Baby Specialists Supply Something Special

Potential for growth in the baby sector stores is excellent for any number of reasons: Moms are starting their families later in life than they did in the past. This trend in itself translates to greater income, more maturity and discretion, and the desire for more information. Moms are busy. They are doing their shopping while multi-tasking with careers and other family business. Shopping for the baby needs to be targeted and time-efficient.

Baby-sector stores are already out-performing drug stores and supermarkets even for everyday needs. However, baby-sector stores have the ability to carry far more fringe items, specialty items, and fashion items, all which appeal to today's mainstream Moms. Because baby-sector stores can carry more of the niche and specialty items, they also have a tendency to make greater profits.

David Biernbaum, Senior Marketing and Business Development Consultant, David Biernbaum Associates

Baby Specialists can really be a one-stop-shop in times when mothers have more than ever to deal with. On top of the notion that mothers might be paying a little bit more due to the 'convenience factor', it has also been proven time and again that parents (mothers) are willing to pay more for their children's needs than their own. This holds true even in a tough economy, when families are cutting back on things that used to be deemed necessities. Children's--particularly infants'--needs come first and Mothercare seems to be doing a good job providing consistently high-quality offerings that bring moms not only into their stores but purchasing in less traditional outlets as well.

Baby specialists have the opportunity to bring mothers in the door by offering services that broader-based outlets cannot. Examples of this are birthing classes, consultants for baby registries, lactation consultants, etc. Expectant and new moms seek out this information in their new, overwhelming world and being able to find this in one place can be a true stress reliever. Successful operators like Mothercare can squeeze out retail pharmacy as the source of trusted information and products for precious tiny ones.

Alison Chaltas, EVP, GfK Interscope

The trends do seem right on for this concept. Older moms with more disposable income. Here in the states, Babies R Us ought to be best positioned to cash in on the heart of the less-price sensitive market.

Here's a crazy idea for the baby superstores: work with the pet superstores and with household data sources to figure out which households are DINKs or families with babies, and who spend on higher-end pet supplies. I can think of half a dozen among my close friends. When folks who spend thousands a year on the dog have kids, boy do they spend! Then, make those households yours.

Jonathan Marek, Senior Vice President, Applied Predictive Technologies

From a customer perspective, I can see buyers being more confident about the information they get from a specialized store. From an operational perspective, it's easier for me to focus on only one category which ironically requires the most amount of product knowledge.

Babies R Us is a testament to the success of a specialized store. Many single unit operators are seeing success (yes even now) here in Toronto and suburbs. You were considered an awful parent if you didn't buy at least one thing from Dearborn (even though they were overpriced and not entirely committed to customer service). Baby specialty shops are they way to go in the consumers mind.

Doron Levy, President, TheMortgageMachine.ca

Jonathan Marek is on to something. Specialty stores for babies and for pets have a lot in common: Toys, food, vitamins, cages, beds, grooming aids, garments, cleaning products, leashes, and excrement removal equipment. It's no surprise that they operate so similarly, experience the same trends, and share the same customers. Cross-marketing is a natural relationship.

M. Jericho Banks PhD, President, CEO, Forensic Marketing LLC

Another thing about the baby store customer is that they want/need information about their babies' clothing, toys, food, etc. This is another fantastic opportunity for social networking. It's an opportunity for the individual consumers to have their voices heard by the manufacturers, retailers, even governmental agencies around public policy. The sky is the limit here. Tell me the babies' moms aren't concerned about food safety. The retailer could set up blogs/sites, etc, and even invite customers to face-to-face events/forums.

As an example, there is a key food safety event in Washington, D.C. on June 24 that will have many stakeholders involved, including consumer advocates. Why couldn't the baby store connect with that event and help shape the agenda? It can be done.

Ralph Jacobson, Global Consumer Products Industry Marketing Executive, IBM

I am very curious about demographic data in this area. From what I can see there are several trends going on. Generation X and Y are having children later--into their 40s. Therefore, there has been a very extended "echo boom." However, the subsequent generations--who are they? Generation Z?--are having children younger. This seems to be producing a huge pig moving through the python. I wonder whether there is a predicted "baby bust," which will eventually dry up demand for these stores.

Anna Murray, President, e*media division

Most baby products are easily available online and at warehouse clubs, at cutthroat discount prices. The baby specialist niche is no easy road to Profitland.

Mark Lilien, Consultant, Retail Technology Group