👶 The $5B baby boom brands can’t ignore | Baby Buzz Newsletter

Retail Rewired 🔥

Rising Costs, AI & the Halo Effect—Key Takeaways from eTail West

The Fospha team had an amazing time at eTail West last week, connecting with eCommerce leaders and diving into the biggest challenges and opportunities shaping the industry. Here are the top trends we saw dominating the conversation.

📈 Brands Are Navigating Rising Ad Costs & Complexity

With CPCs on the rise, brands are doubling down on efficiency— looking for opportunities to optimize their marketing mix and making the most owned channels like email, SMS, and loyalty programs.

🤖 AI-Driven Personalization Is Scaling Up

AI is transforming customer interactions in real time. Hanky Panky shared how AI powers their acquisition, site experience, and retention efforts—including automating 50% of customer service interactions to free up human agents for high-value customers.

💡 The Halo Effect Is Real

At Fospha, we're always talking about the impact of TikTok, YouTube, and Meta ads on third-party sales channels like Amazon. At eTail West, Ross Wakeham from TikTok reinforced that this ‘spillover’ effect is a huge measurement opportunity for brands.

If you’re interested in learning more about the halo effect, you can lead our latest research here. 🔗

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Sector Spotlight 🎥

RETAIL EXPANSION

Popees Baby Care Expands Globally with 42 New Stores by FY 26

Popees Baby Care plans to open 42 new stores and expand internationally by FY 26, entering the Middle East market with locations in Abu Dhabi and Sharjah. This strategic move responds to growing demand for high-quality baby products, aiming to enhance brand presence and capture discerning consumer interest.

ECOMMERCE INSIGHTS

Harness Authenticity with Influencer Marketing in Baby and Kids' Campaigns

Influencer marketing in baby care emphasizes authenticity and engagement. Campaigns by Toys"R" Us and LEGO illustrate the transformative impact of storytelling and community-building. These efforts reveal the critical role of influencer alignment in fostering genuine connections, enhancing brand safety, and driving consumer trust.

BREASTFEEDING INNOVATIONS

Breastfeeding Accessories Market Soars with Innovation and Maternal Health Focus

The breastfeeding accessories market, valued at USD 2.5 billion in 2023, is projected to grow at a CAGR of 19%, reaching USD 5 billion by 2033. This surge is fueled by rising global employment of women, governmental breastfeeding initiatives, and technological advancements like smart breast pumps.

INFANT NUTRITION INSIGHTS

Common US Infant Formulas Are Laden with High Levels of Added Sugars

Research reveals US infant formulas contain unhealthy added sugars, contrasting with breastfeeding benefits. Despite WHO and American Academy of Pediatrics recommendations, limited systemic support forces formula reliance. High sugar levels pose health risks, fueling obesity. Advocates call for lactose-based formulas as safer choices amidst inadequate labeling regulations, underscoring strategic industry reform needs.

SKINCARE INNOVATION

Aveeno Baby Launches Gentle Hydrating Facial Gel Cream for Delicate Baby Skin

Aveeno Baby launches a hydrating facial gel cream, enriched with triple oat extract and avocado oil, providing 24-hour moisture for babies with sensitive skin. This product addresses growing concerns like atopic dermatitis amongst infants, strategically expanding Aveeno's market reach in pediatric skincare.

Influencer Corner 📣

Optimization Hub ⚙️

FASHION-FORWARD INNOVATION

AI Transparency, eCommerce Tactics, Digital Advertising: 5 Interesting Stats for the Week

Generative AI unease, eCommerce tactics, and AI-driven job insecurity shape consumer views, with most wary of AI's expanding influence. These realities offer an opportunity to innovate. Despite concerns, the thriving $38.07bn digital advertising sphere presents untapped paths for market expansion and strategic integration.

ECOMMERCE VISIONARIES

The Future of Digital Marketing Agencies: Trends and Predictions for 2025

In 2025, digital marketing will pivot toward AI advancements, first-party data utilization, and niche specialization. Embracing AI enhances customer personalization, while prioritizing data privacy ensures compliance. These strategies, alongside leveraging emerging fields like Web3, offer competitive edge and measurable ROI.

AI IN MARKETING

Scale or Fail—The AI Gold Rush for Personalization

Personalization at scale used to be a pipe dream—now, it’s a competitive necessity. AI is making hyper-targeted content, promotions, and customer interactions effortless, but the real challenge is earning trust and staying relevant without crossing the line.

Brands like leading retailers are ditching blanket discounts for AI-driven precision offers. But as personalization gets smarter, consumers are setting the terms—they’ll trade data for relevance, but only if brands play fair.

How do you personalize without alienating? How do you scale without losing authenticity? The brands that master this balance will dominate.

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