A growth spurt expected for juvenile industry

2007 kicked off the second largest baby boom in U.S. history, according to the National Center for Health Statistics. This presents today’s gift and home furnishings retailers a unique opportunity to grow their businesses and increase crossover customers.

Penny-pinched families might have recently resisted the urge to purchase luxury baby items in favor of more practical and functional products, but interest in this category will continue to increase. Belt tightening or not, shoppers are still splurging on things they really love, reports Sharon Anne Waldrop for Gift Shop Magazine. The difference, according to Waldrop, is shoppers are just being pickier now.

Think fun and functional

Play and discovery toy market sales reached $343 million in 2007, and are projected to reach $542 million in 2012, according to a March 2008 report published by Packaged Facts, a division of MarketResearch.com.

Today, personalized gifts, classic toys, themes and characters and interactive gifts that promote play and learning are top-sellers in the baby product category. The Trend Bible, a trend forecasting agency in England, says timeless toys—such as blocks and wooden pull toys—are popular because they fill adults with nostalgia. “Products that allow for secrets and privacy work well for children growing up in an era of digital information sharing, while classic toys like rocking horses and teddy bears make a comeback,” reads their spring/summer 2011 report.

In home furnishings, parents are interested in purchasing accent pieces that can grow along with the child. This category is proving to be just as popular in the baby and juvenile sectors; consumers no longer feel there’s a clear dividing line between the kids’ room and the rest of the house.

Appeal to a new audience

The grandparent is one demographic that regularly splurges on the baby and kids’ categories. According to the April 2009 Grandparents.com report, “The Grandparent Economy,” grandparents are living and working longer, which allows them to increase their earning potential and accumulate significantly more savings than people under the age of 45.

They spent an estimated $2 trillion in 2009 alone. Of that, more than one-fourth ($52 billion) was projected to have been spent on goods and services for their grandchildren. In fact, “grandparents account for 42 percent of all consumer spending on gifts … and their number is increasing at more than double the rate of the overall population,” according to the report.

On the opposite end of the spectrum, Gen-Yers are just moving into the house-car-baby phase of their lives, saysWaldrop. This demographic is expected to have more spending power than any others by 2017.

An important characteristic of this generation is that they are team-oriented—Gen-Yers regularly check in with family and friends for advice on what products to purchase and what stores to shop at.

To attract this generation of shoppers, Waldrop suggests that retailers make their stores a place where Gen Y customers can see what other people are buying. “Have staff picks or suggestions from local pediatricians; share customer recommendations,” she says.

These trends and more will be on display at The Chicago Market in July. For a preview of the newest baby and children’s gifts and home furnishings available at Market, visit the Chicago Market Product Locator. http://mmpichi-365.ascendeventmedia.com/ExhGuide.aspx?p=35#1218