Baby Durables - US - March 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market size and forecast
Market drivers predominately offer negative outlook for market
Recession drives consumers to secondary market for baby durables
Moms likely to own essential baby furniture, but may acquire secondhand
High penetration for baby mobility due to safety and convenience
Depth of daytime care products creates gifting opportunities
Moms buy select safety/wellness items new, but many are just gadgets
Walmart and Babies“R”Us most successful baby durable retailers
Brand leaders in baby durables
Top brands and the advertising landscape
Innovation driven by value, technology, and lifestyle position
Who influences mom’s purchase decisions and where she buys baby durables
First time moms own it all, while seasoned moms streamline ownership
INSIGHTS AND OPPORTUNITIES
The power of the new Millennial mom
Who is the Millennial mom?
Making a connection with Millennial moms
Figure 1: Use of online blogs for baby durable product advice, by age of mom, November 2009
Grandparent caretakers represent secondary consumer
INSPIRE INSIGHTS
 ALPHA MOMS
What it’s about
What women want—for babies and beyond
 YOU ARE IN CONTROL
What it’s about
Catching flies with honey
MARKET SIZE AND FORECAST
Key points
Finite number of users presents market challenges
Baby durables not recession-proof
The positive…
… the negative
Figure 2: Incidence of ownership of select baby durables over time, 2007-09
Sales and forecast of baby and youth durables
Figure 3: Total U.S. retail sales and forecast of baby and youth durables, at current prices, 2004-14
Figure 4: Total U.S. retail sales of baby and youth durables, at inflation-adjusted prices, 2004-14
COMPETITIVE CONTEXT
Key points
Shadow market thrives in recession
Figure 5: Year-over-year budgeting trends, by gender, July 2009
Shadow market retailers
Figure 6: Incidence of acquisition through shadow market retailers, by age of mom and household income, November 2009
Children’s resale
Internet resellers
What do moms buy secondhand or borrow?
Figure 7: Baby durables bought secondhand or borrowed, November 2009
Will the shadow disappear?
BABY ROOM FURNITURE
Key points
Mattress, dresser and cribs essential baby room furniture
Figure 8: Number of baby room furniture items, by type of furniture, November 2009
Acquisition of baby room furniture
Mattresses purchased new
Dressers bought secondhand
Bassinets borrowed
Rocking chairs are gifted
Figure 9: How baby room furniture is acquired, by type of furniture, November 2009
BABY MOBILITY
Key points
Car seats and strollers are must-have items... in multiples!
Figure 10: Number of baby mobility items, by type of item, November 2009
Households earning more than $50K likely to own more than two car seats
Figure 11: Mean number of car seats owned, by HH income, November 2009
Acquisition of baby mobility products
Car seats bought new
Strollers are popular secondhand item
Baby carriers are received as a gift
Figure 12: How baby mobility products are acquired, by type of item, November 2009
DAYTIME CARE PRODUCTS
Key points
Daytime care products aren’t a necessity
Figure 13: Number of care-oriented baby daytime care items, by type of item, November 2009
Figure 14: Number of entertainment-centric baby daytime care items, by type of item, November 2009
Select demographics show greater propensity to own multiple playards or play mats
Figure 15: Mean number of play items owned, by age and HH income, November 2009
Ownership of many daytime care items has declined
Figure 16: Incidence of ownership of baby daytime care items over time, 2007-09
Daytime care items are often gifted
Figure 17: How baby daytime care items are acquired, by type of item, November 2009
SAFETY AND WELLNESS
Key points
Thermometers, gates and potties are owned in multiples
Figure 18: Number of safety and wellness items, by type of item, November 2009
Moms less likely to own “tool-like” safety and wellness items
Figure 19: Number of “tool-like” safety and wellness items, by type of item, November 2009
Ownership of non-essential safety/wellness items has declined
Figure 20: Incidence of ownership of baby safety and wellness items over time, 2007-09
Safety and wellness durables typically bought new or received as a gift
Figure 21: How safety/wellness products are acquired, by type of item, November 2009
RETAIL CHANNELS
Key points
 RETAIL SALES IN THE BABY AND YOUTH DURABLE MARKET
Walmart maintains a strong foothold on baby and youth durable sales
Babies“R”Us sustains growth in competitive, recessionary environment
Figure 22: Retail sales of top nine baby and youth durables retailers, 2007 and 2008
High-end retailers’ sales plummet
Figure 23: Retail sales of top 20 baby and youth durables retailers, by channel, 2007-08
 WHERE MOMS WITH YOUNG CHILDREN BUY BABY DURABLES
Mass merchandisers top destination, specialty stores attract high-income households
Shadow market for baby durables adds competitive pressure
Young moms are most likely to go online to buy baby durables
Figure 24: Stores where baby products are acquired, by age and HH income, November 2009
MARKET DRIVERS
Infant/preschool population shows little growth
Figure 25: U.S. population, by children under age five, 2005-15
U.S. birth rates in decline
Figure 26: Fertility rate and number of births, 1998-2008
Recession, unemployment impact market—now and future
Figure 27: Unemployment rate of the U.S. population, January 1999-December 2009
Poor consumer confidence prompts less discretionary spending
Figure 28: Consumer Sentiment Index, by quarter, 2001-09
Millennial moms
Figure 29: U.S. population by Generation, 2009
Largest share of births
Figure 30: Birth rate and number of births, by age of mother, 2006 and 2007
Ethnically diverse
Figure 31: Generations, by Hispanic origin, 2009
Technologically savvy
A generation of influencers
Figure 32: How the internet impacts getting product information and shopping, by generation, February 2008-March 2009
BRAND LEADERS
Key points
Graco is the most widely used baby durables brand
Evenflo and Fisher-Price usage on the rise
Figure 33: Brands of baby products owned, December 2008 and November 2009
BRANDS AND THE ADVERTISING LANDSCAPE
Overview of the brand landscape
Brand analysis: Graco
Delivering greater value through innovative convertible products
Figure 34: Brand analysis of Graco, 2010
Informational-driven marketing builds trust in brand
Graco utilizing social media
Brand analysis: Fisher-Price Baby Gear
Leveraging brand name to build loyalty
Targeting grandparents
Entertaining babies while offering style choices for parents
Products are parental favorites
Figure 35: Brand analysis of Fisher-Price baby gear, 2010
Brand analysis: Evenflo
Engaging parents is what’s best for baby
Utilizing social media to help parents with safety issues
Figure 36: Brand analysis of Evenflo, 2010
INNOVATION AND INNOVATORS
Key points
Safety
Car seats
Convenience
Baby carriers
Strollers/systems
Safety and wellness
Multifunction designs
Playards
Thermometers
Entertainment
Swings
Bouncers
Highchairs/booster seats
Style
DRIVING PURCHASE DECISIONS
Key points
Research and recommendations
Figure 37: Research and recommendations for baby products, by age and HH income, November 2009
The importance of brand and purchasing concerns
Figure 38: Importance of brand and purchasing concerns, by age and HH income, November 2009
GIFTING
Key points
Moms receive registry gifts yet many gift-givers decide on their own
Figure 39: Acquisition of baby durables as gifts, by age and HH income, November 2009
PAY IT FORWARD
Key points
Baby products more likely to be lent than donated
Figure 40: Lending or donating baby durables, among all moms, November 2009
Younger moms are much more likely to lend items
Figure 41: Lending/giving baby durables, among all moms, by age, November 2009
CLUSTER ANALYSIS
Active and Involved
Who they are
Opportunity
Mass-Reliant
Who they are
Opportunity
Cluster characteristics
Figure 42: Baby durables clusters, November 2009
Figure 43: Stores where baby products are acquired, by baby durables clusters, November 2009
Figure 44: Research habits and purchasing concerns, by baby durables clusters, November 2009
Figure 45: Brands of baby products acquired, by baby durables clusters, November 2009
Cluster demographics
Figure 46: Baby durables clusters, by age and HH income, November 2009
Cluster methodology
CUSTOM CONSUMER GROUPS: FIRST TIME MOMS VS. SEASONED MOMS
Key points
First time moms own it all; seasoned moms are more selective
Moms with two children forgo less essential furniture pieces
Figure 47: Incidence of having multiple baby furniture items, by number of children in the HH, November 2009
Moms with two children are the most likely to own multiple mobility products
Figure 48: Incidence of having multiple baby mobility items, by number of children in HH, November 2009
First time moms more likely to have daytime care items
Figure 49: Incidence of having multiple baby daytime care items, by number of children in HH, November 2009
Little differential between first time moms and seasoned moms in ownership of essential safety/wellness items
Figure 50: Incidence of having multiple baby safety/wellness items, by number of children in HH, November 2009
Figure 51: Importance of brand and purchasing concerns, by number of children in HH, November 2009
“Overwhelmed” by baby product choices, first time moms turn to research and recommendations
Figure 52: Research and recommendations for baby products, by number of children in HH, November 2009
First time moms receive gifts from registry
Figure 53: Acquisition of baby durables as gifts, number of children in HH, November 2009
APPENDIX: TRADE ASSOCIATIONS