Baby Durables - US - April 2015

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: US retail sales and fan chart forecast for baby durables, at current prices, 2009-19
Market Drivers
Birthrates have steadily declined but are beginning to stabilize
Figure 2: Annual births and fertility rate, 2003-13
Female population will continue growing
Figure 3: Women by race and Hispanic origin, 2009-19
Figure 4: Population younger than age 5, by race and Hispanic origin, 2015-20
Rate of older moms and single parents is high
Figure 5: Percentage of births, by age of mother, 2013
Figure 6: Percent of births to unmarried mothers, by race and Hispanic origin of mother, 2013
The consumer
Baby durables category is large and complex
Figure 7: Baby-related items ownership – any, by category, January 2015
Most items are purchased new
Figure 8: Method of acquiring baby-related items, by category, January 2015
Friends and family are key influencers
Figure 9: Attitudes toward shopping for baby durables, key influencers relied on for information/advice regarding where to buy, by generations, January 2015
Mass merchandisers and baby superstores preferred by parents
Figure 10: Retailers shopped for baby-related items, January 2015
Online and alternative channels are growing in popularity
Figure 11: Online/alternative channels where baby-related products are purchased, January 2015
What we think
ISSUES AND INSIGHTS
How can baby durables retailers up their service game?
The issues
The implications
How can baby durables retailers expand their reach to nontraditional families?
The issues
The implications
Are online and other alternative channels impacting the baby durables market?
The issues
The implications
TREND APPLICATIONS
Trend: Guiding Choice
Trend: Access All Areas
Trend: Experience Is All
MARKET SIZE AND FORECAST
Key points
Sales of baby durables looking up
Figure 12: US retail sales and forecast for baby durables, at current prices, 2009-19
Figure 13: US retail sales and forecast for baby durables, at inflation-adjusted prices, 2009-19
Furniture and car seats comprise nearly 40% of sales
Figure 14: Total US retail sales of baby durables, by segment, 2012
Fan chart forecast
Figure 15: US retail sales and fan chart forecast for baby durables, at current prices, 2009-19
MARKET DRIVERS
Key points
Despite continual declines, birthrates show signs of stabilization
Figure 16: Annual births and fertility rate, 2003-13
Figure 17: Annual births and fertility rates, by race and Hispanic origin of mother, 2003-13
Figure 18: Population younger than age 5, by race and Hispanic origin, 2010-20
Female population slated to grow
Figure 19: Women by race and Hispanic origin, 2009-19
Changing demographics among parents impact the market
Figure 20: Percentage of births, by age of mother, 2013
Figure 21: births, by age of mother, live-birth order, 2013
Figure 22: Percent of births to unmarried mothers, by race and Hispanic origin of mother, 2013
Grandparents’ purchasing power makes them a viable target
Nontraditional families have high purchasing power and are growing
Figure 23: Household income among same-sex and different-sex couples raising children under age 18, by marital status, March 2015
Online and mobile shopping provides convenience for busy parents
RETAILER OVERVIEW
Baby superstores
Quick facts
Babies R Us company overview
Key initiatives
Relevant services for parents
Figure 24: Babies “R” Us, Email, March 2014
Recent news and innovations
Buy Buy Baby company overview
Key initiatives
Relevant services for parents
Figure 25: Buy Buy Baby, Direct Mail, March 2014
Infant/child specialty stores
Quick facts
Pottery Barn Kids company overview
Key initiatives
Figure 26: Pottery Barn Kids, Instagram landing page, February 2015
Figure 27: Pottery Barn Kids, Email, March 2015
Online only retailers
Amazon quick facts
Company overview
Relevant services for parents
Figure 28: Amazon.com, Landing page, February 2015
Diapers.com quick facts
Company overview
Relevant services for parents
Figure 29: Diapers.com, Email, April 2014
Other retailers
Mass merchandisers
Figure 30: Walmart, Landing page, February 2015
Figure 31: Target, Landing page, March 2015
BABY DURABLES ITEMS OWNERSHIP
Key points
Baby durables ownership is high
Figure 32: Baby-related items ownership – any, by category, January 2015
Transport items
Figure 33: Baby-related transport items ownership, January 2015
Furniture
Figure 34: Baby-related furniture ownership, January 2015
Daytime care and/or safety/wellness items
Figure 35: Baby-related daytime care and/or safety/wellness items ownership, January 2015
Activity-related items
Figure 36: Baby-related activity items ownership, January 2015
Qualitative insight: What attributes are most important to parents?
METHOD OF ACQUIRING BABY-RELATED ITEMS
Key points
Preference is to buy new, but can this be increased even more?
Figure 37: Method of acquiring baby-related items, by category, January 2015
Qualitative insight: How do parents acquire their baby durables? Which items do they want the most control over?
Qualitative insight: What are the reasons for using or not using a gift registry?
ATTITUDES TOWARD SHOPPING FOR BABY DURABLES
Key points
Friends and family are key influencers
Figure 38: Attitudes toward shopping for baby durables, key influencers relied on for information/advice regarding where to buy, January 2015
Qualitative insight: Who or what is most influential to parents shopping for baby durables?
Online researching is a big part of the purchase journey
Figure 39: Attitudes toward shopping for baby durables, research process, January 2015
Price is a key purchase driver, but so is getting the “right” product(s)
Figure 40: Attitudes toward shopping for baby durables, purchase drivers by household income, January 2015
Qualitative insight: How do consumers research and shop for baby durables? What drives purchase?
Qualitative insight: How does the process vary for the first child versus subsequent children?
Qualitative insight: What advice do experienced parents have for first-time parents?
RETAILERS SHOPPED FOR BABY-RELATED ITEMS
Key points
Mass merchandisers and baby superstores primary destinations for parents
Figure 41: Retailers shopped for baby-related items, January 2015
Second-hand retailers appeal to at least 20% of consumers regardless of household income
Figure 42: Retailers shopped for baby-related items, in-store or online, by household income, January 2015
Primary retailers shopped remain consistent regardless of category
Figure 43: Retailers shopped for baby-related items, by category, January 2015
Qualitative insight: How do consumers choose where to shop for baby durables?
ONLINE/ALTERNATIVE CHANNELS SHOPPED FOR BABY-RELATED ITEMS
Key points
Online and alternative channels are growing in popularity
Figure 44: Online/alternative channels where baby-related products are purchased, January 2015
Qualitative insight: How do consumers feel about buying baby durables items from nontraditional channels?
Qualitative insight: What are consumers’ thoughts about buying baby durables items online?
DESIRED ADVANCEMENTS OR IMPROVEMENTS TO BABY DURABLES SHOPPING
Key points
Half of women rely on incentives earned through loyalty programs
Figure 45: Advancements or improvements that would improve baby durables shopping process, by gender, January 2015
Qualitative insight: What do consumers want from baby durables retailers?
RACE AND HISPANIC ORIGIN
Key points
Majority of items are purchased new
Figure 46: Method of acquiring baby-related items, by category – bought new versus second-hand, by race/Hispanic origin, January 2015
Hispanics do their homework before buying
Figure 47: Attitudes toward shopping for baby durables, research process by Hispanic origin, January 2015
Figure 48: Attitudes toward shopping for baby durables, key influencers relied on for information/advice regarding where to buy, by Hispanic Origin, January 2015
Figure 49: Attitudes toward shopping for baby durables, purchase drivers by Hispanic origin, January 2015
Hispanics and Blacks frequent several places when shopping for baby durables
Figure 50: Retailers shopped for baby-related items – any baby-related product ownership, by race/Hispanic origin, January 2015
APPENDIX – TRADE ASSOCIATIONS