Kids’ wear market to touch Rs 3,800 cr

Friday, 30 September 2011

Smart well dressed children are how parents want their kids to be today. And the upwardly mobile parent is willing to pay that extra to ensure their child is well turned out. This is being reflected in the growth of children’s apparel industry which is being estimated at Rs 26,300 crores, with 15.4 per cent share of the total apparel market. This was revealed in a report titled ‘Children’s Apparel and Footwear Market in India’. The segment is growing at 17 per cent and is expected to touch Rs 30,800 crores this fiscal. Within the segment niche categories like infant, formal and ethnic wear, casual wear etc are presenting retailers a great opportunity.

The organized kids’ apparel segment is estimated at around Rs 3,000 crores with 5.3 per cent of the overall organized apparel market but it is growing at an estimated 24 to 25 per cent and is expected to reach Rs 3,800 crores by 2011-12. The catalysts for this growth are: rapid expansion of domestic players and influx of new players both domestic and global in this segment. Lilliput is the largest player with an estimated market share of 14.3 per cent followed by Gini & Jony at 11 per cent and Catmoss at 7 per cent. International brands like Tommy Hilfiger, Reebok, Zara Kids, Benetton Kids, Disney, Mother Care, Next too have entered this space in India. They give their target audience the latest global designs and styles.

Some major changes in trends are taking place in the market for kids' apparel. One of the important changes is the increasing preference for branded apparel. This shift is taking place on account of changes such as a rise in the disposable income of people and the increasing influence of foreign culture. The other important change that is taking place in this area is the emergence of kids as an independent buyer group. Influenced by mass media and peer pressure, today's kids are more informed and self-conscious. Moreover shopping centers and large format stores have increased the retail space dedicated to children’s merchandise. The top two players boast of 560,000 sq. ft. and 260,000 sq ft. of retail space respectively. Boys’ fashion commands a three-fifth share at present, though the ratio for boys to girls is expected to equalize in the next few years.

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