Porfolio: Gifts

Gift vendors tout personalization, value and bright colors

Staff -- Kids Today, 4/1/2006

By Lisa Casinger

By the very definition of the word (something given voluntarily without payment in return, as to show favor toward someone, honor an occasion, or make a gesture of assistance) every product in the juvenile industry could be considered a gift, but we've narrowed the category to include accessories, bath/body, clothing, photo frames, plush and other.

According to the vendors we spoke to, the juvenile gift business is alive and well. And in Kids Today's October 2006 report on specialty stores and their merchandise mix, 75% of retailer respondents said they carried frames and 62% said they carried other accessories and gifts. The same survey revealed that while toys as a whole are in a decline, 17% of retailers named plush as one of their top three product categories with the best margins.

The business

Teri Harrison founded Alpharetta, Ga.-based The Grandparent Gift Co. a little more than 10 years ago after the success of her poem, Grandma's Heart. Today the company sells everything from greeting cards, framed and matted prints to gift books, albums, keepsake boxes and more.

Harrison said 2006 was a good year for gifts as the "smaller stores seemed to get back on track and business seemed a little brisker." She looks for that trend to follow into 2007 as well.

Adena Surabian, founder of Natures Baby Products, hair and body care products for infants, said she's had a "very good year" and opened lots of new accounts. She started her business in 2004 and this year expanded into the Asian market where her product line has been well received.

She, too, looks for 2007 to be a good year for Natures Baby Products, which now are found in more than 500 stores including Malibu-based Planet Blue, Wild Oats and Whole Foods.

"Business for us this past year has been strong and has exceeded expectations," said Michelle Caruso, owner of Bloomers Baby Diaper Cakes. "We have more than doubled our sales from 2005. We have increased our sales force and customer base considerably over the past 12 months and expect to double our sales again in 2007."

Brea Weisman, owner of Perfect Memory Creations, said her company has seen more than 20% growth in 2006 despite the fact that she backed out of showing at JPMA at the last minute because of scheduling conflicts.

"Our custom options and priority for customer service really set us apart in our categories," Weisman said.

Perfect Memory Creations, founded in 1999 with The Story of Me book, carries baby books, photo frames and albums, and Weisman added pillows, decorative mirrors, window treatments and wedding albums to her mix this year.

Weisman is looking for about 15% continued growth for 2007, especially in the personalized categories.

"Specialty boutiques and furniture stores have been learning how personalized products are setting them apart from the mass merchants and that's a service we're able to offer," she said. "We're also responding to customer needs by expanding our product line."

The challenges

As with most any other product category, overseas production is a big challenge in the gift industry.

The Grandparent Gift Co. had been a strictly U.S. company until this year when Harrison said she was forced to take a few things overseas for production in order to compete in the marketplace.

"The challenge then is logistics," she said. "We've always been nimble with inventory and able to get our customers what they need when they need it; we're still doing that but it's more of a challenge when you're producing things overseas."

Weisman echoes Harrison's issue with the flood of imports
.
"The biggest challenge is fighting inferior product quality that dominates the shelves," she said.
"Price sensitivity is everywhere and providing high-quality American-made goods at lower price points is difficult."

Weisman said to overcome that her merchandising focuses on the longevity and quality of the product but she's also introduced some lower price point items, still made in the U.S., that she hopes will be attractive to the more price sensitive shopper.

Surabian said the biggest challenge in her market niche is product knowledge and truth in labeling.

"People are not doing their due diligence on their ingredients," she said. "The cosmetic industry is so loose with its testing and labeling. That's why we're members of the Organic Trade Association and we campaign for the use of safe cosmetics."

Caruso said the biggest challenge in this industry is product saturation, a sentiment often expressed by retailers as well. She plans to overcome that by keeping her products innovative and sophisticated.

"Exemplary customer service is an absolute must and is what will continue to set us apart," Caruso said.

The trends

"Gifting for others surrounding the baby is really catching on, especially during the holidays," Harrison said. "Godparents, aunts, uncles - they're all being gifted these days. And people are buying more for the expectant parents and grandparents as well before the baby's even born; for example, we do a lot of business with ultrasound frames."

Consumer desire for more modern looks is filtering into the gift industry. Photo frames, for example, are trending toward contemporary looks with black finishes rather than gold, Harrison said.

"Color also is important," she said. "Consumers are looking for bright, happy colors. They're also looking for good value or an added value, like personalization or an added feature."

Many Grandparent Gift Co. products offer ways to personalize the gifts whether it's with a name or handprints or a special sentiment.

While baby body care products have been around for years, Surabian has noticed an increase the demand for more natural-based products, in particular those without parabens, which are chemicals commonly used as preservatives in the cosmetic industry that have been linked to cancer.

"There's a huge demand from parents looking for more organic products," Surabian said. "This year our products have been made to be more than 70% organic and we're seeing a lot more competitors in this field."

Surabian also said as consumers look toward these organic alternatives for their babies and children, the parents themselves are using the products not only because they're gentle but also because there's less toiletry clutter in the bathroom.

"Consumer trends seem to be towards products that are fun and useful," Caruso said. "Gift items that make a beautiful statement and save parents either time and/or money will always be popular."

She shares Harrison's view on vibrant colors being popular and adds that animal prints and plush materials are not only popular but timeless.

Weisman has noticed product trends being very regional and though she tries to have options for each market, it's a balancing act to keep her inventory streamlined.

"What's 'hot' in one market doesn't necessarily sell in another and as a small company it's difficult for us to invest in inventory levels to satisfy all the trends," Weisman said. "We're still seeing huge sales in the soft minky dot fabrics mixed with bright colors and animal prints though."

In the Southern market, Perfect Memory Creations' biggest sales area, Weisman still is seeing a lot of "tried-and-true" cowboy and denim prints and more conservative solid colors. She's also noted the growing tween market, an increasing category for her, and their penchant for bright, happy colors.

Aurora World's extensive collection of gift plush includes the My Barnyard Friends play set, which comes with a barn, four baby animals and sound, $19.99.

These instant scrapbooks, $38, from Stephan Baby are filled with 20 pre-designed pages and room to add even more to tell baby's story.

BabyGund's 17-inch plush bears commemorate 1st birthdays with festive and functional bibs, $28.

The Moses basket from Hoohobbers comes with a receiving blanket that coordinates with the basket linens, which are available in 34 patterns.

Bestever's Hugga Pet pillows are made of a soft plush and designed for hugging and resting, $16.

Stephen Joseph's picture frame line includes a paper-wrapped version with a cheerful frog and floral motif and a Western-themed choice with kicky cutouts along the top edge.

The Chaupeta blanket from Cuddlebugs-n-Cocoons is a 14" x 14" square made of soft, minky fabric with a satin pocket in the corner, $29-35.

A fabric-covered pink and white frame from Perfect Memory Creations adds the finishing touch to a princess-themed room, $30.

Kaloo's velour bunny, kitten and bear are soft enough for baby to squeeze and machine-washable to stay clean and germ-free, $20-$40.

Bloomers Baby Diaper Cakes are offered in several funky ribbon and flower designs that coordinate with the latest fashion trends. This large boy's cake features a jacquard swirl ribbon combined with blue silk mums, $112.

Thank You Baby's quilted minky blankets are edged in satin trim and available in a myriad of colors. Retail prices are $38 and $90, depending on size.

Baby Emporio's gift collection includes the flannel Ookie, designed to be baby's first doll, $16.

Halo's new organic gift sets, available in size small, feature the signature Sleepsack wearable blanket, along with a coverall, bodysuit and hat, $50.

Bambini Carini's bath sack features a snuggly hood and trendy polka dot trim on the hood, sleeves and zipper section, $52.