Trends in Online Baby Product Sales New Arrivals

For the top 100 best selling baby products

on Amazon U.S., the average review count increased 5%

from 1,363 in August to 1,434 in September 2015.4

Profitero Amazon FastMovers

US Baby, September 2015

But brand loyalty is far from guaranteed. 70% ofglobal shoppers say they have switched baby

food brands and diaper brands.

Product content and reviewsare increasingly important.

FEEDBACK/ADVICE from Family and Friends

RECOMMENDATION of a Health Expert

MEDICAL REASON

PROMOTION

INTERNET/BLOGInformation

TOP 5 ReasonsFor SwitchingBaby Food 3

RECOMMENDATION of a Health Expert

PROMOTION

FEEDBACK/ADVICE From Family and Friends

LOWER COST

OUT OF STOCK

TOP 5 ReasonsFor SwitchingDiapers 3

40%

34%

23%

21%

19%

35%

27%

27%

21%

21%

Once “through the gate,” parents spend in a wide array of baby categories. Percentage who say they have

purchased a baby care product online:

Subscription programs such as Amazon’s Subscribe & Save lock households into a given retailer or

brand—parents can “set it and forget it.”

Given the importance that having young children has on the decision to start using the online channel, we would suggest any brand that has a bias toward

young families should consider developing their multichannel strategy.” -Dunnhumby The Multichannel Movement (2015)

“

Asia/Pacific

Europe Africa/Middle East

Latin America

NorthAmerica

Diapers

Food

31%

25%

13% 14% 15% 16%

8% 11% 7% 7%

Asia-Pacific is the worldwide leader!Nielsen Global Baby Care Survey, Q1 2015

TOP SELLING BABY BRANDSON AMAZON, SEPTEMBER 2015 4

67%67% of diaper products on

Amazon in theUS are eligible for

Subscribe & Save.4

Profitero Amazon FastMovers US Baby Diapering, September 2015

£17.69$20.05

Product images are essential, too.

Top sellers on Amazon averaged Five images per product in the U.S. and U.K.4

Content is king, but sometimes it’s out of date.

More than half (57%) of top-selling Amazon baby brands have invested

in enhanced content on Amazon,but only 27.5% of baby brands haveupdated their A+ content within the

past 15 months (since August 2014).6 57% Content26, 2015

For all baby brands, discoverability is essential

44%44% of consumers start their product searches

on Amazon, far more than search engines

like Google or other retail sites.5

All brands and retailers hope to maximize customer loyalty.

”

In this rapidly-changing environment, many brands and retailers rely on Profitero to

provide them with their competitors’ prices, promotions, product availability

and full assortment information.

Profitero Amazon FastMovers US/UK Baby, September 2015

UNITED STATES UNITED KINGDOM

The average price for the top 100 best selling products on Amazon 4

And of course, price is always a factor.

5%

EVEN WITH THIS MARKET FLUX, CERTAIN BRANDS STAND OUT ABOVE THE REST.

Munchkin

12

Brand

# of Productsin TOP 100

Medela

7444

Dr. Brown’s Graco

Phillip Avent

Brand

# of Productsin TOP 100 209533333

Tommee Tippee Fisher-Price

First Steps

Angelcare Dr. Brown’s Natural Flow

Lansinoh

The Gro Company

VTech Baby

US UK

$5 billion in annual revenue in U.S. in 2015. Annual growth (2010-15) was up 10.8% 1

Today: New parents are time-starved (online shopping saves precious hours). They’re also

initially information-starved (but online, product pages are loaded with detail).

Baby grocery is a key gateway driver

Baby Food and Care is the #2 most purchased grocery category by multichannel shoppers, driven by the convenience of home delivery.

SOURCES: 1 http://www.ibisworld.com/industry/online-baby-product-sales.html2 http://www.dunnhumby.com/new-research-rise-multichannel-grocery-shopping3 http://www.nielsen.com/us/en/insights/news/2015/baby-bounce-respondents-likely-to-switch-baby-food-and-diaper-brands.html4 http://insights.profitero.com/amazon-fastmovers-reports.html5 http://bloomreach.com/2015/10/amazon-commands-nearly-half-of-consumers-first-product-search/6 http://content26.com

Tel US: +1 844 342 7464 / Tel UK: +44 208 123 3101 / sales@profitero.com / www.profitero.com