Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
Executive Summary
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- Market produces modest gains despite economy
- Competition grows as economy worsens
- Market drivers predominately offer negative outlook for market
- Baby furniture leads sales and growth among segments
- Mass merchandisers account for 53% of baby durable sales
- Baby durable manufacturer profiles
- Innovation driven by value, technology and lifestyle position
- Incidence of ownership and how baby durable products are acquired
- Influences of purchase
- Purchasing habits related to safety issues
Insights and Opportunities
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- Safety builds parental trust
- Customization gives parents exactly what they need
- Getting personal to maximize baby registries
- A is for “Alpha Mom”
Inspire Insights
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- Rules of Thumb
- What's it about?
- What we've seen
- Specifics
- Implications
- Specifics (part 2)
- Implications (part 2)
Market Size and Forecast
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- Key points
- Parents still spend money on their babies despite poor economy
- Recession will impact the number of births and where consumers shop
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- Figure 1: Total U.S. retail sales and forecast of baby durables, at current prices, 2003-13
- Figure 2: Total U.S. retail sales and forecast of baby durables, at inflation-adjusted prices, 2003-13
Competitive Context
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- The shadow market
- Children’s resale
- Thrift stores/Not for Profit
- Internet resellers
- Advantages for baby durables marketers
Segment Performance—Overview
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- Key points
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- Figure 3: Total U.S. retail sales of baby durables, by segments, 2006 and 2008
Segment Performance—Baby Furniture
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- Key points
- Crib sales—a basic need
- Quality furniture for baby and beyond
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- Figure 4: U.S. retail sales and forecast of baby furniture, at current prices, 2003-13
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- Figure 5: U.S. retail sales and forecast of baby furniture, at inflation-adjusted prices, 2003-13
Segment Performance—Daytime Care Products
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- Key points
- The non-essential baby items
- Blurring product lines
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- Figure 6: U.S. retail sales and forecast of daytime care products, at current prices, 2003-13
- Figure 7: U.S. retail sales and forecast of daytime care products, at inflation-adjusted prices, 2003-13
Segment Performance—Baby Mobility
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- Key points
- Innovative car seats give parents the option to own just one
- Strollers cater to parents’ needs and lifestyle choices
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- Figure 8: Total U.S. retail sales and forecast of baby mobility products, 2003-13
- Figure 9: Total U.S. retail sales and forecast of baby mobility products, at inflation-adjusted prices, 2003-13
Segment Performance—Safety/Health and Wellness
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- Key points
- Tangible value
- Going high-tech
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- Figure 10: Total U.S. retail sales and forecast of safety/health and wellness products, at current prices, 2003-13
- Figure 11: Total U.S. retail sales and forecast of safety/health and wellness products, at inflation-adjusted prices, 2003-13
Retail Channels
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- Key points
- Mass merchandisers capture the nexus between price, selection and convenience
- Wal-Mart: Gains through store growth
- Target: Building sales through exclusive brands
- Kmart: Struggling sales
- Baby specialists—the industry authority
- Babies R Us: The quintessential stop for expecting parents
- One Step Ahead: Establishing parental trust while leveraging convenience
- Lifestyle specialty stores and full-line furniture stores stimulating growth
- Pottery Barn Kids: Target affluent consumers
- Ikea: Offering value with style
- Ashley Furniture Home Stores: Quality that can transition
- Retail channel sales
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- Figure 12: Retail sales of top nine baby durables retailers, 2007 and 2008
- Figure 13: Retail sales of top 20 baby durables retailers, by channel, 2006 and 2007
Market Drivers
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- Outlook for baby durables weakens as population of children under 3 is expected to slow
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- Figure 14: U.S. population estimates and projections of children aged 3 and under, 2003-13
- It comes down to money
- Recession, unemployment impact birth rates—now and future
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- Figure 15: Seasonally adjusted unemployment rate, 16 years and older, by month, 2000-09
- Household income
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- Figure 16: Household income distribution, by race and Hispanic origin of householder, 2007
- Race and ethnic origin—influencing factors on fertility rates and number of births
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- Figure 17: Fertility and number of births, by race of mother, 2004 and 2006
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- Figure 18: U.S. population estimates and projections of children aged 3 and under, by race and Hispanic origin, 2003-13
- Age of mom and her employment
- Older moms is a positive market driver
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- Figure 19: Fertility and number of births, by age of mother, 2004 and 2006
- More women in labor force than ever before
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- Figure 20: Women’s labor force participation, 1975-2006
- Grandparent caretakers represent secondary consumer
Leading Companies and Brands
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- Dorel
- Newell Rubbermaid: Graco
- Evenflo
- Mattel: Fisher-Price BabyGear
- RC2: Learning Curve brands
- Kolcraft
- Stork Craft
Innovation and Innovators
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- Getting the most bang for your buck
- Transitional products
- Multifunctional products
- Innovating with parents in mind
- Ease of use
- Solutions
- Lifestyle statements
- Innovators: The European influence and high-end baby gear
- Customization
- Functionality
- High style
Advertising and Promotion
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- Overview
- Internet is primary resource for new parents
- Informational websites: go-to resources for product information and community support
- Online magazines: product evaluations and top picks help parents
- Blogs and chat rooms continue to gain influence
- Magazines are an important research tool—features and awards for top products
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- Figure 21: Select parenting publications, by type, 2009
- Promotion focus: Sweepstakes, contests and events
Usage—Baby Furniture
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- Key points
- Moms acquire new cribs and mattresses; all other furniture pieces are negotiable
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- Figure 22: How mothers acquire baby room furniture, by product type, December 2008
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- Figure 23: Incidence of furniture gift giving among women, by product type, December 2008
Usage—Baby Mobility
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- Key points
- New car seats and strollers are essential baby gear—borrowing/second-hand won’t do
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- Figure 24: How mothers acquire baby mobility durables, by product type, December 2008
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- Figure 25: Incidence of baby mobility gift giving among women, by product type, December 2008
Usage—Daytime Care
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- Key points
- Moms are open to “used” daytime care items; yet many are received as gifts
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- Figure 26: How mothers acquire daytime care durables, by product type, December 2008
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- Figure 27: Incidence of daytime care product giving among women, December 2008
- Key points
- Usage of safety/wellness products depends on parenting and lifestyle factors
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- Figure 28: How mothers acquire baby safety/health and wellness durables, by product type, December 2008
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- Figure 29: Incidence of baby safety/health and wellness durables giving among women, December 2008
Place of Purchase
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- Key points
- Almost nine in ten parents shop mass merchandisers for baby durables
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- Figure 30: Stores where baby products are acquired, December 2008
Brands Purchased
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- Key point
- Fragmentation of brands is high; traditional brands have strong penetration
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- Figure 31: Brands of baby products acquired, December 2008
Attitudes
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- Key points
- Family and friends influence purchase decisions
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- Figure 32: Research conducted and other statements about acquiring baby products, December 2008
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- Figure 33: What influences the purchase, December 2008
Changing Purchasing Habits due to Safety Issues
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- Key points
- Parents say safety isn’t more of an issue now—they’ve always been safety-conscious
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- Figure 34: Changing purchasing habits due to safety issues, December 2008
Moms in Online Communities
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- Key points
- MySpace and Facebook membership popular among moms
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- Figure 35: What influences the purchase, by age of mother, December 2008
Cluster Analysis
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- Overview
- Researchers and Readers
- Who they are
- Opportunity
- Mainstream Moms
- Who they are
- Opportunity
- Bargain Buyers and Borrowers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 36: Baby durable clusters, December 2008
- Figure 37: Agree/disagree with purchase statements about baby products, by baby durable clusters, December 2008
- Figure 38: Agree/disagree with safety statements about baby products, by baby durable clusters, December 2008
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- Figure 39: Average number of items bought new, by baby durable clusters, December 2008
- Figure 40: Average number of items bought second-hand, by baby durable clusters, December 2008
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- Figure 41: Average number of items borrowed, by baby durable clusters, December 2008
- Figure 42: Average number of items received as gifts, by baby durable clusters, December 2008
- Cluster demographics
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- Figure 43: Baby durable clusters, by age, December 2008
- Figure 44: Baby durable clusters, by presence of children younger than 5, December 2008
- Figure 45: Baby durable clusters, by income, December 2008
- Cluster methodology
Appendix: Trade Associations
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