Author Dr. Stefano Armandi (Senior Analyst Interconnection Consulting)
As stroller market shrinks, parents look for innovative solutions at reasonable prices
For the second year in a row, the European strollers market have decreased by -0,9% in 2019 as a recent study by Interconnection Consulting shows. Interconnection predicts that the market will loose on average -1,8% units per year until 2023, in part due to a strong decline in 2020 in part offset by an increase in 2021. Only in France and Northern Europe, the study recognized an increase in quantity sold, while the German and Spanish markets declined for the first time in the last 5 years and the UK market failed to rebound after a sluggish 2018.
Parents more sensitive to prices as competition intensifies
Average prices failed to grow in 2019 for the first time since the 2010 crisis. Parents have become more sensitive to price differences in the high-end premium segment as competition to gain shares in this segment has increased in the last 3 years. The high-end segment (>1000) lost shares again in 2019 in part due to the impact of second-hand market, while shares of strollers in the medium-range (250€-500€) have now reached 33,7% quantity shares. The temporary fall in demand caused by the COVID-19 crisis is forcing producers to offer one-off sales in the first part of 2020. As a consequence, total turnover is expected to fall below 800 million Euros in the next 3 years.
Lighter, cabin-proofed stroller on the rise… before and after COVID-19
The rise of ultra-light compact in the last few years has been astonishing and more companies are now offering this type of solution. Interconnection expects this segment to grow further in the long-term by taking shares from both compact and buggies, but the COVID19 crisis could reduce their demand until travel restrictions are lifted. “This crisis have been put a lot of pressure on the strollers industry in the first half of 2020 and has the potential to modify parents’ approach to mobility and their consumer preferences”. Comfort is the product group with the largest share (42,8%) and overperformed in 2018, reflecting also the rising shares of multi-travel systems.
COVID19 favors the long-term rise of online sales
Growing trend for online sales set forth and this channel have now reached a market share of 25,8%. Their growth rate is expected to rise even stronger in 2020, as the off-line channel has been heavily impacted by the current crisis in some countries were forced to restructure due to financial problems. Especially, sales through boutiques and mass market will keep declining in the next 3 years. Market concentration have been decreasing in the last few years as some newcomers have gained shares and the trend has been confirmed in 2019 with the top 10 companies controlling now 35% of the total market. Three of the largest companies are Artsana, Britax and Dorel.
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