Products for babies and infants is a major industry in the U.S., with sales estimated to be more than $5 billion annually. Another estimation is that there will be more than 6,000 companies selling online in this market. There is no shortage of customers for affordable, quality baby products.
It may seem like this space is crowded, but that can work to your advantage. When there are only one or two companies in a vertical, those companies have a lot of clout. However, when a niche is this intensely fragmented, retailers are more likely to work with several different companies. And if you have a product that is truly different, the challenges are not quite as high.
We’re not saying it’s easy by any means, starting a business is always a challenge. Amazon and eBay can be formidable competitors. This means you have two paths for standing out: the products you are offering or the experience you are able to provide your likely customers.
Focus on innovative products
While it seems like new baby products are popping up all over the place, very few of them actually offer new benefits or features that customers really care about. Historically, the level of innovation in this space has been low. Some brands have succeeded in selling cachet or more sophisticated design, but very few have changed the product’s functionality.
When a well known product developed decades ago hasn’t changed much but still has the majority of the market share, then either the product is perfect, or there’s an opportunity to improve it. It is more than likely that there is room for new and better products in this area. And you can see it happening in this space with strollers that unfold at the push of a button and include an iPhone charger.
It doesn’t have to be something you design, develop, or make, however. Finding and offering new, innovative products is another way to go. While there are many websites selling organic, all-natural baby products, that doesn’t mean there is no room for innovation in this space. This is where you can become a niche within a niche. For example, more people are increasingly making their own baby food. Pair that with the fact that moms have increasingly less time, and you can offer a product that makes it easier for parents to make their own baby food.
Know your customers
Keep in mind that anything that requires people to change their behavior has a low success rate. Busy parents with kids aren’t going to do anything that needs too much attention or too many steps. You want your product to make things easier for them, not harder.
In addition, you have to add value. It seems basic, but you’d be surprised at how many retailers forget that part. It’s not just about competing on price anymore. Customers who know what they want can buy what they want on Amazon just as easily, or even easier, than they can from you. Your road to success lies in convincing them that you have what they want.
Lastly, consider products that need demonstrations. This may seem counter-intuitive, but if you have a video demonstrating how something works, you’re likely to get more sales. You can also provide content that will educate consumers and bring them to a decision to buy from you.
Create your business plan
All businesses need a business plan to lay a strong foundation for growth. A business plan will address a wide variety of issues, beginning with startup costs and competitor analysis. It is essential to be aware of what your competitors are doing. If done right, it can take a small business startup several months of preparation just to get started. An option to starting from scratch is to invest in a franchise, which may be easier.
Safety concerns for baby products
Baby products are extremely sensitive to consumer safety concerns. Product recalls for cribs, car seats, and other baby products often make national headlines and can be a potential PR nightmare. You protect yourself by making sure you have a robust liability insurance policy and that you carefully research safety requirements.
Market your new product or business
Decide how you want to market your new product or business. Begin by defining how your product or business stands out from the competition. A well-defined value proposition with differentiate you from your competition and serve as the basis of your marketing message. Who will you be marketing to? Direct to consumers or to retailers?
Most likely you will be marketing online, but you may also choose to put out catalog or send a mail piece. Find out where your customers are spending the most time, and use that to develop the tactics that will bring you success. You can use public relations to create buzz around your new product or business.
If you want to break into the baby product business, contact the team at Marketing Maven today.