Baby's world

Discount Store News, Oct 25, 1999 by Cecile B. Corral

newborns to 3 years

I fever there was a mover and shaker of sales in the baby category, it was--and very much still is--those disposable diapers. A revolutionary product for infants, it remains beloved by moms for simplifying their harried lives and by retailers for providing a traffic generator that a baby will need for at least two years.

Nearly 30 years after the introduction of the disposable diaper not much has changed. In fact, at the supermarket level, diapers are still the top-selling merchandise for newborns to 3-year-olds, according to ACNielsen. In its latest compilation of consumer buying patterns, ACNielsen reported that American households with children between newborn and 5 years old spent 517% more than the average family--or, "a disproportionate share of their [disposable income] on that particular item," according to ACNielsen spokesman Matt Bell.

Research has shown that when it comes to shopping for baby, parents tend to be pragmatic and prudent. Because babies are too young to have a real influence on their parent's shopping patterns--unlike their 4- to 8-year-old siblings--buying merchandise has not been forefront in the minds of merchants and manufacturers.

Until now.

With the economy humming along and consumers shopping frequently and steadily, the baby category has made a 180 degree turn from practical to modish, and researchers believe the pattern, while not as revolutionary as the diaper, could stick.

"There is now a rise in the baby category," said Chris Cooper, vp of America's Research Group. "You see it with all the baby superstores, the baby registries and the designer baby products."

Foremost, name brand clothing for newborns to 3-year-olds is the main force driving parents--especially those who are in their 20s and 30s--into stores, Cooper said.

Whether it's baby booties sporting the Nike swoosh or onesies splashed with the DKNY label, research shows that these parents are flocking to stores in search of pint-size apparel stamped with the same designer brand names they wear themselves.

"Among generations like these who have high brand readings, the mentality when it comes to baby products is `It's the cutest thing to have my baby in Nike sneakers,'" Cooper said. "Most of the time, even though the t-shirt says Nike on it, the quality of the clothes is not good. But for these parents, it's the brand that counts."

Cooper said his research firm, which tracks trends in consumer spending and shopping behavior, has not seen a real tilt on a national scale in sales of baby products--infant wear, toys and juvenile furniture--in "a long time," or since the disposable diaper hit store shelves for the first time. One of the main reasons is that baby merchandise is typically viewed by consumers as necessities, not luxury items.

Isotoner/Totes has forged a partnership with Mattel's Fisher-Price license to produce a new line of rain coats, gloves, umbrellas and other weather-related accessories for children 0 to 6. It is the first time Isotoner and Totes, which typically produce items for adults, is working with a children's company.

"We have always shunned children's licenses because we found that since our products are so seasonal, it was a high risk to back a movie or a TV program that comes and goes," said spokesman Al Hellinger. But market research revealed that parents are inclined to buy their children products labeled with brands that they themselves have used and trusted--and both Isotoner/Totes and Fisher-Price ranked in these levels for consumers.

"The only way a baby can influence parents to shop is with his or her mere presence," Cooper said. "A baby is a new family member parents have to provide for, to sustain." By comparison, Cooper added, children age 4 to 8 have tremendous impact on how parents spend their money at fast-food restaurants and on candy at stores.

At the mass market level, one instigator of trends in infant category offerings is the sprouting of baby superstores such as Babies "R" Us, Cooper noted. As an extension of its Babies "R" Us chain, the new Toys "R" Us prototype stores, which are rolling out through next year, feature a large infant department with name brand apparel, furniture, accessories and other items. This new addition to TRU is intended to give mothers a place of their own to browse and shop for their babies within the toy store while their other children tackle aisles of games, action figures and electronic toys in other nearby departments.

Like baby superstores and baby centers, baby registries are also poised to help generate interest. Target, for example, promotes its new lines of trendy baby products through its registry service both off line and on line. Aside from its cute assortment of private label baby clothes, Target stocks up on other baby-related merchandise that young parents are attracted to: multipurpose baby strollers that easily convert into car seats; nursery accessories such as monitors; and brand name baby furniture, also with multiple functions.