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·7 min read

Why Switch from Multinational to Mid-Size Incontinence Brands

The incontinence products market, valued at over €14.8 billion globally in 2023, has long been dominated by multinational corporations. However, a growing number of distributors and retailers are discovering significant advantages in partnering with mid-size incontinence brands. This strategic shift represents more than just cost savings—it's about building sustainable, profitable partnerships that better serve end customers while improving business flexibility.

The Current Market Landscape

Multinational incontinence brands control approximately 65% of the European market, leveraging massive marketing budgets and established retail relationships. Companies like Procter & Gamble, Kimberly-Clark, and Essity have built formidable market presence through decades of investment. However, their sheer size often translates into rigid business practices, limited customization options, and increasingly compressed distributor margins.

Recent market analysis shows that independent pharmacies and healthcare distributors report average gross margins of just 18-22% on multinational incontinence brands, compared to 28-35% achievable with quality mid-size alternatives. This margin difference directly impacts profitability and long-term business sustainability.

Key Advantages of Mid-Size Incontinence Brands

Enhanced Profit Margins and Pricing Flexibility

Mid-size incontinence manufacturers typically offer more attractive wholesale pricing structures due to lower overhead costs and streamlined operations. Without massive corporate bureaucracy and marketing expenditures, these companies can pass savings directly to distributors. Additionally, mid-size brands often provide more flexible pricing arrangements, volume incentives, and seasonal promotions that multinational corporations cannot match due to rigid global pricing policies.

Direct Partnership with Decision Makers

One of the most significant mid-size incontinence advantages is direct access to brand owners and key decision makers. Instead of navigating multiple corporate layers, distributors can communicate directly with company leadership, enabling faster problem resolution, customized solutions, and more responsive service. This direct relationship fosters genuine partnerships rather than transactional vendor relationships.

Product Customization and Market Responsiveness

Mid-size brands demonstrate superior agility in product development and market adaptation. They can quickly respond to local market preferences, regulatory changes, and emerging customer needs. Whether it's adjusting absorption levels, modifying packaging sizes, or developing specialized products for specific demographics, mid-size manufacturers offer customization options that multinational corporations simply cannot provide efficiently.

Exclusive Territory Agreements

Many mid-size incontinence brands offer exclusive or semi-exclusive territory agreements, providing distributors with protected market areas and reduced internal competition. This exclusivity enables distributors to build stronger customer relationships and invest confidently in market development, knowing their efforts won't be undermined by competing distributors of the same brand.

Quality and Compliance Standards

A common misconception suggests that mid-size incontinence brands compromise on quality. In reality, many mid-size manufacturers maintain identical or superior quality standards compared to multinational alternatives. European mid-size brands must meet stringent CE certification requirements and comply with the same regulatory frameworks as their larger competitors.

For example, KERA's product lines are manufactured in Belgium, France, and Greece under strict quality controls, offering absorption ranges from 2500ml for day products up to 4300ml for night protection. These specifications match or exceed many multinational products while maintaining competitive pricing and superior service levels.

Manufacturing Excellence in Mid-Size Operations

Mid-size manufacturers often operate more focused production facilities, enabling better quality control and consistency. Without the pressure to produce massive volumes across dozens of global facilities, these companies can maintain tighter manufacturing standards and implement quality improvements more rapidly.

Supply Chain and Logistics Advantages

Multinational corporations often struggle with complex global supply chains that can create delays, inventory challenges, and reduced flexibility. Mid-size incontinence brands typically operate more streamlined logistics networks, offering several advantages:

  • Shorter lead times: Simplified production scheduling and regional manufacturing reduce order-to-delivery timeframes
  • Better inventory management: Direct relationships enable more accurate demand forecasting and inventory planning
  • Flexible order quantities: Reduced minimum order requirements accommodate smaller distributors and seasonal demand variations
  • Regional distribution centers: Strategic warehouse locations improve delivery times and reduce transportation costs

These logistics advantages translate into improved cash flow management and reduced inventory carrying costs for distributors.

Market Positioning and Competitive Differentiation

Partnering with mid-size incontinence brands enables distributors to differentiate themselves in increasingly competitive markets. Rather than competing solely on price with identical multinational products, distributors can offer unique value propositions:

Specialized Product Lines

Mid-size brands often develop specialized products that address specific market gaps. For instance, KERA's unique 75x90cm underpads specifically designed for hospital beds represent a product category with virtually no competition in Europe, providing distributors with exclusive market opportunities.

Personalized Customer Service

The direct relationship with mid-size brands enables distributors to provide superior customer service, including faster response times for inquiries, customized product recommendations, and more flexible return policies. This enhanced service capability becomes a key competitive differentiator.

Financial Benefits of Brand Switching

Transitioning from multinational to mid-size incontinence brands delivers measurable financial advantages:

  1. Improved gross margins: Average margin improvements of 6-13 percentage points
  2. Reduced marketing costs: Mid-size brands often provide better promotional support and co-op advertising opportunities
  3. Lower inventory requirements: Flexible ordering terms reduce working capital requirements
  4. Volume incentives: More achievable volume thresholds for bonus programs and pricing tiers

Many distributors report ROI improvements of 15-25% within the first year of switching to quality mid-size incontinence alternatives.

Implementation Strategy for Brand Switching

Gradual Transition Approach

Successful brand switching typically involves a phased approach rather than immediate complete replacement. Start with specific product categories or customer segments to test market acceptance and operational efficiency. This gradual transition minimizes risk while building confidence in the new partnership.

Customer Education and Communication

Effective communication with existing customers is crucial for successful brand switching. Emphasize the benefits of improved product availability, better service levels, and competitive pricing while addressing any concerns about brand recognition or product quality.

Choosing the Right Mid-Size Partner

Not all mid-size incontinence brands offer equal value. Key evaluation criteria include:

  • Manufacturing certifications and quality standards
  • Product range breadth and absorption performance
  • Supply chain reliability and logistics capabilities
  • Financial stability and long-term viability
  • Partnership terms and territorial protection
  • Technical support and training programs

Due diligence should include facility visits, reference checks with existing distributors, and thorough product testing to ensure quality meets customer expectations.

Conclusion

The shift from multinational to mid-size incontinence brands represents a strategic opportunity for distributors seeking improved profitability, enhanced flexibility, and stronger competitive positioning. While multinational brands offer market recognition, the combination of better margins, superior service, and partnership flexibility makes mid-size alternatives increasingly attractive.

Success requires careful partner selection, thoughtful implementation strategy, and commitment to building long-term relationships. Distributors who make this transition strategically often discover not only improved financial performance but also enhanced customer satisfaction and market differentiation.

If you're considering an alternative to big brand incontinence products, explore KERA's distributor program to learn how our flexible partnership approach and quality European-manufactured products can enhance your market position. Contact our team to discuss your specific market requirements and discover the advantages of working directly with a responsive, customer-focused incontinence brand.

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