Infant, Toddler, and Preschool Furnishings and Durables, 5th Edition

Published: September 30, 2016 - 223 Pages

Table of Contents

  • Executive Summary
    • Introduction
      • Products Outside Scope
      • Overlap of Product Classifications
    • Trends & Innovations
      • Safety huge concern for manufacturers and marketers
      • Adaptability continues to be a major new product trend
      • Busy on-the-go young parents want convenience
      • Design and Fashion Provide Differentiation
      • Licensing Popular Brand Helps Gain Consumer Acceptance
      • 360-degree marketing
      • Marketing Safety
    • The Market
      • U.S. Retail Sales of ITP Durable Furnishings & Accessories at $7 Billion in 2015
      • Market Forecast
    • The Marketers
      • Fragmented Market with a Handful of Large Players
      • Entrepreneurs and Foreign Players Important
      • Consolidation Continues
    • Distribution and Retail
      • Exclusives more important than store brands to most retailers
      • Baby registries key for ITP product retailers
    • The Consumer
      • Number of births in the U.S. varies little annually
      • Hispanics and Asians have driven birth rates
      • Women giving birth have gotten older
        • Table Live Births by Age Group, 1990-2015
      • Millennials Important ITP Cohort
        • Table Live Births by Age Group, 1990-2015
      • A Large Number of Grandparents to Buy for Grandchildren
      • Only Half of Baby Furniture or Equipment for Own Baby Bought New
  • The Products
    • Introduction
      • Products Outside Scope
      • Overlap of Product Classifications
      • Regulation and Safety
        • Table CPSC List of Durable Infant or Toddler Products
  • Trends & Innovations
    • Product
      • Safety
      • Comfort
      • Adaptability
      • Convenience
      • Design and Fashion Provide Differentiation
      • Licensing Popular Brand Helps Gain Consumer Acceptance
    • Marketing
      • Marketing Safety
      • 360 Degree Marketing
      • Still Room for the Entrepreneur
    • Retailing
      • Omni-Channel Retailing Has become Essential
        • Table Toys"R"Us, Inc. e-Commerce Sales, Fiscal Years 2011-2015 ($ millions)
      • Exclusives More Important Than Store Brands to Most Retailers
      • Baby Registries Key for ITP Product Retailers and Manufacturers
  • The Market
    • Introduction
      • Products Outside Scope
      • U.S. Retail Sales of ITP Durable Furnishings & Accessories at $7 Billion in 2015
        • Table Retail Dollar Sales of ITP Durable Furnishings & Accessories, 2011-2015 (in millions)
      • Category Sales
        • Table Retail Dollar Sales of ITP Durable Furnishings & Accessories by Product Category, 2011-2015 (in millions)
      • Segment Sales
        • Table Retail Dollar Sales of ITP Durable Furnishings & Accessories by Product Segment, 2011-2015 (in millions)
      • Sales by Retail Channel
        • Table Dollar Sales by Retail Channel of ITP Durable Furnishings & Accessories, 2015 and 2016 Projected (millions)
      • Factors Affecting Market Growth
        • Table Total U.S. Births, Birth and Fertility Rates, 1960-2015
        • Table Birth Rates Compared to Economic Measures, 2004-2015
        • Table Births, Birth and Fertility Rates by Race, 1990-2015
        • Table Live Births by Age Group, 1990-2015
      • Millennials May Be on Verge of Creating Next Baby Boom
      • 40% of Births to Unmarried Women
        • Table Live Births to Unmarried Women, 1990-2015 (percent)
      • 24 Million Children Five and Under in the U.S.
        • Table Children By Age, 2000-2015 (percent, number)
      • 20 Million Households with Children 5 Years and Younger
        • Table Households with Children, 2008-2016 (percent, number)
        • Table Households Expecting a Baby, Experiencing First and Second Child Births, 2008-2016 (percent, number)
    • Consumer Confidence
      • Table Measures of Consumer Confidence of 18- to- 34-Year-Olds, Parents vs. Non-Parents, 2015
      • Lagging Economy Impacts Consumer Spending
      • Only Half of Baby Furniture or Equipment for Own Baby Bought New
      • Median Incomes Down from 2007 High but Surge in 2015
      • Consumers Increase Savings Rates, Reduce Spending
        • Table Personal Income and Its Disposition, 2007-2016 ($ billions)
      • Low Prices Help Drive Consumer Spending
      • Non-Home Borrowing Recovers, Driven by Auto and Student Loans
      • Unemployment Rate Declines from 2009 High
      • Market Forecast
  • The Marketers
    • Marketers and Brands of ITP Products
      • Table Selected Marketers and Brands of ITP Products, 2016
      • Car Seat Competitors
        • Table Selected Marketers of Car Seats, 2016
      • Stroller Competitors
        • Table Selected Marketers of Strollers, 2016
      • Baby Carrier Competitors
        • Table Selected Marketers of Baby Carriers, 2016
      • Play Yard (pack `n play) Competitors
      • Infant Activity Competitors
        • Table Selected Marketers of Play Yards (pack `n play), 2016
        • Table Selected Marketers of Infant Activity, 2016
      • High Chair Competitors
        • Table Selected Marketers of High Chairs, 2016
      • Crib Competitors
        • Table Selected Marketers of Cribs, 2016
      • Bassinet Competitors
        • Table Selected Marketers of Bassinets, 2016
      • Changing Table Competitors
        • Table Selected Marketers of Changing Tables, 2016
      • Glider, Rocker, &Recliner Competitors
        • Table Selected Marketers of Gliders, Rockers, &Recliners, 2016
      • Mergers, Acquisitions, Divestitures
      • Competitive Profiles
        • Table Dorel Industries Sales by Business Segment, 2014-2015 ($, thousands)
        • Table Dorel Industries U.S. Products
        • Table Newell Brands U.S. Products
        • Table Goodbaby U.S. Products
        • Table MDB U.S. Products
        • Table Britax U.S. Products
        • Table Chicco U.S. Products
        • Table Delta Children's Products U.S. Products
        • Table Kids II, Inc. U.S. Products
  • Distribution and Retail
    • Retail Channels
      • Table Characteristics of Retail Channels That Sell ITP Products, 2015
      • Sales by Retail Channel
        • Table Dollar Sales by Retail Channel of ITP Durable Furnishings & Accessories, 2015 and 2016 Projected (millions)
      • Key Retailers
        • Table Walmart U.S. Sales, Fiscal Years 2010-2016 ($, billions)
        • Table Walmart Sales by Product Category, Fiscal 2014-2016 (percent)
        • Table Walmart's Top Brands in Selected ITP Product Segments
        • Table Target Sales, 2010-2015 ($, billions)
        • Table Target Sales by Channel, 2013-2015 (percent)
        • Table Target Sales by Product Category, 2013-2015 (percent)
        • Table Target's Most Popular/Featured Brands in Selected ITP Product Segments
        • Table Toys"R"Us, Inc. Sales, Fiscal Years 2011-2015 ($, billions)
        • Table Toys"R"Us, Inc. U.S. Sales by Product Category, Fiscal Years 2014-2016 (percent)
        • Table BRU's Featured/Top Selling Brands in Selected ITP Product Segments
        • Table Bed Bath & Beyond Sales, Fiscal Years 2011-2015 ($, billions)
        • Table Buy Buy Baby's Featured/Top Selling Brands in Selected ITP Product Segments
        • Table Amazon's Sales, 2011-2015 ($, billions)
        • Table Amazon's Featured/Top Selling Brands in Selected ITP Product Segments
        • Table Diapers.com Featured/Top Selling Brands in Selected ITP Product Segments
        • Table Burlington Sales, Fiscal Years 2011-2015 ($, billions)
        • Table Burlington Sales by Product Category, Fiscal Years 2014-2015 (percent)
        • Table Burlington Baby Depot's Featured/Top Selling Brands in Selected ITP Product Segments
      • Distribution
        • Table Toys"R"Us, Inc. e-Commerce Sales, Fiscal Years 2011-2015 ($ millions)
      • Brixy Helps Independently-Owned Baby Stores Compete
  • The Consumer
    • Defining Infant, Toddler & Preschool Children
    • Measures of Birth and Fertility
    • Number of U.S. Live Births Varies Little Annually
      • Table Total U.S. Births, Birth and Fertility Rates, 1960-2015
    • Until Recently Birth Rates Correlated Inversely With Economic Indicators
      • Table Birth Rates Compared to Economic Measures, 2004-2015
    • Hispanics and Asians Have Driven Birth Rates
      • Table Births, Birth and Fertility Rates by Race, 1990-2015
    • Women Giving Birth Have Gotten Older
      • Table Live Births by Age Group, 1990-2015
    • 40% of Births to Unmarried Women
      • Table Live Births to Unmarried Women, 1990-2015 (percent)
    • 24 Million Children Five and Under in the U.S.
      • Table Children By Age, 2000-2015 (percent)
    • 20 Million Households with Children 5 Years and Younger
      • Table Households with Children, 2008-2016 (percent, number)
    • Over three Million Households with Someone Expecting a Baby
      • Table Households Expecting a Baby, Experiencing First and Second Child Births, 2008-2016 (percent, number)
    • Demographic Characteristics of Households with Young Children, Expecting Woman
      • Table Demographic Characteristics of Households with Children and Women Expecting a Baby, 2016 (percent)
    • The Generational Influence of the Millennial Parent
      • Table Percentage and Share by HH Income of Millennial Generation Households with Children, 2015
    • Consumer Confidence
      • Table Measures of Consumer Confidence of 18- to- 34-Year-Olds, Parents vs. Non-Parents, 2015
    • Consumer Attitudes Measured with Simmons Segmentation System
      • Table How Consumers Identify with Simmons Economic Outlook Segments, 2010-2016 (percent)
      • Table How Consumers Identify with Simmons Retail Shopper Segments, 2010-2016 (percent)
    • People with Young Children and Expectant Moms Active Internet Users
      • Table Reasons for Internet Usage in Last 30 Days: 2008, 2012, 2016 (percent)
      • Table Reasons for Internet Usage in Last 30 Days: 2008, 2012, 2016 (percent)
    • 6 Million Households Bought Infant Furniture in Last Year
      • Table Purchase of Infant and Children's Furniture in Last 12 Months, 2008-2016 (percent, number)
    • A Large Number of Grandparents to Buy for Grandchildren
      • Table Demographic Characteristics of Grandparents, 2016 (percent)
    • Number of Grandchildren Declines
      • Table Households Experiencing Birth of Grandchildren, 2008-2016 (percent, number)
    • Some Infant Products Better Suited for Own Use Rather Than Gift
    • Only Half of Baby Furniture or Equipment for Own Baby Bought New
    • New or Pre-Owned Depends on Product
    • Nearly Half of Parents Will Only Buy or Use New Car Seats
    • Half of Consumers Buy New Baby Furniture or Equipment at Retail Store(S) Only
    • Walmart, Amazon, Babies "R" Us and Toys "R" Us Most Popular for New Baby Furniture/Equipment Purchases
    • Consumers Tend to Purchase Specific ITP Products More Frequently in Certain Retail Channels

Abstract

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Infant, Toddler, Preschool (ITP) Durable Furnishings & Accessories in the U.S.

Babies and little kids are cute and cuddly but marketing infant, toddler, preschool (ITP) products is one tough business. Market potential is capped by the birth rate, which has been stagnant at best. Safety is a potential nightmare, with regulations and recalls the cost of doing business. And people are increasingly buying used instead of new products. But. Some players thrive and new ones enter every year with a better idea. And signs of optimism are out there. Birth rates have recovered a bit. Economic indicators keep improving. Confidence is high. Millennials are spending more to get what they want, and some industry watchers believe they may soon start a baby boomlet.

U.S. retail sales of the ITP Durable Furnishings & Accessories were $7 billion in 2015. The market is mature with sales growing by a CAGR of 1.5% since 2011. Sluggish sales are partially the result of stagnant and declining number of births. At about 4 million a year the number of births in the U.S. vary little year-to-year, thus limiting overall market potential. Also impacting sales of new products is the fact that sales of used products have been growing with estimates they could be at least 25% of overall ITP product purchases. Consumers are increasingly purchasing ITP products from second-hand stores or consignment shops, sites like Craigslist and Ebay or from other consumers. People are also being given some products as hand-me-downs for free or borrowing items, thus taking consumers out of the market for purchase of some new products. Manufacturers should do everything possible to urge people to buy new products, both for safety reasons and to preserve their sales.

ITP new product sales have rebounded in the last couple of years due partially to an uptick in births and the continued popularity of higher-priced products like convertible car seats and cribs, travel systems, jogging strollers and high-end, designer-oriented products. Packaged Facts projects sales will grow by a CAGR of 2.2% to reach $7.8 billion in 2020. Future growth as in the past will be influenced greatly by the number of births and the economy. Recent indications are that both the birth rate and economy are increasing, albeit still at a slow rate, and it remains to be seen if the increases will continue. These positives for the market could be supported by a potential baby “boomlet” started by Millennial parents. In 2015, Millennial parents (ages 18-34) accounted for 42% of all households with children, making them an important segment of the parenting demographic.

Millennials, and many Gen Xers, are willing to spend extra for perceived higher quality products and services. Notably, they value transparency, authenticity, and brands that represent them and their lifestyles. ITP marketers continue to develop products that deliver benefits these consumers demand: convenience, adaptability and versatility, comfort, style and design. However with ITP products safety comes first. It is a huge concern for manufacturers and marketers of ITP products with product recalls a major challenge for the highly regulated industry. Manufacturers and industry organizations urge consumers not to buy second-hand or used products because they may not meet the most current safety standards, and new products are constantly introduced with technologies aimed at making products even safer.

The ITP durables market is fragmented with over a hundred manufacturers, marketers, and importers competing across categories and segments. While fragmented, the market is led by a handful of companies like Dorel Industries, Newell Brands and Goodbaby International that generally compete with multiple brands in numerous segments. Other players include midsize companies and more often smaller firms that compete in one or a few product segments. On the retail side the market is highly concentrated with 90% of sales taking place in mass merchandisers/supercenters, baby specialty stores and through e-commerce, which continues to grow at the fastest rate. The market is even more concentrated given that the majority of sales is controlled by less than 10 individual retailers: Babies R Us/Toys R Us, Wal-Mart, Amazon, Target, Buy Buy Baby, K-Mart, and Baby Depot (Burlington).

Scope of Report

This report presents a detailed analysis of the U.S. consumer market for infant, toddler, and preschool (ITP) durable furnishings and accessories suitable for children from infancy through age five. Products included are sold to consumers through U.S. retail channels including “bricks and mortar” stores as well as Internet sites, catalogues and others. Packaged Facts’ sales estimates only include purchase of new products by parents or gift-givers, not purchase of used or second-hand items. The 2015 sales estimate is based on current research and a revision of estimates from Packaged Facts’ 2010 report Infant, Toddler, and Preschooler (ITP) Home Furnishings, Accessories, and Toys: The U.S. Market. The current report as mentioned only includes sales of new, not used products. It also does not include product segments covered in the last report including soft goods, décor, and others. Also toys are not included, although infant activity items are part of this report.

Infant, Toddler, and Preschool Furnishings and Durables, 5th Edition discusses major players and brands, and analyzes their key activities and performance. Market size data are provided for 2011–2015 and projections for 2015–2020. The report outlines key issues and trends affecting the overall market, each category and segments defined as:
  • Furnishings: furniture (cribs, bassinets, high-chairs, booster seats, dressers, toddler beds, changing tables, rockers and glider chairs, etc.), infant activity products (gyms, bouncers, jumpers, swings, walkers, play yards, etc.), safety products (baby gates, baby monitors, etc.), bathing/bathroom (tubs, potties, diaper disposal systems, etc.).
  • Accessories: carriages, strollers, car seats, travel systems (compatible strollers and car seats), and baby carriers (rigid with carry-handle; and soft or hard-frame wearable types).
Not included in the reports’ sales estimates are: soft goods; furniture for kids over five years old, adults and general household use; décor and lighting; nursing and feeding products; consumables such as disposable diapers, baby wipes, etc.; toys, computers and software; home electronics and small appliances.

Methodology

The information in this report was obtained from both primary and secondary research. Primary research included consultation with industry sources and on-site visits of retail stores. Secondary research entailed gathering data from relevant trade, business and government sources, as well as company promotional literature and annual reports. Our estimates of market size and company performance are based on various sources including reported revenues of product manufacturers and retailers; IRI, which tracks data in mass retail outlets; publications and other market research sources.

Our analysis of consumer trends relies on data from various sources including a national online consumer usage survey conducted in July and August 2016 by Packaged Facts and Simmons National Consumer Surveys for Winter 2008 through Winter 2016 from Simmons Research. The Packaged Facts national online consumer surveys reflect a panel of 2,000 U.S. adults (age 18+) that is balanced to the national population on the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, marital status, presence or absence of children in the household, and household income. On an ongoing basis, Simmons conducts booklet-based surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population.

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