For decades, the Wayne, N.J.-based Toys "R" Us and Babies "R" Us chains have been threatened by competitors that have used diapers and baby formula to lure customers into stores.
Now, a new study shows that baby products are also well-suited to attracting online shoppers.
According to TABS Analytics' 2016 U.S. Baby Products Market Research Report, online sales of baby products are nearly 10 times higher than other consumer products. The report found that online sales account for 20% of baby product sales, while online sales account for only 2% of sales of other products.
TABS CEO Kurt Jetta said that baby product sales represent the front line of e-commerce, and any retailer who wants to succeed in the e-commerce market will be wise to offer and promote baby products on their websites because consumers are more willing to buy such products online.
Jetta said that according to TABS' three-year survey, online sales of baby products have exceeded other consumer products. The survey brings good news and bad news to Toys "R" Us and Babies "R" Us as they work to boost sales in their physical stores and online. Consumers' desire to research and buy baby products online gives Toys "R" Us and Babies "R" Us an opportunity to reach consumers. However, the study also found that shoppers are more likely to buy at Walmart and Target, grocery stores and Amazon than Toys "R" Us and Babies "R" Us.
The study was based on 2,000 adult consumers. The results showed that the main baby and child products purchased by consumers are: child seats, walkers and safety equipment, infant feeding accessories, diapers, baby formula, food and beverages, children's toiletries and skin care products.
Toy industry expert Jim Silver said it seems reasonable for consumers to buy children's products online. The average age of new mothers today is 26 years old. They are a generation that grew up in the Internet age. "These people are not only buying baby products online, they're buying almost everything online," Silver said.
Diapers were one of the main ways Toys "R" Us got customers to come to its stores before the Internet. Walmart started using diapers to get parents to its stores in the 1990s, and now it's using grocery products to drive frequent visits.
TABS' research found that most consumers still buy diapers in stores, while 12% of consumers buy child safety products only online and 7% of consumers buy diapers only online.
For diapers, 17% of consumers buy diapers at Walmart, 13% at Target, and 9.7% at Toys "R" Us and Babies "R" Us, according to TABS' research data. Among consumers who buy diapers online, 7.5% buy from Amazon, 4.4% buy from Walmart, 3.5% buy from Target.com, 2.9% buy from Diapers.com, and only 2% buy from Toys "R" Us and Babies "R" Us websites.
In response to the TABS research results, Toys "R" Us said: "We have seen an increase in online sales of baby products," and said it will continue to improve the user experience of the online store, make improvements to support the growth of online business, and respond quickly to customer needs.
