Baby, Look at You Now!

The message is clear: Nothing is too good for baby. Over the last five years, the quality of baby accessories has risen dramatically, and prices have increased with the same affect. Still, that hasn't deterred parents and grandparents from spending a pretty penny on their precious little ones. How about $800 on a stroller? Or $300 for a diaper bag? A diaper bag! It's a far cry from the vinyl ones with the bunnies our moms carried. In fact, nowadays, you can't tell the difference between a diaper bag and a fashionable tote.

Much of what's driving the trend toward luxury baby goods is design. “These days, people are into modern design and they want their baby's room to be modern as well,” says Grace Tobias, co-owner of Dimples Baby, an upscale baby boutique in Brooklyn, NY.

Even more amazing is that Tobias' clientele has ranged from a 19-year-old, first-time mother to a 40-year-old woman expecting her sixth. “I get parents, grandparents and friends looking for gifts,” she says. What they have in common is that they're all looking for well-designed, quality products.

One part of the design trend: Animals are out in favor of color and style. “We've gotten away from characters and moved toward more sophisticated linens,” says Andrea Edmunds, co-founder of the online store Posh Tots, which targets more affluent customers.

Christiane Lemieux, creative director for DwellStudio in New York, the parent company of DwellBaby, says that people are taking a greater interest in their homes — and that includes baby. “It's become a focal point in their lives; it's fashion for them,” she says. “People spend a lot of time designing their homes, and they don't want it to stop with baby. They want it to have a nice flow from the living room to the baby's room.”

Edmunds agrees: “They want the nursery to be an extension of the home. They want it to reflect the rest of their home.” Edmunds also believes that celebrities have played a role in people's desire for more stylish baby goods. “We're a celebrity-obsessed culture. We care about what Gwen Stefani is putting on her son. It's fun and beautiful and luxurious. They're only babies once,” she says.

Parents are definitely willing to spend money when it comes to their baby, especially if it's the first. “First time parents will spend more, but once the second one comes, they become a little more hesitant. They don't feel it's necessary to spend $400 on a high chair,” explains Grace Tobias.

That said, parents still seem willing to shell out extra dollars if it means getting a quality item for their bundle of joy. “When it comes to your baby, it's not an economy thing,” says Christiane Lemieux. “If you have to have that $800 stroller, you'll get it.”

Tobias agrees, saying, “Price really isn't an issue. Parents should get what they love — and they do. There's always a way to afford it.”

Even for friends of the parents, money doesn't seem to be a big issue. “People will spend $50–$75 on a baby gift,” says Jennifer Viola Laddy, owner of Filenni Gift Boutique, Woodcliff Lake, NJ. Still, it's always good to carry items in the $20 range for those who aren't willing to spend extravagantly on a baby gift.

And of course, grandparents are the biggest spenders. “A lot of the furniture items are coming from the grandparents; they're definitely willing to spend more,” says Tobias. Plus, many parents are buying more than one of the essentials. They'll buy two strollers and two cribs — one of each goes to the grandparents for those all-important babysitting duties.

As in other categories, consumers are mixing and matching high end and lower end baby products. “Consumers have this mentality that they'll buy basic baby wipes at Costco, but will indulge in a premium level car seat or crib. And you don't have to be upper class,” says Joseph Hei, CEO of Orbit Baby in Newark, CA, makers of strollers and car seats. “Talking to retailers, we found that people are having kids later. They have more [money] saved up. Parents who are 30-plus are in a different place and can afford to buy what is best for their child. These parents … are going to say, 'We spent $3,000 on a plasma TV, isn't our baby worth a $500 crib set?'”

This customer is ideal for independent retailers. “These are savvy consumers. They know what's good. They recognize real benefits in an item, and will spend the money if it's a better product,” says Hei.

“People want the best for their baby and are able to justify spending a little more,” notes Jones. So specialty retailers shouldn't be afraid of carrying that expensive diaper bag — there's a mom-to-be out there who will snatch it up in a heartbeat.

The baby market shows no signs of fading. Even with fears of an economic downturn on the horizon, the category remains strong — especially when it comes to essentials and quality. Parents will spend more for high quality sheets, high chairs and strollers.

“Parents want quality and longevity,” explains Grace Tobias. And in a nation were we've been well-educated in fashion and design through television shows like Trading Spaces and Project Runway, the customer knows good style; they won't change just because they had a baby.

Independent retailers are at the biggest advantage in this area. You're the store they're going to come to for unique items, for stylish items, for cutting-edge items. And they aren't going to be afraid to dip into their wallets to get the best for their baby.