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In January of 2016 Nippon Paper announced its plans to enter China’s diaper market as an original equipment manufacturer. Given China’s significant consumer base and consumer preference for quality Japanese diaper brands, the move is not without its merits. However, a number of factors need to be considered with respect to China’s future diaper demand. The change in one-child policy also comes amidst social and economic transformations that do not always work in favour of having more children. Moreover, as a latecomer into the marketplace, Nippon will be facing an intense competition from international and domestic players, with already well-established reputation.