State of the Industry

In today’s product safety-conscious society, juvenile products manufacturers face a multitude of important issues. Competition in this business isn’t new. Manufacturers must constantly try to surpass their competition and retain more customers. However, in addition to maintaining higher levels of product quality and customer satisfaction, manufacturers must also address widespread safety concerns, regulatory issues, and the demands of today’s supermoms who want it all. Balancing all of these issues is essential in order to survive today, tomorrow, and long term.

Despite the challenging economic times and the intense regulatory climate, the industry is fairing well. People continue to have children and will continue to buy for them, as long as the discretionary income is there. In fact, parents are willing to spend a little more for quality products that offer value and serve multiple functions.

Product safety and chemical/material use regulations are negatively affecting some manufacturers, while providing opportunities for others. The additional costs and resources associated with ensuring regulatory compliance are increasing product costs and delaying product shipments. Overreaction by the media, government and consumer groups is felt to have affected sales more than pricing issues.

Product safety continues to be the number one consumer issue affecting category spending and perceptions. Parents are on the look-out for the healthiest and most environmentally-friendly products. In addition, due to the economy and tightening of wallets, some consumers are choosing not to buy new and are using hand-me downs, borrowing from friends and family or buying used products instead.

Consumers expect to be able to purchase fashionable goods that meet functional needs at reasonable prices. Color and fashion continue to be driven by emotion as we are all “slaves to fashion.” And although environmentally-friendly and organic products are increasing in demand, there is growing concern that being “green” may be taken to the extreme.

The consumer base is no longer just “mom.” More than ever before, the market is now addressing the needs of dads, grandparents and other caregivers, taking into consideration that there is no “traditional” family today. The Latino/Hispanic population is also a growing demographic for the juvenile products industry.

Brick and mortar is still the preferred distribution channel, though online continues to grow in popularity. Consumers will increase their online shopping habits, but the brick and mortar retailer is still a critical part of the overall retail landscape.

New technologies are enabling the design of new and innovative products and affecting how people shop. More moms are turning to the Internet for instant access to product reviews and blogs to find out what people are saying about their products and companies.

Innovation, a healthy dose of competition and the desire to produce the highest-quality product continue to drive the juvenile products industry into the future. Keeping an eye open and being a step ahead will lead you down the road to success.