As the U.S. economy recovers from deep recession, all eyes are on product categories that upscaled prior to the worldwide financial crashes of 2008-2009: Among such categories are young kids’ furnishings (cribs, highchairs, safety gates, etc.), accessories (baby monitors, car seats, strollers), and toys. Together, the three categories are a market valued at $17.8 billion at retail in 2010, with $22.1 billion possible in 2015, according to this update of a best-selling Packaged Facts report. Pre-2008, it seemed the parade of high-tech baby stroller brands on Main Street, U.S.A., would go on forever -- then sales of strollers priced at $1,000-plus, and sales of other top-end ITP products, were dampened by the bleak economic outlook. Yet in 2010, consumers are regaining confidence, and Bugaboo, Maclaren, Stokke, and other pricey strollers are out on the sidewalks once more. This positive turn is reinforced by parents’ quest for smarter, safer ways to raise kids; by high birth rates among U.S.-resident Hispanics; and by new evolutions of the Yoga Mom (the latest being Yoga Mom 3: Household Savior). Marketers’ creation of “mid-luxe” price-tiers has also helped them hedge against lingering after-effects of recession. In Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S., Packaged Facts examines such factors in depth, plus we deliver historical sales; a dollar forecast for the year 2015; the results of our own survey of nearly 2,000 consumers; and Experian Simmons demographic data. In addition, we profile the corporate battle styles of Crown Crafts, Dorel, Leapfrog, Maclaren, MGA Entertainment, Newell Rubbermaid/Graco, Phil&teds/Mountain Buggy, and UPPAbaby.
Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S. is based on information gathered from primary, secondary, and syndicated sources. Primary research involves on-site study of how these car seats, cribs, rubber duckies, strollers, and other products are sold through retail stores; Packaged Facts also consults with industry executives. These efforts complement our own demographic data-gathering: In May-June 2010, we ran a detailed survey of almost 2,000 adults, The Packaged Facts Consumer Survey 2010.
Secondary research involves the evaluation and comparison of data from mountains of articles found in financial, marketing, and retail publications, as well as on corresponding types of websites. Company literature, government agencies, and other sources also provide valuable secondary data.
Stats on market revenues and growth trends derive from all available data on the ITP furnishings/ accessories/toys marketplace, be they quantitative or qualitative; that is, a broad range of societal and economic trends are factored in, to help shape the most accurate possible view of sales progress.
Brand share data on both ITP accessories and play & discovery (infant) toys are provided by SymphonyIRI Group (formerly Information Resources, Inc., or IRI), which taps directly into checkout scanners in the three main mass-market channels, supermarkets, chain drugstores, and mass merchandisers. IRI’s proprietary InfoScan Review is widely regarded as the “bible” for syndicated retail brand share. However, Wal-Mart data are excluded from the Review, per these retailers’ stipulations.
In addition to analyzing consumers’ purchase and use of ITP furnishings/ accessories/toys based on our own survey, we also analyze data from quarterly surveys by Experian Simmons (formerly Simmons Market Research Bureau, Inc.), one of the leading compilers of demographic data in the United States.
The Bottom Line: What Your Company Really Gets...
With Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S., you and your marketing team will gain a comprehensive overview of the ins and outs of this highly competitive business. Just as importantly, the report anchors ITP furnishings/accessories/toys activity in the broader consumer marketplace and societal contexts, as well as in the rapidly transforming retail scene. Such valuable qualitative perspective is supported with extensive hard data presented in well-organized tables and charts.
How Your Company Will Benefit from This Report...
If your company is already an established player in ITP furnishings/accessories/toys, this report is bound to freshen and strengthen your marketing plan. If your company is newly targeting parents of small children, then this report is a great intro to the ITP products sphere, and thus it is a launching pad for a successful venture.
The whole team -- brand managers, research and development pros, ad agencies and media departments, database managers and librarians, venture capitalists, new business specialists -- all are unified by the cutting-edge analysis in Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S..
Market Insights: A Selection From The Report
The Packaged Facts Consumer Survey 2010: We Asked America
About Its Use of ITP Durables
Our own online consumer survey, The Packaged Facts Consumer Survey 2010, was conducted in May and June of 2010. We asked America about its use of pet foods and other consumables, about motherhood and parenting, and about its purchase of products intended for children from infancy through age 5. The total respondent-base was composed of 1,881 U.S.-resident adults who represented a broad cross-section of ethnicities, income levels, and lifestyles. The total purchaser-base (or in certain data sets, total recipient-base) for products for the 0-5 age bracket accounted for 616, or about a third, of those in the respondent-base.
A Third of Adults Buy Products for Kids Age 0-5—Mostly Other People’s Kids
As just stated, nearly 33% of all adults are purchasers of products for infants, toddlers, and preschoolers—that is, for kids age 0-5. That third breaks out as 25.8 percentage-points for adults purchasing such products for other people’s kids, and 7.0 points for those purchasing for their own kids. In terms of share of the purchaser-base, the ratio is roughly 4:1, in favor of purchasing for others’ kids.
This overwhelming skew should not surprise, however, because practically everyone has a relative or friend with small kids in the house, or about to be born; many of us have several relatives or friends with kids present or on the way. Of the 26% purchasing for other people’s kids, those who do so for nieces, nephews, and cousins, account for 11.2 points; while those who do so for grandkids, account for 10.3 points.
Mass Dominates ITP Durables Sales by Retail Channel
In general, the U.S. retail sphere has become more fragmented per channel, every year—even as certain retailers, led by Wal-Mart, consolidate power. In the early 2000s, Babies “R” Us was supplanted by Wal-Mart as the leading ITP furnishings/accessories/toys retailer. But Wal-Mart refuses to allow market research firms to sample checkout scanner data, and other channels, for example, kid-specialized furniture stores, independent kids’ boutiques, and many toy stores, are largely unmonitored, too.
However, Packaged Facts, extrapolating from various published and proprietary data, estimates with some confidence that mass, comprising supermarkets, drugstore chains, and mass merchandisers, accounts for 43% of ITP durables retail dollar sales, in 2010. [Table 1- 3] Specialty, including those kids’ furniture stores, kids’ boutiques, and toy stores, accounts for 30%.
The only other channel with double-digit share of retail dollars is the thriving sector of etailers, which Packaged Facts believes has built its piece of the ITP furnishings/accessories/toys pie to almost 20%.In the News
New York, October 21, 2010 — The combined U.S. retail sales of children’s home furnishings, portable accessories, and toys are ascending by more than 5% during 2010 to reach a record $18 billion by year’s end, according to market research publisher Packaged Facts’ recent industry study, Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S., 4th Edition. The report focuses on products for kids age 0-5.
In terms of share of retail dollars, toys account for more than $8 billion, or 46%, of the entire infant, toddler, and preschooler (ITP) furnishings/accessories/toys market in 2010. However, accessories (baby monitors, car seats, strollers), which account for over a third of the market with more than $6 million, have gained a bit of ground since 2006. Furnishings (cribs, highchairs, safety gates, etc.) have consistently accounted for nearly $1 out of every $5 throughout most of 2006-2010 with a total expected to surpass $3 billion.
Packaged Facts forecasts U.S. retail sales of ITP furnishings, accessories, and toys will exceed $22 billion as of 2015 with the market’s total growth for the period beginning 2010 amounting to 24%. Such optimism regarding sales of ITP furnishings/accessories/toys is conditional upon the country’s continued recovery from the economic recession of 2008-2009.
In the ITP furnishings/accessories/toys marketplace of 2010, the competitive situation is best characterized by issues of price, value, and upscale-whether high-tech or simply elegant-brand image. In the realm of luxury goods, many brands are experiencing stronger sales in 2010 and the ITP durables market appears to be benefiting from affluent or wealthy Americans’ return to spending, post-recession. Such a resurrection is largely enabled by the improving economy, and in addition, to the pre-recession upscaling of America’s taste in nursery décor, strollers, learning toys, and other ITP products.
"America’s tastes have long been trained toward the upscale," says Don Montuori, publisher of Packaged Facts. "In the broader marketplace, upscale brands have become particularly powerful influences in our society, and in many of our product markets, ever since the Reagan era of the 1980s. It seems that once we acquire a taste for the luxuries that upscale brands provide, even the severest recession can only temporarily halt or reverse these brands’ progress."
The pre-recession, recession, and recovery eras have opened up a "mid-luxury" tier for ITP durables. Many marketers of expensive ITP goods have issued intermediate-priced versions of their products to accommodate Americans whose lifestyles have been disrupted by the shaky economy. And consumers have indeed met such marketers halfway by purchasing strollers in the $500-$600 range instead of spending $1,200 for example.
Even for the millions of moms-to-be who often cannot afford anything deemed upscale or high-end, the acquisition of luxury or mid-luxury ITP products has more frequently been made possible by the collaboration of multiple friends or family members (occasionally numbering in the dozens) pooling resources to purchase high-end gifts for baby showers. Through this practice the rare and exotic then becomes fairly common. Packaged Facts’ survey data reveals that nearly 33% of all adults are purchasers of products for infants, toddlers, and preschoolers; 26% of which are purchasing for other people’s children.
Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S., 4th Edition analyzes three product categories that upscaled prior to the worldwide financial crashes of 2008-2009: young kids’ furnishings, accessories, and toys. The report examines lingering after-effects of recession factors in depth, delivers historical sales data, provides a dollar forecast for the year 2015, reveals the results of Packaged Facts’ own survey of nearly 2,000 consumers, and synthesizes Experian Simmons demographic data. In addition, the study profiles the corporate battle styles of Crown Crafts, Dorel, Leapfrog, Maclaren, MGA Entertainment, Newell Rubbermaid/Graco, Phil&teds/Mountain Buggy, and UPPAbaby.
About Packaged Facts— Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services.
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