Anyone with children will know that run-of-the-mill tasks take on Herculean-size proportions when you have a baby to think about.
Take shopping, for example. A trip to the local supermarket would normally be the kind of activity you would carry out on autopilot. But add a hungry toddler to the mix and it's a whole different ball game.
Humming the Ride of the Valkyries while you're pushing the trolley, knuckles whitening, desperately trying to calm a screaming child, can leave many shoppers on the edge of a nervous breakdown - and that's before they've even got past the first aisle.
Fortunately, help is at hand. Multiple retailers have grasped the opportunity that time-pressured parents present - and created baby care and food fixtures that provide a one-stop shop for just about any parenting problem. Nappies in all shapes and sizes, wipes, lotions, powders and potions - retailers really have got it all covered.
Add in a comprehensive range of baby foods and snacks and it's little wonder that supermarkets dominate the market when it comes to all things baby-related.
Figures from Euromonitor [2007] show that multiple retailers command a 45.6% share of the baby care market; a 70.3% share of the nappies market; and a whopping 79% share of the baby food market. When it comes to babies, supermarkets' share is booming.
"Consumers seek convenience - even more so when they have a pram and all the associated paraphernalia to push around," says a spokesperson for My Little Soup. "The multiples have been excellent at recognising this."
Troy Warfield, general manager UK and Ireland for Kimberly-Clark, manufacturer of the Huggies brand of nappies, agrees. "Our figures show that volumes sold through the multiples continue to increase year- on-year, which in turn demonstrates their expertise in understanding their customers' needs and designing strategies that meet those needs - and grow their business," he says.
"Our objective is to be in tune with those strategies and make sure we are bringing product development to market that is highly relevant." For Kimberly-Clark, working closely with the multiples is essential, says Warfield.
"We have dedicated customer business units to ensure our business strategies and future product development is closely aligned with our customers - the retailers. This is how we've become an indispensable partner to them."
Manufacturers and retailers have been given a boost with a recent surge in the number of births in the UK. After several years of falling birth rates, the number of newborns swelled in 2003 and 2004 - a fact that has been reflected in sales across the whole baby sector, particularly in nappies.
The baby food sector has benefited from an influx of new brands with a range of healthy propositions, which has been a key driving factor for new parents, as Hillary Graves, managing director of Little Dish, explains: "Mothers want food they could cook in their own kitchen - something as close to home-made as possible.
"They also want a really 'clean' ingredients list. Our ingredients read like a cook book. There is a real focus on no-added salt or sugar."
Sales of nappies between 2000 and 2004 were relatively flat. However, sales increased by 4.3% in 2006, taking the nappies market to £521.9m [Euromonitor, 2007]. The baby care and baby food markets continue to go from strength to strength, up 4.3% and 3.9% respectively to £119.9m and £375.6m.
One of the factors driving sales is new product innovation. Guillaume Tardy, brand manager, Pampers UK at P&G, says manufacturers have upped the ante in product and category innovations - two things that can drive an overall value increase for the category.
"New product development has traditionally been the main driver of growth in nappies, which is a category with limited opportunities in terms of expandable consumption from a volume perspective as babies can only wear one nappy at a time," he says.
Last year was a busy one for the UK's leading nappy brands. Pampers introduced Active Fit Speed Away Layer in April, followed by Baby-Dry Caterpillar Flex in July, while Huggies' recent launches have included Natural Fit and Little Walkers. These have been backed by extensive marketing support.
"Retailers understand that innovation is the key to category growth," says Kimberley-Clark's Warfield.
"It is only through true innovation and understanding consumers' needs that we can work together to grow value in categories such as baby and child care," he adds. "Consumers are happy to pay a premium for new product development if it brings clear benefits to them and their baby."
Consumers also want convenient solutions - the one thing that parents don't have on their hands is spare time. This convenience has been a key factor in the development of 'baby' ready meals, alongside suppliers paying attention to quality of ingredients, that satisfy parents' exacting standards for their babies.
Convenience is important, says Graves, but when it comes to children's food, it cannot be at the expense of quality. "Most parents find it challenging to make a home-cooked meal seven nights a week," she says.
"They are looking for convenient solutions, but they are not happy with the current choices."
Little Dish research shows that three out of four mums who admitted they'd bought a 'ready meal' for their child said it made them feel incredibly guilty. One woman said it made her feel like a 'bad mother'.
"Traditional convenience food does not have the high-quality ingredients and nutritional essentials that parents are looking for when feeding their children. They want better choices," says Graves.
"That's one of the reasons we started Little Dish - to provide parents with a range of fresh, natural food just like they would make in their own kitchen, specifically designed for toddlers and young children."n
CATEGORY INSIGHT:?Nappies and wipes
Between 80% and 90% of nappies used in the UK are disposable and, as parents know, convenience is key
Disposable nappies are quick and easy to change, light to carry, and available wherever you go. And the technology manufacturers use to keep babies dry and comfortable is ever advancing.
Debate still rages over the merits of disposables over reusables and the proof is inconclusive. Recent research by the Environmental Agency found there is no significant difference between the use of disposable and reusable nappies.
It's good news for manufacturers in a sector that is selling more than ever. Huggies and Pampers - the two leading brands - are reporting increased sales growth as well as volume.
"The market is performing well," says Troy Warfield, general manager UK & Ireland for Kimberly-Clark. "Our main line and our newborn sub-sectors are areas of strong growth."
And, while technology has improved, so too have the environmental credentials. According to Guillaume Tardy, brand manager, Pampers UK at P&G, average nappy weight has been reduced by 40% in a period of 17 years - from around 68 grams in 1987 to approximately 40-42 grams in 2004.
"Advances have been made in packaging, truck loading and transport efficiency, which have contributed to improved environmental performance for the Pampers brand," he says.
According to Mintel, Pampers dominates the disposable nappy market. Between 2001-2005, heavy investment in NPD and advertising enabled the brand to extend its lead - increasing its market share to 61%. Huggies is the number-two brand with 23%, while own-label brands have seen a steady increase in sales.
Other niche brands have entered the market. The launch of Nature Boy & Girl in 2000 offered parents a nappy that was less harmful to the environment.
When it comes to wipes, skincare specialist Johnson & Johnson commands the lion's share of the market with 33%. The company has invested heavily in TV ads and, with its Extracare variant, has developed a premium wipe. Other newcomers include Simple Baby and E45 which, together with own-label brands, have eroded traditional players such as Pampers.
WHAT THE BRANDS are saying
The focus for us has been on comfort and on the special relationship that mothers have with their babies. Mum wants to do what's best for her family and meeting those needs has been essential in our strategy for Huggies. Our insight tells us consumers want products with added benefits. Weight is the best way to communicate with consumers because it allows them to choose a nappy that best fits their baby, regardless of age or height. But the sector could be better merchandised by blocking all newborn nappies together. New mothers can find shopping tough, and blocking products together presents them with clear options across brands.
Philip Holford
Kimberly-Clark brand manager for Huggies in the UK & Ireland
WHAT THE EXPERTS are saying
Health is the basic driver in baby food and it is organic food that is the driving trend. It accounts for about 6% of the total market [Euromonitor International, 2006] but is growing quickly. Manufacturers are stretching ranges to include finger foods, juices and yoghurts, which means the consumer target group is getting bigger.
This is a profitable part of the market: organic food commands higher prices, but demand is price inelastic. Small and large companies are benefiting from the growth: small companies have driven innovation, which has prompted large ones to pay attention so their sales aren't eroded.
Elena Ruiu
market analyst at Euromonitor International
CATEGORY INSIGHT:?Baby food
Even if parents don't care much what they eat, for their babies' food it will be a different matter entirely
"Parents are more discerning now because they are better informed," says a spokesperson for My Little Soup, which makes fresh organic soups aimed at children.
"Informed debate helps make them aware of the implications of what they give their children and what they send out into the environment as a whole."
Hillary Graves, managing director of Little Dish, agrees. While the company has not gone down the organic route, it does pay great attention to the sourcing of its ingredients, with locally produced beef and yogurts produced at a farm in Plymouth.
"When we researched Little Dish, parents told us they were really focused on no additives and preservatives and as natural as possible," says Graves.
"But it was traceability of the ingredients that was more important than whether they were organic or not."
A key development in the baby food category is the massive growth opportunity for 'toddler food'.
When children reach the age of 12 months, baby food is no longer appropriate, but it's not always easy to feed them exactly what you are eating because of the different textures, salt and spice levels in foods.
"As a parent you want your child's meals to be nutritionally balanced at such a key time in their growth and development, so food specifically designed for this age group is ideal," says Graves.
"Mothers are happiest when they are giving their children food that is 'just like they would make at home' - so we provide them with fresh recipes made with 100% natural ingredients and no additives or preservatives. And for the toddler age group especially, mothers are looking for products that have no added salt or sugar."
It's a strategy that's working well for Little Dish. Last year, the brand was worth about £900,000. In 2007, its value is expected to soar to around £4m.
"It's strong, aggressive growth," says Graves. "We are trading in Tesco, Sainsbury's and Waitrose, and will soon be in Asda. We want to be really innovative and think about new product development, but we also want to get into healthy snacks."
Has the number of customer complaints about the price of goods increased recently?
