With the latest addition to the royal family joining us just a few short months ago, our stores have been awash with thousands of commemorative products for Prince William and Kate Middleton’s little bundle of joy. But has the birth of Prince George given the British economy the retail boost it so desperately needs?
Many businesses are currently facing strain and boosted profits due to the royal baby craze and whilst it may be a short-lived earner it is still certain to turn profit for businesses of all sizes. From prince themed baby clothes and the personalised commemorative crockery that makes an appearance to celebrate every royal event to royal baby sick bags and celebratory bottles of beer, the birth seems to be inspiring a number of themed collections.
According to recent analysis, the merchandise surrounding the royal baby epidemic that is sweeping the entire globe is set to boost the British economy by around 260 million in total with both established and emerging retailers making a mint. But how are they coping with this one-off demand? And what happens when the baby bubble bursts?
All the businesses we see selling royal baby merchandise have gone through months of planning and gender speculation to get their products to market, with a number of retailers making the grave mistake of assuming that we would in fact be greeted with a little princess and making the products to match. One Dorset based firm made that very faux pas and ended up with 5,000 pink commemorative plates which were swiftly sold at below market value once it was announced that the baby was in fact a boy!
Many companies countered this by not jumping ahead, but instead planning an inventory for both genders until the sex was announced, and using past royal crazes to estimate expected sales, demand and product choices. Selling early as the hype hits also minimises the risk of being left with dead stock, which would have to be returned and sold on a secondary market.
There were however some markets that did miss out, baby toymaker Fisher Price have a 18 month lead time for manufacturing making it impossible to produce and get tie-in products on the shelf within days. Whilst giants like Harrods sold out within just a couple of days after months of careful planning for this one-off event.
Whether you have profited from the royal baby frenzy directly or not, this little royal bundle of joy has and will continue to make bundles of cash for the wider British economy.
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