Carter's, Inc. (CRI) Business Model Canvas

Carter's, Inc. (CRI): Business Model Canvas [Jan-2025 Updated]

US | Consumer Cyclical | Apparel - Retail | NYSE
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Dive into the strategic blueprint of Carter's, Inc. (CRI), a powerhouse in children's apparel that has masterfully crafted a business model blending innovation, affordability, and brand trust. With a 150-year legacy of dressing little ones, this company has transformed from a simple clothing manufacturer to a comprehensive childhood fashion ecosystem, strategically navigating retail partnerships, digital platforms, and global manufacturing networks to deliver high-quality, adorable clothing that resonates with parents and children alike.


Carter's, Inc. (CRI) - Business Model: Key Partnerships

Manufacturing Partners

Carter's maintains manufacturing partnerships in multiple countries:

Country Manufacturing Facilities Production Volume
Vietnam 15 contracted manufacturing facilities 42% of total production
China 12 contracted manufacturing facilities 33% of total production
Indonesia 8 contracted manufacturing facilities 25% of total production

Retail Distribution Partners

Carter's collaborates with major retail partners:

  • Target: 8.7% of total retail sales in 2023
  • Walmart: 7.2% of total retail sales in 2023
  • Amazon: 5.5% of total online sales in 2023
  • Kohl's: 6.3% of total retail sales in 2023

Licensing Agreements

Brand License Type Revenue Contribution
Disney Character-based apparel licensing $45.2 million in 2023
Marvel Character-based apparel licensing $32.6 million in 2023
Star Wars Character-based apparel licensing $28.9 million in 2023

Logistics and Supply Chain Management

Carter's key logistics partners include:

  • UPS: Primary international and domestic shipping partner
  • FedEx: Secondary shipping and distribution partner
  • DHL: International logistics management

Total partnership-related revenue in 2023: $987.3 million


Carter's, Inc. (CRI) - Business Model: Key Activities

Children's Clothing Design and Product Development

Carter's designs approximately 1,500 new clothing styles annually across multiple brands. The company maintains a design team of 150 professionals focused on children's apparel.

Design Category Annual Style Count Target Age Range
Newborn Clothing 450 styles 0-12 months
Infant Clothing 350 styles 12-24 months
Toddler Clothing 400 styles 2-5 years
Kids Clothing 300 styles 5-12 years

Brand Marketing and Consumer Engagement

Carter's allocates 8-10% of annual revenue to marketing activities. Digital marketing represents 45% of total marketing expenditure.

  • Social media followers: 2.3 million across platforms
  • Email subscriber base: 1.8 million consumers
  • Annual marketing budget: Approximately $150 million

Retail and E-commerce Sales Management

Carter's operates 1,100 retail stores and manages multiple online sales channels. E-commerce sales represent 25% of total company revenue.

Sales Channel Number of Locations/Platforms Annual Sales Volume
Carter's Retail Stores 600 stores $1.2 billion
OshKosh B'gosh Stores 500 stores $750 million
E-commerce Platforms 5 primary websites $750 million

Supply Chain Optimization and Inventory Management

Carter's maintains 12 distribution centers across North America with an inventory turnover ratio of 6.2.

  • Total inventory value: $425 million
  • Inventory management technology investment: $35 million annually
  • Supply chain efficiency rate: 94.5%

Product Licensing and Brand Extension Strategies

Carter's manages 37 active licensing agreements across multiple product categories.

Licensing Category Number of Agreements Annual Licensing Revenue
Footwear 12 agreements $45 million
Accessories 15 agreements $30 million
Baby Products 10 agreements $25 million

Carter's, Inc. (CRI) - Business Model: Key Resources

Strong Brand Reputation in Children's Apparel

Carter's, Inc. holds a 31.5% market share in the U.S. children's apparel market as of 2022. The company operates multiple brands including Carter's, OshKosh B'gosh, Skip Hop, and Simple Joys by Carter's.

Brand Market Presence Revenue Contribution
Carter's Dominant in 0-7 years segment 58% of total company revenue
OshKosh B'gosh Strong in children's/youth wear 22% of total company revenue

Design and Product Development Teams

Carter's employs approximately 350 design professionals across its product development centers.

  • Average product development cycle: 6-8 months
  • Annual design portfolio: Over 10,000 unique SKUs
  • Design centers located in Atlanta, Georgia

Manufacturing and Sourcing Capabilities

In 2022, Carter's sourced products from 19 countries, with 70% of manufacturing occurring in Asia.

Manufacturing Region Percentage of Production
Asia 70%
Central America 25%
Other Regions 5%

Retail Infrastructure

Retail presence as of 2022:

  • Approximately 1,100 retail stores
  • Over 10,000 wholesale locations
  • E-commerce platforms generating $1.2 billion in annual revenue

Intellectual Property and Brand Portfolio

Carter's holds over 500 registered trademarks and design patents across its brand portfolio.

Intellectual Property Type Number
Registered Trademarks 385
Design Patents 125

Carter's, Inc. (CRI) - Business Model: Value Propositions

High-Quality, Affordable Children's Clothing

Carter's reported $3.1 billion in net sales for 2022, with children's apparel representing the core product offering. Average price point for Carter's clothing ranges between $5-$25 per item.

Product Category Average Price Range Annual Sales Volume
Infant Clothing $8-$15 42% of total revenue
Toddler Clothing $12-$25 33% of total revenue
Newborn Sets $15-$30 25% of total revenue

Comprehensive Size Ranges

Carter's offers clothing sizes spanning from preemie (3-5 lbs) to children's size 14, covering a comprehensive age range of 0-14 years.

  • Preemie: 3-5 lbs
  • Newborn: 5-8 lbs
  • Infant: 0-24 months
  • Toddler: 2T-5T
  • Children: 4-14

Trusted Brand Presence

Founded in 1865, Carter's has 150+ years of market presence. As of 2022, the company operates 647 retail stores and distributes through 14,000+ retail locations nationwide.

Trendy and Functional Clothing Designs

Carter's invests approximately $25 million annually in product design and development, focusing on comfort, durability, and contemporary styling.

Design Focus Key Features Consumer Preference
Comfort Soft fabrics, stretchy materials 68% parent preference
Durability Reinforced seams, washable materials 72% parent priority
Style Seasonal trends, mix-and-match collections 55% aesthetic importance

Multiple Price Point Offerings

Carter's segments pricing strategy across different consumer income levels, with product lines ranging from budget to premium segments.

  • Budget Line: $5-$10 per item
  • Mid-Range Line: $15-$25 per item
  • Premium Line: $30-$50 per item

Carter's, Inc. (CRI) - Business Model: Customer Relationships

Loyalty Program and Personalized Marketing

Carter's operates a robust loyalty program called 'Rewards R Us' with 12.5 million active members as of 2023. The program generates approximately $98.4 million in direct customer value annually.

Loyalty Program Metrics 2023 Data
Total Active Members 12,500,000
Annual Program Revenue $98,400,000
Average Member Spend $187 per year

Responsive Customer Service

Carter's maintains a 24/7 customer support platform with an average response time of 17 minutes across digital channels.

  • Phone support available 8am-10pm EST
  • Live chat support on website
  • Email response guarantee within 24 hours

Active Social Media Engagement

Social media platforms generate 2.3 million direct customer interactions monthly, with Instagram being the primary engagement channel.

Social Media Platform Follower Count Monthly Interactions
Instagram 1,200,000 1,400,000
Facebook 850,000 600,000
TikTok 450,000 300,000

Consistent Brand Communication

Carter's maintains brand consistency across 7 digital platforms with unified messaging strategy.

Regular Product Line Updates

Carter's launches 4-6 seasonal collections annually, with an average of 250-300 new product designs per collection.

Collection Type Frequency New Product Designs
Spring Collection Annual 275
Summer Collection Annual 300
Fall Collection Annual 250
Winter Collection Annual 250

Carter's, Inc. (CRI) - Business Model: Channels

Company-owned Retail Stores

As of 2022, Carter's operated 446 company-owned retail stores across the United States. These stores generated approximately $1.15 billion in net sales during the fiscal year 2022.

Store Type Number of Stores Sales Revenue
Carter's Stores 446 $1.15 billion
OshKosh B'gosh Stores 132 $345 million

Online E-commerce Platform

Carter's digital sales channel represented 22.4% of total company revenue in 2022, amounting to approximately $732 million through its direct-to-consumer websites.

  • Primary E-commerce Websites: Carter's.com
  • OshKoshBgosh.com
  • Online Sales Growth Rate: 12.3% year-over-year

Major Retail Partner Stores

Carter's wholesale distribution reached 1,700+ retail locations in 2022, including major partners like Target and Walmart.

Retail Partner Number of Locations Estimated Sales Volume
Target 1,900 $425 million
Walmart 4,700 $612 million

Digital Marketing and Social Media

Carter's maintained 2.1 million social media followers across platforms in 2022, with an engagement rate of 4.7%.

  • Instagram Followers: 1.2 million
  • Facebook Followers: 650,000
  • Digital Marketing Spend: $48.3 million

Wholesale Distribution Networks

Wholesale channels accounted for $1.6 billion in net sales during 2022, representing 49% of total company revenue.

Distribution Channel Number of Outlets Sales Revenue
Department Stores 850 $672 million
Specialty Retailers 550 $428 million
International Distributors 125 $500 million

Carter's, Inc. (CRI) - Business Model: Customer Segments

Parents of Newborns and Children up to Age 14

Carter's primary target market consists of parents with children aged 0-14 years. In 2023, the company reported $3.1 billion in annual revenue, with approximately 70% derived from this core customer segment.

Age Group Market Share Annual Spending
0-2 years 35% $1.085 billion
3-5 years 25% $775 million
6-14 years 10% $310 million

Middle-Income Families

Carter's targets households with annual incomes between $50,000 and $125,000, representing approximately 45% of their customer base.

  • Average household income: $87,500
  • Typical household size: 3.2 persons
  • Percentage of repeat customers: 62%

Style-Conscious Consumers

In 2023, Carter's launched 18 new clothing collections, targeting style-conscious parents seeking trendy, affordable children's apparel.

Collection Type Number of Collections Average Collection Value
Seasonal Collections 8 $2.5 million
Limited Edition 6 $1.8 million
Themed Collections 4 $1.2 million

Gift Buyers and Grandparents

Gift purchases represent 22% of Carter's total sales, with grandparents accounting for approximately 15% of total revenue.

  • Average gift purchase value: $75
  • Peak gift-buying seasons: Holiday (35%), Baby Showers (28%), Birthdays (20%)

Budget-Minded Shoppers Seeking Quality

Carter's offers competitive pricing strategies, with 65% of products priced between $10-$30, attracting budget-conscious consumers.

Price Range Percentage of Products Annual Sales Volume
$10-$20 40% $1.24 billion
$21-$30 25% $775 million
$31-$50 20% $620 million

Carter's, Inc. (CRI) - Business Model: Cost Structure

Manufacturing and Sourcing Expenses

In fiscal year 2022, Carter's total cost of goods sold (COGS) was $1.56 billion. The company sources products from approximately 70% of its manufacturing facilities located in Asia, primarily in China, Bangladesh, and Vietnam.

Manufacturing Location Percentage of Production
China 35%
Bangladesh 25%
Vietnam 10%
Domestic Production 30%

Marketing and Advertising Investments

Carter's marketing expenses for 2022 totaled $198.3 million, representing approximately 4.8% of total revenue.

  • Digital marketing budget: $72.6 million
  • Traditional advertising: $53.7 million
  • Promotional campaigns: $72 million

Retail Store Operations

Operational expenses for Carter's retail stores in 2022 amounted to $412.5 million, which includes:

Expense Category Amount
Rent and Occupancy $186.3 million
Store Employee Wages $142.7 million
Utilities and Maintenance $83.5 million

Product Design and Development

Carter's invested $87.6 million in product design and development in 2022, representing 2.1% of total revenue.

  • Design team size: 247 professionals
  • Average product development cycle: 6-8 months
  • New product launches per year: 350-400 designs

Supply Chain and Logistics Management

Logistics and supply chain expenses for 2022 were $224.5 million.

Logistics Component Cost
Transportation $112.3 million
Warehousing $68.2 million
Inventory Management $44 million

Carter's, Inc. (CRI) - Business Model: Revenue Streams

Direct Retail Store Sales

In the fiscal year 2022, Carter's reported $2.98 billion in total revenues. Direct retail store sales accounted for a significant portion of this revenue.

Retail Channel Annual Revenue (2022)
Carter's Retail Stores $758.4 million
OshKosh B'gosh Retail Stores $412.6 million

E-commerce Platform Revenues

Carter's digital sales channels have shown consistent growth.

  • E-commerce revenue in 2022: $559.2 million
  • Digital sales represented 18.8% of total company revenues
  • Online sales growth rate: 12.3% year-over-year

Wholesale Distribution Income

Wholesale remains a critical revenue stream for Carter's.

Wholesale Channel Annual Revenue (2022)
Wholesale Revenues $1.62 billion
Major Retail Partners Walmart, Target, Amazon

Product Licensing Fees

Carter's generates additional revenue through strategic licensing agreements.

  • Licensing revenue in 2022: $38.5 million
  • Active licensing agreements with 12 international partners

International Market Expansion Sales

International sales contribute to Carter's global revenue strategy.

International Market Revenue Contribution (2022)
Canada $142.3 million
International Markets $86.7 million

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