Paternal Instincts Have a feeling that marketing to dads is a smart move? You're right on the money.

If you want to hit the next big thing, it's all aboutcatering to dads who are spending more time with their kids, andwho need products and services formerly geared only to mothers.Recent U.S. Census data show there are 25.8 million fathers inmarried-couple households raising children younger than 18. Andthere are 2 million preschoolers whose fathers care for them formore hours than any other child-care provider while their mothersare at work. Also counting the 2 million single fathers in theUnited States, there's a growing demand for father-centricproducts.

A father himself, Chris Pegula founded his Santa Monica,California, company to make cool diaper bags that resemblemessenger bags for dads. Diaper Dude was born about May 2003 afterPegula, 32, couldn't find anything he liked on the market forhis outings with his children. Says Pegula, "[I thought]'I'm just going to design a bag and sell it and see if itworks.'" The fashionable bag, an immediate hit with dads,is now available at high-end stores like Fred Segal and Nordstrom,boosting annual sales to a projected $350,000 for 2004.

The dad market is opening up because Gen X men are the newfathers-and being a dad is a priority, says Ann A. Fishman,marketing expert and president of marketing firm Generational TargetedMarketing in New Orleans. Even more than the generations beforethem, this generation of fathers is concerned with work/lifebalance and creating an equal parenting partnership, notesFishman.