The children's category is an increasingly important one, especially in tough times

While sales in the children's department don't equate to the biggest moneymaker in a Christian retail store, the category may be one of the least affected by a downturned economy.

In many cases, experts believe, the category could even benefit from a recession. The primary reason: Parents are willing to do without in order to be able to provide for their children—and for Christians, that includes feeding and nurturing their youngsters' faith.

And when parents do buy for themselves, they often pick something up for their junior shopping companion as well.

Meanwhile, children's games lend themselves to being recession-proof not just at Christmas, but also throughout the year.

Said Rob Anderson, president of Cactus Game Design: "In tough economic and spiritual times, parents like spending more time together as a family and games are a great vehicle for family time."

Children's products are also less affected by online sales—where books and music have been hijacked—because of a high "touch and see" appeal at the store level, according to Big Idea's Brian Mitchell, director of marketing and licensing.

"In addition to the impulse sale factor for toys, games and branded children's products, consumers are more likely to physically shop with their children to make the best selection rather than buy online as they would books and music," he said.

Like the juveniles it serves, the Christian children's category has experienced some growing pains as vendors try to match the quality of products in the general market and top-selling brands become oversaturated, leaving stores and vendors in search of the next big thing.

Several factors have contributed to flattened sales, beginning with publishers who over-published, according to Christian children's market expert Mary Manz Simon, a longtime trend watcher.

"For the past 10 years, many CBA-released children's picture books were text-heavy," she said. "Parents might buy one book, but after kids won't sit for a too-long story, parents don't make that mistake again."

In the area of videos, Simon said the under-pricing of some titles changed both customer and retailer expectations.

"To rack up big sales numbers, some CBA companies dropped the suggested retail price," she noted. "As a result, everyone expected every kidvid to sell for, say, $9.99. The companies that didn't lower prices didn't sell their videos, especially as the economic climate changed."

Brand recognition

Branding still drives children‘s products, but vendors and retailers have learned that some parameters must be put in place.

Mitchell, for VeggieTales creator Big Idea, contended that offering a variety of branded and licensed products creates a much larger presence for advertising and at store level.

Licensed partners for the company for 2009 include VeggieTales shoes and shoe charms from Jibbitz, a subsidiary of Crocs, a Sing-Along Brush-Along toothbrush from Ranir Oral Care, Christmas ornaments from DaySpring and AIM Global and plush toys from Pint Size.

Michael Turner, director of special products and markets for New Day Christian Distributors, takes the same approach. "If a company that is familiar to customers makes a product, the stores will be more likely to carry it when otherwise they may not," he said.

In the last year, the distributor has brought brands like Fisher-Price, Lego and Jibbitz to the Christian market.

The category has received attention from other vendors who traditionally set their sights on other areas. In 2008, Christian Art Gifts unveiled its "Christian Art Kids" line with fun, Scripture-based educational products like puzzles, games and Bible storybooks. Integrity Music released its first quarterly curriculum this summer for ages 5-10 based on music from its "Shout Praises Kids" series.

Harvest House Publishers is seeking to expand its children's offerings.

"Up until about four or five years ago, we really had no strategy for this category only because we didn't realize the demand was so great," said Jean Christen, gift director for Harvest House. "That all changed when I took a closer look at the market and realized that our children's books were performing consistently well within our entire gift line."

Thomas Nelson is bringing back its Tommy Nelson children's imprint after scrapping it in 2007 when its "One Company" initiative was implemented and its publishing functions were organized around consumer categories.

Lindsey Nobles, director of corporate communications, said that the return of Tommy Nelson was due to feedback from retailers and consumers.

DaySpring has a new entry into the Christian children's products market with its "Really Woolly Kids" initiative.

Rooted in significant consumer insights that showed kids' interest in the Internet and inspired by the company's No. 1 greeting card brand in the last 13 years, the company has partnered with Flying Rhinoceros to release two DVDs that tie in to a virtual world at www.reallywoolly.com, with retailers asking for more.

Small size for small fries

Small space doesn't necessarily mean small kid revenue. With the exception of jewelry and maybe framed art, toys and games can deliver as much retail dollar per square foot as anything else in the store, according to Anderson.

"Merchandisers could create a ‘Little Things for Little People' area near the register to showcase fun, colorful, inexpensive items for curious kids and parents," said Jilene Framek, president of Angel Toes, parent company of Good Newz Temporary Tattooz. "Compact racks will densely display hundreds small books, stickers, furry pencils or, in our case, themed temporary tattoos in an organized, efficient manner. For small stores, this keeps the cost per square foot down, and the kid content up."

Small stores can always start their children's department by ordering through distributors.

Mastering a small space seems to be working for stores, according to Laura Minchew, vice president and publisher of specialty books for Thomas Nelson.

"We've been delighted at the strength of the independent stores with children's product over the last 12 months," Minchew said. "Call out a kid's area—even a small one with color and merchandising material that look different from the rest of the store."

More creativity is required in the children's area than in other areas of the store—and more hands on to keep it looking that way. The wood fixtures and neutral colors that are typical for adult sections of the store would never keep the attention of an 8-year-old boy looking to kill some time while his mother shops.

"We keep it fresh by totally overhauling the department once or twice a year, including painting the walls and moving furniture," said Jennifer Marshall, manager of the Christian Book Outlet in Harrison, Ark. "It's also this department that we have to straighten more than any others, but it's to be expected."

Marshall noted that children's products are an immediate need, not something parents are interested in special-ordering should what they need—or what their child wants—not be on the shelf.

For some small stores, the best hope for a kids' department might be e-commerce.

"All stores, regardless of size, are missing a huge opportunity if they don't have a vibrant, up-to-date Web site," Simon said. "Small stores, with limited in-store inventory, should work especially hard to build their online services."

Consumers also expect fresh content and continuing innovation, with multi-channel selling becoming important in the coming year.

"This implies that mom will place an order online for a child's birthday party gift and dash by the store pick-up window to get her wrapped gift," Simon said.

Measuring up

The gap in quality between general market and Christian children's products has become much smaller in the past five and 10 years, according to Dan Lynch, vice president and publisher—family entertainment and vice president—children's marketing at Thomas Nelson.

"More time and consideration is spent in the creation of virtually every product, as it's not just about profit and sales," Lynch said. "Yes, that's key, and it keeps us all in business, but the message is critical, and we work hard to make sure these products are designed and produced at high levels."

The Christian market is a step behind in creating and selling quality video games in various platforms, Mitchell said, though "this category has eclipsed music and DVD sales at an astounding rate over the past five years. It's low-hanging fruit awaiting the right product to hit the market."

Despite a pricetag at just under $100, one such product that has done well is Guitar Praise, a family-friendly alternative to the general market favorite Guitar Hero. Maker Digital Praise reported that many Christian retailers sold out of its Guitar Praise game during the Christmas season last year.

Last month, Digital Praise released an expansion pack with 25 hits from artists ranging from Steven Curtis Chapman to Stryper—songs compiled from customer requests.

Simon believes that while kids' products should reflect that their world is digitally driven, they should also help kids develop 21st-century skills.

"Critical thinking, problem solving, self-reliance, cross-cultural awareness and media literacy will become increasingly important," she said. "This skill set is rarely reflected in CBA-generated products, and yet our companies could consider incorporating these elements in developmentally appropriate ways."

Charitable giving is also helping children grow up as citizens of the world.

"Retailers, suppliers and publishers need to offer opportunities for children and their families to demonstrate generosity and empathy, both locally and around the globe," Simon said.

This fall, Big Idea teamed up with Operation Christmas Child to help collect gifts for needy children throughout the world. More than 65,000 churches will have the opportunity to hold a screening of Saint Nicholas, where kids and families will be encouraged to "share the spirit of giving" this Christmas by donating shoe box gifts.

Hage's Educational Supplies in Muskegon, Mich., which started in the 1930s, reported seeing more children in the store in June buying books for summer reading and in August to get ready for the next school year.

"The key is to segment what people are asking for and make that available so that they can shop easier," said Patrick Ritsema, store manager and grandson of the store's founder. "We organized our kid's area by category rather than by age."

Several 4-foot units showcase devotionals, Bible storybooks, early readers, coloring books, mid-level readers and a special-needs category that includes titles on coping with death, adoption, divorce and illness.

Serving young customers

While parents enjoy a quick lunch or Bible study in the café of The Crave Bookstore in Lebanon, Tenn., their children can enjoy a healthy lunch of their own or be entertained with a movie or book within their parents' view.

With a goal to create a safe environment for families, Bridgette Belew, store owner and mother of four, created a menu with healthy choices for kids.

She continues the theme of building healthy families by offering products that bring families together. A display in the center aisle of the store features games—including the popular Find It game distributed by New Day—and Christian DVDs.

The store offers select dolls and plush at half price with the purchase of a kid's book, in order to turn slow-moving dolls. In the process, doll sales have increased to 10 in six months.

"We want this to be an oasis for people, and it includes moms who have been to Wal-Mart for an hour and can't keep their kids in the buggy," Belew said. "If children come as children, they'll want to come back as teens. You are creating lifelong relationships."

As with any store, when kids are around, things get broken. And some kids may not understand about store etiquette, so mishaps and breakage happen. Parents are embarrassed, and children may feel like they are not welcome to return.

"Our response has to be careful," said Beverly Snyder, events coordinator for the Northwestern Book Stores location in Maple Grove, Minn. "We approach calmly and squat down to the child's level and ask if they are OK. I remind them that we have to be careful in the store, (that) we don't want them to get hurt, and we don't want to hurt or scare other people either.

"Although we may inwardly cringe at the cost of some broken item, it is better to just let it go. The well-being of our customer and the compassion we show their children will go much farther to draw them back into our store again."

Category leaders

The popular "Berenstain Bears" titles from Zonderkidz have made their mark in the Christian retail market, with four out of the top 10 titles for the first six months of the year from the series. Bibles for children are ongoing best-sellers.

1. The Beginner's Bible (Zonderkidz) $16.99

2. Jesus Wants All of Me: Limited Edition, Oswald Chambers and Phil A. Smouse (Barbour Publishing) $4.97

3. Berenstain Bears Say Their Prayers, Mike Berenstain (Zonderkidz) $3.99

4. Berenstain Bears: God Loves You!, Mike Berenstain (Zonderkidz) $3.99

5. Berenstain Bears and the Golden Rule, Mike Berenstain (Zonderkidz) $3.99

6. The Lion Day-by-Day Bible (Kregel Publications) $24.99

7. Berenstain Bears Go to Sunday School, Mike Berenstain (Zonderkidz) $3.99

8. Mission Possible: A 40-Day Adventure With Jesus, Charles R. Swindoll (Thomas Nelson) $2.99

9. Jesus Storybook Bible, Sally Lloyd-Jones (Zonderkidz) $16.99

10. Little Bible, black (David C. Cook) $1.19

The ECPA list is compiled from sales of Christian books in hundreds of Christian retail outlets nationwide, collected using Pubtrack Christian (www.ptchristian.com). These best-sellers reflect sales from January through June 2009.

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