Procter & Gamble continues to focus on innovation, not price, to drive growth in its baby care segment, a strategy that is helping it grow its business in Greater China, despite record-low births and a fertility rate that is among the lowest in the world.

To cater to Chinese parents who are willing to spend top dollar for high end baby care products, P&G has incorporated genuine silk, a raw material long valued in Chinese culture for luxury and prestige, in a new ultra-premium Pampers product.

“Greater China Baby Care was one of the first categories to make a step change and continues to lead the growth of the premium and super-premium segments of the market behind consumer insight-driven innovation, and brand communication,” says Shailesh Jejurikar, P&G CEO. “Chinese parents want only the best for their baby—softness and comfort in addition to dryness.”

The launch of Pampers Prestige diapers containing silk has helped drive double-digit growth in the Greater Chinese baby care market in the last 18 months and increase the company’s marketshare by nearly three points during the last three months.

Growth in China comes amidst weakness in the global baby care market, which is marked by high penetration levels and low birth rates. Other brights spots included France, Spain and Italy, which largely offset a softer period in Germany, according to executives.

Sales are also soft in North America, where P&G is hoping its strategy of focusing on innovation, not price, can achieve the same results as its Chinese business.  Earlier this year, Pampers Cruisers and Swaddlers, its premium brands, were upgraded with Extra Absorb Channels that help babies stay drier and do not sag compared to ordinary diapers. The upgraded diapers have three absorbent channels in the core of the diaper that distribute wetness evenly and help prevent diaper sag. Pampers Swaddlers also features a new outer cover that is softer than previous versions of the diaper.

Outside of its Pampers brands, early last year P&G started selling Chinese-made diapers under a new brand, bumbum, in U.S. Target stores. These aloe-infused, premium diapers are positioned to compete against high performing, lower cost diaper brands in the U.S. market, like MilleMoon and Rascals, which are also made in China. P&G has not commented on how this brand is performing.