As the world watches and waits for the arrival of the heir to the British throne, how much is the royal baby worth to the UK economy? €282 million.
The Centre for Retail Research has added it all up and says that 4.8 million consumers are set to spend that much on everything baby-related. That is almost €4.6 million a day between July 1st and August 31st, making the summer months an extremely lucrative period for retailers.
In true British style, wetting the baby's head will account for almost a quarter of the total retail spend as 4.8 million consumers are set to splurge €72 million on alcohol.
The CRR research predicts that across Britain 3 million bottles of Champagne and sparkling wine will be consumed: that is a total of 2.3 million litres of bubbles. Food will also be an important part of the celebrations as consumers organise small scale barbecues and gatherings, bringing food retailers an additional €29 million in the 8-week period around the birth.
Tradition dictates that every royal occasion is greeted with a raft of collectable souvenirs and memorabilia. These memories are set to cost consumers €65 million. In addition, toys will be high on the shopping list making retailers a further €27 million. Books (€46 million), DVDs and Media (€41 million) will also add to the retailers profits totalling €88 million.
Total consumer spending on the arrival of the Royal baby is broken down as follows:
Many brands have already started to fuel the hype. Mothercare recently announced a new range of romper suits and baby grows and the chain is also planning a pram in the design of a Royal horse-drawn carriage. Unsurprisingly, the Buckingham Palace shop has also promised an official range to celebrate the birth of a future monarch, but not until after the event.
Mothercare's planned #Royalbaby range. This is NOT a joke. pic.twitter.com/6V9ByPGkyB
— Ian Guider (@ianguider) July 22, 2013
Across the UK consumers already spend €874 million on baby and nursery equipment every year. CRR figures reveal that with parents striving to 'keep up with the Cambridge's, sales of prams and pushchairs are expected to rise by 13% in the 12 month period following the Royal birth, totalling €334 million.
The Royal's chariot of choice, which is rumoured to be a light blue Bugaboo, can expect to see its sales rocket in what could be considered the most lucrative product endorsement of the year.
Professor Joshua Bamfield is Director of CRR. "It is no great surprise that this type of feel good event provides retailers with a welcome boost, with consumer hype generating additional spending" he said.
"However, much of this can be attributed to retailers increased marketing and advertising activity around the time of the event, quite rightly securing their share of the spending frenzy. These are difficult times for retailers and every catalyst for consumer spending should be utilised as this will bring the economic recovery one step closer".
"One of the biggest factors will be the unintentional Royal brand endorsement. The carriage of choice for the royal arrival will no doubt become this year's best selling pram for new and existing parents. The 'Kate effect' has already taken the fashion world by storm with each of her choices flying off the shelves within moments of her leaving the house".
"This trend will follow for the heirs baby grows, rattles, first bike and so on. It's a culture of 'keeping up with the Cambridge's' that isn't going away, albeit a very profitable culture for the retail sector" he added.
