Eager to please, franchisors are catering to children's
alterable moods and changeable interests, coming up with innovative
ideas while serving the most basic of needs. Whether it's
children's furniture, education or fitness, success for these
franchises can usually be measured by the size of the
customer's smile.
Franchises are also measuring the size of the market, as Census
figures indicate there are approximately 40 million kids in the
United States under age 10. Marketing expert and American
Demographics founder Peter Francese also credits this
industry's strength to better market research, directed to a
more educated consumer. "The industry has prospered because of
[companies'] abilities to target consumers and create products
they want and will buy," he says.
Hot in the beginning, prosperous now and promising for the
future, the children's franchise industry has attracted
long-term players who have left their marks, have achieved
financial success and now offer a wealth of insight for people
wanting to get into this industry.
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Knock Knock, Who's
There?
For Fred Meyer, it was natural to take over the toy store his
father had opened in Battle Creek, Michigan. In 1947, Meyer's
father proved to be ahead of his time when he recognized an
opportunity in selling toys to the baby boomers. In 1990, Meyer
identified the growth potential in converting his father's
business into a USA Baby
franchise. His first priority was to find the right niche, and
furniture represented a stable bet in the industry. But, as Meyer
has discovered, staying up to date with the changing demographics
of his clientele has been equally crucial. In the years since his
father first opened the business, grandparents and older mothers
have emerged as target customers.
Grandparents have become some of the most significant consumers
in the industry. According to the AARP, people over 50 earn a total
of almost $2 trillion annually and represent more than 50 percent
of total discretionary spending power. In a 2002 study, AARP found
that grandparents 80 and older are likely to spend $1,000 to $2,499
annually on their grandchildren. Meyer even incorporated them into
his marketing strategy by using "Grandparents' Favorite
Toy Store" as his slogan one year.
Another trend children's franchise owners point to is women
having children later in life. Meyer has seen an increasing number
of 40-year-old mothers-to-be who are more educated, more
financially stable and more sure of what they want.
As long as babies need cribs, Meyer's niche is secure, but
true prosperity requires staying current. "We want to make
[the customer] feel good about shopping in our store," he
says. Meyer predicts a 10 percent increase in sales for 2003, but
while other USA Baby franchisees open their second and even their
third stores, Meyer is happy sticking with his father's
original store.
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