Only last month a Sky News report said that though the recession may have persuaded parents to cut back on their own indulgences, a ‘surge' in Mothercare profits indicated a refusal to ‘skimp' on their children. The chain posted a 12.4% rise in its full-year profit and is said to be optimistic of further growth. Mothercare Chief Executive Ben Gordon told the media giant: "Given the uncertain consumer environment, we are planning cautiously for 2009/10. However, we are well placed as we enter the new financial year."  Ben Gordon is said to have revitalised Mothercare with better products, a strong online presence and a focused overseas strategy. Interestingly, during the boom years the company struggled, so it goes to show that product innovation, targeted, multi channel marketing and great customer care are the driving force over all else.

Anne Stuart of online retailer Happy Tiny Babies told Nursery Industry that the recession had not affected its sales to the degree expected. "People are looking for a bargain - they want more for their money than they did before and it is important to make them feel that they are getting it. Good customer service is vital - we gift wrap every purchase with ribbons to make the shopping experience more special and it works for us."

Vicky Denby of Mummy & Little Me is a retailer with premises in Lincoln - also doing well despite the downturn. Vicky puts much of the shop's success down to its online platform enabling it to reach a wider target market with a much more daring and innovative product range. "There really is no limit to what some women will spend," she said.

Market research specialist Mintel would agree. It predicted that in 2009 consumers would become more confident and demanding about how they spend their money, with a desire to remain in control. The Internet will play a key role in this because of its ability to offer increased product options and influence purchase decisions through user reviews and feedback, it adds.

Manufacturers will also respond with products that suit people's specific needs and lifestyles - something the baby goods sector is particularly good at. Mintel believes that those companies that give consumers exactly what they want or the freedom to customise purchases will do well. Happy Tiny Babies is one such company responding to this demand, offering amongst other things, customisable gift baskets with varying product options and price points.

Trust is key in the current economic climate and Mintel insists that transparency will help drive product sales. Brands that can communicate what they stand for and demonstrate how they can make life easier are the ones that will enjoy higher profits despite an increasing strain on consumer finances. "Throughout 2009, people will seek out trusting, open relationships wherever they can and they will want to know all about the products they buy, from where they were sourced to how they were manufactured."    

A report from Bharat Book meanwhile, revealed that in addition to the baby boom increasing the industry's end user base, the market has also benefited from social and demographic trends, such as later parenthood, as well as a growing consumer demand for stylish and well designed products. These factors have combined to increase the potential expenditure per child it says. "Manufacturers and retailers have worked hard to build up the market through innovation and new product development. In addition, sophisticated marketing techniques, especially those utilising new technology, have been employed to gain and retain the loyalty of parents." It is exactly this kind of integrated approach that will ensure the nursery industry remains strong throughout 2009, emerging from the recession more buoyant than ever before.

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