State of the Industry

As seen in most sectors of the U.S. economy, 2010 was a year filled with challenges for the juvenile products industry.

As a result of the economy, most consumers have limited disposable income, and are extremely price sensitive and value conscious. Couple that with today’s safety conscious parent and manufacturers are up against an almost impossible task – meeting the demands of today’s supermom who wants it all!

The state of the economy is determining whether parents buy "nice to have" or just "must have" products. That being said, juvenile products may be the one area where people can still justify splurging since purchases are typically not big tickets items and are often gifts.

Yet again, regulations are felt to be overly burdensome and restrictive, and are increasing the cost to manufacture new and existing products and stifling innovation. New regulations are increasing operations and insurance costs, and there is concern that required design changes could hurt sales. Of course, this must always be balanced with our primary goal as an industry – to manufacture safe, innovative products that make the lives of parents and caregivers easier.

The economy has also shifted social trends. Parents are spending less, prioritize value over prestige, and are more concerned with safety over fashion. Cost-effective "green" products continue to be of interest to parents and manufacturers are contributing to this effort through eco-friendly practices not only with the products they produce, but through day-to-day business decisions.

Manufacturers are realizing that social media is how today’s moms connect. Manufacturers are using social media as a low cost marketing strategy. Some are using it to build product and brand awareness, generate sales leads, and conduct consumer research. Social media is a tremendous opportunity for companies to better understand consumer needs and concerns and gather feedback on products. The industry is embracing social media and using it as a way to build relationships with parents and establish credibility.

While the industry was not immune to the economic difficulties caused by the continuing economic downturn, the circumstances did not prevent the industry from working harder to gain back consumer confidence and growth within the market.

Many manufacturers are expecting the introduction of new products, product lines and product line extensions to substantially increase the volume of sales and revenue in the near future. Development and design help companies stay fresh in the market. Manufacturers of new products are working hard to create product awareness through PR, trade shows, social media, blogs, marketing to retailers, and visibility in major baby magazines.

Based upon strong past performance, manufacturers and the juvenile products industry are upbeat about the expected continued growth over the next year.