Babyletto launches children’s furniture line as it eyes more DTC growth

But, critical in a price-sensitive consumer environment, price points fall somewhere between the low end of an online marketplace and an average price at a higher-end furniture store like Pottery Barn, West Elm or Restoration Hardware. Twin beds start at $399, for instance, and dressers at $999.

“We try to think about where there are voids in the marketplace, at these price points or with these looks, and design toward them to make sure that the customer’s needs are met at these different price points,” Fong said. “So if $499 is the price point, our price needs be ‘X’ in order to hit that, and the design team then goes and designs toward that price point.”

The expansion lands at a moment when the furniture sector is stabilizing after a rocky few years of pulled-forward demand from the Covid-19 pandemic and a stalled housing market. The latest advance retail sales data from the U.S. Census Bureau shows the sector is up 5.7% for the first seven months of the year, compared to the same period in 2024. And though ongoing tariff-related uncertainty could further complicate the industry, some companies like Babyletto are finding growth by tapping new areas.

For Babyletto, the expansion is particularly an opportunity to further grow its DTC sales channels. Though the company does not share revenue figures, Fong said sales are up over last summer despite the challenging macroeconomic environment, and that DTC is growing faster than wholesale. Since its launch in 2010, Babyletto has become one of the best-known brands at Million Dollar Baby, a family-owned brand that was founded in 1990 and also manufactures brands like DaVinci, Carter’s by DaVinci and Namesake.

Babyletto is sold in retailers like Crate and Barrel, Amazon, and Target, and select items from the new kids’ collections will be available at retail partners. But Fong said that growing DTC is a bigger focus looking ahead. Beyond driving traffic to its own site, Babyletto has a flagship store in Los Angeles and plans to expand to more physical retail as it looks to gain more DTC momentum. The company says adding kids’ furniture will double its growth in the long term.

“We see the direct-to-consumer channels being a really big part of our growth in the future,” Fong said. “(Retail stores) are great partners of ours, and they sell a lot of product and represent the brand well. But our customers are really wanting to talk to us directly. … We’re selling the same product at the same price, but people are buying more on our website because it’s a better experience. Even returns, I think, are easier, and the service is faster.”

In designing the new kids’ line, Fong said the company also wanted to make sure there were plenty of options for kids and parents to choose from. While parents are driving the design for a nursery, young kids will want to have a say in what’s in their room. The initial kids’ rollout includes five collections: The upholstered Nara and Rizo collections have fuzzy, soft exteriors, while the Bondi collection is an updated version of one of Babyletto’s most popular nursery lines — it uses a woven and textured natural cane for a boho aesthetic. The Palma collection, meanwhile, has a sleek and clean mid-century aesthetic.

Fong said part of the design process included looking at what else was on the market — the company found there weren’t many options that resonated with kids. “There was a clear lack of joy, I would say, and playfulness in the design,” he said. “And so, we’re adding a lot of differentiation in the marketplace.”

Naomi Coe, the founder of Little Crown Interiors, who specializes in designing nurseries and kids’ rooms, said there’s a notable gap in the market for children’s rooms.

“You’ve got Pottery Barn Kids, Crate & Barrel Kids, RH — those bigger catalog companies with the higher budgets,” she said. “But outside of that, people don’t know where to look. If you can’t find anything at those places or it’s too expensive, there’s just not a lot out there.”

She caught a glimpse of the Babyletto line at a recent trade show and said it will bring much-needed options to the design palette — including pieces in a trendy sage green that parents are often asking for. Coe said she was also excited to see more coordinating storage pieces like bookcases, an armoire, and dressers that are wider and roomier than the nursery versions.

As for price, she said customers are becoming more budget-conscious as prices rise. But furniture tends to be an area where people don’t cut corners — especially parents who are looking to make an investment in what their child will use for a long time. “With kids’ furniture, most people are looking for it to last at least six years, or longer,” Coe said.

In marketing the new kids’ pieces, Fong said Babyletto plans to target existing customers who potentially have nursery furniture and are looking to upgrade. “We can be tracking a nursery crib purchase and [follow up] when they are in the consideration set for a twin bed or a bunk bed as their child grows up,” he said. “We’re leaning into gathering the customer data we’ve accumulated on the baby side and leveraging that to ensure we are notifying those customers at the right time in their purchasing journey.”

And as far as acquiring new customers, Fong said Babyletto will be marketing and seeding the product with micro-influencers, as it has seen success by partnering with “authentic, everyday parents” who start off as fans of the brand. “They are talking about the brand and talking about our products in a very genuine way,” he said. “Those are the ones that are driving the best conversions and being the best ambassadors for us.”