Great Plains
Holdings focuses on acquiring multiple revenue streams through the acquisition
of private businesses and consistent increasing of hard assets. Currently the
company operates through two wholly-owned subsidiaries, maker of the “LiL Marc”
plastic potty training urinal for boys, LiL Marc, Inc., and a real estate
subsidiary targeting income producing properties throughout the midwest, south,
and southeastern U.S., Ashland Holdings, LLC.
LiL Marc in
particular should benefit from continued growth in the baby products market.
The global baby care market is expected to increase its total sales to 66.8
billion U.S. dollars by 2017. For example, in 2012, Graco had a sales growth of
12.5 percent in the United States compared to the prior fiscal year. Graco
sells car seats, strollers, play-yards, swings and high chairs. Sales regarding
the brand Graco Turbo booster amounted to 18.9 million U.S. dollars in that
year. Another category to look at is diaper sales which accounts for nearly 40%
of the baby products market, the product Pampers Cruisers/Swaddlers with Dry
Max was the best-selling introductory product, generating 296 million U.S.
dollars in its first year of sales in 2011.
E-commerce of baby
products grew to $23 billion in 2013. Online sales of everything from baby
clothes and furniture to strollers, toys and diapers grew at an annual rate of
14.5% from 2008 to 2013, to $5.6 billion.
The fact that sales
growth of the baby products segment has been growing robustly is quite
important because there are actually two counter trends occurring for that
market. In the U.S. for example, the birthrate decreased to 13 per 1,000 of the
population in 2010 compared to 16.7 in 1990. This trend is still ongoing as the
latest birth count (4,055,000) is 7 percent less than the all-time high of
4,316,233 births in 2007. Of the four million plus births, over half are boys
as the actual statistics indicate 1.05 boys born for every 1 girl born.
One strong reason
for this trend is that the median household income is still shrinking. From the
beginning of the recovery after the Great Recession (June, 2009) till now,
median household income shrunk by 4.8%, which is greater than the shrinkage
that occurred during the actual contraction of the economy from 2008 to 2009,
in which median household income dropped by 2.8%. So it appears that women are
putting off giving birth till they become older and more financially secure.
Statistics indicates that there is a trend of women waiting till they are in
their 30s and early 40s till they begin raising a child. Being more financially
secure and probably being busier with careers at that age range, they are
spending far more on baby care products than before.
Another trend that
will benefit LiL Marc is the cultural change regarding toilet training of
toddlers in the United States. Until the mid-1900s, the vast majority of babies
finished toilet training by 2 years, and achieved nighttime dryness by 3 years.
In 2002, the average age that parents recognized their child “showing an
interest in using the potty” was 24–25 months, and daytime dryness was achieved
on average at almost 3 years of age. Nighttime accidents are now considered
normal until 5 or 6 years of age. So effectively, not only is toilet training
starting later in the life of toddlers, but more time is spent toilet training,
which again benefits products that aid with toilet training babies, especially
with boys as the statistics indicate more time is spent toilet training boys
over girls.
So the demographic
trend of women waiting till they are more affluent and the cultural shift in
how toilet training is practiced are trends that should boost the sales of
Great Plain Holdings’ LiL Marc division.
For more information
visit www.gtph.com
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