A United Kingdom based e-commerce startup called My 1st Years has just earned a growth funding of £5 million. It offers personalized gifts for babies and children. The funds are managed by Hargreave Hale and was allotted to the start-up in the round, adding £2 million previously raised as well by Beringea.
The start-up aims to expand its reach to the United States with this funding. It has plans to use this money for operations, marketing and other expansion expenditures to the U.S. Daniel Price and Jonny Sitton are the founders of the company and it started back in 2009. The concept is inspired by NikeID tags-which have become a favorite of so many celebrities. The duo actually came up with the idea while still in university. They were doing a research project on the baby clothing industry and realized that baby gift market is huge. All the research led them to notice the big gap in the market which they took advantage of. Given that personalization is a growing trend, it led them to venture in this industry. Nobody is doing it so this is quiet a big playfield for profits.
My 1st Years targets situations where if someone had a baby and you need to give them something that it timeless but also affordable. The result of the situation is the e-commerce store and the brand identity. Research shows that women alone in the United Kingdome spend over £200 million on gifts for babies and presents for newborns. Baby showers are a growing trend as well which accounts for more presents for the baby, that too before birth. A lot of the spending and market opportunity lies in the gifts parents buy for their babies.
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Since, personalization is a big trend backed up by a study by YouGov that claims that consumers have spent £1 billion on personalized gifts in the year 2016. The basis of running a profitable startup lies in positioning the brand according to the growing trend. It is necessary to be proactive and keep an eye on the market position.
Image via Bump to Baby
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