Baby Products 2010

Market Assessment 2010
Fifth Edition July 2010 Edited by Dominic Fenn ISBN 978-1-84729-639-9
Baby Products
Baby Products
Foreword
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James Donovan Managing Director Key Note Limited
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Baby Products
Contents
Contents
Executive Summary 1. Introduction 1 2
BACKGROUND ................................................................................................................................2 DEFINITION ......................................................................................................................................2

Disposable Nappies...........................................................................................................................2 Baby Transport and Nursery Furniture............................................................................................2 Baby Monitors, Home Safety Equipment and Feeding Equipment...............................................2
2. Strategic Overview
MARKET BACKGROUND ...............................................................................................................3

Demographic and Social Factors......................................................................................................3 Number of Children Aged 0 to 2 .....................................................................................................3 Table 2.1: Number of Children in the UK Aged 0 to 2 Years (000), 30th June 2005-2009 ..............................................................................................................3 Family Size.........................................................................................................................................4 Table 2.2: Total Fertility Rate in England and Wales, 1971-2008 ..................................................4 Older Mothers...................................................................................................................................5 Table 2.3: Average Age of Mother at Childbirth in England and Wales (years), 1997-2007 .......................................................................................5 Table 2.4: Live Births in England and Wales by Age of Mother (000), 1978-2008 ................................................................................................6 Table 2.5: Live Births in England and Wales by Age of Mother (%), 1978-2008...................................................................................................6 Multiple Births ..................................................................................................................................7 Table 2.6: Number of Multiple Births in England and Wales, 1998-2008 .....................................7 Working Parents ...............................................................................................................................8 Baby Products and Fashion ..............................................................................................................8 Trade Bodies .....................................................................................................................................8 Absorbent Hygiene Product Manufacturers Association ...............................................................8 Baby Products Association ...............................................................................................................9 MARKET SIZE ..................................................................................................................................9 Table 2.7: The UK Market for Baby Products by Sector by Value (m at rsp), 2005-2009 ......................................................................................................9 Table 2.8: The UK Market for Baby Products by Sector by Value (%), 2005-2009 ................................................................................................................10
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DISTRIBUTION ...............................................................................................................................11
Online Retailing..............................................................................................................................11 COMPETITIVE STRUCTURE..........................................................................................................12 MARKETING AND ADVERTISING ...............................................................................................12 Main Media Advertising.................................................................................................................12 Table 2.9: Main Media Advertising Expenditure on Baby Products by Selected Major Retailers (000), Years Ending December 2008 and 2009.................................................13 Direct Marketing ............................................................................................................................14 Sampling .........................................................................................................................................14 Bounty .............................................................................................................................................14 Emmas Diary ..................................................................................................................................14 Baby Clubs and Social Networking................................................................................................15 Parenting Magazines......................................................................................................................16 Table 2.10: Selected Parenting Magazines by Average Net Circulation (000), July-December 2009 .............................................................................................................16 THE CONSUMER ...........................................................................................................................16 Table 2.11: Parents, Prospective Parents and Other Purchasers of Products for Babies and/or Small Children (% of respondents), March 2010 ............................................17 Table 2.12: Demographic Profile of Parents, Prospective Parents and Other Purchasers of Products for Babies and/or Small Children (% of respondents), March 2010 ........................18 Table 2.13: Demographic Profiles of Parents of Babies and Children Aged Under 16 by Age of Child/Children (% of respondents), March 2010 .........................................................19 Table 2.14: Demographic Profiles of Prospective Parents and Other Purchasers of Products for Babies and/or Small Children (% of respondents), March 2010 ........................22 MARKET FORECASTS ...................................................................................................................25 Table 2.15: The Forecast UK Market for Baby Products by Sector by Value (m at rsp), 2010-2014 ....................................................................................................25
3. Disposable Nappies
27
BACKGROUND ..............................................................................................................................27
Alternatives to Disposable Nappies...............................................................................................27 Real Nappy Week ...........................................................................................................................28 MARKET SIZE ................................................................................................................................28 Table 3.1: The UK Market for Disposable Nappies by Value (m at rsp), 2005-2009 ....................................................................................................28 SUPPLIERS ......................................................................................................................................28 DISTRIBUTION ...............................................................................................................................29 RECENT DEVELOPMENTS ............................................................................................................29 MARKETING AND ADVERTISING ...............................................................................................29 Table 3.2: Main Media Advertising Expenditure on Disposable Nappies by Brand (000), Years Ending December 2008 and 2009 ...........................................................29 CONSUMER TRENDS ....................................................................................................................30 Table 3.3: Household Use of Disposable Nappies in the Last 12 Months Penetration and Profile by Age of Main Shopper in the Household (%), 2009 .........................31 Table 3.4: Household Purchasing of Disposable Nappies in the Last 12 Months Penetration by Type of Product and Age of Main Shopper in the Household (%), 2009 .........31 Key Note Ltd 2010
Baby Products
Contents
4. Baby Transport and Nursery Furniture
32
BACKGROUND ..............................................................................................................................32 MARKET SIZE ................................................................................................................................32

Table 4.1: The UK Market for Baby Transport and Nursery Furniture by Value (m at rsp), 2005-2009 ....................................................................................................33 Baby Transport................................................................................................................................33 Table 4.2: The UK Market for Baby Transport by Value (m at rsp), 2005-2009 ....................................................................................................33 Table 4.3: The UK Market for Baby Transport by Sector by Value (m at rsp), 2005-2009 ....................................................................................................34 Nursery Furniture............................................................................................................................34 Table 4.4: The UK Market for Nursery Furniture by Value (m at rsp), 2005-2009 ....................................................................................................34 Table 4.5: The UK Market for Nursery Furniture by Sector by Value (m at rsp), 2005-2009 ....................................................................................................35 SUPPLIERS ......................................................................................................................................35 DISTRIBUTION ...............................................................................................................................36 RECENT DEVELOPMENTS ............................................................................................................36 MARKETING AND ADVERTISING ...............................................................................................37 Table 4.6: Main Media Advertising Expenditure on Baby Carriages and Nursery Equipment by Brand (000), Years Ending December 2008 and 2009 ..........................38
5. Baby Monitors, Home Safety Equipment and Feeding Equipment
39
BACKGROUND ..............................................................................................................................39 MARKET SIZE ................................................................................................................................40

Table 5.1: The UK Market for Baby Monitors, Home Safety Equipment and Feeding Equipment by Value (m at rsp), 2005-2009 ..................................................................40 Table 5.2: The UK Market for Baby Monitors, Home Safety Equipment and Feeding Equipment by Sector by Value (m at rsp), 2005-2009 ..................................................40 SUPPLIERS ......................................................................................................................................41 DISTRIBUTION ...............................................................................................................................42 RECENT DEVELOPMENTS ............................................................................................................42 Baby Monitors.................................................................................................................................42 Home Safety Equipment ................................................................................................................42 Feeding Equipment ........................................................................................................................42 MARKETING AND ADVERTISING ...............................................................................................43
6. An International Perspective
44
POPULATION TRENDS..................................................................................................................44
Table 6.1: Total Fertility Rates in the US, Europe and Selected European Countries, 2005-2010......................................................................................44
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Contents
7. PEST Analysis
46
POLITICAL FACTORS ....................................................................................................................46 ECONOMIC FACTORS ..................................................................................................................46 SOCIAL FACTORS ..........................................................................................................................46 TECHNOLOGICAL FACTORS........................................................................................................47
8. Consumer Dynamics
48
OVERVIEW .....................................................................................................................................48
Table 8.1: Attitudes Towards Baby Products and Related Issues (% of respondents), March 2010 ...................................................................................................48 Nappies............................................................................................................................................49 Breastfeeding Versus Bottle Feeding ............................................................................................49 New Versus Second-Hand Baby Equipment..................................................................................50 Choosing Baby Equipment.............................................................................................................50 DETAILED ANALYSIS ....................................................................................................................50 Nappies............................................................................................................................................50 Table 8.2: Attitudes Towards, and Use of, Disposable Nappies (% of respondents), March 2010 ...................................................................................................51 Table 8.3: Use of Non-Disposable Nappies (% of respondents), March 2010 ...................................................................................................52 Breastfeeding Versus Bottle Feeding ............................................................................................53 Table 8.4: Attitudes Towards Breastfeeding (% of respondents), March 2010 ...................................................................................................53 Table 8.5: Attitudes Towards Bottle Feeding (% of respondents), March 2010 ...................................................................................................55 New Versus Second-Hand Baby Equipment..................................................................................56 Table 8.6: Attitudes Towards New and Second-Hand Baby Equipment (% of respondents), March 2010 ...................................................................................................56 Table 8.7: Aversion to Second-Hand Baby Equipment (% of respondents), March 2010 ...................................................................................................58 Choosing Baby Equipment.............................................................................................................59 Table 8.8: Attitudes Towards the Range of Baby Equipment That is Available (% of respondents), March 2010 ...................................................................................................59 Table 8.9: Attitudes Towards the Availability of Unbiased Advice on Baby Equipment (% of respondents), March 2010 ...................................................................................................61 Table 8.10: Personal Experience of Choosing Baby Equipment (% of respondents), March 2010 ...................................................................................................62
9. Supplier Profiles
64
INTRODUCTION ............................................................................................................................64 BRITAX CHILDCARE HOLDINGS LTD .........................................................................................64

Table 9.1: Financial Results for Britax Childcare Holdings Ltd (000), Years Ending 31st December 2006-2008...........................................................................64
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GRACO LTD....................................................................................................................................65
Table 9.2: Financial Results for Graco Ltd (000), Years Ending 31st December 2007-2009 .......................................................................................66 JACKEL INTERNATIONAL LTD (MAYBORN GROUP) ...............................................................66 Table 9.3: Financial Results for Jackel International Ltd (000), Years Ending 31st December 2006-2008...........................................................................67 KIMBERLY-CLARK LTD .................................................................................................................67 Table 9.4: Financial Results for Kimberly-Clark Ltd (000), Years Ending 31st December 2006-2008...........................................................................68 MACLAREN EUROPE LTD ............................................................................................................69 Table 9.5: Financial Results for Maclaren Europe Ltd (000), Years Ending 31st December 2006-2008...........................................................................69 MAMAS & PAPAS LTD .................................................................................................................70 Table 9.6: Financial Results for Mamas & Papas Ltd (000), Years Ending 1st April 2007, 30th March 2008 and 29th March 2009 ...............................................................70 MOTHERCARE PLC .......................................................................................................................71 Table 9.7: Financial Results for Mothercare PLC (000), Years Ending 31st March 2007, 29th March 2008 and 28th March 2009...........................................................72 PHILIPS AVENT ..............................................................................................................................73 Table 9.8: Financial Results for Philips Electronics UK Ltd (000), Years Ending 31st December 2006-2008...........................................................................73 PROCTER & GAMBLE ...................................................................................................................74 Table 9.9: Financial Results for Procter & Gamble Product Supply (UK) Ltd (000), Years Ending 30th June 2007-2009 ...................................................................................74 TOMY UK LTD ...............................................................................................................................75 Table 9.10: Financial Results for Tomy UK Ltd (000), Years Ending 31st March 2007-2009 .................................................................................75
10. The Future
76
DEMOGRAPHIC TRENDS .............................................................................................................76

Table 10.1: Forecast Number of Children in the UK Aged 0 to 2 Years (000), Mid-Years 2010-2014.............................................................................76 FORECASTS 2010 TO 2014 ..........................................................................................................77 Disposable Nappies.........................................................................................................................77 Table 10.2: The Forecast UK Market for Disposable Nappies by Value (m at rsp), 2010-2014 ....................................................................................................77 Baby Transport and Nursery Furniture..........................................................................................77 Table 10.3: The Forecast UK Market for Baby Transport and Nursery Furniture by Sector by Value (m at rsp), 2010-2014....................................................................................77 Baby Monitors, Home Safety Equipment and Feeding Equipment.............................................78 Table 10.4: The Forecast UK Market for Baby Monitors, Home Safety Equipment and Feeding Equipment by Sector by Value (m at rsp), 2010-2014 ..................................................78
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Contents
11. Further Sources
79
Associations.....................................................................................................................................79 General Sources ..............................................................................................................................79 Government Sources ......................................................................................................................80 Other Sources..................................................................................................................................80 Key Note Sources ............................................................................................................................81
Understanding TGI Data
83
Number, Profile, Penetration.........................................................................................................83 Social Grade ....................................................................................................................................84 Standard Region .............................................................................................................................84
Key Note Research The Key Note Range of Reports
85 86
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Baby Products
Executive Summary
Executive Summary
The population of children aged under 2 years and particularly those aged under 1 year is clearly crucial to the baby-products market, because this group forms its consumer base. Although the mini baby boom that took place between 2005 and 2008 seems to have abated, it will continue to have a beneficial effect on the baby-products market for at least the next 2 years. In addition, a number of demographic trends, including later parenthood and an increase in the number of working mothers of young children, have benefited the market by increasing the potential spend per child. Despite continual product developments by manufacturers, the market for disposable nappies has become increasingly price-led, with retailers stepping up their promotional and marketing activity. As a result, the sector has struggled to maintain value, even in the light of the recent birth-rate increases. During the latter part of 2009 and the beginning of 2010, there were indications of the beginning of a nappy price war. Steady growth in sales of baby transport and nursery furniture between 2005 and 2008 can be attributed to strong product innovation and marketing activity by manufacturers and retailers, combined with the rising birth rate. The rate of growth slowed in 2009, partly due to a more difficult economic climate and partly due to the fact that there were slightly fewer births. Baby monitors are now a standard purchase for most new parents, with developments such as digital and video monitors helping to maintain value to an extent. Retail sales of feeding equipment also saw reasonably good growth during the period from 2005 to 2009. There were indications from Key Notes original research that concerns about the environmental impact of disposable nappies did not necessarily influence behaviour. Those who agreed that breastfeeding was much better for babies than bottle feeding outnumbered those who asserted that bottle feeding can be just as good as breastfeeding. However, the majority agreed that bottle feeding was easier for parents than breastfeeding. The current economic conditions, together with growing concern for the environment, favour passing on baby equipment, rather than discarding it. A very high proportion of respondents agreed that it is perfectly acceptable to use second-hand equipment. However, the potential dangers of using a second-hand car seat have been well publicised and the majority agreed that this is one item of baby equipment they would never buy second-hand. The downturn in the birth rate, combined with the uncertain economic situation, means that growth in the baby-products market will be relatively slow between 2010 and 2014. The next few years are likely to see a greater emphasis on value in baby products particularly in respect of smaller and disposable items such as nappies and feeding equipment.
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Baby Products
Introduction
1. Introduction
BACKGROUND
Although the mini baby boom that took place between 2005 and 2008 seems to have abated, it will continue to have a beneficial effect on the baby-products market for at least the next 2 years. In addition, a number of demographic trends, including later parenthood and an increase in the number of working mothers of young children, have benefited the market by increasing the potential spend per child. The previous edition of this Key Note Market Assessment on Baby Products was published in November 2008. This report covers developments that have taken place in the market since then. It also features original consumer research, commissioned by Key Note from NEMS Market Research and conducted in March 2010 among 477 purchasers, or potential purchasers, of products for babies and young children, drawn from a total sample of 1,003 British adults. The survey covers attitudes towards disposable nappies, breastfeeding versus bottle feeding, new versus second-hand baby equipment, and the wide range of baby equipment that is available today.
DEFINITION
Disposable Nappies
This sector covers disposable nappies and disposable training pants. Reusable nappies are discussed, but they are not included in the market figures.
Baby Transport and Nursery Furniture

The products covered by this sector are mainly major items of baby equipment, such as:
baby transport prams, pushchairs, baby carriers, travel systems and

car safety seats
nursery furniture cots, cribs, highchairs, baths, changing units and

playpens.
Baby Monitors, Home Safety Equipment and Feeding Equipment

This sector covers smaller items of equipment:
baby monitors and home safety equipment baby monitors, stair gates,
fireguards and socket covers
feeding equipment feeding bottles and teats, sterilising equipment,

soothers and other feeding equipment, such as bottle warmers and breast pumps. Bibs and baby tableware are not included.
Key Note Ltd 2010
Baby Products
Strategic Overview
2. Strategic Overview
MARKET BACKGROUND
Demographic and Social Factors
A number of interlinked social and demographic factors can have an effect on sales of baby products. These include trends in family size, parental age and parental employment.
Number of Children Aged 0 to 2

The population of children aged under 2 years and particularly those aged under 1 year is clearly crucial to the baby-products market, because this group forms its consumer base. After rising steadily between 2005 and 2008, the birth rate was projected to fall slightly during 2009. In mid-2009, there were an estimated 783,000 babies aged under 1 year in the UK, compared with 788,000 a year previously. The birth-rate increases meant that the total number of children aged under 2 years rose from 2.1 million to 2.3 million between 2005 and 2009.
Table 2.1: Number of Children in the UK Aged 0 to 2 Years (000), 30th June 2005-2009
2005 Age 0 % change year-on-year Age 1 % change year-on-year Age 2 % change year-on-year Total % change year-on-year Table continues... 716 705 681 2,102 2006 732 2.2 716 1.6 705 3.5 2,153 2.4 2007 756 3.3 732 2.2 717 1.7 2,205 2.4
2008 2009
788 4.2 756 3.3 733 2.2 2,277 3.3
783 -0.6 788 4.2 756 3.1 2,327 2.2
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Strategic Overview
Table 2.1: Number of Children in the UK Aged 0 to 2 Years (000), 30th June 2005-2009
...table continued
projections
Source: Mid-Year Population Estimates, National Statistics/General Register Office for Scotland/Northern Ireland Statistics/2008-Based Population Projections, Government Actuarys Department Crown copyright
Family Size
Despite the recent birth-rate increases, the average number of children per family has remained below two for many years. The Total Fertility Rate (TFR) is a method of estimating trends in family size based on the number of children born to women in different age groups in a given year. In 1971, the TFR in England and Wales was 2.37. It then fell to 1.63 in 2001, before gradually rising again. By 2008, the TFR was 1.97.
Table 2.2: Total Fertility Rate in England and Wales, 1971-2008

1971 1981 1991 2001 2002 2003 2004 2005 2006 2007 2008 2.37 1.79 1.82 1.63 1.65 1.73 1.78 1.79 1.86 1.92 1.97
the average number of children that would be born to a woman if current patterns of fertility persisted throughout her childbearing life
Source: Population Trends 138 (Winter 2009), National Statistics Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
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Strategic Overview
Smaller families do not necessarily have negative implications for the baby-products market, especially in respect of larger purchases, such as prams, pushchairs, cots and highchairs, since such items may well be bought only once, whatever the size of the family, and then used for subsequent children. Overall, spend per child tends to be higher in smaller families.
Older Mothers
The average age at which women give birth is still rising steadily. In 2007, the average mother in England and Wales was a year older when she gave birth than was the case a decade earlier (29.3 years, compared with 28.3 in 1997). The average age at which women give birth for the first time rose by 1.4 years over the decade between 1997 and 2007, from 26.1 to 27.5 years.
Table 2.3: Average Age of Mother at Childbirth in England and Wales (years), 1997-2007
Birth Order All Births 1997 2000 2003 2006 2007 28.3 28.5 28.8 29.1 29.3 First 26.1 26.5 27.0 27.3 27.5 Second 28.9 29.1 29.4 29.7 29.8 Third 30.6 30.9 31.0 31.2 31.3 Fourth 31.4 31.7 32.2 32.4 32.5
Source: Social Trends 39 (2009), National Statistics Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
Table 2.4, which details the number of births to women in different age groups, shows that, while the number of births to women aged under 25 fell in the 30 years between 1978 and 2008, there was a sharp increase in the number of births to women aged 35 and over.
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Strategic Overview
Table 2.4: Live Births in England and Wales by Age of Mother (000), 1978-2008
Under 25 1978 1988 1998 2004 2005 2006 2007 2008 238.8 251.6 161.4 165.7 166.9 173.3 175.6 180.7 25 to 34 322.5 381.4 377.6 346.8 352.5 362.0 373.7 385.4 35 and Over 34.2 56.1 91.0 121.2 126.3 134.2 140.8 142.6
Source: Social Trends 40 (December 2009), National Statistics Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
Births to women aged 35 and over represented 20.1% of all live births in England and Wales in 2008, compared with only 5.7% in 1978.
Table 2.5: Live Births in England and Wales by Age of Mother (%), 1978-2008
Under 25 1978 1988 1998 2004 2005 2006 2007 2008 40.1 36.5 25.6 26.1 25.8 25.9 25.4 25.5 25 to 34 54.2 55.3 59.9 54.7 54.6 54.1 54.2 54.4 35 and Over 5.7 8.1 14.4 19.1 19.6 20.0 20.4 20.1 Total 100.0
100.0 100.0 100.0
100.0 100.0 100.0 100.0
does not sum due to rounding
Source: Key Note, based on data from Social Trends 40 (December 2009), National Statistics
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Strategic Overview
The trend for delaying childbirth has had a number of effects on the market for baby products. On the one hand, it means that women tend to have fewer children overall. However, older parents tend to be more affluent, and more used to a higher standard of living, and as such are more able to afford premium baby products. They are also arguably more informed, more demanding and more anxious about the health and safety of their offspring. Manufacturers and retailers of baby equipment need to ensure that they meet these needs.
Multiple Births
Another demographic trend that has a small but significant effect on some sectors of the market is the rising number of multiple births. Between 1998 and 2008, the annual number of births that resulted in two or more babies increased from 9,080 to 10,855. This can be linked to the trend for later parenthood (which in itself carries an increased likelihood of carrying more than one baby) and the associated rise in the number of women conceiving through in-vitro fertilisation (IVF) methods, which are also more likely to result in multiple births.
Table 2.6: Number of Multiple Births in England and Wales, 1998-2008

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9,080 8,907 8,792 8,700 8,861 9,131 9,521 9,543 10,137 10,471 10,855
Source: Review of the National Statistician on Births and Patterns of Family Building in England and Wales 2008 (series FM1 number 37), National Statistics Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
One of the effects of the trend towards multiple births has been that manufacturers have paid greater attention to the needs of parents with twins when designing prams, pushchairs and other baby-transport products.
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Strategic Overview
Working Parents
Various factors have led to an increase in the number of families featuring young children with two working parents. These include the fact that many young homeowners need two earners to sustain the payments on a mortgage, together with the rising maternal age, which has meant that more women are well established in their careers (which they may be reluctant to give up) by the time they give birth for the first time. National Statistics has not published data on the employment status of men and women by the age of their youngest child since January 2006. The most recent data, relating to spring 2005, showed that more than half of all women with children aged under 2 years were in employment. In May 2008, the energy-supplier comparison company uSwitch published the results of a survey it carried out in which 38% of new parents (defined as parents of children aged under 2 years) said that the main child-carer in the family had had to return to work after their child was born, because they could not afford to stay at home. This has had important effects on all sectors of the baby-products market. For example, two-earner households tend to have higher disposable incomes; they are more likely to seek products that make their busy working and family lives easier; and they may buy two sets of items such as feeding equipment and changing equipment in order to keep one permanently at their chosen childcare facility.
Baby Products and Fashion

The baby market has been affected by the fact that the population in general have become more style-conscious, in terms of both the clothes they wear and the homes in which they live. Parents are now demanding similar standards for the baby products they purchase.
Trade Bodies
Absorbent Hygiene Product Manufacturers Association
The Absorbent Hygiene Product Manufacturers Association (AHPMA) is the trade association representing UK manufacturers of disposable nappies, feminine-hygiene products and continence-care products. Members include Procter & Gamble, Kimberly-Clark, Johnson & Johnson and SCA. The Association acts as the voice of the industry in dealings with the Government and other official bodies. It represents its members interests at all levels, dealing with regulatory and legislative matters, the media, health professionals and consumers.
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Strategic Overview
Baby Products Association

The Baby Products Association (BPA) was set up in 1945, with the objective of promoting baby and nursery products in both the UK and Europe. The organisation plays an active role in the development of product standards and provides support and specialist services to its members. BPA members and member representatives sit on a large number of committees and working groups in the European Committee for Standardisation (CEN) and the British Standards Institution (BSI). The BPAs Technical Committee comprises industry experts and specialists in a wide range of baby and nursery products, including wheeled goods, nursery furniture, baby walkers, soft goods, child restraints, toys and early learning. The Association manages and organises the trade fair BPA Baby & Child, which is held in early October each year. The BPAs Concept and Innovation Awards are presented at the Baby & Child fair. In 2009, the overall winner of the award was Chillipeeps a pre-sterilised teat in a pod that can be directly attached to a ready-made baby formula milk carton. The teat can then be sterilised and returned to the pod to be re-used. The BPA appointed a new Managing Director, Robert Anslow, in March 2010.
MARKET SIZE
Key Note estimates that, in 2009, the total UK market for the baby products covered by this report was worth 1.12bn.
Table 2.7: The UK Market for Baby Products by Sector by Value (m at rsp), 2005-2009
2005 Disposable nappies (m) % change year-on-year Baby transport and nursery furniture % change year-on-year Table continues... 396 405 2.3 415 2.5 427 2.9 434 1.6 475 2006 487 2.5 2007 493 1.2 2008 507 2.8 2009 519 2.4
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Strategic Overview
Table 2.7: The UK Market for Baby Products by Sector by Value (m at rsp), 2005-2009
...table continued 2005 Baby monitors, home safety equipment and feeding equipment % change year-on-year Total % change year-on-year
rsp retail selling prices
2006
2007
2008
2009
139 1,010 -
148 6.5 1,040 3.0
158 6.8 1,066 2.5
165 4.4 1,099 3.1
168 1.8 1,121 2.0
Source: Key Note The largest sector, accounting for 46.3% of sales in 2009, was disposable nappies, followed by baby transport and nursery furniture (38.7%).
Table 2.8: The UK Market for Baby Products by Sector by Value (%), 2005-2009
2005 Disposable nappies Baby transport and nursery furniture Baby monitors, home safety equipment and feeding equipment Total 13.8 100.0 14.2
100.0
2006 46.8 38.9
2007 46.2 38.9
2008 46.1 38.9
2009 46.3 38.7
47.0 39.2
14.8
100.0
15.0 100.0
15.0 100.0
does not sum due to rounding
Source: Key Note
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Baby Products
Strategic Overview
DISTRIBUTION
Baby products are available through a wide range of distribution channels:
The leading UK retailer of baby transport, nursery furniture and equipment

is Mothercare, which has 405 UK stores, in both out-of-town and city-centre locations, as well as online and mail-order operations. Mothercare purchased the Early Learning Centre chain of toy retailers in 2007.
Boots sells a wide range of baby products, including baby equipment,

toiletries and nappies, both through its stores and online.
The specialist manufacturer Mamas & Papas entered the retail market in
1998 and now has a chain of more than 50 dedicated stores in the UK and the Republic of Ireland, run on a franchise basis.
Despite strong competition from the major retailers, independent specialist

stores retain a relatively strong presence in the market for larger items of nursery equipment and baby transport. These stores benefit from the fact that they are in a position to give advice and information to customers, many of whom are first-time parents with little knowledge of what they should buy. Many independent stores now have online operations.
The growth in importance of non-food sales through supermarkets has

meant that these retailers, too, have become important providers of basic items of baby equipment.
Babies R Us, a subsidiary of the US-based toy retailer Toys R Us, is a major
outlet for baby equipment of all types. Other major retailers with a presence in the baby-products market include the Argos catalogue operation, Marks & Spencer, John Lewis and IKEA. Disposable nappies are sold mainly through the grocery sector, although retail chemists notably Boots are also important.
Online Retailing
The Internet is of particular importance to parents, for a number of reasons. The convenience of online retailing can make it a less stressful alternative to shopping with babies and toddlers, while the comparative isolation felt by many of those with babies and very young children means that online communities, offering advice and support to new parents, and enabling them to communicate with each other, are thriving. An online presence is vital for retailers operating in the baby-products market. Virtually all baby-product retailers, and some manufacturers, offer an online shopping service for at least part of their range. Most sites also offer advice and information for expectant and new parents, with the intention of building an online community in order to increase customer loyalty.
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Baby Products
Strategic Overview
Many independent specialist baby-product retailers now have an online presence. Kiddicare.com, which was founded in 1974 and has a large store in Peterborough, offers a next-day delivery service and dealt with 400,000 customers placing orders in 2009. The company was voted the UKs Online Retailer of the Year by readers of Mother & Baby magazine in 2009 and was given a similar award by Practical Parenting magazine in the same year. Babyworld is a specialist online-only baby-products retailer, which was launched in 1998. The companys website offers a wide range of practical information and support for new and expectant parents, including product reviews and discussion forums.
COMPETITIVE STRUCTURE
A wide range of companies operate in the market for baby equipment. They include:
large retailers (such as Mothercare, Boots and Babies R Us), which offer
own-label items as well as branded products
large specialist baby-products suppliers (for example, Mamas & Papas and
Graco), many of which operate across more than one sector
many niche suppliers that are active in specific market sectors.

There is much less fragmentation in the market for disposable nappies, with the Pampers and Huggies brands (supplied by the multinationals Procter & Gamble and Kimberly-Clark) dominating sales. Some grocery multiples, including Tesco, Sainsburys and ASDA, carry their own brands of nappies.
MARKETING AND ADVERTISING

Main Media Advertising
Table 2.9 details main media advertising expenditure on baby products by major retailers, including multiple grocery retailers, Boots and specialists such as Mothercare and Babies R Us, in 2008 and 2009.
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Strategic Overview
Table 2.9: Main Media Advertising Expenditure on Baby Products by Selected Major Retailers (000), Years Ending December 2008 and 2009
2008 ASDA Baby product range Pampers Baby Dry nappies Nappies range Huggies nappies Pampers nappy range Morrisons Baby product range Pampers Huggies Sainsburys Baby care Nappy range Pampers Tesco Pampers Nappies range Baby range Boots Baby products Pampers nappies Others Mothercare /ELC Babies R Us product range Co-op Pampers Nappies Source: Nielsen Media Research 105 180 303 237 128 209 90 444 155 137 111 937 595 154 920 285 225 447 199 188 90 192 212 315 548 247 180 112 2009
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Strategic Overview
A brand-awareness campaign for Mothercare, featuring the musician, television presenter and celebrity mother Myleene Klass, was launched in October 2009 on the pre-school television channel Cartoonito.
Direct Marketing
Baby products have a small, clearly defined target market (parents of children under the age of 2), meaning that direct marketing can be particularly effective. Sampling has long been an important means of reaching this market and more recently baby clubs, and online networks, have had a growing presence.
Sampling
Bounty and Emmas Diary are the two largest, and longest-established, sampling companies. Both offer sample packs of products for pregnant women and new mothers.
Bounty
Bounty was founded in 1959 and currently claims to reach 96% of new and expectant mothers. Bountys portfolio of services includes packs, guides, online information, mailings, research, photography services and healthcare-professional briefings. Each year, Bounty distributes more than 3 million product sample packs through a variety of outlets, including ASDA, Boots, Sainsburys and Toys R Us, as well as hospital maternity wards. In April 2009, the company was sold to Barclays Private Equity for 54m by the Canadian online media company Kaboose, which had purchased it for 70m in November 2007. The Bounty website was relaunched in August 2009, to coincide with the organisations 50th anniversary. The new site has a focus on organising, with reminders, checklists and how to areas specific to the users stage in pregnancy or child-rearing. The site has also increased its content for parents of older children. Newdadssurvivalguide.com, aimed at expectant and first-time fathers of babies aged up to 6 months, was launched by Bounty in October 2008. In March 2009, Bounty announced that it would be investing 50,000 in the site and promoting it through the Bounty packs distributed to pregnant women and new mothers.
Emmas Diary
Emmas Diary is a week-by-week pregnancy guide that is distributed by GPs (general practitioners) on confirmation of pregnancy, reaching an estimated 1 million expectant mothers. It is owned by Lifecycle Marketing, a wholly owned subsidiary of TNT Post Group.
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Strategic Overview
Baby Clubs and Social Networking

Many retailers and manufacturers operating in the baby-products market run baby clubs, which offer parents discounts and other benefits. In October 2009, Sainsburys resurrected its Little Ones baby club, which had been withdrawn in 2005. Members will be offered in-store discounts, advice and information, with a focus on food and nutrition. A club magazine and website has been produced by Seven Squared, which also publishes Sainsburys customer magazine. Tescos Baby & Toddler Club offers expectant and new mothers seven free magazines tailored to particular stages in their childs development, as well as a range of discounts and priority parking at Tesco stores. Tesco was the sole sponsor of Bauer Medias 2009 Mother and Baby Awards, which included a new award from the Baby & Toddler Club for Britains Bravest Mum. The Boots Parenting Club was launched in June 2005 and has had an online presence since 2006. It claims to be the largest parenting club in the UK, with 900,000 members. Mothercare launched Gurgle.com, a social networking site for parents, in October 2007, in partnership with the investment company Fleming Media. The site, which claims 100,000 members, features articles, tutorial videos, an online ovulation calendar and a baby-naming search engine. In September 2009, Mothercare bought out Fleming Media, taking full control of the site. Procter & Gambles Pampers and Kimberly-Clarks Huggies both have baby clubs, operated through their websites. The many social networking sites founded by and for mothers of babies and young children are important channels for word-of-mouth recommendations of products and services. The most high-profile of these is Mumsnet, which was founded in 2000 by a journalist and a television producer. In February 2009, the site, which claims 850,000 unique users a month, underwent a major redesign, focusing on more live content. The sites advertising sales were also brought in-house, allowing it to work more directly with agencies. Netmums, which is also 10 years old, claims 740,000 members. Netmums is a family of local websites set up and run by mothers, with area-specific information on child-related activities, education, childcare and community, social and employment issues. A few social networking sites cater for fathers. They include: dads-uk.co.uk, aimed largely at divorced and separated fathers, with a focus on fathers rights; and newdadssurvivalguide.com, run by Bounty (see earlier profile).
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Strategic Overview
Parenting Magazines
Although it is increasingly challenged by the Internet, the parenting press is still an important channel for reaching new and prospective parents. The average audited circulations for print parenting publications during the 6 months ending December 2009 are shown in Table 2.10.
Table 2.10: Selected Parenting Magazines by Average Net Circulation (000), July-December 2009
Emmas Diary Pregnancy Guide (Lifecycle Marketing Ltd) Your Toddler (Bounty (UK) Ltd) You and Your Newborn First Edition (Bounty (UK) Ltd) Mother and Baby (Bauer Consumer Media) Prima Baby (The National Magazine Company Ltd) Pregnancy & Birth (Bauer Consumer Media) Practical Parenting (Magicalia Ltd) Junior (Magicalia Ltd) Source: Audit Bureau of Circulations 36,772 24,022 10,534 43,694 178,480 52,416 412,037 222,094
THE CONSUMER
Key Notes original research (see Chapter 8 Consumer Dynamics) used a sample of 477 current or prospective purchasers of baby products. In order to generate this sample, NEMS Market Research, which undertook the survey for Key Note in March 2010, asked 1,003 British adults aged 16 and over: Can you tell me which, if any, of the following apply to you? The statements listed in Table 2.11 were then read out.
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Strategic Overview
Table 2.11: Parents, Prospective Parents and Other Purchasers of Products for Babies and/or Small Children (% of respondents), March 2010
I have a child/children under 1 year old I have a child/children aged 1 to 2 years I have a child/children aged 3 to 4 years I have a child/children aged 5 to 15 years I do not have children, but I am hoping to become a parent within the next 2 years I do not have children under 16, but I do buy things for babies and/or small children nowadays
Base: 1,003 adults aged 16+
1 5 5 21 3 20
Source: Key Note/NEMS Market Research, March 2010
Just 1% of the total sample had a child or children aged under 1 year, 5% had a child or children aged between 1 and 2 years, and a further 5% were parents of a child or children between 3 and 4 years. One in five (21%) had an older child or children, aged between 5 and 15 years. A total of 3% were non-parents who were hoping to start a family within the next 2 years, and 20% said that, although they did not have children under 16, they did currently buy items for babies and/or young children. Since some respondents had children in more than one of the stated age groups, the total proportion (48%) who fell into one of these categories was lower than the 55% obtained by adding the figures in Table 2.11. These 477 parents, prospective parents and other purchasers of baby products were then asked a further series of questions about their habits and attitudes towards baby products (see Chapter 8 Consumer Dynamics). Table 2.12 compares the demographic profile of parents, prospective parents and other purchasers with the sample of 1,003 adults as a whole.
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Strategic Overview
Table 2.12: Demographic Profile of Parents, Prospective Parents and Other Purchasers of Products for Babies and/or Small Children (% of respondents), March 2010
Parents, Prospective Parents and Other Purchasers
Sample Profile
All adults Sex Male Female Age 16-24 25-34 35-44 45+ Social Grade ABC1 C2DE Region North (Yorkshire and Humberside/ North West/North/Scotland) Midlands (East Midlands/ West Midlands/Wales/East Anglia) South (London/South East/ South West)
100 49 51 15 18 18 49 47 53
100 39 61 5 23 31 41 46 54
36 27 37
37 25 38
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Strategic Overview
Demographic profiles of the parents of babies and children in each of the stated age groups are shown in Table 2.13.
Table 2.13: Demographic Profiles of Parents of Babies and Children Aged Under 16 by Age of Child/Children (% of respondents), March 2010
I Have a Child/Children Under 1 Year Old I Have a Child/Children Aged 1 to 2 Years I Have a Child/Children Aged 3 to 4 Years I Have a Child/Children Aged 5 to 15 years
Sample Profile
All adults Sex Male Female Age 16-19 20-24 25-34 35-44 45-54 55-64 65+ Social Grade A B C1 C2 D E Table continues...
100 49 51 8 7 18 18 16 13 20 6 16 25 30 12 10
100 50 50 0 0 62 38 0 0 0 0 5 28 13 54 0
100 50 50 0 13 42 42 3 0 0 7 26 20 27 18 3
100 40 60 0 6 36 47 11 0 0 6 16 35 35 7 2
100 44 56 0 1 23 53 22 2 0 7 19 21 35 15 3
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Strategic Overview
...table continued I Have a Child/Children Under 1 Year Old I Have a Child/Children Aged 1 to 2 Years I Have a Child/Children Aged 3 to 4 Years I Have a Child/Children Aged 5 to 15 years
Sample Profile
Working Status Full time Part time Not working Retired/invalid Standard Region East Anglia East Midlands Greater London North North West Scotland South East South West Wales West Midlands Yorkshire and Humberside Size of Household One Two Three Four Five or more Table continues... 22 31 21 17 9 0 4 18 32 46 0 0 32 35 33 0 4 21 51 24 1 4 19 46 30 8 6 13 4 13 9 16 8 6 7 10 5 0 44 4 4 16 0 21 0 0 6 4 3 22 4 8 6 7 21 9 0 16 0 7 17 5 17 8 10 21 4 7 3 8 4 14 5 10 8 16 16 4 8 5 40 16 17 27 49 20 25 7 61 16 23 0 28 25 42 5 50 30 18 1
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Strategic Overview
...table continued I Have a Child/Children Under 1 Year Old I Have a Child/Children Aged 1 to 2 Years I Have a Child/Children Aged 3 to 4 Years I Have a Child/Children Aged 5 to 15 years
Sample Profile
Marital Status Married/living as married Single Divorced Widowed Separated Presence of Children Aged 0-4 Aged 5-9 Aged 10-15 No children Tenure Own home outright Buying home Rent council Rent private
30 hours or more per week student, not looking for work or unemployed; excludes the retired and invalids
56 29 4 9 2 9 13 13 75 50 27 11 7
96 4 0 0 0 100 63 32 0 27 31 32 4
82 14 2 0 3 100 49 11 0 48 27 9 17
84 10 2 0 4 90 56 16 0 32 32 13 22
86 5 5 1 3 24 62 62 1 31 46 13 8
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Strategic Overview
Among those taking part in Key Notes research, more than six in ten parents of babies under 1 year old (62%) were in the 25 to 34 age group. Just under one in four (38%) were aged 35 to 44. The vast majority (96%) of those with children aged under 1 year were married or cohabiting. However, the figure was slightly lower (82%) among those with children aged 1 to 2 years. Table 2.14 shows demographic profiles of Key Notes prospective parents and others who purchased for babies and/or small children.
Table 2.14: Demographic Profiles of Prospective Parents and Other Purchasers of Products for Babies and/or Small Children (% of respondents), March 2010
I Do Not Have Children Under 16, But I Do Buy Things for Babies and/or Small Children Nowadays I Do Not Have Children, But I Am Hoping to Become a Parent Within the Next 2 Years
Sample Profile
All adults Sex Male Female Age 16-19 20-24 25-34 35-44 45-54 55-64 65+ Table continues...
100 49 51 8 7 18 18 16 13 20
100 34 66 0 15 60 23 1 0 0
100 33 67 0 6 18 9 15 21 31
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Strategic Overview
...table continued I Do Not Have Children Under 16, But I Do Buy Things for Babies and/or Small Children Nowadays I Do Not Have Children, But I Am Hoping to Become a Parent Within the Next 2 Years
Sample Profile
Social Grade A B C1 C2 D E Working Status Full time Part time Not working Retired/invalid Standard Region East Anglia East Midlands Greater London North North West Scotland South East South West Wales West Midlands Yorkshire and Humberside Table continues... 8 6 13 4 13 9 16 8 6 7 10 2 4 21 8 5 10 38 3 4 0 3 7 10 6 5 16 10 16 7 4 7 12 40 16 17 27 88 3 9 0 37 10 8 45 6 16 25 30 12 10 6 16 20 48 10 0 6 11 25 33 11 14
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Strategic Overview
...table continued I Do Not Have Children Under 16, But I Do Buy Things for Babies and/or Small Children Nowadays I Do Not Have Children, But I Am Hoping to Become a Parent Within the Next 2 Years
Sample Profile
Size of Household One Two Three Four Five or more Marital Status Married/living as married Single Divorced Widowed Separated Presence of Children Aged 0-4 Aged 5-9 Aged 10-15 No children Tenure Own home outright Buying home Rent council Rent private 50 27 11 7 13 74 6 7 54 22 15 7 9 13 13 75 0 0 0 100 1 0 0 99 56 29 4 9 2 44 56 0 0 0 59 21 6 12 3 22 31 21 17 9 38 44 12 6 0 33 53 9 4 1
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Strategic Overview
Six in ten (60%) of those respondents who were not parents but who hoped to have children within the next 2 years were aged between 25 and 34. Just under one in four (23%) were in the 35 to 44 age group, and only 15% were aged under 25. Interestingly, those who hoped to become parents within the next 2 years were twice as likely to be female (66%) as male (34%). Nearly four in ten (38%) of those hoping to become parents soon lived alone at the time they took part in the survey indicating that having a live-in partner is not necessarily a prerequisite for making these plans. More than two-thirds (67%) of those who did not have children under 16 but who currently bought products for babies and/or small children were aged over 45, and more than half (52%) were aged over 55. This demonstrates the importance of grandparent power in the baby-products market. The next-largest group of non-parents who purchased baby products were those aged 25 to 34 (18%). These respondents may buy things for family members and friends who are parents and/or may be stocking up for when they become parents themselves.
MARKET FORECASTS
The ending of the mini baby boom that characterised the period from 2005 to 2008, combined with the uncertain economic situation, means that growth in the baby-products market will be relatively slow between 2010 and 2014. Total UK sales of baby products at retail selling prices (rsp) are forecast to grow by between 1.3% and 2.2% per year between 2010 and 2014. In the latter year, they are forecast to reach an estimated 1.22bn.
Table 2.15: The Forecast UK Market for Baby Products by Sector by Value (m at rsp), 2010-2014
2010 Disposable nappies % change year-on-year Baby transport and nursery furniture % change year-on-year Table continues... 442 1.8 448 1.4 454 1.3 462 1.8 468 1.3 530 2.1 2011 537 1.3 2012 545 1.5 2013 550 0.9 2014 555 0.9
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Strategic Overview
Table 2.15: The Forecast UK Market for Baby Products by Sector by Value (m at rsp), 2010-2014
...table continued 2010 Baby monitors, home safety equipment and feeding equipment % change year-on-year Total % change year-on-year
2011
2012
2013
2014
174 3.6 1,146 2.2
177 1.7 1,162 1.4
183 3.4 1,182 1.7
188 2.7 1,200 1.5
192 2.1 1,215 1.3
Source: Key Note
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Disposable Nappies
3. Disposable Nappies
BACKGROUND
Disposable nappies have been in widespread use since the 1980s, when the market grew rapidly due to a combination of growing consumer demand for convenience, product improvements and falling prices. The market reached near-saturation point during the 1990s, with disposable nappies almost completely replacing terry nappies. Despite continual product developments by manufacturers, the market has become increasingly price-led, with retailers stepping up their promotional and marketing activity. As a result, the sector has struggled to maintain value, even in the light of the recent birth-rate increases. The disposable-nappy sector has also had to respond to strong pressure from both the Government and consumers to minimise the effects of the use of these products on the environment, and many environmentally aware parents have turned to reusable nappies.
Alternatives to Disposable Nappies

Reusable nappies have a small but loyal user base; however, the number of reusable nappies sold is currently too small for reliable market-size figures to be available. A range of reusable products are sold in the UK, some made from cotton and some from bamboo, which is more absorbent than cotton. Bambino Mio started life as a nappy laundry service in 1992; the present company was founded in 1997. Its products are available from a range of retailers, including ASDA, Babies R Us, Boots, Mothercare and Waitrose. The product range includes cotton nappies in five sizes, plus waterproof covers, biodegradable liners, training pants and swim nappies. Modern Baby was founded in 2000 and has two main product ranges: the Close baby carrier and the Pop-in reusable nappy system. The products are stocked by Mothercare and independent nursery-product stores. Tots Bots, founded in 2000, has a range of reusable nappies, including: Pocket Tots, a one-piece nappy with a disposable lining; and Bamboozles and Flexitots, both of which are worn with a separate waterproof wrap. The company, whose products are stocked at Boots and Mothercare, also sells reusable and biodegradable liners, swim nappies, detergent and towels. Bambinex has a range of bamboo and microfibre nappies, and in February 2010 it launched the Easy Comfort All In One nappy, which does not need liners or waterproof covers. A compromise between reusable and conventional disposable nappies is provided by eco-disposable nappies, which claim to have less harmful environmental effects than conventional products in terms of both biodegradability and the way in which they are manufactured. Brands available in the UK include Tushies, Moltex and Wiona.
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Disposable Nappies
Real Nappy Week

Real Nappy Week is an annual promotional event for reusable nappies, organised by Go Real, a membership organisation including manufacturers and retailers of reusable nappies, as well as local authorities, environmental networks, laundries and parents. The 2010 event took place between 26th April and 2nd May. Until March 2007, Real Nappy Week was sponsored by government funding, through the not-for-profit company WRAP (Waste & Resources Action Programme). However, this funding was withdrawn following the publication in May 2005 of a lifecycle assessment by the Environment Agency, which concluded that there was relatively little difference between disposable and reusable nappies in terms of environmental impact. Go Real is managed by ReZolve, a social enterprise organisation based in Cornwall.
MARKET SIZE
The value of the UK retail market for disposable nappies was 519m in 2009, compared with a figure of 475m in 2005.
Table 3.1: The UK Market for Disposable Nappies by Value (m at rsp), 2005-2009
2005 Value (m at rsp) % change year-on-year
2006 487 2.5
2007 493 1.2
2008 507 2.8
2009 519 2.4
475 -
Source: Key Note
SUPPLIERS
Pampers, from Procter & Gamble, and Kimberly-Clarks Huggies brand dominate the market for disposable nappies. Own-brand nappies are produced for most major retailers, but they are generally less important than branded products.
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DISTRIBUTION
Distribution of disposable nappies is mainly through the grocery sector, in the form of the major multiple grocery retailers. Boots is the other main distribution channel.
RECENT DEVELOPMENTS
In January 2010, the Pampers brand launched UnderJams, its first product for older children. The range, in the form of absorbent pants shaped like underwear, is designed to provide protection from bedwetting for children aged 4 to 12 years. Kimberly-Clarks Huggies brand already had a similar range: DryNites, which caters for 4 to 15 year-olds. Price is increasingly becoming a factor in the disposable-nappy market. Pampers launched its value brand, Simply Dry, in July 2009, in an attempt to compete with supermarkets and discount retailers. March 2010 saw the start of a possible nappy price war, as ASDA launched its own-brand Little Angels New Arrivals nappies at 1 for a pack of 48 nappies.

Pampers was by far the most heavily advertised nappy brand in 2009, although Huggies spent slightly more in 2008. (In addition to the figures shown in Table 3.2, both Pampers and Huggies were advertised as part of individual supermarket promotions; see Chapter 2 Strategic Overview.)
Table 3.2: Main Media Advertising Expenditure on Disposable Nappies by Brand (000), Years Ending December 2008 and 2009
2008 Pampers Nappies Baby Dry Nappies Simply Dry Easy Up Pants New Baby Nappies Active Fit Kandoo product range Table continues... 205 1,305 171 3,019 118 3,817 946 683 211 125 2009
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Table 3.2: Main Media Advertising Expenditure on Disposable Nappies by Brand (000), Years Ending December 2008 and 2009
...table continued 2008 Huggies DryNites Sleep Shorts Superdry Nappies Natural Fit Nappies Pull-Ups Pants Little Walkers Newborn Nappies Others Sainsburys nappies range ASDA nappies range Tesco nappies range Source: Nielsen Media Research In April 2010, the Huggies brand was relaunched with new packaging featuring photographs of babies at the relevant age for each product, plus a new Huggies logo incorporating a babys handprint. An interactive online campaign to promote the Huggies Super-Dry range was launched in January 2010, with the theme Everyday Discoveries. Parents were encouraged to upload photos and videos of their child exploring their world. The babies featured in the ten winning entries were selected to appear in Huggies promotional campaigns over the next 5 years. A global website for Huggies, which went live in February 2010, features a real-time video of a baby growing in utero. The site, called 9 months in vivo, also includes tips for mothers-to-be. 595 285 180 137 837 1,006 1,512 1,073 414 109 546 183 2009
CONSUMER TRENDS
According to data from Kantar Media (see Table 3.3), 7% of all adult main shoppers said that their household had used disposable nappies during the year ending September 2009. This rose to 19% in households where the main shopper was aged between 25 and 34 years. Seven in ten purchasers of disposable nappies lived in households with a main shopper aged between 25 and 44, and four in ten had a main shopper aged between 25 and 34.
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Disposable Nappies
Table 3.3: Household Use of Disposable Nappies in the Last 12 Months Penetration and Profile by Age of Main Shopper in the Household (%), 2009
Profile (%) All adults Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 2 15 40 30 6 5 2 2 13 19 12 3 2 1 100 Penetration (%) 7
Source: Target Group Index (TGI) Kantar Media, Quarter 1 (October 2008September 2009) 2010
Table 3.4, which provides an analysis of household purchasing of disposable nappies by type, shows that normal disposable nappies were the most popular choice in all age groups. They were more than twice as popular as flexible nappies among those in the 25 to 34 and 35 to 44 age groups.
Table 3.4: Household Purchasing of Disposable Nappies in the Last 12 Months Penetration by Type of Product and Age of Main Shopper in the Household (%), 2009
Normal All adults Age 15-19 20-24 25-34 35-44 45-54 55-64 2 8 12 7 1 2 0 5 5 3 1 0 0 4 4 4 0 1 0 1 1 1 0 0 4 Flexible 2 Training 2 Other 0
Source: Target Group Index (TGI) Kantar Media, Quarter 1 (October 2008September 2009) 2010
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4. Baby Transport and Nursery Furniture

BACKGROUND
Suppliers of baby transport and nursery furniture have taken advantage of a number of positive social and demographic factors affecting parenthood in the 21st century. The fact that consumers have become increasingly style-conscious has had an impact on both the transport and nursery-furniture segments, with parents demanding high standards of design and functionality in the products they buy for their babies. Most companies in the nursery-furniture segment produce co-ordinated ranges, in colours and styles to suit contemporary tastes, and baby transport too is designed with fashion in mind. The baby-transport segment has responded to the fact that people are becoming more mobile in both their leisure and working lives, and are increasingly reliant on car transport. This has led to a growing need for flexible solutions to enable babies and toddlers to accompany their families, with baby travel systems, combining car seats with prams and/or pushchairs, gradually usurping more traditional baby carriages. Many families also find the need for an additional, more lightweight form of baby transport, such as a baby carrier or a lightweight baby buggy, while two-car families may find it more convenient to purchase two baby car seats than to deal with the logistics of moving a seat from one car to another. Car seats may also be purchased by grandparents, childminders and others who have to transport babies and toddlers on a regular basis. The trend towards older parenthood has been beneficial in that a higher proportion of parents are now settled and reasonably affluent when they embark on parenthood and, as such, are more willing and more able to afford high-quality products for their new baby.
MARKET SIZE
The total UK retail market for baby transport and nursery furniture was valued at 434m in 2009. The steady growth between 2005 and 2008 can be attributed to strong product innovation and marketing activity by manufacturers and retailers, combined with the rising birth rate. The rate of growth slowed in 2009, partly due to a more difficult economic climate and partly due to the fact that there were slightly fewer births.
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Table 4.1: The UK Market for Baby Transport and Nursery Furniture by Value (m at rsp), 2005-2009
2006 405 2.3
2007 415 2.5
2008 427 2.9
2009 434 1.6
396 -
Source: Key Note
Baby Transport
Retail sales within the baby-transport sector (comprising prams, pushchairs, baby carriers and car safety seats) reached 297m in 2009.
Table 4.2: The UK Market for Baby Transport by Value (m at rsp), 2005-2009
2006 281 1.8
2007 286 1.8
2008 293 2.4
2009 297 1.4
276 -
Source: Key Note
The products in this sector can be divided into two main groups: prams, pushchairs and baby carriers (including travel systems, which combine car seats with prams and/or pushchairs); and stand-alone car safety seats. The former is by far the larger segment and has been taking share from traditional car seats. Although a number of factors including multiple car ownership and the fact that using a car seat or booster seat is mandatory for children up to the age of 12 have combined to increase volume sales of car seats, the value of sales fell from 66m to 59m between 2005 and 2009. The prams, pushchairs and baby carriers sector, on the other hand, has seen healthy sales growth, with fashion and celebrity culture playing a large part in prompting parents (and/or grandparents) to buy premium products. Sales in this segment increased from 210m in 2005 to 237m in 2009.
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Table 4.3: The UK Market for Baby Transport by Sector by Value (m at rsp), 2005-2009
2005 Prams, pushchairs and baby carriers % change year-on-year Car safety seats % change year-on-year Total
rsp retail selling prices does not sum due to rounding
2006 216 2.9 65 -1.5 281
2007 223 3.2 63 -3.1 286
2008 231 3.6 62 -1.6 293
2009 237 2.6 59 -4.8

297
210 66 276
Source: Key Note
Nursery Furniture
The nursery-furniture sector has grown in tandem with increasing demand from parents for nursery furniture and baby equipment that reflects their personal tastes in home dcor. Retail sales of nursery furniture, including cots, cribs and mattresses, highchairs, playpens and changing units, reached 137m in 2009, having grown from 120m in 2005.
Table 4.4: The UK Market for Nursery Furniture by Value (m at rsp), 2005-2009
2006 124 3.3
2007 129 4.0
2008 134 3.9
2009 137 2.2
120 -
Source: Key Note
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Cots, cribs and mattresses easily constitute the largest segment, with retail sales estimated at 93m in 2009.
Table 4.5: The UK Market for Nursery Furniture by Sector by Value (m at rsp), 2005-2009
2005 Cots, cribs and mattresses % change year-on-year Highchairs % change year-on-year Other % change year-on-year Total
rsp retail selling prices including playpens and changing units
2006 86 4.9 22 0.0 16 0.0 124
2007 89 3.5 23 4.5 17 6.3 129
2008 92 3.4 24 4.3 18 5.9 134
2009 93 1.1 25 4.2 19 5.6 137
82 22 16 120
Source: Key Note
SUPPLIERS
The market for nursery furniture is highly fragmented, with many small companies as well as larger manufacturers and retailers, including Mothercare, Babies R Us and Mamas & Papas producing ranges of furniture and accessories. There is also a wide range of suppliers to the baby-transport market. The largest of these are Mamas & Papas, Graco, Maclaren and Mothercares own brand, with Britax Excelsior being particularly important within the market for dedicated child car seats. Dorel, a Canadian company that has had a UK presence since 1988, operates in both the baby-transport and feeding/safety-equipment sectors. Baby-transport brands marketed by Dorel include Maxi-Cosi, Quinny and Bb Confort. Other companies of importance in this sector include Chicco, Bbcar and Cosatto.
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The traditional British pram company Silver Cross has experienced a revival of fortunes since its purchase in 2002 by the private company David Halsall International Ltd. Its popularity has been boosted by the fact that its prams and baby accessories have been chosen by a number of celebrity parents and the brands street cred was further enhanced when six Silver Cross Balmoral prams appeared on stage with the singer Lily Allen at the music industrys 2010 Brit Awards. The Baby Gear range, from the US toy manufacturer Fisher-Price, includes baby seats and bouncers, baby swings, highchairs and booster seats.
DISTRIBUTION
Many parents undertake extensive research (usually online) before purchasing items of baby equipment. This applies particularly to travel systems, car seats and prams/pushchairs: many parents choose either to go in person to a store to examine these products after online research or to buy the equipment online, meaning that an online presence is now a prerequisite for baby-equipment companies.
RECENT DEVELOPMENTS
The Slidi highchair, which offers a four-position, one-handed height adjustment, was launched by Cosatto in February 2009. February 2010 saw the launch of the Forty Winks 4-in-1 travel cot/playpen from Cosatto. The Graco Quattro Tour Duo, a double pushchair designed to accommodate one child from birth and another from the age of 6 months, was launched towards the end of 2009. The product can also be transformed into a travel system for twins with the addition of two Graco car seats. A range of four new pushchairs was launched by Britax in January 2010. The range included: the B-Lite urban stroller; the B-Mobile three- or four-wheeled compact travel system; the B-Smart modular travel system; and the B-Dual travel system, which has rearward- or forward-facing seat options and space for an additional seat for a second child. Maclarens Techno XLR travel system was expanded in July 2009 with the introduction of a soft carrycot that is compatible with the system, fitting onto the buggy for the babys first few months. Mamas & Papas launched the Magic Astro Cradle in March 2010. The infant seat, described by the company as the ultimate electronic infant entertainment system, uses interactive technology and a choice of music and light shows to entertain babies from birth to 6 months old. The cradle uses Magic Cards, each containing songs and sounds, plus characters that can be attached to the toy arch over the seat. It was announced in March 2010 that Britax would be launching the Jockey range of childs bicycle seats, giving a high degree of comfort and safety.
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In October 2009, Dorel launched a new range of Maxi-Cosi car seats: the Pebble for infants and the Pearl for toddlers. Both fit onto the new Dorel FamilyFix car-seat base. In March 2010, however, Dorel voluntarily recalled all FamilyFix car-seat bases sold before 4th March. The company stated that it had had no complaints or reports of incidents, but a routine internal quality check had revealed a potential problem in the mechanical attachment of the IsoFix connectors to the base. Maclaren received some adverse publicity towards the end of 2009, following reports that 12 children in the US had had parts of their fingers cut off by the folding mechanism of its umbrella strollers. In November 2009, the company distributed hinge covers to all purchasers of the strollers in the US. In the UK, these covers were issued only to purchasers who contacted Maclaren themselves. From 2010, all Maclaren strollers of this type are being supplied with hinge covers as standard. Following these problems, in February 2010, Britax Excelsior Ltd announced that it would offer a free precautionary remedy kit for one of its stroller models, sold under the Viva and Nexus brands, having detected a potential risk of injury to fingers or hands from its folding mechanism. The remedy kit consists of covers to fit over each of the hinges. In March 2010, Graco voluntarily recalled 65 models of its Harmony High Chair due to reports of loose screws and falling brackets that could cause the chair to tip. The recall was estimated to affect 1.2 million products.

The highly fragmented nature of this sector of the baby-products market is illustrated by the fact that, during the 12 months ending December 2009, not a single brand within Nielsen Media Researchs baby carriages and nursery equipment category spent more than the threshold (75,000) for a separate listing in its published figures. Total expenditure in this sector in 2009 was 1.2m, accounted for by 214 separate brands. In 2008, Chicco was the largest spender, with campaigns for its Trio travel system and Polly highchair brands worth a total of 340,000. Again, however, the majority of expenditure within the category was accounted for by a large number of brands (186) spending less than the threshold amount. (A separate, undefined category of baby goods recorded a total expenditure of 192,000 in 2009, divided between 33 brands.)
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Table 4.6: Main Media Advertising Expenditure on Baby Carriages and Nursery Equipment by Brand (000), Years Ending December 2008 and 2009
2008 Chicco Polly Highchair Trio For Me Total Chicco Coo Chi Coo nursery product range Other Total Source: Nielsen Media Research 155 185 340 88 1,283 1,711 1,188 1,188 2009
Britax launched a television advertising campaign in February 2010, reminding parents of the importance of in-car safety and the correct fitting of child car seats. The campaign was supported by online and point-of-sale materials. In January 2010, TK Maxx began an online campaign on the parenting website Netmums, to promote its new range of nursery products. The retailer gave a series of Netmums bloggers (online diarists) money to spend in store and then invited them to talk about the shop and products on the Coffeehouse forum pages. TK Maxx also ran display advertisements on the Netmums site, which included links to the nursery range on the TK Maxx website. In addition, there was a competition to win a 500 gift card.
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5. Baby Monitors, Home Safety Equipment and Feeding Equipment

BACKGROUND
One of the main factors influencing the market for baby-feeding equipment, at least in the early stages, is the number of mothers who breastfeed their babies. Government policy, backed by the World Health Organization (WHO), is to encourage that babies are solely breastfed for the first 6 months. The latest figures from the Department of Health suggest that, in 2009, just under half of all babies were being totally or partially breastfed at their 6or 8-week check-up. No reliable recent figures are available on breastfeeding rates among older babies, but the 2005 Infant Feeding Survey, published in 2007, revealed that 37% of all mothers were breastfeeding their baby at 6 weeks, 24% at 4 months and 18% at 6 months. Manufacturers have responded to the promotion of breastfeeding by developing new ranges of products for breastfeeding mothers and their babies, including breast pumps and storage bottles. The feeding-products sector also incorporates bottles and teats for bottle feeding, warmers and sterilising equipment, plus soothers, and feeding cups for older babies and toddlers. Widespread media coverage of the dangers that may face babies in their homes has led to a growing demand for home safety equipment, such as: stair gates and bedrails; corner cushions to protect babies from knocking themselves on furniture corners; socket covers; door and cupboard latches; and locks for cupboards, fridges and other household appliances. The market for baby monitors has developed, at least partly, in response to a need to provide reassurance for parents in the light of findings on issues such as Sudden Infant Death Syndrome (SIDS, more commonly known as Cot Death). They are also widely used when parents are out and about with their babies for example, when visiting friends or relatives. Both the feeding-products and safety-equipment markets have benefited from the trend for mothers to return to work while their children are still under school age. For example, breastfeeding equipment such as pumps, sterilisers and spare bottles can help mothers to continue breastfeeding after their return to work, and many working parents of young children keep a separate set of feeding equipment at a childcare facility. Home safety equipment is required at the homes of childminders (who are now inspected by Ofsted [the Office for Standards in Education, Childrens Services and Skills]), as well as being purchased by parents of young children.
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MARKET SIZE
Total UK retail sales of baby monitors, home safety equipment and feeding equipment reached 168m in 2009, compared with 139m in 2005.
Table 5.1: The UK Market for Baby Monitors, Home Safety Equipment and Feeding Equipment by Value (m at rsp), 2005-2009
2006 148 6.5
2007 158 6.8
2008 165 4.4
2009 168 1.8
139 -
Source: Key Note
Baby monitors are now a standard purchase for most new parents, with developments such as digital and video monitors helping to maintain value to an extent. Retail sales within the sector were estimated at 85m in 2009, up from 71m in 2005. Retail sales of feeding equipment have also seen reasonably good growth, reaching 83m in 2009.
Table 5.2: The UK Market for Baby Monitors, Home Safety Equipment and Feeding Equipment by Sector by Value (m at rsp), 2005-2009
2005 Baby monitors and home safety equipment % change year-on-year Feeding equipment % change year-on-year Total Table continues... 71 68 139 75 5.6 73 7.4 148 79 5.3 79 8.2 158 84 6.3 82 3.8
165
2006
2007
2008
2009 85 1.2 83 1.2 168
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Table 5.2: The UK Market for Baby Monitors, Home Safety Equipment and Feeding Equipment by Sector by Value (m at rsp), 2005-2009
...table continued
rsp retail selling prices does not sum due to rounding Note: some figures have been revised since the last edition of this report.
Source: Key Note
SUPPLIERS
It is common for suppliers to be active in both the feeding-equipment and safety-equipment sectors. In the majority of cases, however, the strength is in one sector, with the company having diversified into other products. Tomy has a strong presence in the safety-equipment sector, with particular strengths in baby monitors. It also produces feeding equipment. Lindam produces baby monitors and other safety equipment (notably stair gates), as well as sterilisers, bottle warmers and toddler feeding equipment. In February 2010, Lindam was purchased by the US baby-products company Munchkin. The Danish company Baby Dan produces safety gates and other in-home safety equipment, such as socket covers, pan guards, and door and window locks, plus a range of playpens and highchairs. Products from Dorel UKs Safety 1st brand include monitors, bedrails and childproofing kits. The company also produces baby play equipment, such as bouncers and swings. Philips Avent has a large range of feeding equipment, including bottles and teats, breast pumps and sterilisers, and toddler cups. The company also produces thermometers and baby monitors. The Tommee Tippee range, from Jackel International, includes the Closer to Nature range of bottle-feeding equipment, sterilisers and products to aid breastfeeding, as well as toddler cups. The companys product range also includes baby monitors. Own-label products, particularly from Boots and Mothercare, are important in both the feeding-equipment and safety-equipment sectors.
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DISTRIBUTION
Boots and Mothercare dominate retail sales of feeding equipment and safety equipment, but supermarkets have an increasingly important presence.
RECENT DEVELOPMENTS
Baby Monitors
The VTech Clear View Video Baby Monitor, which was launched in February 2010, features a 2.4-inch colour display, with extra features including a digital zoom, sound sensor and feeding timer, plus 50 recorded melodies to help the baby get back to sleep. February 2010 also saw the launch of a new range of baby monitors from Tomy: the Classic Monitor TA100, the Digital Monitor TD300 and the Digital Plus Monitor TD350. The last of these includes a multicoloured nightlight, which can be customised to co-ordinate with the nursery colour scheme.
Home Safety Equipment

In July 2009, Lindam launched the numi safety gate. Marketed as essential for every stylish house, the gate slides into, and locks onto, a low-profile wall mount, enabling it to be easily removed when not in use. Clippasafe introduced a number of new child safety products in March 2010, including a magnetic cupboard and drawer lock, and a tap strap: a lightweight device designed to stop children accessing hot-water taps.
Feeding Equipment
Fisher-Price introduced a value feeding range in December 2009. The range consists of five different products a soother pack, a weaning spoon pack, a weaning bowl and spoon set, a feeding bottle and a training mug each retailing at just 1.99. The Nuby brand of infant feeding products, from the US company Luv n Care, was launched in the UK in spring 2010. In February 2009, Tommee Tippees Closer to Nature range of feeding bottles became available in a new material that is entirely free from Bisphenol A (BPA) a chemical that has been linked with possible interactions with hormone systems. Baby bottles containing BPA were banned in the US in 2009 but have not been banned in the UK.
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None of the brands in either the baby-feeding or safety-equipment sectors recorded a large enough advertising expenditure to appear in Nielsen Media Researchs data for the years ending December 2008 or 2009.
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An International Perspective
6. An International Perspective
POPULATION TRENDS
There are considerable variations in fertility rates among the Western European countries. In France and Norway, for example, the estimated total fertility rate (number of children per woman), averaged across the years from 2005 to 2010, is 1.89, compared with just 1.32 in Germany. The average fertility rate in the UK is at the higher end of the European spectrum, at 1.84. Denmark is at the same level. The US has a higher fertility rate than Western Europe, at 2.09. A number of explanations have been put forward for this, including: a higher birth rate among the majority Hispanic population; the fact that it may be easier for American women to combine work and child-rearing; and the more traditional and family-oriented nature of much of the US population.
Table 6.1: Total Fertility Rates in the US, Europe and Selected European Countries, 2005-2010
US Western Europe Europe France Norway Sweden Denmark UK Belgium Netherlands Spain Austria Greece Italy Germany 2.09 1.59 1.50 1.89 1.89 1.87 1.84 1.84 1.77 1.74 1.43 1.38 1.38 1.38 1.32
the average number of children that would be born to a woman if she were to experience the current age-specific fertility rates through her lifetime
Source: World Population Prospects: The 2008 Revision, United Nations Population Division
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An International Perspective
The baby-products market is highly international in nature, with many companies operating across several regions worldwide. International expansion particularly in areas of relatively high population growth has been a focus for a number of UK companies. Mamas & Papas announced in early February 2010 that it would be expanding its international operations, concentrating on Europe, the Middle East, Russia and Japan. The company also introduced a range of six prams into the Australian market in March 2010, and it plans a US launch in mid-2010. The Mothercare group opened 115 international stores during 2009, mostly on a franchise basis. Much of the companys international growth came from India and Russia. In October, the company announced a joint venture in India; it expects to have 65 Indian stores by the end of 2010, up from 28 in 2009. The company opened its 50th store in Russia in December 2009. Early in 2010, Mothercare announced plans to launch Mothercare in Australia and the Early Learning Centre in South Africa. In January 2010, Mayborn launched the Tommee Tippee brand in the US, taking it back to its original roots. The Closer to Nature brand of baby-feeding equipment, and Explora toddler cups and feeding products, were initially available only through Babies R Us in the US, but they moved into Toys R Us stores in April. The Closer to Nature and Explora brands were marketed in the US as being designed to help relieve common feeding anxieties among mothers. Also in January 2010, the UK safety-products manufacturer Lindam became part of the US baby-products company Munchkin, which produces bath-care, feeding and travel accessories.
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PEST Analysis
7. PEST Analysis
POLITICAL FACTORS
The political importance of parents with babies and young children is underlined by the fact that the General Election of May 2010 became known as the Mumsnet election, with all of the main parties competing for the family vote. In February 2010, Labour took an advertisement on the main forum page of the Mumsnet site, claiming that the Conservatives aimed to limit child tax credits to families earning less than 31,000 a year. This was refuted by Teresa May in the Conservatives own Mumsnet advertisement. Prior to this, the media had made much of Gordon Browns failure to name his favourite biscuit during a live Web chat with Mumsnet users an incident that was, predictably, dubbed biscuit-gate. Samantha Camerons announcement of her pregnancy in the run-up to the election added to the family focus of the campaign.
ECONOMIC FACTORS
Although spending on children is often the last thing to be reduced in recessionary times, the baby-products industry has recognised that economic realities also impinge on parents, and a number of value products have been introduced. The Simply Dry nappy range, from the premium brand Pampers, was introduced in July 2009. The nappies were typically priced at 11 pence each, compared with around 20 pence for a standard Pampers nappy. In March 2010, ASDA went one step further, pricing its Little Angels New Arrivals product at 1 for 48 nappies. Fisher-Price launched a value range of toddler-feeding accessories, including weaning sets and toddler cups, in February 2010, priced at 1.99 each.
SOCIAL FACTORS
Many social and demographic factors have a strong influence on the market for baby products. These include:
The falling birth rate by definition, this has resulted in a smaller

consumer base.
Smaller family sizes these can mean higher disposable income and
greater expenditure per child.
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PEST Analysis
Later parenthood this means that couples are likely to be more affluent
before starting their families. It may also mean that they do not wait as long before having a second child, and perhaps subsequent children. This can benefit the market, because some items of baby equipment (for example, cots and travel seats) may need to be bought twice, the first child not yet having outgrown them.
Higher numbers of working mothers for economic reasons (as discussed

earlier in this report) and/or because of a shift in social attitudes, women are more likely to wish to return to work soon after childbirth.
Greater mobility, with more journeys being undertaken by car this has
resulted in increased demand for products that make it easier to travel with babies and young children.
TECHNOLOGICAL FACTORS
The baby-products market is led by technological innovations designed to provide solutions for mothers and babies. Technology can also cause problems, however, and there were a number of product recalls during 2009 and the early part of 2010. The most high-profile of these was the US recall by Maclaren of its umbrella strollers in November 2009, following reports that 12 children in the US had had parts of their fingers cut off by its folding mechanism. The company distributed hinge covers to all purchasers of the strollers in the US. Covers were also issued to UK purchasers who contacted Maclaren themselves. From 2010 onwards, all Maclaren strollers of this type will be supplied with hinge covers fitted as standard. Following these problems, in February 2010, Britax voluntarily issued remedy kits in the form of hinge covers for its Nexus and Viva pushchair models, due to the potential risk of injury from the folding mechanism, although no injuries had been reported. In March 2010, Graco voluntarily recalled 65 models of its Harmony High Chair, owing to reports of loose screws and falling brackets that could cause the chair to tip.
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Consumer Dynamics
8. Consumer Dynamics
OVERVIEW
This chapter is based on the findings of Key Notes original research among a sample of 477 parents, prospective parents and other purchasers of baby products. (See Chapter 2 Strategic Overview for a detailed breakdown of the sample and information on how the respondents were selected.) Respondents were asked: I am going to ask you some questions about products and equipment you can buy for babies. Which, if any, of the following do you agree with? A series of statements were then read out. Table 8.1 provides a summary of the results.
Table 8.1: Attitudes Towards Baby Products and Related Issues (% of respondents), March 2010
Nappies I am concerned that disposable nappies are harmful to the environment I use/have used only disposable nappies as opposed to non-disposable nappies I use/have used non-disposable nappies Breastfeeding Versus Bottle Feeding Breastfeeding is much better for babies than bottle feeding Bottle feeding can be just as good as breastfeeding Bottle feeding is easier for the parents than breastfeeding The cleansing and sterilising necessary for bottle feeding babies means it can be hard work New Versus Second-Hand Baby Equipment It is perfectly acceptable to use second-hand baby equipment as long as you are satisfied it is safe It is important to buy all baby equipment brand new Table continues... 26 78 53 64 47 29 60 40 59
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Consumer Dynamics
Table 8.1: Attitudes Towards Baby Products and Related Issues (% of respondents), March 2010
...table continued New Versus Second-Hand Baby Equipment (cont.) I would never buy a second-hand childs car seat I would not accept baby equipment passed on to me from friends and family Choosing Baby Equipment There are so many different types of baby equipment available that it can be difficult to decide what you actually do need Parenting today is easier than it was 10 years ago because of the wide range of baby equipment available It is difficult to get unbiased advice about what sort of baby equipment to buy I bought some items of baby equipment that I never, or hardly ever, used I wish I had done more research/been better informed before I bought my baby equipment Source: Key Note/NEMS Market Research, March 2010 29 47 46 45 80 17 63
Nappies
Nearly six in ten respondents (59%) agreed that they were concerned that disposable nappies might be harmful to the environment. However, this proportion almost exactly matched the proportion (60%) who acknowledged that they used (or had used) only disposable nappies. Four in ten were users of reusable nappies, either currently or in the past.
Breastfeeding Versus Bottle Feeding

Nearly half (47%) of respondents agreed that breastfeeding is much better for babies than bottle feeding, whereas just under three in ten (29%) asserted that bottle feeding can be just as good as breastfeeding. Bottle feeding seems to have a slight advantage in terms of practicalities: nearly two-thirds (64%) of respondents said that bottle feeding was easier for parents than breastfeeding. However, just over half (53%) of the sample acknowledged that the cleansing and sterilising that was necessary meant that bottle feeding could be hard work.
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Consumer Dynamics
New Versus Second-Hand Baby Equipment

Current economic conditions, together with growing concern for the environment, favour passing on baby equipment, rather than discarding it. A very high proportion of respondents (78%) agreed that it is perfectly acceptable to use second-hand equipment as long as one is satisfied that it is safe to do so. However, the potential dangers of using a second-hand car seat have been well publicised, and nearly two-thirds (63%) of respondents agreed that they would never buy this item of baby equipment second-hand. Just over a quarter (26%) said that it was important for them personally to buy all baby equipment brand new, and 17% said that they would not even accept used baby equipment from friends and family.
Choosing Baby Equipment

The wide variety of baby equipment that is currently available certainly makes life easier for parents in some respects, and 45% of respondents agreed that parenting is now easier than it was a decade ago because of this. However, the plethora of products can also be very confusing, especially for new parents, and there is clearly a need for help and guidance to enable purchasers of baby equipment to make informed decisions. Eight in ten (80%) respondents said that there are so many different types of baby equipment that it can be difficult to decide what you actually need and 46% said that it was difficult to obtain unbiased advice on this subject. Almost the same proportion (47%) had bought at least some items of baby equipment that had been of little or no use, and nearly three in ten (29%) wished that they had been better informed before buying baby equipment.
DETAILED ANALYSIS
Nappies
Older respondents tended to be more aware than younger respondents of the environmental impact of disposable nappies. Nearly two-thirds (65%) of over-45 year-olds who bought products for babies and/or small children were concerned about this, compared with just 29% of 16 to 24 year-olds. Slightly more of those in the C2DE social grades than those in the ABC1 social grades saw this as a concern (62% versus 56%), and women were more likely than men to do so (63% of women, compared with 53% of men). Levels of concern were highest among respondents living in the Midlands (63%) and lowest among those living in the North (55%).
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Consumer Dynamics
Just 42% of those aged over 45 had used only disposable nappies for their children, compared with 86% of 16 to 24 year-olds. Around two-thirds (67%) of those living in the South had used only disposables, compared with 53% of respondents from the Midlands.
Table 8.2: Attitudes Towards, and Use of, Disposable Nappies (% of respondents), March 2010
S1: I am concerned that disposable nappies are harmful to the environment. S2: I use/have used only disposable nappies as opposed to non-disposable nappies.
Sample Profile All adults Sex Male Female Age 16-24 25-34 35-44 45+ Social Grade ABC1 C2DE Region North (Yorkshire and Humberside/ North West/North/Scotland) Midlands (East Midlands/ West Midlands/Wales/East Anglia) South (London/South East/ South West)
Weighted sample: 477 adults aged 16+
S1 PP% Pen% 100 35 65 2 21 32 45 43 57 59 53 63 29 53 61 65 56 62
S2 PP% Pen% 100 40 60 7 25 40 29 45 55 60 62 59 86 65 76 42 60 61
100 39 61 5 23 31 41 46 54
37 25 38
35 27 38
55 63 59
35 22 42
58 53 67
Base: respondents with children aged 0 to 15; those who are hoping to start a family within the next 2 years; and those who do not have children under 16 but do buy things for babies and/or small children nowadays.
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Consumer Dynamics
Respondents aged over 45 were more than twice as likely as those in the 25 to 34 age group to use or have used non-disposable nappies (51% versus 24%). This may be related to the fact that disposable nappies have become widely available only relatively recently, and many women over 45 may not have had the opportunity to use them when bringing up their own babies. Women (46%) were much more likely than men (29%) to agree that they used or had used non-disposable nappies, but differences in penetration by region or social grade were fairly slight.
Table 8.3: Use of Non-Disposable Nappies (% of respondents), March 2010

S3: I use/have used non-disposable nappies.
S3 PP% 100 29 71 5 14 29 52 44 56
Pen% 40 29 46 42 24 37 51 38 41
100 39 61 5 23 31 41 46 54
37 25 38
39 26 35
42 40 37
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Breastfeeding Versus Bottle Feeding

Slightly more men (50%) than women (45%) held the view that breastfeeding is much better for babies than bottle feeding but women were significantly more likely than men (34% to 20%) to say that bottle feeding can be just as good as breastfeeding. Respondents in the 35 to 44 age group were the keenest proponents of bottle feeding, being both more likely than other age groups to say that bottle feeding is just as good as breastfeeding and less likely to say that breastfeeding is much better for babies. Although considerably more ABC1s than C2DEs endorsed breastfeeding as being much better for babies (53% versus 42%), there was essentially no difference between the two groups in terms of the proportion claiming that bottle feeding can be just as good as breastfeeding. Northern respondents were the most enthusiastic about breastfeeding, being the most likely to agree that it is much better for babies (56%) and the least likely to agree that bottle feeding can be just as good (24%).
Table 8.4: Attitudes Towards Breastfeeding (% of respondents), March 2010

S4: Breastfeeding is much better for babies than bottle feeding. S5: Bottle feeding can be just as good as breastfeeding.
Sample Profile All adults Sex Male Female Age 16-24 25-34 35-44 45+ Social Grade ABC1 C2DE Table continues... 46 54 5 23 31 41 39 61 100
S4 PP% Pen% 100 42 58 5 24 28 43 52 48 47 50 45 48 48 42 50 53 42
S5 PP% Pen% 100 28 72 5 23 36 36 46 54 29 20 34 26 29 33 25 29 28
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Table 8.4: Attitudes Towards Breastfeeding (% of respondents), March 2010

...table continued
S4: Breastfeeding is much better for babies than bottle feeding. S5: Bottle feeding can be just as good as breastfeeding.
Sample Profile Region North (Yorkshire and Humberside/ North West/North/Scotland) Midlands (East Midlands/ West Midlands/Wales/East Anglia) South (London/South East/ South West)
S4 PP% Pen%
S5 PP% Pen%
37 25 38
44 21 35
56 39 44
30 28 42
24 31 32
Source: Key Note/NEMS Market Research, March 2010 Men were more likely than women to say that bottle feeding is easier for parents than breastfeeding: 71% of men, compared with 59% of women, agreed with this statement. However, men and women were almost equally likely to hold the view that the cleaning and sterilising that is necessary for bottle feeding can be hard work (53% of men and 52% of women). The youngest respondents (16 to 24 year-olds, 77%) were the most likely to agree with the former statement, while those aged 25 to 34 (60%) were the most likely to agree with the latter one. Fairly similar proportions of the ABC1s (62%) and C2DEs (66%) thought that bottle feeding is easier than breastfeeding. However, the ABC1s were more likely than the C2DEs to feel that the chores associated with bottle feeding can be onerous (57% of ABC1s, compared with 49% of C2DEs). By region, those living in the North were the most likely to think that bottle feeding was easier, while those living in the South were the most likely to agree that cleansing and sterilising can make bottle feeding hard work.
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Table 8.5: Attitudes Towards Bottle Feeding (% of respondents), March 2010

S6: Bottle feeding is easier for the parents than breastfeeding. S7: The cleansing and sterilising necessary for bottle feeding babies means it can be hard work.
S6 PP% Pen% 100 40 60 5 26 31 38 50 50 64 71 59 77 66 59 65 62 66
S7 PP% Pen% 100 44 56 6 24 29 41 44 56 53 53 52 51 60 52 49 57 49
100 44 56 6 24 29 41 44 56
39 26 36
33 24 43
67 65 60
39 26 36
48 49 60
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Consumer Dynamics
New Versus Second-Hand Baby Equipment

Buying all baby equipment brand new is of rather less importance to women than it is to men. More than eight in ten women (83%), compared with around seven in ten men (71%), agreed that second-hand baby equipment is perfectly acceptable to use. In addition, while just over three in ten men (31%) said that it is important to buy all baby equipment brand new, fewer than one in four women (23%) held this view. Second-hand baby equipment was more acceptable to those in the age groups between 25 and 44 than it was to younger or older respondents. The 16 to 24s were the keenest on buying all baby equipment brand new. There was something of an ABC1/C2DE split, with the former (generally more affluent) social grades being more relaxed about buying second-hand and less concerned that everything should be new. Northern respondents were the most likely to prioritise purchases of new equipment for their babies, being more likely than those in other regions to say that this is important to them (32%) and the least likely to think that it is acceptable to buy second-hand (still a relatively high 74%).
Table 8.6: Attitudes Towards New and Second-Hand Baby Equipment (% of respondents), March 2010
S8: It is perfectly acceptable to use second-hand baby equipment as long as you are satisfied it is safe. S9: It is important to buy all baby equipment brand new.
S8 PP% Pen% 100 36 64 5 23 33 39 48 52 78 71 83 74 80 82 75 81 76
S9 PP% Pen% 100 46 54 10 19 29 42 39 61 26 31 23 54 22 24 27 22 30
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Table 8.6: Attitudes Towards New and Second-Hand Baby Equipment (% of respondents), March 2010
...table continued
S8: It is perfectly acceptable to use second-hand baby equipment as long as you are satisfied it is safe. S9: It is important to buy all baby equipment brand new.
S8 PP% Pen%
S9 PP% Pen%
37 25 38
35 26 39
74 80 82
45 25 30
32 26 21
Source: Key Note/NEMS Market Research, March 2010 Younger respondents were particularly averse to buying second-hand car seats (94% said they would never do so) and to accepting baby equipment passed on from friends and family (31% agreed with the statement). Respondents living in the North or the Midlands were twice as likely as those living in the South to reject baby equipment from people they know. However, there was little difference by region in the proportion who said that they would never buy a second-hand car seat.
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Consumer Dynamics
Table 8.7: Aversion to Second-Hand Baby Equipment (% of respondents), March 2010

S10: I would never buy a second-hand childs car seat. S11: I would not accept baby equipment passed on to me from friends and family.
S10 PP% Pen% 100 40 60 7 26 32 35 45 55 63 64 62 94 70 64 53 61 64
S11 PP% Pen% 100 40 60 9 22 20 49 44 56 17 18 17 31 17 11 21 17 18
100 39 61 5 23 31 41 46 54
37 25 38
37 24 39
63 60 64
48 30 22
23 20 10
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Consumer Dynamics
Choosing Baby Equipment

Women were particularly likely to complain that it can be difficult to decide which types of baby equipment to choose: 83% of women, compared with 75% of men, agreed with this statement. Those in the 16 to 24 age group, whilst being more likely than any other age group to agree that the wide choice of equipment makes parenting easier than it was 10 years ago, were also more likely than others to say that greater choice makes it more difficult to make decisions on what to buy. C2DE respondents, and those living in the North, also showed relatively high levels of agreement with the statement that parenting today is easier because of the wide range of baby equipment that is available.
Table 8.8: Attitudes Towards the Range of Baby Equipment That is Available (% of respondents), March 2010
S12: There are so many different types of baby equipment available that it can be difficult to decide what you actually do need. S13: Parenting today is easier than it was 10 years ago because of the wide range of baby equipment available.
S12 PP% Pen% 100 37 63 5 21 33 41 46 54 80 75 83 87 73 84 80 81 80
S13 PP% Pen% 100 41 59 7 20 28 44 41 59 45 47 44 66 40 40 49 40 49
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Table 8.8: Attitudes Towards the Range of Baby Equipment That is Available (% of respondents), March 2010
...table continued
S12: There are so many different types of baby equipment available that it can be difficult to decide what you actually do need. S13: Parenting today is easier than it was 10 years ago because of the wide range of baby equipment available.
S12 PP% Pen%
S13 PP% Pen%
37 25 38
37 26 36
81 83 77
41 23 36
50 41 43
Source: Key Note/NEMS Market Research, March 2010 Those who were the most likely to complain about the lack of unbiased advice about the type of baby equipment to buy included the C2DEs (49%) and those in the 16 to 24 age group (54%).
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Table 8.9: Attitudes Towards the Availability of Unbiased Advice on Baby Equipment (% of respondents), March 2010
S14: It is difficult to get unbiased advice about what sort of baby equipment to buy.
S14 PP% 100 39 61 6 17 32 45 42 58
Pen% 46 45 46 54 34 47 50 42 49
100 39 61 5 23 31 41 46 54
37 25 38
32 28 40
40 50 49
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Half (50%) of the men questioned, compared with 45% of women, said that they had bought items of baby equipment that they had never used but more women than men (34% versus 20%) said they wished that they had been better informed, or done more research, before buying. The ABC1s (whose higher disposable income may make them more prone to impulse buys) were more likely than the C2DEs to have made purchases they later regretted. More than half of the former group (53%), compared with just over four in ten of the latter one (42%), agreed with this statement. Although those in the 35 to 44 age group were the least likely to say that they had bought items they had not used, they were the most likely to say that they wished they had done more research. A third of this group (33%) would have liked to have been better informed before buying. Interestingly, respondents living in the North were more likely than those in other regions to have bought items of baby equipment only to find that they did not use them (56%) but they were less likely than those in the other regions to wish they had been better informed before buying (24%).
Table 8.10: Personal Experience of Choosing Baby Equipment (% of respondents), March 2010
S15: I bought some items of baby equipment that I never, or hardly ever, used. S16: I wish I had done more research/been better informed before I bought my baby equipment.
S15 PP% Pen% 100 42 58 5 24 28 43 52 48 47 50 45 48 48 42 50 53 42
S16 PP% Pen% 100 28 72 5 23 36 36 46 54 29 20 34 26 29 33 25 29 28
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Table 8.10: Personal Experience of Choosing Baby Equipment (% of respondents), March 2010
...table continued
S15: I bought some items of baby equipment that I never, or hardly ever, used. S16: I wish I had done more research/been better informed before I bought my baby equipment.
S15 PP% Pen%
S16 PP% Pen%
37 25 38
44 21 35
56 39 44
30 28 42
24 31 32
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9. Supplier Profiles
INTRODUCTION
This chapter profiles some of the leading manufacturers and specialist retailers operating in the sectors covered by this report. The activities of multiple retailers operating within the baby-products sector in addition to other activities are discussed in Chapter 2 Strategic Overview.
BRITAX CHILDCARE HOLDINGS LTD

Corporate Strategy
Britax Childcare Holdings Ltd was acquired from its former parent company, the aircraft-interior and vehicle-safety-equipment manufacturer Britax International, by the private-equity company Carlyle Group in September 2005, for 230m. The company designs, assembles, manufactures and markets child safety products in the UK. It distributes these products through independent specialist retailers, multiple retailers and vehicle original equipment manufacturers (OEMs) in Europe, Australia (where the products are marketed under the Steelcraft and Safe n Sound brands) and the US. Known chiefly for its childrens car seats, the company also offers infant carriers and wheeled goods. Britax Childcares headquarters are in Chertsey, Surrey.
Profitability
Britax Childcare Holdings Ltd reported a turnover of 183.3m and a pre-tax loss of 522,000 for the year ending 31st December 2008.
Table 9.1: Financial Results for Britax Childcare Holdings Ltd (000), Years Ending 31st December 2006-2008
31/12/06 Turnover Pre-tax profit Source: myicc.co.uk 148,715 -8,261 31/12/07 163,418 -7,208 31/12/08 183,331 -522
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Recent and Future Developments

A range of four new pushchairs was launched by Britax in January 2010. The range included: the B-Lite urban stroller; the B-Mobile three- or four-wheeled compact travel system; the B-Smart modular travel system; and the B-Dual travel system, which has rearward- or forward-facing seat options and space for an additional seat for a second child. Britax launched a television advertising campaign in February 2010, reminding parents of the importance of in-car safety and correct fitting of child car seats. The campaign was supported by online and point-of-sale materials. Also in February 2010, Britax announced a free precautionary remedy kit for one of its stroller models, sold under the Viva and Nexus brands, having detected a potential risk of injury to fingers or hands from its folding mechanism. The remedy kit consists of covers to fit over each of the hinges. In March 2010, it was announced that Britax would be launching the Jockey range of childs bicycle seats, giving a high degree of comfort and safety.
GRACO LTD
Corporate Strategy
Graco Ltd is the UK subsidiary of Graco Childrens Products Inc, which was founded in the US in 1955 and became part of Newell-Rubbermaid in 1999. Graco Europe was established in September 1997, and in 2001 Newell-Rubbermaid acquired Klippan Group, one of Europes leading manufacturers and distributors of child car seats, with operations in the UK, Germany, Finland and Sweden. The Newell-Rubbermaid portfolio also included Little Tikes toys, but this company was sold to MGA Entertainments in 2006. Further acquisitions by Newell-Rubbermaid have included Teutonia, a German company that makes prams and other baby-transport products. This became part of the group in August 2007. In April 2008, Newell-Rubbermaid purchased Aprica Kassai, a Japanese manufacturer of childcare products, including car seats and strollers.
Profitability
Graco Ltd reported a turnover of 850,000 and a pre-tax profit of 172,000 for the year ending 31st December 2009.
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Table 9.2: Financial Results for Graco Ltd (000), Years Ending 31st December 2007-2009
31/12/07 Turnover Pre-tax profit Source: myicc.co.uk 1,254 574 31/12/08 1,249 542 31/12/09 850 172

In March 2010, Graco voluntarily recalled 65 models of its Harmony High Chair, due to reports of loose screws and falling brackets that could cause the chair to tip. The recall was estimated to affect 1.2 million products. The Graco Quattro Tour Duo, a double pushchair designed to accommodate one child from birth and another from the age of 6 months, was launched towards the end of 2009. The product can also be transformed into a travel system for twins with the addition of two Graco car seats.
JACKEL INTERNATIONAL LTD (MAYBORN GROUP)

Corporate Strategy
Jackel International Ltd, based in Newcastle, began life as a manufacturer of hair and nail products, and acquired the UK and European manufacturing licence for the US Tommee Tippee brand of baby-feeding equipment and accessories in 1965. In 1983, the company became part of the Mayborn Group, which also produces fabric dyes under the Dylon brand. In 1995, Jackel acquired the long-established Maws baby-feeding-equipment brand, and 2 years later the Mayborn Group bought Sangenic, a British company producing the Nappy Wrapper nappy-disposal system. In August 2003, Jackel acquired Steri-Bottle UK, the company that launched the Steri-Bottle pre-sterilised single-use feeding bottle in 1999. More acquisitions followed, including Cotton Bottoms Ltd, a supplier of reusable cotton nappies (November 2004), and Tube Plastics, a manufacturer of outdoor play equipment (March 2005). In 2003, Jackel International moved to a single-brand strategy, relaunching the Maws and Sangenic brands as Tommee Tippee. The Tommee Tippee Closer to Nature range of feeding equipment, designed to make bottle feeding as similar as possible to breastfeeding, was launched in 2006. The Mayborn Group was acquired by the private-equity company 3i in 2006.
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Profitability
Jackel International Ltd reported a turnover of 38m and a pre-tax profit of 6.2m for the year ending 31st December 2008.
Table 9.3: Financial Results for Jackel International Ltd (000), Years Ending 31st December 2006-2008
31/12/06 Turnover Pre-tax profit Source: myicc.co.uk 31,589 1,112 31/12/07 33,517 5,539 31/12/08 38,049 6,223

In January 2010, Mayborn launched the Tommee Tippee brand in the US, taking it back to its original roots. The Closer to Nature brand of baby-feeding equipment, and Explora toddler cups and feeding products, were initially available only through Babies R Us in the US, but they moved into Toys R Us stores in April. The Closer to Nature and Explora brands were marketed in the US as being designed to help relieve common feeding anxieties among mothers. In February 2009, Tommee Tippees Closer to Nature range of feeding bottles became available in a new material that is entirely free from Bisphenol A (BPA) a chemical that has been linked with possible interactions with hormone systems. Baby bottles containing BPA were banned in the US in 2009 but have not been banned in the UK. A new star-shaped Tommee Tippee logo was also launched in February 2009.
KIMBERLY-CLARK LTD
Corporate Strategy
Kimberly-Clark Ltd is the UK subsidiary of the Dallas-based Kimberly-Clark Corporation, which produces a number of household paper brands, including Andrex and Kleenex. Huggies is Kimberly-Clarks disposable-nappy brand, launched in the US in 1978, and introduced into the UK in the mid-1990s.
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The Huggies range includes: Huggies Preemies (for premature babies); Newborn, for babies from 0 to 3 months; Natural Fit, with flexible sides, in a range of sizes for babies from 11 to 27 pounds; Little Walkers, shaped like pants, for babies from 19 to 60 pounds; Super-Dry, designed to keep babies dry for up to 12 hours; Little Swimmers swimming nappies; and Pull-Ups potty-training pants. The company also produces Huggies-branded wipes and disposable changing mats.
Profitability
Kimberly-Clark Ltd reported a turnover of 623.6m and a pre-tax profit of 48.6m for the year ending 31st December 2008.
Table 9.4: Financial Results for Kimberly-Clark Ltd (000), Years Ending 31st December 2006-2008

In April 2010, the Huggies brand was relaunched with new packaging featuring photographs of babies at the relevant age for each product, plus a new Huggies logo incorporating a babys handprint. An interactive online campaign to promote the Huggies Super-Dry range was launched in January 2010, with the theme Everyday Discoveries. Parents were encouraged to upload photos and videos of their child exploring their world. The babies featured in the ten winning entries were selected to appear in Huggies promotional campaigns over the next 5 years. A global website for Huggies, which went live in February 2010, features a real-time video of a baby growing in utero. The site, called 9 months in vivo, also includes tips for mothers-to-be.
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MACLAREN EUROPE LTD

Corporate Strategy
Maclaren began life as Andrews Maclaren Ltd, founded in Northampton in the late 1960s, with the invention of the lightweight baby buggy. Following its 1988 acquisition by Hestair PLC, the company became Hestair Maclaren. Later the same year, Hestair purchased Cindico, a manufacturer of nursery products and pushchairs. Hestair PLC was purchased by BET in 1990 and there was a management buy-out of Hestair Maclaren during the same year. The company was purchased by the Sunleigh Group in 1994. Maclaren USA, a wholly owned subsidiary that markets the companys products in the US and Canada, was established in 1999.
Profitability
Maclaren Europe Ltd reported a turnover of 31m and a pre-tax loss of 3.6m for the year ending 31st December 2008.
Table 9.5: Financial Results for Maclaren Europe Ltd (000), Years Ending 31st December 2006-2008
31/12/06 Turnover Pre-tax profit Source: myicc.co.uk 19,232 -1,484 31/12/07 23,442 -1,880 31/12/08 30,978 -3,623

In July 2009, Maclarens US arm acquired the nursery-furniture company NettoCollection. Also in July 2009, Maclarens Techno XLR travel system was expanded with the introduction of a soft carrycot that is compatible with the system, fitting onto the buggy for the babys first few months. In November 2009, Maclaren launched Beginning, a range of organic skincare products for mothers and babies. Maclaren received some adverse publicity towards the end of 2009, following reports that 12 children in the US had had parts of their fingers cut off by the folding mechanism of its umbrella strollers. In November 2009, the company distributed hinge covers to all purchasers of the strollers in the US. In the UK, these covers were issued only to purchasers who contacted Maclaren themselves. From 2010, all Maclaren strollers of this type are being supplied with hinge covers as standard.
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MAMAS & PAPAS LTD

Corporate Strategy
Mamas & Papas Ltd, one of the first companies to introduce the concept of designer products into the market for baby equipment, was founded in 1981 by the Scacchetti family and is still family owned. The companys range includes baby transport (in the form of prams, pushchairs and car seats), nursery furniture and bedding. The brand also encompasses maternity and baby wear, and pre-school toys. Mamas and Papas products are sold through a wide range of outlets, including John Lewis, Selfridges, Harrods and more than 500 independent dealers. The company also has a chain of more than 50 dedicated stores in the UK and the Republic of Ireland, run on a franchise basis.
Profitability
Mamas & Papas Ltd reported a turnover of 87.7m and a pre-tax loss of 1.2m for the year ending 29th March 2009.
Table 9.6: Financial Results for Mamas & Papas Ltd (000), Years Ending 1st April 2007, 30th March 2008 and 29th March 2009
01/04/07 Turnover Pre-tax profit Source: myicc.co.uk 83,382 1,438 30/03/08 83,816 2,789 29/03/09 87,656 -1,182

A number of new Mamas & Papas stores were opened during 2009, including one in the Westfield Shopping Centre in West London, which was opened in February. Others included Liverpool (in September), Hull and Aberdeen (both in October), and Rotherham (November). Openings so far in 2010 have included Lincoln (April), Manchester (May) and Broadstairs (June). Mamas & Papas further expanded its retail operations in November 2009, when it entered into a partnership with the online fashion retailer Shop Direct to supply its range of maternity clothing through all of Shop Directs brand channels.
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In January 2010, Mamas & Papas introduced the Connect system to enable its international franchise partners to collaborate more closely with each other, creating a more unified platform for brand and marketing messages. In the same month, the company announced that it had secured funding from HSBC to assist the expansion of its international operations, focusing on Europe, the Middle East, Russia and Japan. In February 2010, the company was reported to be seeking agencies to help manage public relations (PR) and branding for a US launch later in 2010. Mamas & Papas launched the Magic Astro Cradle in March 2010. The infant seat, described by the company as the ultimate electronic infant entertainment system, uses interactive technology and a choice of music and light shows to entertain babies from birth to 6 months old. The cradle uses Magic Cards, each containing songs and sounds, plus characters that can be attached to the toy arch over the seat. The Mylo three-in-one pushchair is due to be launched at the Kind & Jugend exhibition in Cologne, Germany, in September 2010. This will be the first product designed by Amanda Scacchetti, the daughter of Luisa and David Scacchetti, who founded the company.
MOTHERCARE PLC
Corporate Strategy
Mothercare PLC is a specialist retailer of products for mothers-to-be, babies and children up to the age of 8. The companys current range includes: maternity and childrens clothing; furniture and home furnishings; bedding; feeding, bathing and travel equipment; and toys. The first Mothercare store was opened in 1961, with a mail-order business following a year later. Mothercare became a public company in 1972, and in 2007 it acquired Chelsea Stores Holdings Ltd, the owner of the Early Learning Centre brand. The Early Learning Centre chain of retailers of pre-school toys and games was founded in 1974 as a mail-order operation, later expanding into mainly town-centre stores in the UK, and later still into international franchised stores. In October 2007, Mothercare launched gurgle.com, a social networking and information site for new parents. The Mothercare groups activities can be divided into three categories:
UK stores Direct online and catalogue mail order International retail operations in overseas markets (including Europe,
the Middle East and the Far East), operated as franchises or joint ventures.
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As at mid-November 2009, there were 389 UK stores in the Mothercare group, and 694 franchised international stores, 62 of which were opened during the 6 months to November.
Profitability
Mothercare PLC reported a turnover of 723.6m and a pre-tax profit of 42.2m for the year ending 28th March 2009.
Table 9.7: Financial Results for Mothercare PLC (000), Years Ending 31st March 2007, 29th March 2008 and 28th March 2009

In February 2010, Mothercare announced that it would be supplying Boots with a new range of childrens clothes and accessories. The brand, currently unnamed, is to be launched in autumn 2010. Toys from Mothercares Early Learning Centre range are already sold through 400 Boots stores. Adams Childrenswear, which previously supplied Boots with childrens clothing, fell into administration in January 2010. A brand-awareness campaign for Mothercare, featuring the musician, television presenter and celebrity mother Myleene Klass, was launched in October 2009 on the pre-school television channel Cartoonito. The Mothercare group opened 115 international stores during 2009, mostly on a franchise basis. Much of the companys international growth came from India and Russia. In October, the company announced a joint venture in India; it expects to have 65 Indian stores by the end of 2010, up from 28 in 2009. The company opened its 50th store in Russia in December 2009. Early in 2010, Mothercare announced plans to launch Mothercare in Australia and the Early Learning Centre in South Africa.
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PHILIPS AVENT
Corporate Strategy
The Avent brand, launched in 1984, was purchased by the Dutch electronics company Royal Philips Electronics in September 2006 and renamed Philips Avent. The brand is now part of Philipss Consumer Lifestyle division, which also includes shaving and oral-healthcare products. The Philips Avent product range includes a wide variety of feeding equipment, including breast pumps and breastfeeding accessories, baby bottles and toddler-feeding equipment, bottle and food warmers, soothers, skincare products and changing bags. It also incorporates baby monitors and digital thermometers. Virtually all Philips Avent products are designed and manufactured at the companys factory in Suffolk.
Profitability
Philips Electronics UK Ltd reported a turnover of 827.4m and a pre-tax profit of 4.2m for the year ending 31st December 2008. It should be noted that these figures cover a wide range of items other than baby products.
Table 9.8: Financial Results for Philips Electronics UK Ltd (000), Years Ending 31st December 2006-2008

Philips launched an advice website for new mothers, mybabytalk.co.uk, in February 2009.
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PROCTER & GAMBLE

Corporate Strategy
The US company Procter & Gamble, based in Ohio, was founded in 1837 and expanded into the UK in 1930. The company produces the Pampers nappy range, which was introduced to the UK in 1982. The Pampers disposable-nappy portfolio includes: Pampers New Baby (including Micro for premature and very small babies), which have Secure-Me fasteners that overlap for a snugger fit; Active Fit, with Comfort Stretch for babies who can move; Easy Up Pants for older babies, with high leg cuffs for extra protection; Feel N Learn potty-training pants; Sunnies Swim Pants; and Baby Dry, with Extra Sleep Layer for night-time use. Pampers recently launched two new products: UnderJams and Simply Dry (see Recent and Future Developments). The company also produces Pampers Wipes and Kandoo Wipes, for use by toddlers who are being toilet trained.
Profitability
Procter & Gamble Product Supply (UK) Ltd reported a turnover of 209.3m and a pre-tax profit of 34.7m for the year ending 30th June 2009. These figures cover a broad range of household products and toiletries.
Table 9.9: Financial Results for Procter & Gamble Product Supply (UK) Ltd (000), Years Ending 30th June 2007-2009

In January 2010, the Pampers brand launched UnderJams, its first product for older children. The range, in the form of absorbent pants shaped like underwear, is designed to provide protection from bedwetting for children aged 4 to 12 years. Pampers launched its value nappy brand, Simply Dry, in July 2009, in an attempt to compete with supermarkets and discount retailers.
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TOMY UK LTD
Corporate Strategy
Tomy UK Ltd, a Japanese-owned company, is principally a manufacturer of toys and games. However, it also produces a range of baby products, including baby monitors, cot guards and bedrails, baby carriers, feeding equipment for toddlers, and baby activity toys. The parent company in Japan is named Takara-Tomy, following the 2006 merger of Tomy with its rival toy company Takara, but the Tomy name has been retained for all international subsidiaries.
Profitability
Tomy UK Ltd reported a turnover of 42.7m and a pre-tax loss of 996,000 for the year ending 31st March 2009.
Table 9.10: Financial Results for Tomy UK Ltd (000), Years Ending 31st March 2007-2009
31/03/07 Turnover Pre-tax profit Source: myicc.co.uk 47,159 2,683 31/03/08 51,189 3,030 31/03/09 42,714 -996

A new range of baby monitors the Classic Monitor TA100, the Digital Monitor TD300 and the Digital Plus Monitor TD350 was launched in February 2010. The last of these includes a multicoloured nightlight, which can be customised to co-ordinate with the nursery colour scheme. In August 2009, Tomy announced that it had signed an agreement with Perry Innovation Ltd to distribute the BabyDam Bathwater Barrier in Europe. BabyDam turns a normal-sized bath into a smaller bathing space suitable for babies and toddlers.
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The Future
10. The Future

DEMOGRAPHIC TRENDS
The next 5 years will see a stagnation of the birth rate, following increases between 2005 and 2008. Government projections suggest that, in mid-2014, the number of infants aged under 1 year will stand at 777,000 exactly the same figure as in 2010. During the period between 2010 and 2014, the number of children aged between 1 and 2 years will fall slightly, with the total population of under-3s standing at 2.3 million in mid-2014.
Table 10.1: Forecast Number of Children in the UK Aged 0 to 2 Years (000), Mid-Years 2010-2014
2010 Age 0 % change year-on-year Age 1 % change year-on-year Age 2 % change year-on-year Total % change year-on-year 777 -0.8 783 -0.6 789 4.4 2,348 0.9 2011 775 -0.3 777 -0.8 784 -0.6 2,335 -0.6 2012 774 -0.1 775 -0.3 777 -0.9 2,326 -0.4 2013 775 0.1 774 -0.1 775 -0.3 2,324 -0.1 2014 777 0.3 775 0.1 775 0.0 2,326 0.1
Note: figures may not sum due to rounding.
Source: 2008-Based Population Projections, Government Actuarys Department Crown copyright
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FORECASTS 2010 TO 2014

The next few years are likely to see a greater emphasis on value in baby products particularly in respect of smaller and disposable items such as nappies and feeding equipment. Companies will continue to turn outside the UK for growth, looking at markets in Asia and Eastern Europe, where birth rates are higher.
Disposable Nappies
The market for disposable nappies will continue to grow at a slow rate over the next 5 years, with retail sales reaching 555m by 2014.
Table 10.2: The Forecast UK Market for Disposable Nappies by Value (m at rsp), 2010-2014
2011 537 1.3
2012 545 1.5
2013 550 0.9
2014 555 0.9
530 2.1
Source: Key Note

The market for baby-transport equipment is forecast to grow relatively slowly during the next 5 years, with retail sales reaching 314m by 2014. There will be slightly higher growth in nursery furniture, but from a lower base. By 2014, retail sales in this sector are forecast to reach 154m.
Table 10.3: The Forecast UK Market for Baby Transport and Nursery Furniture by Sector by Value (m at rsp), 2010-2014
2010 Baby transport % change year-on-year Table continues... 301 1.3 2011 304 1.0 2012 307 1.0 2013 311 1.3 2014 314 1.0
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Table 10.3: The Forecast UK Market for Baby Transport and Nursery Furniture by Sector by Value (m at rsp), 2010-2014
...table continued 2010 Nursery furniture % change year-on-year Total % change year-on-year
2011 144 2.1 448 1.4
2012 147 2.1 454 1.3
2013 151 2.7 462 1.8
2014 154 2.0 468 1.3
141 2.9 442 1.8
Source: Key Note

Retail sales of baby monitors and home safety equipment are forecast to reach 98m by 2014, with sales of feeding equipment totalling 94m.
Table 10.4: The Forecast UK Market for Baby Monitors, Home Safety Equipment and Feeding Equipment by Sector by Value (m at rsp), 2010-2014
2010 Baby monitors and home safety equipment % change year-on-year Feeding equipment % change year-on-year Total % change year-on-year
2011 90 2.3 87 1.2 177 1.7
2012 93 3.3 90 3.4 183 3.4
2013 96 3.2 92 2.2 188 2.7
2014 98 2.1 94 2.2 192 2.1
88 3.5 86 3.6 174 3.6
Source: Key Note
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Further Sources
11. Further Sources

Associations
Absorbent Hygiene Product Manufacturers Association 46 Bridge Street Godalming Surrey, GU7 1HL Telephone: 01483-418 221 Fax: 01483-419 943 E-mail: info@ahpma.co.uk http://www.ahpma.co.uk Baby Products Association 2 Carrera House Merlin Court Gatehouse Close Aylesbury, HP19 8DP Telephone: 0845-456 9570 E-mail: info@b-p-a.org http://www.b-p-a.org
General Sources
ICC Ltd Telephone: 020-8481 8855 Fax: 020-8941 6014 E-mail: info@icc.co.uk http://www.icc.co.uk ICC provides in-depth, business-critical information for risk and credit decision-making. A range of flexible online tools provide access to the most comprehensive content on all UK and Irish businesses. ICC offers access to information through high-speed online delivery tools: Kantar Media Ealing Gateway 26-30 Uxbridge Road Ealing London, W5 2BP Telephone: 020-8433 4000 Fax: 020-8433 4001 http://www.kantarmedia.com NEMS Market Research 22-23 Manor Way Belasis Hall Technology Park Billingham, TS23 4HN Telephone: 01642-373 355 Fax: 01642-373 350 http://www.nemsmr.co.uk Nielsen Media Research 1st Floor Atrium Court Bracknell Berkshire, RG12 1BZ Telephone: 01344-469 100 Fax: 01344-469 102 E-mail: nmrcommunication@ nielsen.co.uk http://www.nielsenmedia.co.uk
my ICC my ICC credit management Plum.

The data include:
access to over 370 million original

document images information on individual directors, shareholders, stakeholders and consumers information on limited and non-limited companies analysed financial, risk and business information reports industry information for benchmarking.
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Further Sources
Government Sources
Department of Health Richmond House 79 Whitehall London, SW1A 2NS http://www.dh.gov.uk Government Actuarys Department Finlaison House 15-17 Furnival Street London, EC4A 1AB Telephone: 020-7211 2601 E-mail: enquiries@gad.gov.uk http://www.gad.gov.uk National Statistics 1 Drummond Gate London, SW1V 2QQ Telephone: 020-7533 5888 Fax: 01633-812 599 http://www.statistics.gov.uk The Stationery Office Customer Services PO Box 29 St Crispins House Duke Street Norwich, NR3 1PD Telephone: 0870-600 5522 Fax: 0870-600 5533 E-mail: customer.services@tso.co.uk http://www.tsoshop.co.uk
Other Sources
Audit Bureau of Circulations Saxon House 211 High Street Berkhamsted Hertfordshire, HP4 1AD Telephone: 01442-870 800 http://www.abc.org.uk United Nations Population Division 2 United Nations Plaza Room DC2-1950 New York, NY 10017 US Telephone: 00-1 212 963 3179 Fax: 00-1 212 963 2147 http://www.un.org/esa/population uSwitch 111 Buckingham Palace Road London, SW1W 0SR Telephone: 0800-404 7908 Fax: 020-7911 6102 http://www.uswitch.com
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Further Sources
Key Note Sources

Key Note Ltd 5th Floor Harlequin House 7 High Street Teddington Richmond Upon Thames, TW11 8EE Telephone: 0845-504 0452 Fax: 0845-504 0453 E-mail: sales@keynote.co.uk http://www.keynote.co.uk Key Note Market Reports Clothing Retailing Giftware Home Shopping Own Brands 460 each Invaluable aids to anyone needing to gain a highly detailed understanding of a specific market for more informed decision-making. Key Note Market Reports Plus 605 each Concentrating on more dynamic consumer markets, these offer the same incisive market intelligence as Market Reports but include additional chapters and primary research data. Key Note Market Reviews 750 each Focusing on the bigger picture, Key Note Market Reviews are designed to inform you of developments and opportunities across entire industry sectors. Key Note Market Assessments Baby Foods Childrens Publishing Non-Food Sales in Supermarkets Organic Baby & Toddler Care Supermarket Own Labels Supermarket Services 899 each Providing in-depth strategic analysis and including primary research, these premium reports examine the scope, dynamics and shape of key UK and European markets, with a particular focus on financial services, consumer and lifestyle sectors. Key Note Market Focus Reports Market Forecasts Top Markets 699 each/999 set of 10 volumes Please contact sales@keynote.co.uk for sector-specific individual volume prices. Top Markets and Market Forecasts add a further dimension to the Key Note range, providing an in-depth, strategic and global view of key industries. Compiled using Key Note Market Reports, Market Report Plus and Market Assessments published in the previous year, Top Markets and Market Forecasts are an indispensable and authoritative mini business library, providing a one-stop shop for all your research needs. Other Market Focus reports are created in conjunction with specialist authors, consultancies and industry experts whose wealth of knowledge is vital in publishing this type of report. Key Note Financial Survey Reports 420 each For each key industry sector, there is a detailed Financial Survey report, bringing you invaluable financial information and contact details. You can choose from approximately 90 industry sectors where thousands of companies are profiled in each report.
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Further Sources
Key Note Business Ratio Reports Clothing Retailers Department & Variety Stores Mail Order & Catalogue Houses The Retail Industry Supermarkets The Toy Industry 365 each Over 148 titles evaluating each UK industry sector. They compare, contrast, analyse and comment on the financial performance of the leading companies in each marketplace. Key Note UKplc Report UKplc is an indispensable guide for managers and for those interested in gaining a greater insight into the financial performance of an average company operating in each of the main industries in the UK. Providing up-to-date information and analysis, the publication will allow the reader to gain a greater level of market intelligence as well as a good knowledge of the current state of UK industry. Key Note Regional Leads Reports 420 For each region of Great Britain, there is a detailed Regional Leads Report, bringing you invaluable financial information and contact details for thousands of companies, which are profiled in each report.
You can also choose from these further services: Key Note Bespoke Data Service As well as choosing the companies you want to analyse, you can also choose exactly what performance information you need on them with our Bespoke Data Service. We will be able to provide you with information covering the companies, sectors, performance figures, ratios and other data items specific to your individual requirements alone. Even historical figures can be provided. Contact us for more information: sales@keynote.co.uk Key Note Carnet A service that offers a discount on multiple report purchases. Contact us for further details: sales@keynote.co.uk Key Note Research Consultancy We can offer a full-service bespoke solution for any research requirements not covered by the published report range. Our comprehensive market research and information consultancy service is managed in house. Contact us for more information: bespoke@keynote.co.uk
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TGI tables, produced by Kantar Media, are generally based on one of the following groups:
Households a private household consists of either one person living alone or a group of
people, usually, but not always, members of one family, who live together and whose food and other household expenses are managed as one unit.
Adults any person aged 15 or over. Housewives a member of a private household who is solely or mainly responsible for the
household duties.
Number, Profile, Penetration

Tables used in Key Note reports may give figures for the Number, Profile, and/or Penetration. These terms are explained in the following table.
The total number of adults, housewives, households, etc.
Across The % of 15-24 year-olds, etc. who are users.
Table Heading
Population Number (000) 13,535
Profile (%) 100.0
Penetration (%) 66.4
All housewives Age 15-24 25-34 Social Grade AB C1 Region Greater London
20,371
This is the projected number of people in each subgroup who use the product.
1,045 2,697
Down The % of each subgroup who are users. Each subgroup should total 100% vertically.
7.7 19.9
0.03 12.1
.0 .0
61.5 71.9
2,557
10.4
55.2
Source: Target Group Index, Kantar Media, 1995
TGI data used in Key Note reports are broken down by age, social grade and standard region.
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Social Grade
This is normally based on the occupation of the Head of the Household, or if the Head of the Household is retired, their former occupation. If this information is not available social grade is based on environmental factors such as type of dwelling, amenities in the home, presence of domestic help etc. Social grade is assessed by the interviewer when collecting the information and is, therefore, based on information given personally and verbally by the respondent. Social grade is checked by Kantar Medias coding and editing office. The following table broadly defines the six social grades used. The relationship between social grade and net income of the Head of the Household is a complex one and readers should note that income is not determinant of social grade.
Social Grade A B C1 C2 D E
Social Status Upper middle class Middle class Lower middle class Skilled working class Working class Those at lowest levels of subsistence (no other earner)
Head of Households Occupation Higher managerial, administrative or professional Intermediate managerial, administrative or professional Supervisory or clerical and junior managerial, administrative or professional Skilled manual workers Semi and unskilled workers State pensioners or widows
Standard Region
This is as defined by the Registrar-General.
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Key Note Research
Key Note Research

Key Note is a leading supplier of market information, publishing an extensive range of consumer, industrial, business-to-business and services titles. With over 25 years experience, Key Note represents clear, concise, quality market information. For all reports, Key Note undertakes various types of research: Online searching is carried out by product code or free search method, and covers the period from the last edition of the report to the current day. The my ICC service is used to select company information relevant to the particular report. The financial information extracted may then be backed up by further online searching on particular companies. Trade sources, such as trade associations, trade journals and specific company contacts, are invaluable to the Key Note research process. Secondary data are provided by Kantar Media (TGI) and Nielsen Media Research for consumer/demographic information and advertising expenditure respectively. In addition, various official publications published by National Statistics, etc. are used for essential background data and market trends. Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone. This provides qualitative data (industry comment) to enhance the statistics in reports; questionnaires may also be used. Field research is commissioned for various consumer reports and market reviews, and is carried out by NEMS Market Research. Key Note estimates are derived from statistical analysis and trade research carried out by experienced research analysts. Up-to-date figures are inserted where possible, although there will be some instances where a realistic estimate cannot be made or external sources request that we do not update their figures. Key Note Editorial, 2010
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The Key Note Range of Reports

Key Note publishes over 180 titles each year, across both the Key Note and Market Assessment product ranges. The total range covers consumer, lifestyle, financial services and industrial sectors.
Title Edition Published Title Edition Published
Market Reports and Reports Plus

A
China & Earthenware Cigarettes & Tobacco Cinemas & Theatres Closed-Circuit Television Clothing Manufacturing Clothing Retailing Commercial Radio Commercial Vehicles Computer Hardware Computer Services Computer Software Confectionery Consumer Internet Usage Consumer Magazines Contraception Contract Catering & Foodservice Management Contract Cleaning Cooking Sauces & Food Seasonings Corporate & Promotional Giftware Corporate Hospitality Cosmetics & Fragrances Cosmetic Surgery Courier & Express Services
D
27 23 9 11 15 7 8 15 8 8 7 28 4 17 4 21 21 4 3 6 23 8 15 3 5 11 3 4 1 2 19 7 13 1 14 5
2010 2009 2001 2009 2008 2009 2004 2009 2010 2008 2008 2010 2000 2010 2009 2010 2010 2010 2008 2007 2010 2010 2008 2004 2008 2010 2000 2009 2009 2003 2009 2009 2009 2007 2009 2005
Access Control Accountancy Aerospace Agrochemicals & Fertilisers Air Freight Airlines Airports Animal Feedstuffs Arts & Media Sponsorship Automatic Vending Automotive Services Autoparts
B
11 13 12 3 2 21 14 11 3 24 7 19 14 2 22 17 19 16 25 14 27 15 5 16 10 13 10 14 10 13 17 16 13 13 8 15
2010 2009 2003 2002 2005 2010 2010 2001 2008 2010 2010 2009 2009 2007 2009 2010 2007 2009 2010 2009 2008 2008 2010 2008 2009 2008 2010 2009 2004 2002 2009 2009 2010 2010 2009 2009
Baths & Sanitaryware Bearings Betting & Gaming Biscuits & Cakes Book Publishing Bookselling Bread & Bakery Products Breakfast Cereals Breweries & the Beer Market Bricks & Tiles Bridalwear Builders Merchants Building Contracting Building Materials Bus & Coach Operators Business Press
C
Dark Spirits & Liqueurs Debt Management (Commercial & Consumer) Defence Equipment Design Consultancies Digital Broadcasting Digital Communications Digital TV Direct Marketing Discount Retailing Disposable Paper Products Document Imaging Systems Domestic Heating Dry Cleaning & Laundry Services
Cable & Satellite TV Camping & Caravanning Canned Foods Carpets & Floorcoverings Catering Equipment Chemical Industry Childrenswear Chilled Foods
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Title E
Edition
Published
Title H
Edition
Published
Electrical Contracting Electrical Wholesale Electricity Industry Electronic Component Distribution Electronic Component Manufacturing Electronic Games Equipment for the Disabled Equipment Leasing Estate Agents Ethnic Foods Exhibitions & Conferences
F
9 5 6 12 11 4 5 12 17 15 11
2009 2009 2009 2002 2002 2003 2009 2003 2008 2009 2009
Hand Luggage & Leather Goods Health Clubs & Leisure Centres Health Foods Heating, Ventilating & Air Conditioning Home Furnishings Home Shopping Horticultural Retailing Hotels Housebuilding Household Appliances (Brown Goods) Household Appliances (White Goods)
15 9 22 9 19 13 17 24 18 11 16 16 18
2010 2009 2003 2002 2009 2009 2008 2009 2009 2008 2008 2009 2008
Factoring & Invoice Discounting Fast Food & Home Delivery Outlets The Film Industry Finance Houses Fire Protection Equipment Fish & Fish Products Fitted Kitchens Football Clubs & Finance Footwear Franchising Free-To-Air TV Freight Forwarding Frozen Foods Fruit Juices & Health Drinks Fruit & Vegetables Further & Higher Education
G
2 23 4 11 8 14 7 4 16 12 8 17 24 12 21 6 13 5 18 15 25
2003 2008 2002 2000 2006 2010 2007 2009 2009 2010 2004 2009 2009 2008 2009 2009 2009 2009 2009 2009 2009
Household Detergents & Cleaners Household Furniture

I
Ice Creams & Frozen Desserts Industrial Fasteners Industrial Pumps Industrial Valves Insurance Companies Internet Usage in Business IT Security IT Training
J
14 8 5 8 12 8 9 12 25 7 9 14 9 10 1 20 17 5 23 7 2
2010 2001 2000 2001 2009 2005 2009 2009 2009 2009 2008 2002 2010 2003 2005 2009 2009 2009 2009 2010 2007
Jewellery & Watches

K
Kitchenware
L
Garden Equipment Gas Industry Giftware Glassware Greetings Cards
Laboratory Equipment Lighting Equipment Lingerie

M
Management Consultants Market Forecasts Meat & Meat Products Medical Equipment Metal Recycling Milk & Dairy Products Mobile Phones Mobile Telecommunications
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Title N
Edition
Published
Title S
Edition
Published
Natural Products New Media Marketing Newspapers Non-Metal Recycling

O
2 3 17 2
2007 2002 2008 2008
Sauces & Spreads Shopfitting Short Break Holidays Slimming Market Small Domestic Electrical Appliances
11 14 4 8 12 20 17 3 12 15 7 24 17 21 19 23 5 23 18 22 4 9 4 8
2008 2009 2001 2000 2010 2010 2008 2009 2009 2009 2009 2008 2008 2007 2008 2010 2001 2009 2009 2009 2008 2010 2007 2005
Office Furniture Offshore Oil & Gas Industry Ophthalmic Goods & Services OTC Pharmaceuticals Own Brands
P
21 5 16 14 12 6 13 12 15 15 14 11 14 13 10 3 5 8 15 20 7 26 7 11 10 10 3 24 16 22
2008 2009 2008 2010 2007 2010 2008 2003 2010 2010 2002 2000 2005 2007 2003 2008 2007 2009 2010 2009 2009 2010 2008 2009 2010 2010 2009 2009 2010 2009
Snack Foods Soft Drinks (Carbonated & Concentrated) Soup Market Sports Clothing & Footwear Sports Equipment Sports Sponsorship Stationery (Personal & Office)
T
Packaging (Food & Drink) Packaging (Glass) Packaging (Metals & Aerosols) Packaging (Paper & Board) Packaging (Plastics) Paper & Board Manufacturing Personal Banking Photocopiers & Fax Machines Plant Hire Plastics Processing Poultry Power Tools Premium Lagers, Beers & Ciders Printing Private Healthcare Protective Clothing & Equipment Public Houses
R
Take Home Trade Telecommunications Timber & Joinery Toiletries Tourist Attractions Toys & Games Training Travel Agents & Overseas Tour Operators Tyre Industry
V
Vehicle Security Videoconferencing Video & DVD Retail & Hire

W
Wallcoverings & Ceramic Tiles Waste Management Water Industry Windows & Doors Wine White Spirits
17 10 5 19 20 1 21 12 11 11 3 7 10
2006 2010 2010 2008 2009 2005 2009 2008 2004 2009 2007 2003 2009
Rail Travel Ready Meals Recruitment Agencies (Permanent) Recruitment Agencies (Temporary & Contract) Renewable Energy Restaurants Retail Chemists & Drugstores Road Haulage
Market Reviews
Catering Market Clothing & Footwear Industry UK Computer Market Construction Industry Contracted-Out Services Defence Industry Distribution Industry
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Title
Edition
Published
Title
Edition
Published
DIY & Home Improvements Industry Drinks Market Energy Industry Film Market Food Industry Healthcare Market Insurance Industry The Legal Services Market Leisure & Recreation Market Leisure in the Home Leisure Outside the Home Local Government Services Mechanical Handling Motor Industry Music Industry Office Equipment Industry Packaging (Food & Drink) Industry Passenger Travel in the UK Pharmaceuticals Industry Process Plant Industry Publishing Industry Railway Industry Security Industry Sports Market Travel & Tourism Market UK Internet Market
B2B Marketing 11 19 8 2 20 10 10 1 15 2 2 3 1 12 2 9 1 5 6 1 13 2 13 13 16 1 2009 2009 2010 2009 2010 2005 2009 2005 2005 2008 2008 2010 2001 2008 2010 2010 2003 2007 2008 2000 2010 2006 2010 2010 2009 2009 Business Travel Market C Cable and Satellite Services Charity Funding Childcare Childrens Publishing Clothing Retailers Coffee & Sandwich Shops Commercial Dynamics in Financial Services Commercial Insurance for Small Businesses Condiments and Sauces Consumer Credit & Debt Contact Centres Contraception Cooking & Eating Cross-Border Shopping Cruise Market Customer Loyalty in Financial Services Customer Magazines & Contract Publishing Customer Relationship Management Customer Services in Financial Organisations C2DE Consumer D Diet Foods DINKY Market Direct Insurance 2008 2009 2007 2000 2010 2000 2006 2010 2000 2000 2002 2007 2003 2002 2008 Direct Mortgages Domestic Lighting and Electrical Products Domestic Telecommunications E E-Commerce: The Internet Grocery Market E-Commerce: The Internet Leisure & Entertainment Market Electronic Banking EMU The Impact on the UK Financial Services Industry E-Recruitment E-Shopping Estate Agents and Services Ethnic Foods European Electricity Industry European Gas Industry
2008 2008 2002 2005 2008 2008 2000 2009 2005 2009 2008 2007 2010 2002 2009 2000 2008 2000 2009 2008 2010 2008 2009 2007 2010 2008 2000 2006
Market Assessment Reports

A ABC1 Consumer Activity Holidays Advertising Agencies All-Inclusive Holidays Alternative Healthcare Audio-Visual Retailing B Baby Foods Baby Products Baths and Showers Beds, Bedrooms and Upholstered Furniture Betting and Gaming Book Retailing on the Internet Bottled Water Bridalwear Business Postal Services
2009 2008 2008 2003 2006 2002 2010 2002 2007 2007
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Title
Edition
Published
Title
Edition
Published
European Long-Term Insurance European Oil & Gas Industry European Renewable Energy Industry European Short Breaks European Telecommunications European Tourist Attractions European Trends in Food Shopping European Water Industry Extended Financial Families F Financial Services Marketing to ABs Financial Services Marketing to ABC1s Financial Services Marketing to BCs Financial Services Marketing to C1C2DEs Financial Services Marketing to DEs Financial Services Marketing to Over 60s Financial Services Marketing to the Affluent Financial Services Marketing to the Retired and Elderly Financial Services Marketing to Start-Up Businesses and the Self-Employed Financial Services Organisations on the Internet The Fish Industry Forecourt Retailing Functional Foods Funding in Higher Education G General Insurance Generation Y Global Waste Management Green and Ethical Consumer Grey Consumer H Healthy Eating Holiday Purchasing Patterns Home Entertainment Hot Beverages I In-Car Entertainment Independent Financial Advisers Individual Savings Accounts Insurance Prospects Internet Advertising
2008 2007 2008 2008 2002 2009 2009 2007 2005 2006 2000 2009 2006 2009 2004 2009 2007
Internet Service Providers Issues and Challenges in the UK Life Assurance Market Issues in Higher Education Funding IT Recruitment L Lifestyle Magazines Low-Fat & Reduced-Sugar Foods The Luggage Market M Marketing to Children 4-11 Marketing in the Digital Age Medical & Health Insurance Men and Womens Buying Habits Mens Toiletries & Fragrances Millennium Youth Mobile Marketing Motor Finance N The Newspaper Industry Non-Food Sales in Supermarkets Nutraceuticals O Off-Trade Spirits Opticians & Optical Goods Organic Baby & Toddler Care Organic Food & Drink OTC Pharmaceuticals Over-40s Consumer Over-50s Consumer P Pay TV Pension Extenders Pensions Personal Banking Personal Lines Insurance Personal Loans Pet Market Planning for Retirement Plastic Cards in Europe Plus-Size Fashion Private Sector Opportunities in Education Public Relations Industry Public Transport
2005 2002 2006 2010 2008 2008 2000 2003 2009 2007 2008 2008 2002 2009 2008 2005 2008 2008 2004 2010 2007 2010 2000 2005 2009 2004 2002 2009 2003 2010 2008 2009 2008 2005 2009 2001 2007 2001
2003 2009 2001 2010 2010 2002 2010 2007 2007 2008 2009 2008 2009 2008 2009 2000 2008 2005 2008 2009
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Title
Edition
Published
Title
Edition
Published
R The Railway Industry Ready Meals Recycling and the Environment Retail Credit Retail Development Rural Economy S Savings & Investments Saving Trends in the Eurozone Singles Market Shopping Centres Short Breaks Slimming Market Small Businesses & Banks Small Office Home Office Consumer Small Office Home Office Products Social Media Marketing The Soup Market Sponsorship Supermarket Own Labels Supermarket Services Sweet & Salty Snacks 2007 2002 2009 2008 2004 2009 2010 2001 2001 2010 2001 2000 2009 2007 2009 2004 2001 2000 2000 2001 2009
T Teenage Fashionwear Teenage & Pre-Teen Magazines Teleworking Trends in Food Shopping Trends in Leisure Activities Tweenagers U Utilities V Vegetarian Foods Vehicle Breakdown Services Vitamins, Minerals & Supplements W White Goods Women Over 45 Working Women 2000 2007 2009 2009 2010 2009 2010 2008 2009 2003 2008 2007 2005
Key Note Ltd 2010

All rights reserved. No part of this publication may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988. Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames, TW11 8EE Telephone: 0845-504 0452 Stringent efforts have been made by Key Note to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur; Key Note cannot accept responsibility for such errors or omissions. Details supplied by Key Note should only be used as an aid, to assist the making of business decisions, not as the sole basis for taking such decisions. Under the new Privacy and Electronic Communications Regulations 2004, it is unlawful for a business to make an unsolicited sales & marketing call to a corporate subscriber if it is either registered with CTPS or has requested NOT to receive such calls. Key Note Ltd holds and regularly updates (every 28 days) its data in accordance with the regulations and ensures that its data are compliant, as of the date created. It is the responsibility of the caller to ensure that these data are up to date; Key Note Ltd does not hold itself liable for any subsequent legalities. If you have any queries regarding the CTPS legislation you may find the following website useful: www.ico.gov.uk
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Market Assessment 2010

Fifth Edition July 2010 Edited by Dominic Fenn ISBN 978-1-84729-639-9

James Donovan Managing Director Key Note Limited

Key Note Ltd 2010

BACKGROUND ................................................................................................................................2 DEFINITION ......................................................................................................................................2

MARKET BACKGROUND ...............................................................................................................3

Key Note Ltd 2010

4. Baby Transport and Nursery Furniture

BACKGROUND ..............................................................................................................................32 MARKET SIZE ................................................................................................................................32

5. Baby Monitors, Home Safety Equipment and Feeding Equipment

BACKGROUND ..............................................................................................................................39 MARKET SIZE ................................................................................................................................40

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INTRODUCTION ............................................................................................................................64 BRITAX CHILDCARE HOLDINGS LTD .........................................................................................64

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10. The Future

DEMOGRAPHIC TRENDS .............................................................................................................76

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11. Further Sources

Understanding TGI Data

Key Note Research The Key Note Range of Reports

Key Note Ltd 2010

Key Note Ltd 2010

Baby Transport and Nursery Furniture

baby transport prams, pushchairs, baby carriers, travel systems and

nursery furniture cots, cribs, highchairs, baths, changing units and

Baby Monitors, Home Safety Equipment and Feeding Equipment

feeding equipment feeding bottles and teats, sterilising equipment,

Key Note Ltd 2010

Number of Children Aged 0 to 2

788 4.2 756 3.3 733 2.2 2,277 3.3

783 -0.6 788 4.2 756 3.1 2,327 2.2

Key Note Ltd 2010

Table 2.2: Total Fertility Rate in England and Wales, 1971-2008

Key Note Ltd 2010

Key Note Ltd 2010

100.0 100.0 100.0 100.0

does not sum due to rounding

Key Note Ltd 2010

Table 2.6: Number of Multiple Births in England and Wales, 1998-2008

Key Note Ltd 2010

Baby Products and Fashion

Key Note Ltd 2010

Baby Products Association

Key Note Ltd 2010

148 6.5 1,040 3.0

158 6.8 1,066 2.5

165 4.4 1,099 3.1

168 1.8 1,121 2.0

2006 46.8 38.9

2007 46.2 38.9

2008 46.1 38.9

2009 46.3 38.7

does not sum due to rounding

Source: Key Note

Key Note Ltd 2010

The leading UK retailer of baby transport, nursery furniture and equipment

Boots sells a wide range of baby products, including baby equipment,

Despite strong competition from the major retailers, independent specialist

The growth in importance of non-food sales through supermarkets has

Key Note Ltd 2010

many niche suppliers that are active in specific market sectors.

MARKETING AND ADVERTISING

Key Note Ltd 2010