Nursery and Baby Equipment Retailing - UK - February 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Nursery products continue to grow
Figure 1: Best- and worst-case forecast of UK retail sales of nursery and baby equipment, 2012-22
Decline in UK birth rates
Figure 2: Number of live births in the UK, 1960-2016
Wheeled goods driving growth, but furniture declines
Figure 3: Sales of nursery and baby equipment, by share of sector, 2017 (est)
Companies and brands
Innovations
Embracing digital
The consumer
Car seats and wheeled products key items
Figure 4: Nursery/baby equipment purchased, December 2017
Specialist and online retailers preferred
Figure 5: Retailers used for purchasing nursery/baby equipment, December 2017
Gifting is a large part of the sector
Figure 6: Percentage of items received as a gift or hand-me-down, December 2017
Baby products are perceived by most to be overpriced
Figure 7: Consumer attitudes towards nursery and baby products, December 2017
Lock to keep pushchairs safe most wanted innovation
Figure 8: Consumer interest in innovations for nursery and baby equipment, December 2017
What we think
ISSUES AND INSIGHTS
The market is growing, but growth is slowing
The facts
The implications
Embracing online is key
The facts
The implications
Opportunities in the market
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Nursery products continue on growth trajectory
The future is uncertain
Wheeled goods driving sector growth
Nursery furniture share declines
Specialist chains’ share of market increases
Dip in 2016 birth rates
Weakened Sterling has led to rise in prices
People living in smaller spaces
MARKET SIZE AND FORECAST
Nursery and baby equipment market continues to grow
Second-hand market
Figure 9: Best- and worst-case forecast of UK retail sales of nursery and baby equipment, 2012-22
The future
Figure 10: UK retail sales of nursery and baby equipment, at current and constant prices, 2012-22
Forecast methodology
MARKET SEGMENTATION
Key points
Spend by sector
Figure 11: UK sales of baby and nursery equipment, by category, 2017 (est)
Wheeled goods now make up a third of the market
Car seat growth slows
Convenience important for feeding and sterilising equipment
Nursery furniture struggling
In-home safety benefits from technology innovations
Highchairs and seats suffer from price competition
Figure 12: Sales of nursery and baby equipment, by share of sector, 2017 (est)
CHANNELS TO MARKET
High street struggling
Figure 13: Distribution of spending on nursery & baby equipment, by type of retailer, 2015-2017 (est)
Mothercare increases share of nursery and baby equipment
Figure 14: UK estimated distribution of spending on nursery & baby equipment, by type of retailer, 2015-17
Market becomes increasingly fragmented
MARKET DRIVERS
Birth rate dips 0.3% in 2016
Figure 15: Number of live births in the UK, 1960-2016
Possible effect Brexit will have on birth rates
Figure 16: EU countries, pre and post-1990, 2018
Fertility rates see small decline in 2016
Figure 17: Total fertility rate (number of children per woman), 1990-2015
Average age of mothers increases to 30.4 years
Figure 18: Women’s aspirations for the next three years, by age, October 2016
More adults are remaining childless
Figure 19: Family size distribution of women born between 1945-71 who are assumed to have completed their childbearing, 2016
Figure 20: Plans to start a family in the future, by household income, August 2014
Fears over Brexit led to increase in product prices
Figure 21: Sterling to US Dollar exchange rate chart, by month, 2013-18
Lack of space puts pressure on parents
Figure 22: Number of households, by tenure – 16-44-year-olds, 2008/09-2015/16
Figure 23: Attitudes towards the family home, by tenure, May 2016
Influence of online forums
Figure 24: Sources of information, by gender, July 2017
Real wages continue to fall
Figure 25: Average weekly earnings (total pay) vs inflation, January 2016-November 2017
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Digital strategy a must
Mamas & Papas’ experiential retailing
Increase in multifunction products
Lightweight pushchairs
Reclining car seats
Advertising spend reduced by 56%
Chicco tops list of advertising spend
COMPETITIVE STRATEGIES
Digital and social media strategy
Mamas & Papas: Digital First
Figure 26: Advice section on mamasandpapas.com, 2018
Hello Baby goes from pureplay to physical retailing
Mothercare’s digital transformation
Use of influencers
Figure 27: Social and media networks used, by presence of children, March 2017
Acquisitions
Smaller brands concentrate on sleep accessories
Figure 28: Sweet Dreamers Baa Baa Blankie, 2018
Experiential retailing
Figure 29: Interest in additional services offered by department stores, by presence of children, May 2017
Mamas & Papas: Case Study
Figure 30: Mamas & Papas Westfield London, 2016
Figure 31: Mamas & Papas One Four Four store, 2016
Babies “R” Us: Purely transactional
LAUNCH ACTIVITY AND INNOVATION
Safety first
Maxi-Cosi launches child car seat with airbags
Figure 32: Maxi-Cosi AxissFix Air i-Size, 2018
Sleep safely
Brizi pollution protector
Figure 33: Brizi inserted in pushchair, 2018
Groegg 2 nightlight
Figure 34: Gro egg 2 thermometer nightlight, 2018
Buggy and stroller innovations
Cybex Gold: Eezy S Twist
Figure 35: Cybex gold collection: Eezy S Twist, 2018
Triple buggy
Figure 36: Joovy Qool buggy, 2018
Compact is key
Figure 37: Maxi-Cosi Laika, 2018
Bugaboo Fox
Figure 38: Bugaboo Fox when folded, 2018
Transformers
Valeto suitcase highchair
Figure 39: Valeto part suitcase, part highchair, 2017
Travel changing bag
Figure 40: POD travel changing bag, 2017
Joie Multiply highchair
Figure 41: Joie Multiply 6-in-1
Litecup
Figure 42: Litecup, 2017
Chicco Baby Hug 4-in-1
SleepSpace
Figure 43: BabyHub’s SleepSpace travel cot turned tepee, 2018
Customisation
Figure 44: Customisable Tripp Trapp, 2018
Sport-led equipment
Figure 45: Stokke athleisure collection, 2018
Collaborations
Rachel Zoe x Quinny
Figure 46: Rachel Zoe x Quinny Luxe Sport collection, 2018
Silver Cross royal connections
Figure 47: Silver Cross Reflex, in collaboration with Aston Martin, 2018
Figure 48: Marie-Chantal for Silver Cross, 2018
iCandy for Land Rover
Figure 49: iCandy for Land Rover, 2017
Maxi-Cosi Star Wars
Figure 50: Maxi-Cosi Rodi Star Wars seat, 2017
Cybex x Jeremy Scott
Figure 51: Cybex x Jeremy Scott, 2018
Technology and apps
Nokia Thermo
Figure 52: Nokia Thermo, 2017
Liv Cam
Figure 53: Liv Cam, 2017
Convenience
Hands-free feeding
Figure 54: FeedingBuddy, 2018
Figure 55: SnüzPouch, 2017
Fully reclining car seat
Figure 56: Joie i-Level, 2017
ADVERTISING AND MARKETING ACTIVITY
Reduction in advertising spend
Figure 57: Total above-the-line, online display and direct mail advertising expenditure on nursery and baby equipment, by advertiser, 2013-17
Chicco is the biggest spender
Figure 58: Chicco Next2Me crib, 2018
Mamas & Papas focuses on digital advertising
Figure 59: Mamas & Papas Instagram page, 2018
Gender stereotyping
Figure 60: Mothercare ELC cleaning range, 2018
Bugaboo: move freely
Figure 61: Bugaboo Move Freely campaign, 2017
Mothercare #welcometotheclub
Almost half of top advertisers prefer TV campaigns
Figure 62: Total above-the-line, online display and direct mail advertising expenditure on nursery and baby products, by media type, 2017
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Nursery furniture more likely to be purchased by affluent parents
89% purchased products from new
Specialist and online retailers top places of purchase
56% receive gifts from family members, but only 20% use gift list
Four out of five agree that baby products are overpriced
Mums go online for advice
Safety top concern
High interest in product to keep pushchairs safe
ITEMS PURCHASED
Car seats and wheeled products key items
Figure 63: Nursery/baby equipment purchased, December 2017
Popularity of side-sleeping cribs
Car seats more likely to be purchased by those in towns
Baby furniture purchased by more affluent parents outside London
Figure 64: Percentage of parents with children aged 0-4 who bought nursery furniture, by location, December 2017
Nine in 10 purchased products as new
Figure 65: Items purchased new or second-hand, December 2017
WHERE NURSERY AND BABY EQUIPMENT HAS BEEN PURCHASED
Specialist and online retailers preferred choice
Figure 66: Retailers used for purchasing nursery/baby equipment, December 2017
The role of specialists in the market
Figure 67: Free 4D scan offer, 2016
Those living in rural locations far more likely to purchase online
Figure 68: Channels used to purchase nursery/baby equipment, by location, December 2017
Majority buy from more than one retailer
Figure 69: Repertoire of retailers used for purchasing nursery/baby equipment, December 2017
ROLE OF GIFTING
Over half of parents gifted items by family members
Figure 70: Percentage of items received as a gift or hand-me-down, December 2017
Only one in five use gift list
Figure 71: How gifts were received, December 2017
Younger parents more likely to have baby shower
Figure 72: How gifts were received, by age, December 2017
Wealthier parents more likely to have baby shower and a gift list
Figure 73: How gifts were received, by socio-economic status, December 2017
ATTITUDES TOWARDS NURSERY AND BABY EQUIPMENT
Four out of five people think baby products are overpriced
Figure 74: Consumer attitudes towards nursery and baby products, December 2017
Two thirds of parents trust online communities for recommendations
Mums more likely to go online for advice
Younger parents drawn to branded product
Those living in urban locations want space-saving products
Figure 75: Nursery and baby equipment purchasing behaviours – CHAID – Tree output, December 2017
Figure 76: Nursery and baby equipment buying behaviours – CHAID – Table output, December 2017
Methodology
INTEREST IN INNOVATIONS
Health and safety are number one concerns
Figure 77: Consumer interest in innovations for nursery and baby equipment, December 2017
Increase in reliance on apps
Figure 78: Baby Feed Timer, breastfeeding tracking app, 2018
Figure 79: Baby Monitor 3G app, 2018
Mums more interested in product to keep buggies safe
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
The Baby Products Association
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology