" technology and appealing packaging, which resonate with younger consumers [5][6] - In response to Millie Moon's market penetration, P&G has adopted a strategy of replicating its key selling points while undercutting prices by 1 cent with its BumBum brand [10][13] - Kimberly-Clark's Huggies brand has resorted to regulatory complaints to counter Millie Moon's marketing claims, highlighting a shift from traditional competitive tactics to administrative measures [11][21] Group 3: Supply Chain and Production - Zuru Edge operates with a lean workforce of under 300 employees, optimizing its supply chain efficiency, which allows for quicker turnaround times compared to P&G [8][10] - The article notes a significant increase in imports of Chinese-made diapers to the U.S., with the volume more than doubling over the past two years, reflecting a strategic shift in sourcing [14][15] - The competitive advantage of Chinese manufacturers is underscored by government subsidies and lower labor costs, enabling them to offer products at competitive prices [15][17]