Consumer buying trends — cribs
By Dana French -- Kids Today, 2/1/2007
More than 3.1 million U.S. households bought a crib in 2006, spending just under $800 million for the category. That's the finding from an exclusive survey of 2,500 U.S. households conducted for Kids Today and sister publication Furniture/Today by New York-based TNS.
Buyers spent a median of $200 on their purchase last year, with 44% spending under $200, 40% spending between $200 and $399 and 16% shelling out $400 or more. The biggest spenders were in the Northeast, where households spent a median of $260, followed by households living in the West, spending a median of $245.
In 2007, U.S. households planning to buy a crib say they'll spend a median of $250 on their purchase. Households living in the Midwest and South plan to spend the most. Midwesterners have budgeted a median of $350 and Southerners say they'll spend a median of $250.
Who's buyingCommon sense tells us it's those who are having the babies. Kids Today's exclusive survey data found that Generation X, currently between the ages of 32 and 42, comprised 52% of all crib buyers last year, while Generation Y, with adult members between the ages of 18 and 31, accounted for 29% of buyers. This tracks with data from the National Center for Health Statistics. The Center's preliminary data for 2005 shows three-fourths of all births are to women between the ages of 20 and 34 and 71% of first-time moms fall into these age categories.
The Kids Today data also shows Hispanics as prime crib buyers. At 42 million, Hispanics are the nation's largest ethnic group and birth rates among Hispanics are growing at fast rates according to the National Center for Health Statistics. In 2006, 15.3% of all Hispanic households, nearly 1.8 million, bought a crib. Hispanics aren't afraid to spend money on their children either. They spent a median of $250 on a crib last year, $50 more than the national median.
While younger households don't always equal lower incomes, in the case of crib buyers, 52% of households have a household income of less than $75,000. Another 25% earn between $75,000 and $99,999 and households with incomes of $100,000 or more account for 23% of all buyers. The biggest spenders weren't necessarily at the top of the income scale, however. As expected, those earning below $75,000 spent the least, a median of $150. But those at the top of the scale, with incomes over $100,000, spent a median of $200, while those earning between $75,000 and $99,999 spent a median of $250.
In 2005, 4.5% of U.S. households earning $100,000 or more a year bought a crib. However, just because they had the means to spend more and to shop at specialty stores doesn't mean they did. In fact, one-fifth of these high-income households bought their crib at a discount department store. Kids specialty stores grabbed one-fourth of crib purchases and Babies "R" Us captured another one-fourth. Furthermore, they may be high-rollers for other items, but not when it comes to a crib. Only 19% spent $400 or more, 44% spent between $200 and $399 and 37% spend under $200.
Kids specialty buyersHouseholds purchasing a crib at a kids specialty store in 2006 differ from those buying at Babies "R" Us and at discount department stores. For example,
- Nearly three-fourths have household incomes of $75,000 or more, compared to half of Babies "R" Us buyers and about two-fifths of discount department store buyers.
- About four-fifths are members of Generation X, compared to about half of Babies "R" Us buyers and two-fifths of discount store buyers.
- Two-thirds are dual-income households, compared to two-fifths of Babies "R" Us buyers and half of discount department store buyers.
| Bought at a... | ||||
| All buyers | Kids specialists | Babies "R" Us | Discount department stores | |
| Household income | ||||
| Under $30,000 | 8% | <1% | 5% | 17% |
| $30,000 to $49,999 | 16% | 15% | 15% | 13% |
| $50,000 to $74,999 | 28% | 14% | 30% | 31% |
| $75,000 to $99,999 | 25% | 14% | 30% | 26% |
| $100,000 or more | 23% | 57% | 20% | 13% |
| Region | ||||
| Northeast | 18% | 43% | 20% | 9% |
| Midwest | 24% | 14% | 20% | 13% |
| South | 35% | 14% | 35% | 48% |
| West | 23% | 29% | 25% | 30% |
| Home ownership | ||||
| Own or are buying | 87% | 86% | 90% | 78% |
| Rent | 13% | 14% | 10% | 22% |
| Source: Kids Today Consumer
Buying Trends Survey, 2007 |
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