Gear vendors weathering the storm
Buyers Guide Gear
By Lisa Casinger and Gerri Hunt -- Kids Today, 2/1/2009 12:00:00 AM
Much like cribs, diapers, bottles, clothes and bedding, gear is a necessary purchase when it comes to having a baby. In 2008, statisticians at New York-based Easy Analytic Software Inc. projected robust sales increases for infant gear sales over the next five years. In 2012 they project gear sales will reach $2.32 billion, up from $1.62 billion in 2007, a 43.3% increase.
Though the economic climate overall has been dismal at best, gear vendors haven’t seen quite the decline in sales as have vendors in other categories.
We talked with a few gear vendors for an inside look at this category.
Joseph Hei, co-founder and CEO of Orbit Baby, makers of infant and toddler travel and seating systems, said that while the company would like to be growing faster, he’s pleased with its success. The company was founded in 2006 by Hei and Bryan White, and Hei says for a company and brand that’s relatively new to the industry they’re still growing. Orbit Baby currently is found in more than 200 independent retail locations. Orbit Baby exhibits at the ABC Kids Expo, but Hei says they also target smaller, local mom events to reach consumers directly.
Simon May, one of the four founders/owners of Bloom, which produces chairs, loungers, high chairs and strollers, said despite the economy, the last quarter of 2008 was the best the company’s had in the U.S. to date. Bloom emerged on the scene in 2005 and has offices in Europe, North America and Hong Kong.
Nicolette Binder is the product marketing manager for Exton, Pa.-based Teutonia. The company was founded in Sudlengern, Germany by brothers Gustav and August Ludeking in 1947 and in 2007 it became part of the Newell Rubbermaid family. The company produces design-your-own strollers and the accessories that complement them. Binder says Teutonia also is finding success in this tough economy.
What impact do you think the economic climate will have on this segment of the industry this year?
Hei: Our retailers have told us that gear has a compelling and understandable value. That being said, things are becoming more stratified. Consumers aren’t going to forgo stroller or gear purchases, they’re just making a tough choice between the functionality rather than just the fashion. They want the gear to do more than just one thing.
Our stroller is high-end and the fact that we’re still doing okay implies to us that there still is a high-end customer out there, but, that high-end consumer is becoming more discerning. We’ve always strived to make things that not only look better but that work better, and the work better part is becoming more and more important. The mid-level pool is shrinking too; gimmicky, fashion things aren’t playing as well in the market place.
Everyone assumes middle price points are best but it’s a tough place to be; it’s tough to make that sell these days; the bread and butter strollers are okay but our retailers are saying it’s not all about the fashion any more.
May: Innovative, quality products should be in the best position overall to withstand the downturn. As for prices dropping, we do not envision price reductions. The best way to continue to perform well in tough times is to introduce new, innovative items that offer value and great design.
Binder: I think it’s going to be a challenging year, but that goes for any kind of consumer product; consumer spending is down in everything. It’s going to be a tough year and one that is really dependant on the brand that offers a compelling message to consumers.
Consumers are going to be looking for quality and a product with longevity now more so than ever. Within the last 6-8 months expectant parents have really started looking for the most bang for their buck, something they can use for the next child. However, that purchase isn’t going to be based so much on price but on quality. Two positive notes for Teutonia are that we’re German engineered and we have a three year warranty on all of our products; these are great selling points and benefits consumers are looking for.
Some say that tough economic times lead manufacturers to become more innovative. Do you agree with that, and if so, how is your company embracing innovation?
Hei: I have to agree with that; in fact it’s our credo. I think that consumers, given the times right now, feel even more of a sense of entitlement and they’re holding out for the next sale. The companies that can keep delivering innovation will hold on because the consumers are in the mind set of “what have you done for me lately?” Consumers want to know how you’re making their life better. We’re working on sustainability and the green initiative. We’re ridding our supply chain of PVC, chrome-plating, brominated chemicals and oil-based packaging inks. Our fabrics also are Oeko-Tex certified.
My wife and I have a one and a three year old and we feel these initiatives are important. Our company model is to make products good for your baby and good for the planet.
May: Yes, we agree. Product innovation differentiates manufacturers from their competitors. Bloom products also are lead-, BPA-, phthalate-, PVC-, heavy metal- and AZO dye-free.
Binder: I absolutely agree. In these times you also see more entrepreneurs emerging. Our parent company, Newell Rubbermaid has the philosophy of building brands that drive “innovation through the consumer.” And by that I mean we look at how the consumer is using the product, what features they see as useful or are requesting and how they interact with the product and that leads our product development. It may even lead into a different category.
One of the main issues brick-and-mortar retailers have with gear companies is that they feel like showrooms for online retailers. How do you support your brick-and-mortar retailers?
Hei: We pride ourselves on supporting our independent retailers. We have a limited number of online retailers. However, so many retailers are multi-channel now. I think there’s starting to be more recognition in the fact that retailers are trying to reach as many consumers as possible in as many ways as possible. Consumers are looking for a compelling retail experience and sometimes that may be the issue, rather than just being able to find the product online.
May: We provide full service/support to brick-and-mortar retailers that carry our line. We believe in the full-service philosophy that a strong brick-and-mortar operator, like giggle for example, offers.
Binder: We don’t sell to online retailers; we want people to test drive and touch and feel our products. The specialty retailers are known for their service and attention to that. Online is not where we’re going to play. We see our relationships with retailers as a partnership. We know it is difficult for them, especially now, but we believe in the independent stores.
What trends do you see emerging in this product category this year?
Hei: I do think that given how much the green movement is moving through the industry it’s going to be even more so in gear this year. I see functional innovation also being important, more so than fashion. There is a sense of realism out there now and consumers are looking for products that make a difference or help them in their day-to-day lives.
May: Increased color choices and more and more design-conscious items. Bloom’s recent colors include gold, silver and green.
Binder: Product longevity. Also, customization is the key to our business; consumers can build their own strollers and, depending on the options, extend its usage. I think this is going to become an even more important feature/benefit in the category.
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Boon’s modern Flair pedestal highchair has a seamless seat for easy cleanup, and a pneumatic lift for effortless continuous height adjustment. It glides smoothly in all directions and fits easily under tables. Two colors available, plus alternate pads sold separately, $229.99, (480) 456-0224. |
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The Kushies Easy Fold Baby Bed is lightweight and portable. When folded, it fits easily into a suitcase. It features a mod geometric print removable pad, and a generous hood and netting for UV protection, $64, (800) 841-5330. |
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ERGObaby’s Carrier supports a correct sitting position for the baby’s hip, pelvis and spine growth. It disperses most of the baby’s weight between the hips and thighs, and alleviates physical stress for the parent, $135, (808) 572-6953 |
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The EasyWalker QTRO is a maneuverable stroller with excellent performance on any surface. It has an adjustable footrest, full four-wheel suspension, and UV protection in the canopy. Carrycot and car seat options, $599, (480) 619-4114. |
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The PeaPod model P102 from KidCo is an indoor-outdoor travel bed made from fabric and mesh, with a self-inflatable mattress, $79.99, (847) 549-8600. |
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The Twinner Twist Duo twin stroller from Trends for Kids accommodates one seat and one bassinet, or two bassinets, or two seats, $965.90, (877) 835-5431. |
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The Rodi XR European-style car seat by Maxi-Cosi for Dorel Juvenile Group accommodates children 30–100 lbs. It easily converts to a backless booster for children 40-100 lbs. It features a relaxed reclining position, adjustable side wings for added comfort, side-impact protection and a cup holder, $159.99, (508) 216-1872. |
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The Orbit Infant System from Orbit Baby is a “starter kit” for new parents. It includes the stroller, infant car seat and base, $900, (877) ORB-BABY. |
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The Swaddle Blanket from The Peanut Shell is part of the Serendipity Collection for 2009. It features their 1-2-3 swaddle design for this couture minky-lined blanket with an outer shell of designer print, $52, (925) 931-0947. |
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The M1 carrier from Lascal by Regal Lager, now in All Black, features breathable fabrics like antibacterial bamboo. Collection includes Top Covers sold separately in seven colors, $130, (770) 955-5060. |
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Scandinavian Child’s birch Svan High Chair adjusts from 6 months to adulthood. The removable tray can be stored on back so the child can eat at the table, even as an infant. It has an adjustable seat and the footrest height and depth can be changed. JPMA/ASTM Safety Certified, and available in five stain finishes, $259.95 (cushion sold separately), (919) 747-8500. |
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The Travel “Baby Depot” bag from Okkatots is a polyester backpack that can open like a closet for access to all contents. It features a DVD player pocket, wet wipe and 16-diaper dispensers, change mat, pacifier pouch, laundry bag, several pockets, including one that’s insulated, $99, (801) 229 9006. |
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The Jeep Liberty Limited stroller from Kolcraft accommodates infant car seats. The removable iBaby sound system easily connects to an iPod or MP3 player, and the easy-swivel wheel locks for uneven terrain, $169.99, (312) 361-6315. |
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The Room2 Playard from Joovy measures 40x40”. It has a steel frame and ripstop material, and comes in three colors, $199.99, (877) 456-5049. |
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The Zigo Leader Carrier Bicycle System allows children to ride in full view of the pilot. It converts to an ordinary stroller for one or two children, a jogging stroller, or an urban style bicycle, $1,349, (973) 378-8788. |
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The RadianXT Hampton car seat from Sunshine Kids Juvenile Products is a convertible car seat for children 5-80 lbs. in a 5-point harness. It has superior side-impact protection and folds flat, $279.99, (253) 859-5700. |
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Moby Wrap’s newest all-over print is Daisies. It’s 100% cotton, $49.95, (530) 898-8200. |
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The Buzz Transport Bag by Quinny for Dorel Juvenile Group, accommodates the Quinny Buzz 3- or 4-Wheel Complete Stroller. Made of luggage-grade material, with wheels, $169.99, (508) 216-1872. |
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The 4Rider Light from Mutsy features durable rubber tires on jaunty spoked wheels. It offers a quick and easy fold, single-hand adjustable handle and large, accessible basket. It is ideal for outdoor and urban use, $545-565 (seat and frame), (973) 691-5200. |
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The Englacha II stroller from Englacha USA has a swiveling seat that can be locked at four directions, $519.99, (626) 335-5961. |
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The teutonia stroller is a completely customizable line with three frame and seat options, two wheel selections and more than 40 different fashions and patterns. Featured here is the t-200 series with the carrycot seat and explorer wheels with independent suspension and ball bearing construction, $650, (877) TEU-TONIA |
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BabyPlanet The Monarch Butterfly from Baby Planet has a lightweight aluminum frame, ultra-compact fold, five-point harness, canopy window, adjustable leg support, angled “Ergo-Fit” handles, an adult cup holder, front wheel swivel locks, $189.99, (877) 790-3113. |
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Recaro The Recaro Signo is a rear- to forward-facing convertible seat, shown here in midnight desert, $289, 248-364-3818 |
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ProtectABub The Classic Sun Shade from Protect A Bub is made of breathable fabric with mesh side vents for air circulation. It protects against 98% of the suns’ UVA and UVB rays. It easily ties to canopied trollers, joggers and car-seat strollers, and can be left attached when stroller is folded. Includes a compact fabric storage bag, $38.95, (973) 691-5200. |
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Safety1st The Feast N’ Fold High Chair from Safety 1st by Dorel Juvenile has contemporary styling, a rich, classic ebony finish, and wood construction. It folds slim for storage and has a removable tray insert, $129.99, (508) 216-1872. |
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EddieBauer The Deluxe Convertible Car Seat from Eddie Bauer by Dorel Juvenile Group features adjustable back support for complete comfort. It is LATCH equipped for rear-facing 5-35 lbs.; forward-facing 22-50 lbs.; and a belt-positioning booster 40-80 lbs. A 5-point internal harness goes up to 50 lbs., and padded armrests provide extra comfort, $189.99, (508) 216-1872. |
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Graco Graco’s SnugRide 32 infant car seat is part of the Zurich collection. It is green, brown and gray, $149.99, (800) 345-4109 |
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BabyKtan The Baby K’tan Organic Baby Carrier has a patent-pending double sling design, and can be used in eight positions and up to 42 lbs. It is organic cotton with no hardware, is natural colored, and certified by GOTS, $64.99, (954) 889-3502. |
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Kokopax The Kokopax Classic Carrier is lightweight and easy-to-use. It’s made with 100% cotton canvas on an anodized aluminum adjustable frame with comfortable shoulder straps. Other features include padded waist support, a storage pocket, a kickstand for easy loading and a 5-point safety harness, $179.99, (888) 565-6729. |
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Bumbleride Bumbleride’s iconic Queen B comes in Ruby for 2009. Equipped with front steerable wheels and four air-filled tires, it’s tailored in plush fabric. It grows with the child with optional accessories like the bassinet and toddler seat, $499.99, (619) 615-0475. |
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MommysHelper The Stor-a-Stroller from Mommy’s helper allows a stroller to be stored over a vehicle’s cargo area and out of the way. It installs over existing backseat headrests, $9.99, (800) 371-3509. |
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Childress The Side Sling by JL Childress adds needed cargo space to strollers. It can be used on either side will fold with the stroller. The contoured design blends with a stroller's frame, $12.99, (714) 939-9376. |
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GoGoBabyz The Infant Cruizer AT from Go-Go Babyz Corp. is a black plastic four-wheeled infant car seat carrier, $149.99, (408) 360-0653. |
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