How has the recession changed the way in which retailers buy?

The successful independents have adapted by reducing order values and increasing order frequency keeping their cash flows healthy and stock fresh. We have responded to this by offering free shipping on orders over £200 and a next day delivery service. We have also seen an increasing confidence in the drop ship service we provide particularly on higher value and bulkier products which we deliver directly to the consumer on behalf of the retailer.

Have consumer trends changed in the last 18th months and why?

The nursery industry is fortunate in that parents will always sacrifice their own needs for their baby and that there are many products that are specific to a new baby and hence not substitutable or necessarily suitable second hand. However, financial and time pressures have meant that an increasing number of parents purchase products online. This is why we encourage all our stores to also have an online presence and support them with CSV files to help keep their website up to date.

How can retailers establish whether the stock they are buying is right for their target market, before they buy it?

Retailers can take calculated risks based on an analysis of the local competition, opportunities, demographics and trends. Those with a hospital nearby might benefit from having new baby gifts and those hospitals with neonatal units could consider premature baby clothing and equipment such as tiny feeding bottles and nappies. Those with multiples or supermarkets nearby should consider what they are selling and try to offer complimentary products or take advantage of the fact that multiples often have to plan 6 months ahead with preset catalogues and cannot respond quickly to new trends.

Can a retailer without much room on the shop floor and limited warehouse capacity display and store goods effectively?

Retailers can incorporate basic principles of Feng Shiu placing mirrors strategically through their stores, using warm wall colours, good lighting ensuring no dark spots and avoiding any clutter to make their customers feel more at ease and enjoy being in their store.

Feature display of products is critical at both child and adult eye level and having interactive toys on display or a toy in action like the Fisher Price Elmo Live TV can work as a talking point and surely make the store a favorite destination for the little ones.

Space permitting retailers could have a display area or use their window to build a nursery set. It makes a great attraction and helps consumers visualize the product - often difficult in a box!

Independents with limited space can always use our website in store to show their customers our full range of products without displaying prices which will give them a chance to sell and obtain feedback on new items and is particularly useful for high value and spacious items like furniture.

A website is often used as a ‘shop window’ – with a lot of time, money and thought put into its design. How important is a retailer’s ‘traditional’ shop window and what low-cost tips can you offer for making more of it?

It is crucial! This is what is exciting and special about an independent compared to cloned multiple store fronts. It’s a great opportunity to display imaginative, quirky or eye catching items that make people talk and entice them into store. We try to help by stocking novelty items starting from just £2 such as towels wrapped as ice creams, lollipops and cakes!

The shop window is also how retailers communicate to new and existing customers and should be a show case for all that the shop represents and services offered. Updating it regularly with new ranges and the latest children’s TV characters will enhance the shop’s appeal.

Retailers should also consider contacting their local council to help make local areas more appealing particularly those that have suffered from the recession. In some cases local authorities have filled empty shop windows with pieces of artwork making local high streets more appealing to visit.

What else can retailers do to retain customers and acquire new ones?

Retailers have the opportunity to offer the care and information that larger high street stores cannot. Service is fundamental and an independent should make all customers feel valued and like an individual. Knowing what products will be required during pregnancy, after the birth and early stages of a baby’s life can be so helpful to a first time busy mum! Product and brand knowledge can also help convert a visit into a sale and build confidence in the customer to return again.

If the retailer can build up a database of e-mail address or telephone numbers of Mum’s in their area and at what point of pregnancy she is at they can contact them with relevant information and products at the appropriate stages. In addition, organizing a fun story telling group once a week will keep customers coming to the shop. Other techniques of differentiation could be to offer a product personalization service, free delivery service in the local area or an in store gift wrapping service.

Offering a promotion is another way to keep customer interest. For example, we are just launching a customer loyalty scheme which will earn our customer credit against future purchases in return for spend with us. Retailers could do something similar or run competitions and prizes.

Again the local council might be able to help with free retail training courses to help boost business in the economic downturn. Ealing council offers company owners free and impartial advice from highly skilled business advisers, most of whom have run their own successful ventures. They also offer retailers an opportunity to apply for a grant of up to 90% to cover costs to improve their shop front.

When we met you discussed the gift market as an area of expansion for the retailer. Can you tell us some more about this?

We feel it’s an area where independents can use their imagination and creativity to transform a simple product that might be available in multiples in a different way at a higher price point. For example, they can purchase teddy bears, toys and clothing items from us and present them in wicker baskets with cellophane and ribbons – making them unique to their store and a stunning gift.

Not all retailers are able to do this so we have developed our own range of gift baskets and boxes to suit all budgets and themes. They are all carefully packed and include a stunning hand made New Baby Card. Many of our retailers display them on their online stores and benefit from our drop ship service.

What is 2010 going to be like for the Industry as a whole?

The difficult economic times have meant that new and established brands have had to work harder to differentiate their products through product innovation and creativity. Advances in technology and education have also brought about fantastic new products, many of which will be launched in the New Year and will stimulate the industry.

Many brands have also assured us that they are working hard to implement pricing policies that they will be able to police and enforce ensuring multiples don’t price war. This should bring more stability to the industry and with positive economic recovery outlooks for 2010 those stores that have survived 2009 should flourish!

 We are very excited about the new product and brand launches we have lined up in 2010 and are confident we will have increasing support from the independents and aim to continue to improve our product offering and service to them.

Tel: 0845 370 8370  

Web: www.babybrandsdirect.co.uk

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