4moms CEO Daley expects major growth spurt, tenfold increase in sales
Downtown-based infant products company 4moms is growing quickly, increasing revenue by about 30 to 50 percent a year as it rolls out products and expands into more big-box retailers across the country.
CEO Robert Daley said he believes the 175-employee company can achieve $700 million in sales each year by selling robotic strollers, cribs, car seats and other devices that help parents with their babies. That would be up from $70 million in sales Daley is forecasting this year.
Daley discussed the factors behind 4moms growth and where its headed during a recent interview with the Tribune-Review. Below are edited excerpts.
Trib: Why is the company growing so quickly?
Daley: Two things, we are launching an ever-expanding set of products. So as we launch new products, it increases revenue and allows us to grow our team. And our traditional business is also growing as we add retailers and the strength of the brand increases. We're sold in Babies R Us nationwide, and we're in Buy Buy Baby, which is owned by Bed Bath and Beyond. And we're in hundreds of Target stores, but not thousands of Target stores. So we're seeing increases in the number of Target stores that we're in. A lot of the growth isn't putting a new retailer name in our portfolio; it's about getting increased reach within that retailer.
Trib: Does the company have plans for products that aren't for infants and children?
Daley: What makes 4moms great has nothing to do with babies. We're by no means limited to the juvenile space in the long term. We believe that this year will be something in excess of $70 million in revenue, and that we can, within those categories, exceed $700 million in revenue. So we have a lot of work left to do in the juvenile space.
Trib: What is it about your products that's so attractive?
Daley: We have the ability to leverage these really high power, lost cost electronics and do things that are radically innovative that no one has done before.
Trib: Can you give me an example?
Daley: The idea of having a stroller that opens and closes on its own. Every stroller folds because you've got to get it in or out of a trunk or a closet. We all have power windows in our cars, but we struggle with these ridiculous contraptions to open and close our strollers all the time. By putting motors and sensors and electronics on a stroller so it can open and close on its own makes that product dramatically better. Early next year, we have our first car seat that we're launching. It's a self-installing car seat. Eighty percent of all car seats have a critical installation error. We've taken all of the skill and expertise needed to install a car seat correctly, and we put it into the base of the seat so that you place it into the back seat, push a button, and it installs all on its own.
Trib: Your products seem be targeted to a luxury demographic. Is that a good place to be?
Daley: We are not targeting a luxury demographic. Our products are not inexpensive. But when you're targeting a luxury demographic, you're selling cache. We are actually selling the world's most advanced solutions that are solving real problems for moms. We have a different value proposition than traditional products. Because it provides more value, it costs more. It carries a higher price point, but we are not a luxury brand and we are not marketing luxury goods. The typical income range of our customers is massively broad. If you're a household that earns $65,000 a year or $120,000 a year, you're just as likely to be a 4moms customer.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or firstname.lastname@example.org.