Executive Summary

Market Merchants Consulting worked with a manufacturing company in the infant apparel industry to prepare a strategy document outlining the steps needed to partner with an online multichannel retailer in order to sell and distribute a new product. At the request of said company we are using a pseudonym (Baby Bag) in reference to the product.

The Baby Bag product provides a solution for germ-conscious parents by consolidating a diaper bag with a protective cover that fits shopping carts and high chairs.

Highlights from Industry Analysis

In 2007 the U.S. retail industry generated sales of $4.5 trillion with $40 million making up infant apparel. Retail trade accounts for approximately 12.9 percent of all businesses established in the United States. The 2007 American Apparel trend report showed just shy of 1 billion units of infant apparel purchased, which is an overall downtrend from 1.6 billion units in 2006.

Highlights from Customer Market Research

We conducted a market research survey in order to establish the target market. The findings showed this to trend well with women between the ages of 20 to 40 with less than 4 children. 71% take their children grocery shopping while the other 29% do not due to their concern over unsanitary conditions of the cart. Of those surveyed the second most utilized area for purchasing infant apparel was the Internet.

Highlights from Competitive analysis

The competitive analysis showed the challenges of differentiating the Baby Bag product from that of the competition. Most companies currently offering similar bags are small start-ups with no partnerships with big box or online retailers.

Highlights from Strategy Document

Baby Bags has significant opportunity for increased sales via the Internet. Their brand identity should focus particular attention to Internet savvy mothers and look to partner with multichannel retailers who already have a vested interest within the industry.

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