Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Slow, but positive growth projected through 2020
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- Figure 1: Total US retail sales and fan chart forecast of baby durables, at current prices, 2010-20
- Emerging pre-owned marketplace threatens traditional retailers
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- Figure 2: Select online/alternative channels shopped, November 2015
- Variances in family structures can impact the market
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- Figure 3: Percent of births to unmarried women, 2000-14
- The opportunities
- Personalize the online channel
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- Figure 4: Select retailers shopped – In-store or online, November 2015
- Don’t forget the fathers
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- Figure 5: Purchase incidence and attitudes toward safety and price, by gender and generation, November 2015
- Bring back the human touch
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- Figure 6: Select behaviors and attitudes toward baby durables shopping – Any agree, by race and Hispanic origin, November 2015
- What it means
The Market – What You Need to Know
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- The market could use a boost
- Multicultural women are key targets
- Today’s family looks different than yesteryear’s
Market Size and Forecast
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- Tepid outlook ahead for baby durables
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- Figure 7: Total US retail sales and fan chart forecast of baby durables, at current prices, 2010-20
- Figure 8: Total US retail sales and forecast of baby durables, at current prices, 2010-20
Market Breakdown
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- Furniture comprises share majority
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- Figure 9: Total US retail sales and forecast of baby durables, by segment, at current prices, 2010-20
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- Figure 10: Total US retail sales of baby durables, by segment, at current prices, 2013 and 2015
Market Factors
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- Multicultural women are key targets
- Birth rates finally turn positive
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- Figure 11: Annual births and fertility rate, 2003-14
- Birth rates rise among older women; 2014 marks highest ever age of mother at first birth
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- Figure 12: US births, by age of mother, 2014
- Twin birth rate also reaches new high
- Changing American families impact the market
- Four out of 10 births are to unmarried mothers
- Dads playing an increased role in parenthood
- Marriages among same-sex couples more than doubled versus 2013
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- Figure 13: Marriages among same-sex couples, 2013-October 2015
Key Players – What You Need to Know
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- Leader struggles while other tier one brands see growth
- Smaller players gain ground
- Innovations related to mobile-enabled technology should spur future sales
- Warehouse clubs, discount stores, furniture stores not primary destinations
Manufacturer Sales of Baby Durables
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- MULO sales grew 6.6% in 2015
- Tier One
- Tier Two
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- Figure 14: MULO market share of baby durables, by leading companies and brands, rolling 52-weeks 2015
- Figure 15: MULO sales of baby durables, by leading companies and brands, rolling 52-weeks 2014 and 2015
What’s Working?
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- Leading retail channels
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- Figure 16: Target, circular ad for Pillowfort, March 2016
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- Figure 17: Babies “R” Us, website screen shot for great trade-in event, January 2016
- Figure 18: Pottery Barn Kids, email ad for Monique Lhuillier collection, March 2016
What’s Struggling?
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- Less frequented retail channels
- Some retail channels not getting fair share of Blacks and/or Hispanics
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- Figure 19: Retailers and online/alternative channels shopped by race and Hispanic origin, November 2015
- Companies and brands facing challenges
- Transport items
- Furniture
- Safety items
What’s Next?
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- The Internet of Things is about to take over baby durables marketplace
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- Figure 20: Owlet Baby Monitor video demonstration, March 2016
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- Figure 21: 4moms, self-installing car seat video demonstration, March 2016
The Consumer – What You Need to Know
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- Majority of items are acquired new
- Mass retailers continue to attract majority of parents
- Alternative channels see growth
- Retailers can seek ways to simplify the shopping process
Items Owned
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- Ownership is high in all categories
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- Figure 22: Baby durables items owned, November 2015
- Transport items
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- Figure 23: Baby-related transport items owned, November 2015
- Furniture
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- Figure 24: Baby-related furniture items owned, November 2015
- Daytime care and/or safety/wellness items
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- Figure 25: Baby-related daytime care and/or safety/wellness items owned, November 2015
- Activity items
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- Figure 26: Activity items owned, November 2015
- In their words
Method of Acquiring Items
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- Most items are acquired new
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- Figure 27: Method of acquiring items, November 2015
- In their words
- Household income plays a role in acquiring method
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- Figure 28: Method of acquiring items, bought or borrowed, by household income, November 2015
- It’s okay to reuse items
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- Figure 29: Percentage of those who strongly agree that it’s better to acquire used items for subsequent children versus buying them new, by select demographics, November 2015
- Qualitative Insight: Does the process change after the first child?
Retailers Shopped
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- Mass merchandisers and baby superstores attract majority of parents
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- Figure 30: Retailers shopped, November 2015
- Affluent parents shop local and specialty
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- Figure 31: Select retailers shopped – in-store or online, by Hispanic origin and household income, November 2015
- Are suburbanites and those in rural areas underserved?
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- Figure 32: Select retailers shopped – In-store or online, by area, November 2015
- Qualitative Insight: What is the shopping process for baby durables like? What are parents’ favorite stores or sites?
- Qualitative Insight: How do parents feel about online shopping for baby durables?
Online/alternative Channels Shopped
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- Parents love Amazon
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- Figure 33: Online/alternative channels shopped, November 2015
- All listed channels highly appealing to multiple types of parents
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- Figure 34: Online/alternative channels shopped – Any purchase or interest, by select types of parents, November 2015
- Hispanics over index on shopping alternative channels
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- Figure 35: Online/alternative channels shopped – Any purchase or interest, by race and Hispanic origin, November 2015
- Resale market a viable option for those looking to make/save money
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- Figure 36: Consignment stores – Any purchase or interest, by household income, November 2015
- Open-minded
- Hesitant or avoiders
Behaviors and Attitudes toward Baby Durables Shopping
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- Safety trumps price
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- Figure 37: Attitudes toward safety and price – Strongly agree, by household income, November 2015
- High interest in shopping and researching online
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- Figure 38: Select behaviors and attitudes toward baby durables shopping – Any agree, all parents versus Millennial parents, November 2015
- Many opportunities to enhance shopping experience; service a key area
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- Figure 39: Opportunities to improve baby durables shopping experience – Any agree, by race and Hispanic origin, November 2015
- In their words
Parents’ Advice Regarding Shopping for Baby Durables
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- What would parents do if they owned their own store?
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Figure 40: Total US retail sales and forecast of baby durables, at inflation-adjusted prices, 2010-20
- Figure 41: Female population by age, 2011-21
- Figure 42: Women by race and Hispanic origin, 2011-21
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- Figure 43: Consumer confidence and unemployment rates, 2007- January 2016
- Figure 44: Annual births and fertility rates, by race and Hispanic origin of mother, 2003-14
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- Figure 45: Population younger than age 5, by race and Hispanic origin, 2011-21
- Figure 46: US birth rates, by age of mother, 2005-14
- Figure 47: Births, by age of mother, live-birth order, 2014
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- Figure 48: Percent of births to unmarried women, 2000-14
- Figure 49: Annual births and fertility rate, 2003-14
- Figure 50: Median age at first marriage, by gender, 2005-15
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- Figure 51: Married share of population, 2005-15
- Figure 52: Living arrangements among children under 18, 2014
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- Figure 53: Median household income, by type of household, 2014
- Figure 54: Median household income, in inflation-adjusted dollars, 2004-14
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- Figure 55: Median household income of families with children, in inflation-adjusted dollars, 2004-14
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