Baby Bunting is a one-stop store for children and is considered Australia’s leading specialist retailer of baby items. The Baby Bunting Group is a publicly-traded company that makes money by selling baby items, supplies, and accessories at retail (2020 Annual Report, 2020). It operates in two ways: online and in person. The corporation is based in Australia, with its headquarters in Dandenong South, Victoria (2020 Annual Report, 2020). In Australia, excluding the Northern Territory, the firm now runs 57 outlets (2021 Annual Report, 2021). The primary product line of Baby Bunting comprises baby strollers, car seats, carriers, furniture, baby room, safe baby apparel, toys, and baby feeding devices (2021 Annual Report, 2021). Baby Bunting is a retailer of 3rd party merchandise, in-store branded items, and Baby Bunting-exclusive 3rd party branded merchandise (2021 Annual Report, 2021). Huggies, Lamaze, Bugaboo, and Bonds are some of the company’s most well-known brands (Baby Bunting – Brands).
Mothercare is one of the Baby Bunting Group’s primary rivals. The corporation holds a diverse portfolio of businesses in the hardware and department store industries. Mothercare has a big portion of the Australian retail market in the infant care area (2021 Annual Report, 2021); hence the major competition between the two brands is in retail. Mothercare competes directly with Baby Bunting since they sell the same items – baby basics and their derivatives. While Baby Bunting can not compete with Mothercare in the manufacturing field, their retail shops located in similar areas provide a source for the major rivalry. The Mayborn Group, which also manufactures children’s items, is a significant rival. In its quest to deliver innovative infant care, the firm has grown to become one of the largest players in the Australian market, and it is a major competitor of Baby Bunting (Sustainability and Mayborn, n.d.).
One of Porter’s Five Forces, industry competitiveness, has a significant influence on the manufacture and marketing of infant care items. Because Baby Bunting is the market leader, it is one of the most important aspects impacting the company’s strategy and development. To mitigate the impact of a single offer, key industry participants are investing in physical retail and promotions (Porter, 2008). All of the major companies’ multi-channel initiatives (Mothercare, Mayborn Group, etc.) are anticipated to enhance the level of competition. The market as a whole offers a diverse range of items, such as organic baby food or sustainability methods for newborns (2021 Annual Report, 2021). Mothercare, for example, offers luxury infant care products to complement its core personal care brands. Baby Bunting, a major player in the sector, may profit from both rivalry and collaboration with rivals to expand its market share. The company’s annual reports indicate its move into the online marketplace, followed by other brands in a similar fashion.
In Australia, rising birth rates, increased consumer awareness of child hygiene, ascending consumer disposable income, and lifestyle changes are driving market expansion, bringing up concerns about suppliers’ negotiating leverage. Because a large portion of Baby Bunting’s products is from third-party brands, suppliers are crucial. Higher supplier bargaining power has the overall effect of reducing the total profitability of a company’s services (Porter, 2008). The interruption caused by COVID-19 was noted as a key deficiency in supply chains in yearly reports (2020 Annual Report, 2020). This, however, had an impact on the entire market, not just individual businesses. It also gave Baby Bunting the chance to develop its own production, minimizing reliance on third-party suppliers, which might be helpful in the long term.
Reference List
Baby Bunting – Brands (n.d.) Baby Bunting Group.
Porter, M. E. (2008). ‘The five competitive forces that shape strategy, Harvard Business Review, 86(1), pp. 25-40.
Sustainability and Mayborn (n.d.) Mayborn Group.
2020 Annual Report. (2020) Baby Bunting Group. Web.
2021 Annual Report. (2021) Baby Bunting Group. Web.