I'm just getting started and I'm immensely interested in the baby products industry, if anyone had any advice it would be greatly appreciated. Also any tips on where to gather research on private companies like if they've had previous pe or vc funding or employee estimates would also be really helpful! Thanks
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I imagine the industry: (1) Has very strong margins (that sh*t is expensive!).
(2) But it also has a high amount of fashion risk. Products can go out of style with little warning, as certain bottles and water bottles did when the general public got wind of concerns about BPA, and as Sigg bottles did when consumers learned they had BPA in them. Then again, if you can ride an upward baby fashion trend, you're walking on sunshine.
(3) But the industry also appears to have a high risk of copycats of successful products. My Wegman's supermarket has store-branded and other low-cost versions of many types of products that are blasé now but were trendsetting niche products ten years ago.
(4) There also appears to be high customer churn, if it's retail consumers you're targeting. Most of the families I know have had two or three kids over the course of a few years, and then they move on quite decidedly. Though there are grandparents and other relatives and friends who might be in the market for longer periods.
Are you looking at institutional consumers such as day care chains? That would be a good strategy. Lakeshore Learning (www.lakeshorelearning.com) comes to mind, not as an acquisition target but as a research example of a company that sells products to preschools.
As I said, I'm curious to learn more about what you have in mind. I imagine it's a minefield, but a highly profitable one if you can mitigate the risks. Best wishes.