baby products 2010

Market Assessment 2010

Fifth Edition July 2010Edited by Dominic Fenn

ISBN 978-1-84729-639-9

Baby Products

Baby Products Foreword

© Key Note Ltd 2010

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Baby Products Contents


Contents

Executive Summary 1

1. Introduction 2

BACKGROUND................................................................................................................................2DEFINITION......................................................................................................................................2Disposable Nappies...........................................................................................................................2Baby Transport and Nursery Furniture............................................................................................2Baby Monitors, Home Safety Equipment and Feeding Equipment...............................................2

2. Strategic Overview 3

MARKET BACKGROUND...............................................................................................................3Demographic and Social Factors......................................................................................................3Number of Children Aged 0 to 2 .....................................................................................................3Table 2.1: Number of Children in the UK Aged 0 to 2 Years(000), 30th June 2005-2009 ..............................................................................................................3Family Size.........................................................................................................................................4Table 2.2: Total Fertility Rate in England and Wales, 1971-2008 ..................................................4Older Mothers...................................................................................................................................5Table 2.3: Average Age of Mother at Childbirthin England and Wales (years), 1997-2007 .......................................................................................5Table 2.4: Live Births in England and Walesby Age of Mother (000), 1978-2008 ................................................................................................6Table 2.5: Live Births in England and Walesby Age of Mother (%), 1978-2008...................................................................................................6Multiple Births ..................................................................................................................................7Table 2.6: Number of Multiple Births in England and Wales, 1998-2008 .....................................7Working Parents ...............................................................................................................................8Baby Products and Fashion ..............................................................................................................8Trade Bodies .....................................................................................................................................8Absorbent Hygiene Product Manufacturers Association ...............................................................8Baby Products Association ...............................................................................................................9MARKET SIZE ..................................................................................................................................9Table 2.7: The UK Market for Baby Products by Sectorby Value (£m at rsp), 2005-2009 ......................................................................................................9Table 2.8: The UK Market for Baby Products by Sectorby Value (%), 2005-2009 ................................................................................................................10



DISTRIBUTION...............................................................................................................................11Online Retailing..............................................................................................................................11COMPETITIVE STRUCTURE..........................................................................................................12MARKETING AND ADVERTISING...............................................................................................12Main Media Advertising.................................................................................................................12Table 2.9: Main Media Advertising Expenditure on Baby Products by SelectedMajor Retailers (£000), Years Ending December 2008 and 2009.................................................13Direct Marketing ............................................................................................................................14Sampling .........................................................................................................................................14Bounty .............................................................................................................................................14Emma’s Diary ..................................................................................................................................14Baby Clubs and Social Networking................................................................................................15Parenting Magazines......................................................................................................................16Table 2.10: Selected Parenting Magazines by Average Net Circulation(000), July-December 2009 .............................................................................................................16THE CONSUMER ...........................................................................................................................16Table 2.11: Parents, Prospective Parents and Other Purchasers of Productsfor Babies and/or Small Children (% of respondents), March 2010 ............................................17Table 2.12: Demographic Profile of Parents, Prospective Parents and Other Purchasersof Products for Babies and/or Small Children (% of respondents), March 2010 ........................18Table 2.13: Demographic Profiles of Parents of Babies and Children Aged Under 16by Age of Child/Children (% of respondents), March 2010 .........................................................19Table 2.14: Demographic Profiles of Prospective Parents and Other Purchasersof Products for Babies and/or Small Children (% of respondents), March 2010 ........................22MARKET FORECASTS ...................................................................................................................25Table 2.15: The Forecast UK Market for Baby Products by Sectorby Value (£m at rsp), 2010-2014 ....................................................................................................25

3. Disposable Nappies 27

BACKGROUND..............................................................................................................................27Alternatives to Disposable Nappies...............................................................................................27Real Nappy Week ...........................................................................................................................28MARKET SIZE ................................................................................................................................28Table 3.1: The UK Market for Disposable Nappiesby Value (£m at rsp), 2005-2009 ....................................................................................................28SUPPLIERS ......................................................................................................................................28DISTRIBUTION...............................................................................................................................29RECENT DEVELOPMENTS............................................................................................................29MARKETING AND ADVERTISING...............................................................................................29Table 3.2: Main Media Advertising Expenditure on Disposable Nappiesby Brand (£000), Years Ending December 2008 and 2009 ...........................................................29CONSUMER TRENDS ....................................................................................................................30Table 3.3: Household Use of Disposable Nappies in the Last 12 Months —Penetration and Profile by Age of Main Shopper in the Household (%), 2009 .........................31Table 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



4. Baby Transport and Nursery Furniture 32

BACKGROUND..............................................................................................................................32MARKET SIZE ................................................................................................................................32Table 4.1: The UK Market for Baby Transport and Nursery Furnitureby Value (£m at rsp), 2005-2009 ....................................................................................................33Baby Transport................................................................................................................................33Table 4.2: The UK Market for Baby Transportby Value (£m at rsp), 2005-2009 ....................................................................................................33Table 4.3: The UK Market for Baby Transport by Sectorby Value (£m at rsp), 2005-2009 ....................................................................................................34Nursery Furniture............................................................................................................................34Table 4.4: The UK Market for Nursery Furnitureby Value (£m at rsp), 2005-2009 ....................................................................................................34Table 4.5: The UK Market for Nursery Furniture by Sectorby Value (£m at rsp), 2005-2009 ....................................................................................................35SUPPLIERS ......................................................................................................................................35DISTRIBUTION...............................................................................................................................36RECENT DEVELOPMENTS............................................................................................................36MARKETING AND ADVERTISING...............................................................................................37Table 4.6: Main Media Advertising Expenditure on Baby Carriages andNursery Equipment by Brand (£000), Years Ending December 2008 and 2009 ..........................38

5. Baby Monitors, Home Safety Equipment andFeeding Equipment 39

BACKGROUND..............................................................................................................................39MARKET SIZE ................................................................................................................................40Table 5.1: The UK Market for Baby Monitors, Home Safety Equipment andFeeding Equipment by Value (£m at rsp), 2005-2009 ..................................................................40Table 5.2: The UK Market for Baby Monitors, Home Safety Equipment andFeeding Equipment by Sector by Value (£m at rsp), 2005-2009 ..................................................40SUPPLIERS ......................................................................................................................................41DISTRIBUTION...............................................................................................................................42RECENT DEVELOPMENTS............................................................................................................42Baby Monitors.................................................................................................................................42Home Safety Equipment ................................................................................................................42Feeding Equipment ........................................................................................................................42MARKETING AND ADVERTISING...............................................................................................43

6. An International Perspective 44

POPULATION TRENDS..................................................................................................................44Table 6.1: Total Fertility Rates in the US, Europe andSelected European Countries, 2005-2010......................................................................................44



7. PEST Analysis 46

POLITICAL FACTORS ....................................................................................................................46ECONOMIC FACTORS ..................................................................................................................46SOCIAL FACTORS..........................................................................................................................46TECHNOLOGICAL FACTORS........................................................................................................47

8. Consumer Dynamics 48

OVERVIEW.....................................................................................................................................48Table 8.1: Attitudes Towards Baby Products and Related Issues(% of respondents), March 2010 ...................................................................................................48Nappies............................................................................................................................................49Breastfeeding Versus Bottle Feeding ............................................................................................49New Versus Second-Hand Baby Equipment..................................................................................50Choosing Baby Equipment.............................................................................................................50DETAILED ANALYSIS ....................................................................................................................50Nappies............................................................................................................................................50Table 8.2: Attitudes Towards, and Use of, Disposable Nappies(% of respondents), March 2010 ...................................................................................................51Table 8.3: Use of Non-Disposable Nappies(% of respondents), March 2010 ...................................................................................................52Breastfeeding Versus Bottle Feeding ............................................................................................53Table 8.4: Attitudes Towards Breastfeeding(% of respondents), March 2010 ...................................................................................................53Table 8.5: Attitudes Towards Bottle Feeding(% of respondents), March 2010 ...................................................................................................55New Versus Second-Hand Baby Equipment..................................................................................56Table 8.6: Attitudes Towards New and Second-Hand Baby Equipment(% of respondents), March 2010 ...................................................................................................56Table 8.7: Aversion to Second-Hand Baby Equipment(% of respondents), March 2010 ...................................................................................................58Choosing Baby Equipment.............................................................................................................59Table 8.8: Attitudes Towards the Range of Baby Equipment That is Available(% of respondents), March 2010 ...................................................................................................59Table 8.9: Attitudes Towards the Availability of Unbiased Advice on Baby Equipment(% of respondents), March 2010 ...................................................................................................61Table 8.10: Personal Experience of Choosing Baby Equipment(% of respondents), March 2010 ...................................................................................................62

9. Supplier Profiles 64

INTRODUCTION ............................................................................................................................64BRITAX CHILDCARE HOLDINGS LTD .........................................................................................64Table 9.1: Financial Results for Britax Childcare Holdings Ltd(£000), Years Ending 31st December 2006-2008...........................................................................64



GRACO LTD....................................................................................................................................65Table 9.2: Financial Results for Graco Ltd (£000),Years Ending 31st December 2007-2009 .......................................................................................66JACKEL INTERNATIONAL LTD (MAYBORN GROUP)...............................................................66Table 9.3: Financial Results for Jackel International Ltd(£000), Years Ending 31st December 2006-2008...........................................................................67KIMBERLY-CLARK LTD .................................................................................................................67Table 9.4: Financial Results for Kimberly-Clark Ltd(£000), Years Ending 31st December 2006-2008...........................................................................68MACLAREN EUROPE LTD ............................................................................................................69Table 9.5: Financial Results for Maclaren Europe Ltd(£000), Years Ending 31st December 2006-2008...........................................................................69MAMAS & PAPAS LTD .................................................................................................................70Table 9.6: Financial Results for Mamas & Papas Ltd (£000), Years Ending1st April 2007, 30th March 2008 and 29th March 2009 ...............................................................70MOTHERCARE PLC .......................................................................................................................71Table 9.7: Financial Results for Mothercare PLC (£000), Years Ending31st March 2007, 29th March 2008 and 28th March 2009...........................................................72PHILIPS AVENT..............................................................................................................................73Table 9.8: Financial Results for Philips Electronics UK Ltd(£000), Years Ending 31st December 2006-2008...........................................................................73PROCTER & GAMBLE ...................................................................................................................74Table 9.9: Financial Results for Procter & Gamble Product Supply (UK) Ltd(£000), Years Ending 30th June 2007-2009 ...................................................................................74TOMY UK LTD...............................................................................................................................75Table 9.10: Financial Results for Tomy UK Ltd(£000), Years Ending 31st March 2007-2009 .................................................................................75

10. The Future 76

DEMOGRAPHIC TRENDS .............................................................................................................76Table 10.1: Forecast Number of Children in the UKAged 0 to 2 Years (000), Mid-Years 2010-2014.............................................................................76FORECASTS 2010 TO 2014 ..........................................................................................................77Disposable Nappies.........................................................................................................................77Table 10.2: The Forecast UK Market for Disposable Nappiesby Value (£m at rsp), 2010-2014 ....................................................................................................77Baby Transport and Nursery Furniture..........................................................................................77Table 10.3: The Forecast UK Market for Baby Transport and Nursery Furnitureby Sector by Value (£m at rsp), 2010-2014....................................................................................77Baby Monitors, Home Safety Equipment and Feeding Equipment.............................................78Table 10.4: The Forecast UK Market for Baby Monitors, Home Safety Equipment andFeeding Equipment by Sector by Value (£m at rsp), 2010-2014 ..................................................78



11. Further Sources 79

Associations.....................................................................................................................................79General Sources ..............................................................................................................................79Government Sources ......................................................................................................................80Other Sources..................................................................................................................................80Key Note Sources ............................................................................................................................81

Understanding TGI Data 83

Number, Profile, Penetration.........................................................................................................83Social Grade ....................................................................................................................................84Standard Region .............................................................................................................................84

Key Note Research 85

The Key Note Range of Reports 86

© Key Note Ltd 2010 1

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 parenthoodand 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 between2005 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 Note’s 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.


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 thebaby-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 marketby 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 andcar safety seats

• nursery furniture — cots, cribs, highchairs, baths, changing units andplaypens.

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.


Baby Products Strategic Overview

2. Strategic Overview

MARKET BACKGROUND

Demographic and Social Factors

A number of interlinked social and demographic factors can have an effecton 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 2006 2007 †2008 †2009

Age 0 716 732 756 788 783

% change year-on-year - 2.2 3.3 4.2 -0.6

Age 1 705 716 732 756 788

% change year-on-year - 1.6 2.2 3.3 4.2

Age 2 681 705 717 733 756


Total 2,102 2,153 2,205 2,277 2,327


Table continues...



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 to1.63 in 2001, before gradually rising again. By 2008, the TFR was 1.97.

...table continued

† — projections

Source: Mid-Year Population Estimates, National Statistics/General Register Office for Scotland/Northern Ireland Statistics/2008-Based PopulationProjections, Government Actuary’s Department © Crown copyright

Table 2.1: Number of Children in the UK Aged 0 to 2 Years(000), 30th June 2005-2009

Table 2.2: Total Fertility Rate† in Englandand Wales, 1971-2008

1971 2.37

1981 1.79

1991 1.82

2001 1.63

2002 1.65

2003 1.73

2004 1.78

2005 1.79

2006 1.86

2007 1.92

2008 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 theController of HMSO (and the Queen’s Printer for Scotland)



Smaller families do not necessarily have negative implications for thebaby-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 2.4, 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.

Table 2.3: Average Age of Mother at Childbirthin England and Wales (years), 1997-2007

Birth Order

All Births First Second Third Fourth

1997 28.3 26.1 28.9 30.6 31.4

2000 28.5 26.5 29.1 30.9 31.7

2003 28.8 27.0 29.4 31.0 32.2

2006 29.1 27.3 29.7 31.2 32.4

2007 29.3 27.5 29.8 31.3 32.5

Source: Social Trends 39 (2009), National Statistics © Crown copyrightmaterial is reproduced with the permission of the Controller of HMSO(and the Queen’s 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 2.4: Live Births in England and Walesby Age of Mother (000), 1978-2008

Under 25 25 to 34 35 and Over

1978 238.8 322.5 34.2

1988 251.6 381.4 56.1

1998 161.4 377.6 91.0

2004 165.7 346.8 121.2

2005 166.9 352.5 126.3

2006 173.3 362.0 134.2

2007 175.6 373.7 140.8

2008 180.7 385.4 142.6

Source: Social Trends 40 (December 2009), National Statistics © Crowncopyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)

Table 2.5: Live Births in England and Walesby Age of Mother (%), 1978-2008

Under 25 25 to 34 35 and Over Total

1978 40.1 54.2 5.7 100.0

1988 36.5 55.3 8.1 †100.0

1998 25.6 59.9 14.4 †100.0

2004 26.1 54.7 19.1 †100.0

2005 25.8 54.6 19.6 100.0

2006 25.9 54.1 20.0 100.0

2007 25.4 54.2 20.4 100.0

2008 25.5 54.4 20.1 100.0

† — does not sum due to rounding

Source: Key Note, based on data from Social Trends 40 (December 2009), National Statistics



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 havefewer 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.

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.

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

1998 9,080

1999 8,907

2000 8,792

2001 8,700

2002 8,861

2003 9,131

2004 9,521

2005 9,543

2006 10,137

2007 10,471

2008 10,855

Source: Review of the National Statistician on Births and Patterns of Family Building in England and Wales 2008 (series FM1 number 37), NationalStatistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)



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.



Baby Products Association

The Baby Products Association (BPA) was set up in 1945, with the objectiveof 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 BPA’s 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 BPA’s 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 Productsby Sector by Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Disposable nappies (£m) 475 487 493 507 519


Baby transport and

nursery furniture 396 405 415 427 434


Table continues...



The largest sector, accounting for 46.3% of sales in 2009, was disposable nappies, followed by baby transport and nursery furniture (38.7%).

...table continued

2005 2006 2007 2008 2009

Baby monitors,

home safety equipment

and feeding equipment 139 148 158 165 168


Total 1,010 1,040 1,066 1,099 1,121


rsp — retail selling prices

Source: Key Note

Table 2.8: The UK Market for Baby Productsby Sector by Value (%), 2005-2009

2005 2006 2007 2008 2009

Disposable nappies 47.0 46.8 46.2 46.1 46.3

Baby transport and

nursery furniture 39.2 38.9 38.9 38.9 38.7

Baby monitors,


and feeding equipment 13.8 14.2 14.8 15.0 15.0

Total 100.0 †100.0 †100.0 100.0 100.0


Source: Key Note

Table 2.7: The UK Market for Baby Productsby Sector by Value (£m at rsp), 2005-2009



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.



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 UK’s 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 company’s 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 offerown-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, Sainsbury’s 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.



Table 2.9: Main Media Advertising Expenditureon Baby Products by Selected Major Retailers (£000),

Years Ending December 2008 and 2009

2008 2009

ASDA

Baby product range - 548

Pampers Baby Dry nappies 192 247

Nappies range - 180

Huggies nappies 212 112

Pampers nappy range 315 -

Morrisons

Baby product range - 199

Pampers 225 188

Huggies 447 90

Sainsbury’s

Baby care 937 920

Nappy range 595 285

Pampers 154 -

Tesco

Pampers 444 155

Nappies range - 137

Baby range - 111

Boots

Baby products - 209

Pampers nappies - 90

Others

Mothercare /ELC 105 303

Babies R Us — product range 180 237

Co-op — Pampers Nappies - 128

Source: Nielsen Media Research



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 Emma’s 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. Bounty’s portfolio of services includes packs, guides, online information, mailings, research, photography services andhealthcare-professional briefings. Each year, Bounty distributes more than3 million product sample packs through a variety of outlets, including ASDA, Boots, Sainsbury’s and Toys R Us, as well as hospital maternity wards.

In April 2009, the company was sold to Barclays Private Equity for £54m bythe 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 organisation’s 50th anniversary. The new site has a focus on organising, with reminders, checklists and ‘how to’ areas specific to the user’s 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.

• Emma’s Diary

Emma’s 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.



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, Sainsbury’s 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 Sainsbury’s customer magazine.

Tesco’s Baby & Toddler Club offers expectant and new mothers seven free magazines tailored to particular stages in their child’s development, as well as a range of discounts and priority parking at Tesco stores. Tesco was the sole sponsor of Bauer Media’s 2009 Mother and Baby Awards, which included a new award from the Baby & Toddler Club for Britain’s 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 & Gamble’s Pampers and Kimberly-Clark’s 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 site’s 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).



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 the6 months ending December 2009 are shown in Table 2.10.

THE CONSUMER

Key Note’s 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.

Table 2.10: Selected Parenting Magazines by AverageNet Circulation (000), July-December 2009

Emma’s Diary Pregnancy Guide

(Lifecycle Marketing Ltd) 412,037

Your Toddler (Bounty (UK) Ltd) 222,094

You and Your Newborn First Edition

(Bounty (UK) Ltd) 178,480

Mother and Baby (Bauer Consumer Media) 52,416

Prima Baby

(The National Magazine Company Ltd) 43,694

Pregnancy & Birth

(Bauer Consumer Media) 36,772

Practical Parenting (Magicalia Ltd) 24,022

Junior (Magicalia Ltd) 10,534

Source: Audit Bureau of Circulations



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.

Table 2.11: Parents, Prospective Parents and OtherPurchasers of Products for Babies and/or Small Children

(% of respondents), March 2010

I have a child/children under 1 year old 1

I have a child/children aged 1 to 2 years 5



I do not have children, but I am hoping to

become a parent within the next 2 years 3

I do not have children under 16, but I do buy things

for babies and/or small children nowadays 20

Base: 1,003 adults aged 16+

Source: Key Note/NEMS Market Research, March 2010



Table 2.12: Demographic Profile of Parents, Prospective Parents and Other Purchasers of Products for Babies and/or

Small Children (% of respondents), March 2010

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All adults 100 100

Sex

Male 49 39

Female 51 61

Age

16-24 15 5

25-34 18 23

35-44 18 31

45+ 49 41

Social Grade

ABC1 47 46

C2DE 53 54

Region

North (Yorkshire and Humberside/

North West/North/Scotland) 36 37

Midlands (East Midlands/

West Midlands/Wales/East Anglia) 27 25

South (London/South East/

South West) 37 38




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 Babiesand Children Aged Under 16 by Age of Child/Children


Sam

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Pro

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I Have a

Ch

ild/C

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Un

der 1

Year O

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I Have a

Ch

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1 to

2 Y

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I Have a

Ch

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ren

Ag

ed

3 to

4 Y

ears

I Have a

Ch

ild/C

hild

ren

Ag

ed

5 to

15

years

All adults 100 100 100 100 100

Sex

Male 49 50 50 40 44

Female 51 50 50 60 56

Age

16-19 8 0 0 0 0

20-24 7 0 13 6 1

25-34 18 62 42 36 23

35-44 18 38 42 47 53

45-54 16 0 3 11 22

55-64 13 0 0 0 2

65+ 20 0 0 0 0

Social Grade

A 6 0 7 6 7

B 16 5 26 16 19

C1 25 28 20 35 21

C2 30 13 27 35 35

D 12 54 18 7 15

E 10 0 3 2 3

Table continues...



...table continued

Sam

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I Have a

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Ag

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3 to

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I Have a

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Ag

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5 to

15

years

Working Status

Full time† 40 49 61 28 50

Part time 16 20 16 25 30

Not working‡ 17 25 23 42 18

Retired/invalid 27 7 0 5 1

Standard Region

East Anglia 8 5 4 0 8

East Midlands 6 0 3 7 4

Greater London 13 44 22 17 14

North 4 4 4 5 5

North West 13 4 8 17 10

Scotland 9 16 6 8 8

South East 16 0 7 10 16

South West 8 21 21 21 16

Wales 6 0 9 4 4

West Midlands 7 0 0 7 8

Yorkshire and Humberside 10 6 16 3 5

Size of Household

One 22 0 0 0 1

Two 31 4 0 4 4

Three 21 18 32 21 19

Four 17 32 35 51 46

Five or more 9 46 33 24 30

Table continues...





...table continued

Sam

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I Have a

Ch

ild/C

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Un

der 1

Year O

ld

I Have a

Ch

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hild

ren

Ag

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1 to

2 Y

ears

I Have a

Ch

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hild

ren

Ag

ed

3 to

4 Y

ears

I Have a

Ch

ild/C

hild

ren

Ag

ed

5 to

15

years

Marital Status

Married/living as married 56 96 82 84 86

Single 29 4 14 10 5

Divorced 4 0 2 2 5

Widowed 9 0 0 0 1

Separated 2 0 3 4 3

Presence of Children

Aged 0-4 9 100 100 90 24

Aged 5-9 13 63 49 56 62

Aged 10-15 13 32 11 16 62

No children 75 0 0 0 1

Tenure

Own home outright 50 27 48 32 31

Buying home 27 31 27 32 46

Rent — council 11 32 9 13 13

Rent — private 7 4 17 22 8

† — 30 hours or more per week

‡ — student, not looking for work or unemployed; excludes the retired and invalids






Among those taking part in Key Note’s 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 Note’s 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


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No

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All adults 100 100 100

Sex

Male 49 34 33

Female 51 66 67

Age

16-19 8 0 0

20-24 7 15 6

25-34 18 60 18

35-44 18 23 9

45-54 16 1 15

55-64 13 0 21

65+ 20 0 31

Table continues...



...table continued

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Social Grade

A 6 6 6

B 16 16 11

C1 25 20 25

C2 30 48 33

D 12 10 11

E 10 0 14

Working Status

Full time† 40 88 37

Part time 16 3 10

Not working‡ 17 9 8

Retired/invalid 27 0 45

Standard Region

East Anglia 8 2 7

East Midlands 6 4 10

Greater London 13 21 6

North 4 8 5

North West 13 5 16

Scotland 9 10 10

South East 16 38 16

South West 8 3 7

Wales 6 4 4

West Midlands 7 0 7

Yorkshire and Humberside 10 3 12

Table continues...





...table continued

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all C

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ren

No

wad

ays

Size of Household

One 22 38 33

Two 31 44 53

Three 21 12 9

Four 17 6 4

Five or more 9 0 1

Marital Status

Married/living as married 56 44 59

Single 29 56 21

Divorced 4 0 6

Widowed 9 0 12

Separated 2 0 3

Presence of Children

Aged 0-4 9 0 1

Aged 5-9 13 0 0

Aged 10-15 13 0 0

No children 75 100 99

Tenure

Own home outright 50 13 54

Buying home 27 74 22

Rent — council 11 6 15

Rent — private 7 7 7






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 Productsby Sector by Value (£m at rsp), 2010-2014

2010 2011 2012 2013 2014

Disposable nappies 530 537 545 550 555

% change year-on-year 2.1 1.3 1.5 0.9 0.9

Baby transport and

nursery furniture 442 448 454 462 468


Table continues...



...table continued

2010 2011 2012 2013 2014

Baby monitors,


and feeding equipment 174 177 183 188 192


Total 1,146 1,162 1,182 1,200 1,215



Source: Key Note

Table 2.15: The Forecast UK Market for Baby Productsby Sector by Value (£m at rsp), 2010-2014


Baby Products 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.



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 between26th 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.

SUPPLIERS

Pampers, from Procter & Gamble, and Kimberly-Clark’s Huggies brand dominate the market for disposable nappies. Own-brand nappies are produced for most major retailers, but they are generally less importantthan branded products.

Table 3.1: The UK Market for Disposable Nappiesby Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 475 487 493 507 519



Source: Key Note



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-Clark’s 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 Expenditureon Disposable Nappies by Brand (£000), Years Ending

December 2008 and 2009

2008 2009

Pampers

Nappies 205 3,817

Baby Dry Nappies 1,305 946

Simply Dry - 683

Easy Up Pants - 211

New Baby Nappies 171 125

Active Fit 3,019 -

Kandoo product range 118 -

Table continues...



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 baby’s 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.

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 amain shopper aged between 25 and 44, and four in ten had a main shopper aged between 25 and 34.

...table continued

2008 2009

Huggies

DryNites Sleep Shorts 837 546

Superdry Nappies 1,006 183

Natural Fit Nappies 1,512 -

Pull-Ups Pants 1,073 -

Little Walkers 414 -

Newborn Nappies 109 -

Others

Sainsbury’s — nappies range 595 285

ASDA — nappies range - 180

Tesco — nappies range - 137


Table 3.2: Main Media Advertising Expenditureon Disposable Nappies by Brand (£000), Years Ending

December 2008 and 2009



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 3.3: Household Use of Disposable Nappies in theLast 12 Months — Penetration and Profile by Age of

Main Shopper in the Household (%), 2009

Profile (%) Penetration (%)

All adults 100 7

Age

15-19 2 2

20-24 15 13

25-34 40 19

35-44 30 12

45-54 6 3

55-64 5 2

65+ 2 1

Source: Target Group Index (TGI) © Kantar Media, Quarter 1 (October 2008-September 2009) 2010

Table 3.4: Household Purchasing of Disposable Nappiesin the Last 12 Months — Penetration by Type of Product

and Age of Main Shopper in the Household (%), 2009

Normal Flexible Training Other

All adults 4 2 2 0

Age

15-19 2 0 0 0

20-24 8 5 4 1

25-34 12 5 4 1

35-44 7 3 4 1

45-54 1 1 0 0

55-64 2 0 1 0

Source: Target Group Index (TGI) © Kantar Media, Quarter 1 (October 2008-September 2009) 2010


Baby Products Baby Transport and Nursery Furniture

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.



Baby Transport

Retail sales within the baby-transport sector (comprising prams, pushchairs, baby carriers and car safety seats) reached £297m in 2009.

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 ofcar 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.

Table 4.1: The UK Market for Baby Transport andNursery Furniture by Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 396 405 415 427 434



Source: Key Note

Table 4.2: The UK Market for Baby Transportby Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 276 281 286 293 297



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 décor.

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 4.3: The UK Market for Baby Transportby Sector by Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Prams, pushchairs

and baby carriers 210 216 223 231 237


Car safety seats 66 65 63 62 59

% change year-on-year - -1.5 -3.1 -1.6 -4.8

Total 276 281 286 293 †297



Source: Key Note

Table 4.4: The UK Market for Nursery Furnitureby Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 120 124 129 134 137



Source: Key Note



Cots, cribs and mattresses easily constitute the largest segment, with retail sales estimated at £93m in 2009.

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 offurniture 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 Mothercare’s 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 Bébé Confort.

Other companies of importance in this sector include Chicco, Bébécar and Cosatto.

Table 4.5: The UK Market for Nursery Furnitureby Sector by Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Cots, cribs and

mattresses 82 86 89 92 93


Highchairs 22 22 23 24 25


Other 16 16 17 18 19


Total 120 124 129 134 137


† — including playpens and changing units

Source: Key Note



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 brand’s ‘street cred’ was further enhanced when six Silver Cross Balmoral prams appeared on stage with the singer Lily Allen at the music industry’s 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- orfour-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.

Maclaren’s 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 baby’s 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 child’s bicycle seats, giving a high degree of comfort and safety.



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 Research’s ‘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.)



Britax launched a television advertising campaign in February 2010, reminding parents of the importance of in-car safety and the correct fittingof 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.

Table 4.6: Main Media Advertising Expenditureon Baby Carriages and Nursery Equipment by Brand

(£000), Years Ending December 2008 and 2009

2008 2009

Chicco

Polly Highchair 155 -

Trio For Me 185 -

Total Chicco 340 -

Coo Chi Coo — nursery product range 88 -

Other 1,283 1,188

Total 1,711 1,188



Baby Products Baby Monitors, Home Safety Equipment and Feeding Equipment

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 6-or 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 at6 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, Children’s Services and Skills]), as well as being purchased by parents of young children.



MARKET SIZE

Total UK retail sales of baby monitors, home safety equipment and feeding equipment reached £168m in 2009, compared with £139m in 2005.

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 5.1: The UK Market for Baby Monitors,Home Safety Equipment and Feeding Equipment

by Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Value (£m at rsp) 139 148 158 165 168



Source: Key Note


by Sector by Value (£m at rsp), 2005-2009

2005 2006 2007 2008 2009

Baby monitors and

home safety equipment 71 75 79 84 85


Feeding equipment 68 73 79 82 83


Total 139 148 158 †165 168

Table continues...



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 UK’s 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 company’s 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.

...table continued



Note: some figures have been revised since the last edition of this report.

Source: Key Note





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 adigital 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 Tippee’s 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.




None of the brands in either the baby-feeding or safety-equipment sectors recorded a large enough advertising expenditure to appear in Nielsen Media Research’s data for the years ending December 2008 or 2009.


Baby Products 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, Europeand Selected European Countries, 2005-2010

US 2.09

Western Europe 1.59

Europe 1.50

France 1.89

Norway 1.89

Sweden 1.87

Denmark 1.84

UK 1.84

Belgium 1.77

Netherlands 1.74

Spain 1.43

Austria 1.38

Greece 1.38

Italy 1.38

Germany 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 NationsPopulation Division


Baby Products 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 company’s 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 theEarly 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 ofbaby-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.


Baby Products 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 byTeresa May in the Conservatives’ own Mumsnet advertisement.

Prior to this, the media had made much of Gordon Brown’s failure to name his favourite biscuit during a live Web chat with Mumsnet users — an incident that was, predictably, dubbed ‘biscuit-gate’.

Samantha Cameron’s 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 havebeen 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.


Baby Products 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.


Baby Products Consumer Dynamics

8. Consumer Dynamics

OVERVIEW

This chapter is based on the findings of Key Note’s 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 andRelated Issues (% of respondents), March 2010

Nappies

I am concerned that disposable nappies

are harmful to the environment 59

I use/have used only disposable nappies as

opposed to non-disposable nappies 60

I use/have used non-disposable nappies 40

Breastfeeding Versus Bottle Feeding

Breastfeeding is much better for babies

than bottle feeding 47

Bottle feeding can be just as good as breastfeeding 29

Bottle feeding is easier for the parents

than breastfeeding 64

The cleansing and sterilising necessary for

bottle feeding babies means it can be hard work 53

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 78

It is important to buy all baby equipment

brand new 26

Table continues...



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.


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.

...table continued

New Versus Second-Hand Baby Equipment (cont.)

I would never buy a second-hand child’s car seat 63

I would not accept baby equipment passed on

to me from friends and family 17

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 80

Parenting today is easier than it was

10 years ago because of the wide range

of baby equipment available 45

It is difficult to get unbiased advice about

what sort of baby equipment to buy 46

I bought some items of baby equipment

that I never, or hardly ever, used 47

I wish I had done more research/been better

informed before I bought my baby equipment 29


Table 8.1: Attitudes Towards Baby Products andRelated Issues (% of respondents), March 2010




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.


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%).



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 S1 S2Profile PP% Pen% PP% Pen%

All adults 100 100 59 100 60

Sex

Male 39 35 53 40 62

Female 61 65 63 60 59

Age

16-24 5 2 29 7 86

25-34 23 21 53 25 65

35-44 31 32 61 40 76

45+ 41 45 65 29 42

Social Grade

ABC1 46 43 56 45 60

C2DE 54 57 62 55 61

Region


North West/North/Scotland) 37 35 55 35 58


West Midlands/Wales/East Anglia) 25 27 63 22 53


South West) 38 38 59 42 67

Weighted sample: 477 adults aged 16+

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.




Respondents aged over 45 were more than twice as likely as those in the25 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.”

Sample S3Profile PP% Pen%


Sex

Male 39 29 29

Female 61 71 46

Age

16-24 5 5 42

25-34 23 14 24

35-44 31 29 37

45+ 41 52 51

Social Grade

ABC1 46 44 38

C2DE 54 56 41

Region


North West/North/Scotland) 37 39 42


West Midlands/Wales/East Anglia) 25 26 40


South West) 38 35 37







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.”


All adults 100 100 47 100 29

Sex

Male 39 42 50 28 20

Female 61 58 45 72 34

Age

16-24 5 5 48 5 26

25-34 23 24 48 23 29

35-44 31 28 42 36 33

45+ 41 43 50 36 25

Social Grade

ABC1 46 52 53 46 29

C2DE 54 48 42 54 28

Table continues...



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.

...table continued

S4: “Breastfeeding is much better for babies than bottle feeding.”

S5: ”Bottle feeding can be just as good as breastfeeding.”


Region






South West) 38 35 44 42 32




Table 8.4: Attitudes Towards Breastfeeding(% of respondents), March 2010



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.”


All adults 100 100 64 100 53

Sex

Male 44 40 71 44 53

Female 56 60 59 56 52

Age

16-24 6 5 77 6 51

25-34 24 26 66 24 60

35-44 29 31 59 29 52

45+ 41 38 65 41 49

Social Grade

ABC1 44 50 62 44 57

C2DE 56 50 66 56 49

Region






South West) 36 43 60 36 60







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-HandBaby 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.”


All adults 100 100 78 100 26

Sex

Male 39 36 71 46 31

Female 61 64 83 54 23

Age

16-24 5 5 74 10 54

25-34 23 23 80 19 22

35-44 31 33 82 29 24

45+ 41 39 75 42 27

Social Grade

ABC1 46 48 81 39 22

C2DE 54 52 76 61 30

Table continues...



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.

...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.”


Region






South West) 38 39 82 30 21




Table 8.6: Attitudes Towards New and Second-HandBaby Equipment (% of respondents), March 2010



Table 8.7: Aversion to Second-Hand Baby Equipment(% of respondents), March 2010

S10: “I would never buy a second-hand child’s car seat.”

S11: ”I would not accept baby equipment passed on to me from friends and family.”


All adults 100 100 63 100 17

Sex

Male 39 40 64 40 18

Female 61 60 62 60 17

Age

16-24 5 7 94 9 31

25-34 23 26 70 22 17

35-44 31 32 64 20 11

45+ 41 35 53 49 21

Social Grade

ABC1 46 45 61 44 17

C2DE 54 55 64 56 18

Region






South West) 38 39 64 22 10







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 EquipmentThat is Available (% of respondents), March 2010

S12: “There are so many different types of baby equipment available that it can bedifficult 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.”


All adults 100 100 80 100 45

Sex

Male 39 37 75 41 47

Female 61 63 83 59 44

Age

16-24 5 5 87 7 66

25-34 23 21 73 20 40

35-44 31 33 84 28 40

45+ 41 41 80 44 49

Social Grade

ABC1 46 46 81 41 40

C2DE 54 54 80 59 49

Table continues...



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%).

...table continued

S12: “There are so many different types of baby equipment available that it can bedifficult 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.”


Region






South West) 38 36 77 36 43




Table 8.8: Attitudes Towards the Range of Baby EquipmentThat is Available (% of respondents), March 2010



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.”

Sample S14Profile PP% Pen%


Sex

Male 39 39 45

Female 61 61 46

Age

16-24 5 6 54

25-34 23 17 34

35-44 31 32 47

45+ 41 45 50

Social Grade

ABC1 46 42 42

C2DE 54 58 49

Region


North West/North/Scotland) 37 32 40


West Midlands/Wales/East Anglia) 25 28 50


South West) 38 40 49






Half (50%) of the men questioned, compared with 45% of women, saidthat 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.”


All adults 100 100 47 100 29

Sex

Male 39 42 50 28 20

Female 61 58 45 72 34

Age

16-24 5 5 48 5 26

25-34 23 24 48 23 29

35-44 31 28 42 36 33

45+ 41 43 50 36 25

Social Grade

ABC1 46 52 53 46 29

C2DE 54 48 42 54 28

Table continues...



...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.”


Region






South West) 38 35 44 42 32




Table 8.10: Personal Experience of Choosing Baby Equipment (% of respondents), March 2010


Baby Products Supplier Profiles

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 children’s car seats, the company also offers infant carriers and wheeled goods.

Britax Childcare’s 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 31/12/07 31/12/08

Turnover 148,715 163,418 183,331

Pre-tax profit -8,261 -7,208 -522

Source: myicc.co.uk



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- orfour-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 child’s bicycle seats, giving a high degree of comfort and safety.

GRACO LTD

Corporate Strategy

Graco Ltd is the UK subsidiary of Graco Children’s 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 2001Newell-Rubbermaid acquired Klippan Group, one of Europe’s 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.




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 theSteri-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.

Table 9.2: Financial Results for Graco Ltd(£000), Years Ending 31st December 2007-2009

31/12/07 31/12/08 31/12/09

Turnover 1,254 1,249 850

Pre-tax profit 574 542 172

Source: myicc.co.uk



Profitability

Jackel International Ltd reported a turnover of £38m and a pre-tax profit of £6.2m for the year ending 31st December 2008.


In January 2010, Mayborn launched the Tommee Tippee brand in the US, taking it back to its original roots. The Closer to Nature brand ofbaby-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 Tippee’s 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-Clark’s disposable-nappy brand, launched in the US in 1978, and introduced into the UK in the mid-1990s.

Table 9.3: Financial Results for Jackel International Ltd(£000), Years Ending 31st December 2006-2008

31/12/06 31/12/07 31/12/08

Turnover 31,589 33,517 38,049

Pre-tax profit 1,112 5,539 6,223

Source: myicc.co.uk



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-Upspotty-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.


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 baby’s 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.

Table 9.4: Financial Results for Kimberly-Clark Ltd(£000), Years Ending 31st December 2006-2008

31/12/06 31/12/07 31/12/08

Turnover 602,233 614,263 623,649

Pre-tax profit 53,954 143,551 48,552

Source: myicc.co.uk



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 company’s 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.


In July 2009, Maclaren’s US arm acquired the nursery-furniture company NettoCollection. Also in July 2009, Maclaren’s 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 baby’s 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.

Table 9.5: Financial Results for Maclaren Europe Ltd(£000), Years Ending 31st December 2006-2008

31/12/06 31/12/07 31/12/08

Turnover 19,232 23,442 30,978

Pre-tax profit -1,484 -1,880 -3,623

Source: myicc.co.uk



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 company’s 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 inthe 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.


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 Direct’s brand channels.

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 30/03/08 29/03/09

Turnover 83,382 83,816 87,656

Pre-tax profit 1,438 2,789 -1,182

Source: myicc.co.uk



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 company’s current range includes: maternity and children’s 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 group’s 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.



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.


In February 2010, Mothercare announced that it would be supplying Boots with a new range of children’s clothes and accessories. The brand, currently unnamed, is to be launched in autumn 2010. Toys from Mothercare’s Early Learning Centre range are already sold through 400 Boots stores. Adams Childrenswear, which previously supplied Boots with children’s 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 company’s 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.

Table 9.7: Financial Results for Mothercare PLC(£000), Years Ending 31st March 2007,29th March 2008 and 28th March 2009

31/03/07 29/03/08 28/03/09

Turnover 498,500 676,800 723,600

Pre-tax profit 18,900 4,500 42,200

Source: myicc.co.uk



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 Philips’s 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 monitorsand digital thermometers.

Virtually all Philips Avent products are designed and manufactured at the company’s 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.


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

Table 9.8: Financial Results for Philips Electronics UK Ltd(£000), Years Ending 31st December 2006-2008

31/12/06 31/12/07 31/12/08

Turnover 682,200 812,800 827,400

Pre-tax profit 65,900 33,100 4,200

Source: myicc.co.uk



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.


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.

Table 9.9: Financial Results for Procter & Gamble Product Supply (UK) Ltd (£000), Years Ending 30th June 2007-2009

30/06/07 30/06/08 30/06/09

Turnover 258,073 271,006 209,273

Pre-tax profit 38,528 40,347 34,697

Source: myicc.co.uk



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.


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 withPerry 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.

Table 9.10: Financial Results for Tomy UK Ltd(£000), Years Ending 31st March 2007-2009

31/03/07 31/03/08 31/03/09

Turnover 47,159 51,189 42,714

Pre-tax profit 2,683 3,030 -996

Source: myicc.co.uk


Baby Products 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 UKAged 0 to 2 Years (000), Mid-Years 2010-2014

2010 2011 2012 2013 2014

Age 0 777 775 774 775 777

% change year-on-year -0.8 -0.3 -0.1 0.1 0.3

Age 1 783 777 775 774 775

% change year-on-year -0.6 -0.8 -0.3 -0.1 0.1

Age 2 789 784 777 775 775

% change year-on-year 4.4 -0.6 -0.9 -0.3 0.0

Total 2,348 2,335 2,326 2,324 2,326

% change year-on-year 0.9 -0.6 -0.4 -0.1 0.1

Note: figures may not sum due to rounding.

Source: 2008-Based Population Projections, Government Actuary’sDepartment © Crown copyright



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.

Baby Transport and Nursery Furniture

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 10.2: The Forecast UK Market for Disposable Nappiesby Value (£m at rsp), 2010-2014

2010 2011 2012 2013 2014

Value (£m at rsp) 530 537 545 550 555



Source: Key Note

Table 10.3: The Forecast UK Market for Baby Transport and Nursery Furniture by Sector by Value (£m at rsp), 2010-2014

2010 2011 2012 2013 2014

Baby transport 301 304 307 311 314


Table continues...



Baby Monitors, Home Safety Equipment and Feeding Equipment

Retail sales of baby monitors and home safety equipment are forecast to reach £98m by 2014, with sales of feeding equipment totalling £94m.

...table continued

2010 2011 2012 2013 2014

Nursery furniture 141 144 147 151 154


Total 442 448 454 462 468



Source: Key Note

Table 10.3: The Forecast UK Market for Baby Transport and Nursery Furniture by Sector by Value (£m at rsp), 2010-2014

Table 10.4: The Forecast UK Market for Baby Monitors,Home Safety Equipment and Feeding Equipment


2010 2011 2012 2013 2014

Baby monitors and

home safety equipment 88 90 93 96 98


Feeding equipment 86 87 90 92 94


Total 174 177 183 188 192



Source: Key Note

Baby Products Further Sources


11. Further Sources

Associations

Absorbent Hygiene Product Manufacturers Association46 Bridge StreetGodalmingSurrey, GU7 1HLTelephone: 01483-418 221Fax: 01483-419 943E-mail: [email protected]://www.ahpma.co.uk

Baby Products Association2 Carrera HouseMerlin CourtGatehouse CloseAylesbury, HP19 8DPTelephone: 0845-456 9570E-mail: [email protected]://www.b-p-a.org

General Sources

ICC LtdTelephone: 020-8481 8855Fax: 020-8941 6014E-mail: [email protected]://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 onlinedelivery tools:

• my ICC• my ICC credit management• Plum.

The data include:

• access to over 370 million original document images

• information on individual directors, shareholders, stakeholdersand consumers

• information on limited andnon-limited companies

• analysed financial, risk andbusiness information reports

• industry information for benchmarking.

Kantar MediaEaling Gateway26-30 Uxbridge RoadEalingLondon, W5 2BPTelephone: 020-8433 4000Fax: 020-8433 4001http://www.kantarmedia.com

NEMS Market Research22-23 Manor WayBelasis Hall Technology ParkBillingham, TS23 4HNTelephone: 01642-373 355Fax: 01642-373 350http://www.nemsmr.co.uk

Nielsen Media Research1st FloorAtrium CourtBracknellBerkshire, RG12 1BZTelephone: 01344-469 100Fax: 01344-469 102E-mail: [email protected]://www.nielsenmedia.co.uk



Government Sources

Department of HealthRichmond House79 WhitehallLondon, SW1A 2NShttp://www.dh.gov.uk

Government Actuary’s DepartmentFinlaison House15-17 Furnival StreetLondon, EC4A 1ABTelephone: 020-7211 2601E-mail: [email protected]://www.gad.gov.uk

National Statistics1 Drummond GateLondon, SW1V 2QQTelephone: 020-7533 5888Fax: 01633-812 599http://www.statistics.gov.uk

The Stationery OfficeCustomer ServicesPO Box 29St Crispins HouseDuke StreetNorwich, NR3 1PDTelephone: 0870-600 5522Fax: 0870-600 5533E-mail: [email protected]://www.tsoshop.co.uk

Other Sources

Audit Bureau of CirculationsSaxon House211 High StreetBerkhamstedHertfordshire, HP4 1ADTelephone: 01442-870 800http://www.abc.org.uk

United Nations Population Division2 United Nations PlazaRoom DC2-1950New York, NY 10017USTelephone: 00-1 212 963 3179Fax: 00-1 212 963 2147http://www.un.org/esa/population

uSwitch111 Buckingham Palace RoadLondon, SW1W 0SRTelephone: 0800-404 7908Fax: 020-7911 6102http://www.uswitch.com



Key Note Sources

Key Note Ltd5th FloorHarlequin House7 High StreetTeddingtonRichmond Upon Thames, TW11 8EETelephone: 0845-504 0452Fax: 0845-504 0453E-mail: [email protected]://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• Children’s 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 [email protected] 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 publishedin the previous year, Top Marketsand Market Forecasts are an indispensable and authoritativemini business library, providing aone-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 typeof report.

Key Note Financial SurveyReports£420 each

For each key industry sector, there isa 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.



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.

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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.

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Baby Products Understanding TGI Data

Understanding TGI Data

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.

TGI data used in Key Note reports are broken down by age, social grade and standard region.

.0

.0

Table Heading

Population Number (000) Profile (%) Penetration (%)

All housewives 20,371 13,535 100.0 66.4

Age

15-24

25-34

Social Grade

AB

C1

Region

Greater

London

Source: Target Group Index, © Kantar Media, 1995

1,045 7.7 0.03

2,697 19.9 12.1

61.5

71.9

2,557 10.4 55.2

The total number of adults, housewives, households, etc.

Across

The % of 15-24 year-olds, etc. who are users.

This is the projected number of people in each subgroup who use the product.

Down

The % of each subgroup who are users. Eachsubgroup should total 100% vertically.


Baby Products Understanding TGI Data

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 Media’s 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.

Standard Region

This is as defined by the Registrar-General.

Social Grade Social Status Head of Household’s OccupationA Upper middle class Higher managerial, administrative or professionalB Middle class Intermediate managerial, administrative or

professionalC1 Lower middle class Supervisory or clerical and junior managerial,

administrative or professionalC2 Skilled working

classSkilled manual workers

D Working class Semi and unskilled workersE Those at lowest

levels of subsistence (no other earner)

State pensioners or widows

Baby Products 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

Baby Products The Key Note Range of Reports


The Key Note Range of ReportsKey Note publishes over 180 titles each year, across both the Key Note and MarketAssessment product ranges. The total range covers consumer, lifestyle, financialservices and industrial sectors.

Title Edition Published

Market Reports and Reports Plus

A

Access Control 11 2010

Accountancy 13 2009

Aerospace 12 2003

Agrochemicals & Fertilisers 3 2002

Air Freight 2 2005

Airlines 21 2010

Airports 14 2010

Animal Feedstuffs 11 2001

Arts & Media Sponsorship 3 2008

Automatic Vending 24 2010

Automotive Services 7 2010

Autoparts 19 2009

B

Baths & Sanitaryware 14 2009

Bearings 2 2007

Betting & Gaming 22 2009

Biscuits & Cakes 17 2010

Book Publishing 19 2007

Bookselling 16 2009

Bread & Bakery Products 25 2010

Breakfast Cereals 14 2009

Breweries & the Beer Market 27 2008

Bricks & Tiles 15 2008

Bridalwear 5 2010

Builders’ Merchants 16 2008

Building Contracting 10 2009

Building Materials 13 2008

Bus & Coach Operators 10 2010

Business Press 14 2009

C

Cable & Satellite TV 10 2004

Camping & Caravanning 13 2002

Canned Foods 17 2009

Carpets & Floorcoverings 16 2009

Catering Equipment 13 2010

Chemical Industry 13 2010

Childrenswear 8 2009

Chilled Foods 15 2009

China & Earthenware 27 2010

Cigarettes & Tobacco 23 2009

Cinemas & Theatres 9 2001

Closed-Circuit Television 11 2009

Clothing Manufacturing 15 2008

Clothing Retailing 7 2009

Commercial Radio 8 2004

Commercial Vehicles 15 2009

Computer Hardware 8 2010

Computer Services 8 2008

Computer Software 7 2008

Confectionery 28 2010

Consumer Internet Usage 4 2000

Consumer Magazines 17 2010

Contraception 4 2009

Contract Catering & Foodservice Management 21 2010

Contract Cleaning 21 2010

Cooking Sauces & Food Seasonings 4 2010

Corporate & Promotional Giftware 3 2008

Corporate Hospitality 6 2007

Cosmetics & Fragrances 23 2010

Cosmetic Surgery 8 2010

Courier & Express Services 15 2008

D

Dark Spirits & Liqueurs 3 2004

Debt Management (Commercial & Consumer) 5 2008

Defence Equipment 11 2010

Design Consultancies 3 2000

Digital Broadcasting 4 2009

Digital Communications 1 2009

Digital TV 2 2003

Direct Marketing 19 2009

Discount Retailing 7 2009

Disposable Paper Products 13 2009

Document Imaging Systems 1 2007

Domestic Heating 14 2009

Dry Cleaning & Laundry Services 5 2005




E

Electrical Contracting 9 2009

Electrical Wholesale 5 2009

Electricity Industry 6 2009

Electronic Component Distribution 12 2002

Electronic Component Manufacturing 11 2002

Electronic Games 4 2003

Equipment for the Disabled 5 2009

Equipment Leasing 12 2003

Estate Agents 17 2008

Ethnic Foods 15 2009

Exhibitions & Conferences 11 2009

F

Factoring & Invoice Discounting 2 2003

Fast Food & Home Delivery Outlets 23 2008

The Film Industry 4 2002

Finance Houses 11 2000

Fire Protection Equipment 8 2006

Fish & Fish Products 14 2010

Fitted Kitchens 7 2007

Football Clubs & Finance 4 2009

Footwear 16 2009

Franchising 12 2010

Free-To-Air TV 8 2004

Freight Forwarding 17 2009

Frozen Foods 24 2009

Fruit Juices & Health Drinks 12 2008

Fruit & Vegetables 21 2009

Further & Higher Education 6 2009

G

Garden Equipment 13 2009

Gas Industry 5 2009

Giftware 18 2009

Glassware 15 2009

Greetings Cards 25 2009


H

Hand Luggage & Leather Goods 15 2010

Health Clubs & Leisure Centres 9 2009

Health Foods 22 2003

Heating, Ventilating & Air Conditioning 9 2002

Home Furnishings 19 2009

Home Shopping 13 2009

Horticultural Retailing 17 2008

Hotels 24 2009

Housebuilding 18 2009

Household Appliances (Brown Goods) 11 2008

Household Appliances(White Goods) 16 2008

Household Detergents & Cleaners 16 2009

Household Furniture 18 2008

I

Ice Creams & Frozen Desserts 14 2010

Industrial Fasteners 8 2001

Industrial Pumps 5 2000

Industrial Valves 8 2001

Insurance Companies 12 2009

Internet Usage in Business 8 2005

IT Security 9 2009

IT Training 12 2009

J

Jewellery & Watches 25 2009

K

Kitchenware 7 2009

L

Laboratory Equipment 9 2008

Lighting Equipment 14 2002

Lingerie 9 2010

M

Management Consultants 10 2003

Market Forecasts 1 2005

Meat & Meat Products 20 2009

Medical Equipment 17 2009

Metal Recycling 5 2009

Milk & Dairy Products 23 2009

Mobile Phones 7 2010

Mobile Telecommunications 2 2007




N

Natural Products 2 2007

New Media Marketing 3 2002

Newspapers 17 2008

Non-Metal Recycling 2 2008

O

Office Furniture 21 2008

Offshore Oil & Gas Industry 5 2009

Ophthalmic Goods & Services 16 2008

OTC Pharmaceuticals 14 2010

Own Brands 12 2007

P

Packaging (Food & Drink) 6 2010

Packaging (Glass) 13 2008

Packaging (Metals & Aerosols) 12 2003

Packaging (Paper & Board) 15 2010

Packaging (Plastics) 15 2010

Paper & Board Manufacturing 14 2002

Personal Banking 11 2000

Photocopiers & Fax Machines 14 2005

Plant Hire 13 2007

Plastics Processing 10 2003

Poultry 3 2008

Power Tools 5 2007

Premium Lagers, Beers & Ciders 8 2009

Printing 15 2010

Private Healthcare 20 2009

Protective Clothing & Equipment 7 2009

Public Houses 26 2010

R

Rail Travel 7 2008

Ready Meals 11 2009

Recruitment Agencies (Permanent) 10 2010

Recruitment Agencies (Temporary & Contract) 10 2010

Renewable Energy 3 2009

Restaurants 24 2009

Retail Chemists & Drugstores 16 2010

Road Haulage 22 2009


S

Sauces & Spreads 11 2008

Shopfitting 14 2009

Short Break Holidays 4 2001

Slimming Market 8 2000

Small Domestic Electrical Appliances 12 2010

Snack Foods 20 2010

Soft Drinks (Carbonated & Concentrated) 17 2008

Soup Market 3 2009

Sports Clothing & Footwear 12 2009

Sports Equipment 15 2009

Sports Sponsorship 7 2009

Stationery (Personal & Office) 24 2008

T

Take Home Trade 17 2008

Telecommunications 21 2007

Timber & Joinery 19 2008

Toiletries 23 2010

Tourist Attractions 5 2001

Toys & Games 23 2009

Training 18 2009

Travel Agents & Overseas Tour Operators 22 2009

Tyre Industry 4 2008

V

Vehicle Security 9 2010

Videoconferencing 4 2007

Video & DVD Retail & Hire 8 2005

W

Wallcoverings & Ceramic Tiles 17 2006

Waste Management 10 2010

Water Industry 5 2010

Windows & Doors 19 2008

Wine 20 2009

White Spirits 1 2005

Market ReviewsCatering Market 21 2009

Clothing & Footwear Industry 12 2008

UK Computer Market 11 2004

Construction Industry 11 2009

Contracted-Out Services 3 2007

Defence Industry 7 2003

Distribution Industry 10 2009




DIY & Home Improvements Industry 11 2009

Drinks Market 19 2009

Energy Industry 8 2010

Film Market 2 2009

Food Industry 20 2010

Healthcare Market 10 2005

Insurance Industry 10 2009

The Legal Services Market 1 2005

Leisure & Recreation Market 15 2005

Leisure in the Home 2 2008

Leisure Outside the Home 2 2008

Local Government Services 3 2010

Mechanical Handling 1 2001

Motor Industry 12 2008

Music Industry 2 2010

Office Equipment Industry 9 2010

Packaging (Food & Drink) Industry 1 2003

Passenger Travel in the UK 5 2007

Pharmaceuticals Industry 6 2008

Process Plant Industry 1 2000

Publishing Industry 13 2010

Railway Industry 2 2006

Security Industry 13 2010

Sports Market 13 2010

Travel & Tourism Market 16 2009

UK Internet Market 1 2009

Market Assessment ReportsA

ABC1 Consumer 2008

Activity Holidays 2009

Advertising Agencies 2007

All-Inclusive Holidays 2000

Alternative Healthcare 2010

Audio-Visual Retailing 2000

B

Baby Foods 2006

Baby Products 2010

Baths and Showers 2000

Beds, Bedrooms and Upholstered Furniture 2000

Betting and Gaming 2002

Book Retailing on the Internet 2007

Bottled Water 2003

Bridalwear 2002

Business Postal Services 2008


B2B Marketing 2008

Business Travel Market 2008

C

Cable and Satellite Services 2002

Charity Funding 2005

Childcare 2008

Children’s Publishing 2008

Clothing Retailers 2000

Coffee & Sandwich Shops 2009

Commercial Dynamics in Financial Services 2005

Commercial Insurance for Small Businesses 2009

Condiments and Sauces 2008

Consumer Credit & Debt 2007

Contact Centres 2010

Contraception 2002

Cooking & Eating 2009

Cross-Border Shopping 2000

Cruise Market 2008

Customer Loyalty in Financial Services 2000

Customer Magazines & Contract Publishing 2009

Customer Relationship Management 2008

Customer Services inFinancial Organisations 2010

C2DE Consumer 2008

D

Diet Foods 2009

DINKY Market 2007

Direct Insurance 2010

Direct Mortgages 2008

Domestic Lighting andElectrical Products 2000

Domestic Telecommunications 2006

E

E-Commerce: The Internet Grocery Market 2009

E-Commerce: The Internet Leisure & Entertainment Market 2008

Electronic Banking 2008

EMU — The Impact on the UK Financial Services Industry 2003

E-Recruitment 2006

E-Shopping 2002

Estate Agents and Services 2010

Ethnic Foods 2002

European Electricity Industry 2007

European Gas Industry 2007




European Long-Term Insurance 2008

European Oil & Gas Industry 2007

European Renewable 2008

Energy Industry

European Short Breaks 2008

European Telecommunications 2002

European Tourist Attractions 2009

European Trends in Food Shopping 2009

European Water Industry 2007

Extended Financial Families 2005

F

Financial Services Marketing to ABs 2006

Financial Services Marketing to ABC1s 2000

Financial Services Marketing to BCs 2009

Financial Services Marketing to C1C2DEs 2006

Financial Services Marketing to DEs 2009

Financial Services Marketing to Over 60s 2004

Financial Services Marketing to the Affluent 2009

Financial Services Marketing to the Retired and Elderly 2007

Financial Services Marketing toStart-Up Businesses and theSelf-Employed 2003

Financial Services Organisations on the Internet 2009

The Fish Industry 2001

Forecourt Retailing 2010

Functional Foods 2010

Funding in Higher Education 2002

G

General Insurance 2010

Generation Y 2007

Global Waste Management 2007

Green and Ethical Consumer 2008

Grey Consumer 2009

H

Healthy Eating 2008

Holiday Purchasing Patterns 2009

Home Entertainment 2008

Hot Beverages 2009

I

In-Car Entertainment 2000

Independent Financial Advisers 2008

Individual Savings Accounts 2005

Insurance Prospects 2008

Internet Advertising 2009


Internet Service Providers 2005

Issues and Challenges in the UK Life Assurance Market 2002

Issues in Higher Education Funding 2006

IT Recruitment 2010

L

Lifestyle Magazines 2008

Low-Fat & Reduced-Sugar Foods 2008

The Luggage Market 2000

M

Marketing to Children 4-11 2003

Marketing in the Digital Age 2009

Medical & Health Insurance 2007

Men and Women’s Buying Habits 2008

Men’s Toiletries & Fragrances 2008

Millennium Youth 2002

Mobile Marketing 2009

Motor Finance 2008

N

The Newspaper Industry 2005

Non-Food Sales in Supermarkets 2008

Nutraceuticals 2008

O

Off-Trade Spirits 2004

Opticians & Optical Goods 2010

Organic Baby & Toddler Care 2007

Organic Food & Drink 2010

OTC Pharmaceuticals 2000

Over-40s Consumer 2005

Over-50s Consumer 2009

P

Pay TV 2004

Pension Extenders 2002

Pensions 2009

Personal Banking 2003

Personal Lines Insurance 2010

Personal Loans 2008

Pet Market 2009

Planning for Retirement 2008

Plastic Cards in Europe 2005

Plus-Size Fashion 2009

Private Sector Opportunities in Education 2001

Public Relations Industry 2007

Public Transport 2001





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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.

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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

R

The Railway Industry 2004

Ready Meals 2001

Recycling and the Environment 2000

Retail Credit 2000

Retail Development 2001

Rural Economy 2009

S

Savings & Investments 2007

Saving Trends in the Eurozone 2002

Singles Market 2009

Shopping Centres 2008

Short Breaks 2004

Slimming Market 2009

Small Businesses & Banks 2010

Small Office Home Office Consumer 2001

Small Office Home Office Products 2001

Social Media Marketing 2010

The Soup Market 2001

Sponsorship 2000

Supermarket Own Labels 2009

Supermarket Services 2007

Sweet & Salty Snacks 2009


T

Teenage Fashionwear 2008

Teenage & Pre-Teen Magazines 2009

Teleworking 2003

Trends in Food Shopping 2008

Trends in Leisure Activities 2007

Tweenagers 2005

U

Utilities 2010

V

Vegetarian Foods 2009

Vehicle Breakdown Services 2010

Vitamins, Minerals & Supplements 2009

W

White Goods 2000

Women Over 45 2007

Working Women 2009


baby products 2010

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