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% of global shoppers say they have switched baby food brands and diaper brands. Product content and reviews are increasingly important. FEEDBACK/ADVICE from Family and Friends RECOMMENDATION of a Health Expert MEDICAL REASON PROMOTION INTERNET/BLOG Information TOP 5 Reasons For Switching Baby Food 3 RECOMMENDATION of a Health Expert PROMOTION FEEDBACK/ADVICE From Family and Friends LOWER COST OUT OF STOCK TOP 5 Reasons For Switching Diapers 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 North America 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 BRANDS ON AMAZON, SEPTEMBER 2015 4 67% 67% of diaper products on Amazon in the US 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 Top sellers on Amazon averaged Five images per product in the U.S. and U.K. 4 Content is king, but sometimes it’s out of date.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 have updated 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 Products in TOP 100 Medela 7 4 4 4 Dr. Brown’s Graco Phillip Avent Brand # of Products in TOP 100 20 9 5 3 3 3 3 3 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.html 2 http://www.dunnhumby.com/new-research-rise-multichannel-grocery-shopping 3 http://www.nielsen.com/us/en/insights/news/2015/baby-bounce-respondents-likely-to-switch-baby-food-and-diaper-brands.html 4 http://insights.profitero.com/amazon-fastmovers-reports.html 5 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 / [email protected] / www.profitero.com