Children's Products

The children’s products industry is one of the best omnichannel industries. But there is still an untapped potential.

Competition from pure players is tightening, but the primary target group is ready to buy, and need the product straight away – making omnichannel efforts a must for businesses operating in this industry.

DOES OMNICHANNEL LEAD TO GOOD FINANCIAL PERFORMANCE?

This year, Danske Bank has provided a financial analysis of the Omnichannel Index’s industries to get a deeper understanding of each industry’s terms.

Presented in collaboration with

Solid financial performance

children

Danske Bank has conducted an extensive analysis of the companies’ performance in Denmark, Sweden, and Norway based on public records.

Here, they have accounted for the revenue from 2016 to 2018 and the associated growth rate.

This is one of the industries that gives the customers a solid omnichannel experience. From a financial perspective, it looks good as well. The industry is one of few with a strong revenue growth in the Nordics.

“This industry has a really good starting point for omnichannel success. It is a digital mature industry and with their financial terms, they have a good possibility to improve further,” Jesper Langborg Jensen, Head of Business Advisory and Insights at Danske Bank, tells.

49

Average score of
the Children's product industry

VS.
53

Average score of
the best performing industry

Here-and-now desire

Even though the children’s product industry is one of the best omnichannel industries, it still has untapped potential. Especially since the competition from pure players is high.

The results across nations

Awareness

DK: 74
SE: 56
NO: 78

Evaluation

DK: 53
SE: 50
NO: 46

purchase

DK: 55
SE: 55
NO: 41

Service

DK: 30
SE: 35
NO: 30

Loyalty

DK: 37
SE: 56
NO: 39

Their primary target group are ready to buy and they often need the product right away.

This gives omnichannel in particularly excellent odds since the here-and-now desire is generally difficult for the pure players to fulfil unless they offer same-day delivery which is rare.

Omnichannel is a must-have for this industry. With real-time stock status and services such as ‘see if the product is in stock at your local shop’ and ‘see, which products your local shop has’, the industry can get far ahead of the pure players.

Kasper HolstCEO of IMPACT
*Spending data is based on transactions made with cards or MobilePay in stores in Denmark or abroad by around 1m Danske Bank Danish private customers with active accounts. The data is not traceable to individuals. Consumption does not include cash spending or account transfers. Charts are not corrected for price changes.

Make it personal

If the retailers in the industry wish to be parents’ preferred store, they need to be better in the loyalty phase and give the customers a personal buying experience.

By collecting customer data and offering loyalty programme with benefits, retailers can tailor offers based on the children’s development stages. This is something only half of the industry does today.

Birthday offers and season-based offerings are really strong drive-to-store activities, which should be
prioritised to strength the customer relationship.

Kasper HolstCEO of IMPACT

One thing is certain, even though the industry is performing well… retailers need to improve to meet the demand of their customers.

Annual accounts analysed on 434 retail companies across the Nordics with turner above EUR 5m. The result can thus be a little skewed towards larger companies.