Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
We all know consumers spent $$$ on their homes in 2020. Luckily for DTC baby brand Lalo, this also meant new parents splashed out on their young ones.
Baby bump: On the heels of a strong 2020, Lalo has closed a $5.6 million seed round that will be used to grow the startup’s team and product catalog, the company told Retail Brew.
- Lalo was founded in March 2019. By 2020, revenue was up 320% and new customers by 360%.
- 2021 is off to a faster start: Lalo said it surpassed its 2020 revenue by mid-June this year.
“Having launched truly prior to the pandemic and being digitally native, it really allowed us to step on the gas pedal during that time,” CEO and cofounder Greg Davidson told us.
- In March 2020, baby product sales were up 162% compared to March 2019, per a Stackline report.
The premium baby brand sells products like high chairs, strollers, and humidifier sets. Lalo permanently closed its NYC showroom, its only store, last year, but is trying new online strategies.
- For example, it helped break down the new child tax credits to reach customers.
Looking ahead: A new normal means parents facing new challenges that come with spending more time at home, cofounder Michael Wieder told us. Lalo wants to be at the forefront of that shift. The global premium baby care market was worth an estimated $5.6 billion in 2020 ($1.5 billion in the US) and is predicted to reach $7 billion by 2027.—KM