Daily Insights

Walmart Says Hello Bello to Baby Care

By: Alizah Asif Farooqi | Feb 26, 2019

The baby business is booming and brands are taking note. Fresh off an expectation-exceeding Q4 report, Walmart just brought on parental pair Dax Shepard and Kristen Bell to launch “Hello Bello,” a plant-derived baby products line available on its site and in stores. Though its products are small, here’s why a baby line could have a mighty impact on Walmart.

In the past, Walmart has expressed an interest in the baby market by increasing investment against baby care and toy keywords. Last year, the brand boosted paid visibility for these keywords by 17% and 10% respectively, according to Gartner L2’s Digital IQ Index: Big Box.

But with big names like Target and Amazon pushing their own infant care lines, the baby space is already crawling with competition. New players like Brandless have also burst onto the scene, boasting the same plain-but-perky packaging as Target and Amazon, but at lower prices.

Recently, however, Brandless bailed on its $3 promise, opting for a higher-priced line of baby products. Additionally, Brandless customers are less likely to return for more after their first orders. Hello Bello might just be Walmart’s chance to wipe out the Brandless appeal and pacify unsatisfied consumers.

Still, getting a leg up in a saturated space can be tough. To cultivate a sustainable appeal, Walmart should ensure that prices stay low and ingredients stay clean in Hello Bello products. Additionally, given the repeat nature of baby care products, Walmart might consider adding a Subscribe & Save fulfillment option for its new baby line to keep up with the convenience factors offered by Target and Amazon.