The industry posted strong growth, mainly due to convenience and recovering incomes
New York, NY (PRWEB) April 26, 2015
The Online Baby Product Sales industry, which retails goods for infants and toddlers such as furniture, toys, strollers, formula, apparel and diapers over the internet, has expanded rapidly over the past five years, along with the overall e-commerce sector. Industry operators have benefited from rising consumer acceptance of online shopping, both through traditional websites as well as mobile websites and applications. The proliferation of broadband internet and smartphones, along with consumers' increasing reliance on the internet for activities like shopping, has driven demand for industry products. As a result, industry revenue is forecast to skyrocket over the five years to 2015.
According to IBISWorld Industry Analyst Leah Goddard, “Competitive pricing and the development of multichannel retailing options have enhanced already-strong growth.” More traditional brick-and-mortar stores have entered the industry in recent years due to the success of smaller online-only retailers. Benefiting from their brand recognition and existing infrastructure, these larger companies have gained market share fairly quickly. Moreover, improvements in technology have lowered barriers to entry, further promoting growth in the number of industry operators. This has kept price competition high and profit margins low over the past five years. However, rising disposable incomes, coupled with the introduction of premium products such as brand-name furniture and apparel and eco-friendly baby care, have enabled profit margins to slightly increase over the period.
The industry's growth spurt will continue over the next five years, with revenue projected to grow in the five years to 2020. The greater acceptance of and need for convenient online shopping platforms will fuel demand as rising employment will cause lifestyles to become busier and workloads to become heavier for many parents. “In addition, greater internet connectivity along with continued technological development and innovation within online shopping platforms will further contribute to industry growth,” says Goddard. However, the industry's success will encourage larger players to increase their market share, which will keep price competition high and profit margins low. However, rising disposable incomes and the continued introduction of premium baby products will help profit margins modestly expand over the period.
For more information, visit IBISWorld’s Online Baby Product Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry retails infant and toddler products on the internet. Industry products include diapers, clothing, shoes, feeding aids, strollers and furniture. Firms purchase products for resale to consumers with no further development of the product. The industry does not include auction or used product websites.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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