Clothes are good, even if you have piles of hand-me-downs, it’s nice to have something new for your baby. BUT do the parents a favour, avoid pink… Nothing pink - they’ll have enough already!
I’d been delighted with a gift card from local supermarket for nappies, formula etc.
Friends of ours just had a baby girl and really had all they needed for the baby through friends, family and hand-me-downs. So, we got the parents a little something each and for the baby we got some girl power: http://www.oxfam.org.uk/shop/ProductDetails.aspx?catalog=Unwrapped&product=OU3544ED
They loved it!