With the economic downturn it should be no surprise to anyone that holiday shopping numbers are coming in with limited or no growth in many of the top sectors of the business world. With the influx of product options online and the mass discounting and use of coupons the gross sales should maintain good numbers, but the net profit will be close to nothing. One of the best categories that buck the trend is the baby gift category.

It appears the old adage is true, certain things produce sales any time of year and in any climate. The birth of children and the virtual necessity of gifts being purchased for this rare and important event prove once again to be true in 2008. On the covers of magazines and in the news media there is more family and baby coverage than ever. It seems you can't turn around without seeing which star is pregnant or may be pregnant and which family is adopting children. This probably ads to the cache of babies and the importance of not forgetting about the new parents and what gift may be helpful for them for their new arrival.

As far as which gifts in this category are getting the most play seem to be the following: Personalized gifts seem to be a common thread, no pun intended, and especially for families that already have older children. Within this category the usual blankets and such show strong trend and wood step stools which are perfect for a child being able to step up to the sink to brush teeth or wash hands. When these stools get customized with the child's name it seems to be a home run. Little gift baskets and gift sets in the $50 range are typical this year as well. Those comprising an assortment or items that are fun and practical seem to be the best as well. Think stuffed animal, clothing, lotions, and toy. When you find a combination like that it covers all bases and shoppers seem the most in tune with it. Unique baby gifts are popular as well. Cool music cd's, funky rock t shirts and tote bags that get multiple use are solid choices.

It remains to be seen exactly how the final numbers unfold. Amazon is reporting strong sales online which is optimistic news, but they play to the lowest common profit denominator. That means you have many retailers lowering their prices until the buyer chooses thus eliminating virtually all profit margin for the retail. That is the fear in this new online environment. Someone is always willing to sell for less online or in print advertisement and it hinders the industry as a whole from being able to succeed. I expect it to be closer to February or March until the best forecast of the 2008 holiday numbers come out, but the trend appears to maintain that the gift giving business is strong in the book, music, marital gift and baby gift segment.