Make way for the Millennial mom

Retailers that develop a strategy to make loyal consumers out of this group of buyers are taking the first baby steps toward growing category sales.

A new generation of moms is rattling the baby care category.

Today, 83% of new moms are Millennials, making this generation the new target demographic purchasing all aspects of baby care. It has been established that selling to Millennials poses new, unique challenges not seen by generations past. Millennials are even more adamant about their unwaveringly high standards and need for instant gratification when shopping for their babies.

Studies show that the majority of a household’s key decision makers and its primary shoppers are moms. Understanding the needs and preferences of the Millennial mom is imperative to hooking this indispensable consumer. Trends in the baby care category today are being fueled by savvy manufacturers aiming to please the Millennial mom, so products with a defined purpose, all-natural ingredient lists and an emphasis on safety are driving growth in the category, according to industry observers. These trends are also noted as some of the most effective marketing messages for this consumer, according to Chicago-based Mintel’s 2014 Marketing to Moms report.

Though they are not quite the digital generation, most Millennials are just as tech savvy as the generation that succeeds them. Armed with countless sources of technology, this consumer is likely to heavily research a product pre-purchase, and weigh the pros and cons of various brand offerings before reaching a final decision. Before she even gets in the car to head to the store, the Millennial mom knows exactly what she is looking for—and it is up to grocery retailers to stock the right product assortment to keep her coming back week after week.

“Things are so different now, there is much more research available, and moms are much more savvy, especially the Millennials,” says Karina Medoni, executive vice president of sales and marketing for Coral Gables, Fla.-based BabySpa. “They are looking for specific things and they are very picky about what they want to put on their baby, a lot more picky than moms were 50 years ago, or even 20 or 30 years ago.”

In keeping with the so-called picky nature that observers find consistent with the Millennial mom, natural product claims are no longer an added bonus, but a real necessity in regard to baby care. Quality is one area that they are not willing to compromise, especially when it comes to their children.

To stay one step ahead of the competition, it is up to manufacturers to recognize that consumers are no longer willing to accept alternatives to natural. When shoppers are headed to the checkout line, products from companies like Diamond Wipes, that are focused on meeting consumers’ needs by creating items using natural, sustainable ingredients, are more likely to be found in consumers’ shopping carts. “We’ve recently developed a baby wipe that is 20% larger than the average baby wipe, made with materials that are softer and non-abrasive to delicate skin,” says Cali Carter, marketing coordinator of Chino, Calif.-based Diamond Wipes.

Along with all-natural, products that serve a niche purpose will also thrive this year, say observers. According to IRI, a Chicago-based market research firm, the segment of the baby category that experienced some of the strongest growth over the past 52 weeks ended November 2 was baby ointment—a product specifically used to soothe irritated skin or diaper rash, as opposed to all-purpose baby lotion. BabySpa’s new line of all-natural sunscreen targeted at eczema-prone skin will hit shelves early this year. Hyland’s, makers of homeopathic medicines for babies, will launch three new baby products this year, each with a clear function: Baby Nighttime Teething Tablets, Baby Calming Tablets and Baby Gas Drops.

“Millennials are looking for products with good value, that are safe for children and that provide a natural solution. They are looking for products that understand and meet their needs,” says Les Hamilton, executive vice president of Los Angeles-based Hyland’s.

One-stop shopping

Where many grocery stores really struggle to compete, observers note, is in creating the one stop shop experience that is so essential for a busy mom. It is true that moms are apt to fulfill their weekly baby needs—like baby food and diapers—at the grocery store. However, observers say it is another story when it comes to items that are needed on a less frequent basis like skincare, shampoo or over-the-counter medicine.

With mass merchandisers like Target and Wal-Mart only expanding on their fresh and general food sections, it is more important than ever for grocers to keep up by creating more appealing nonfoods sections, say observers. This is especially true for baby care. Some observers say that it is not that mom is not willing to make these purchases at the grocery store, but more so that she is not accustomed to finding the broad selection she needs in the grocery’s baby care section. 

“It is more convenient for moms to do the one-stop shop, especially when they have a little baby,” says BabySpa’s Medoni. “They are in the grocery, they do not want to make 10 stops, they want to buy everything in one place, but because moms are very picky about what they put on their baby, if they cannot find what they are looking for in the grocery, then they are forced to go elsewhere.”

Many observers say grocery retailers ought take this into account and expand upon their baby care selection to satisfy this new generation of moms. Grocers who are still hesitant about bringing in new products may try working with manufacturers on lower prices and discount codes to entice consumers to try the new brands stocked on store shelves. According to the Mintel report, lower prices or discounts are the most influential factor encouraging moms to try a new nonfoods brand.

Another very influential factor is the Internet. This generation of moms has a much stronger sense of digital community than any previous generation and relies on recommendations and reviews from the web, as well as social media when deciding what is right for their baby.

In some instances, Millennials may even feel turned off to a brand that does not maintain an active web presence. The ability to interact with a brand outside of the store generates a sense of trust, observers note. “Millennials are 40% more likely to check out a brand that they like on Facebook or Twitter,” says Diamond Wipes’ Carter. “80% are more likely to like a brand that uses social media.”

No longer willing to stick with just the big name brands, if a mom does not find what she is looking for in the grocery aisles, she has no problem sourcing the product elsewhere.

Accustomed to shopping online, Millennial moms will not sacrifice and purchase a substitute product just because they see it in the aisles—in fact, if the product they are looking for is not found at the store, it would not be uncommon for a mom to order it online, standing right there in the grocery aisle, observers add.

Some feel that grocery stores are reluctant to stray from the big brands because they would have to charge more for niche items coming from these private brands, and just do not feel that the consumer is willing to make the splurge. However manufacturers are quick to refute these claims. “Just because an item is not $5 or $6 grocers think people are not going to buy it. They are buying it, they are just buying it somewhere else,” says BabySpa’s Medoni.