Childrens apparel market in India - The shift in preferences

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Children's apparel is a market that is growing rapidly today. Trends in the market are fast changing. This article aims to analyze the market for kids' apparel in detail and explaining the shift in focus that is taking place. Children's apparel includes clothing for kids between 1 and 14 years of age. The market for kids' apparel in India exceeds Rs. 13000 crore, of which around Rs. 3000 crore is constituted by branded kids' wear. The kids' wear market is growing at the rate of 10% per annum, which makes it one of the fastest growing markets. 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 the 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. Armed with this knowledge, popular apparel brands are coming up with new collections that will appeal to kids. Gini and Jony have come up with a collection of brightly colored apparel. Their collection includes clothes in hues such as lilac, pink, plum, orange and citrus green. Certain brands like Weekender have made an agreement with Walt Disney and Warner Bros., whereby they can make use of some of their famous cartoon characters in their apparel. The brand is planning to make use of characters like Mickey and Minnie Mouse as well as Tom and Jerry in the new line of children's clothing that they are planning to launch. This collection is to be named 'Toon World'.

Pantaloon and Gini and Jony have entered into a joint venture to set up a chain of retail stores for children's apparel. Raymond has launched its first store for kids' apparel 'Zapp!'. DS Corporation, which owns the Ruff Kids brand of kids' garments, is planning to expand.

Generally in India, the trend was that most of the people prefer buying functional kids' apparel rather than branded ones. Children's garments were usually purchased from small stores and from street shops, while branded garments were only bought by the very high status families. This trend is gradually changing and the market for branded kids' clothing is growing. Dungarees, shorts and shirts are the evergreen fashions in kids' apparel. Short skirts, tops with puffed volume, halter tops, lace trims and cropped trousers are the in things in the world of children's apparel in today's times. In terms of prints, butterflies, flowers, polka dots, skulls and pirates and stripes are popular in kids' apparel. There are two important factors to be considered for making a kids' apparel brand a success - variety and price. A children's apparel collection should have variety that will appeal to kids. Moreover, kids outgrow their clothes very rapidly. Hence it is necessary that a kids' apparel range be reasonably priced. Children's apparel is a growing market in India that has huge untapped potential. Apparel makers all over India are making forays into this huge market, in an attempt to make favorable use of the prevailing trends. They are also coming up with collections that would create new trends.

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The Fascinating World of Small & Lovely Sanya Sagar V. Valliammai C. Vimalya R. Yashaswini N.V.
First Year MBA Jansons School of Business Coimbatore By

The Apparel and textile industry is the second largest sector after agriculture in India. It occupies unique and important place in the industrial sector, which is the earliest industry to come into existence. It contributes 14% of the total industrial production and 30% of the total exports. MARKET SIZE: The overall apparel market size contributes to Rs.1542 billion in which kids wear contributed to Rs.225.1 billion in the previous year. It is expected that it will reach Rs.45,000 crore by 2013. The organized kids wear market is expected to touch Rs.3800 crore this fiscal up from the current Rs. 3000 crore and it is growing at a rate of 17%.

Fig : Growth rate of Kids apparel in crores The above graph depicts that the growth rate of kids wear apparel is in increasing trend, which will reach above 30,000 crore by 2014. Market size increased due to, the fashion consciousness among kids and rise in income, consumer taste, consumer preferences plays a vital role in demand and these factors leads to increase in

demand for branded kids wear. Kids apparel market was unorganised than any other segment of apparels, there is a boom in the market as many players are creating niche by themselves as a result domestic and international players are stepping into the kids apparel.

MAJOR PLAYERS: Existing players in the sector are Lilliput, Gini & Jony, Catmoss, Raymond, Allen Solly, Benetton Kids, Tommy Hilfigers, Reebok, Zara Kids, Disney, Barbie. Lilliput, the leading player in the kids wear segment with the market share of 14.3%. Gini & Jony, the second largest player with a market share of 11%. Catmoss, the third largest player in the market share of 7%. Raymond launched "ZAPP" store for kids, which is tie-up with Disney and Warner Brothers. Allen Solly places a key role in branded kids apparels.

The upcoming international competitors in India are Adams, luxury Italian kids, Nautik kids owned by Global Lifestyle Brand Nautika Milou, Lavin.

Since there is a challenge among the competitors to promote the products, they opt for various promotional methods like inclusion of cartoon characters in kids garments and providing accessories, conducting kids ramp shows. Pricing is a major challenge in this sector as it is sensitive. Even though the price is sensitive the rise in income and the parents desire to give their best to the children, overcomes this factor. As there is boom in apparel industry, it will increase the employment opportunity in the country also increases the revenue. SUMMARY : Indian market is still not as matured as western markets but presents number of opportunities in apparel world. Thus the increase in the market size shows there is a scope for kids wear in the market which makes the organised sector to enter the world of Kids apparels. BIBLIOGRAPHY: 1. http://www.fibre2fashion.com/ 2. http://www.technopak.com/Perspective/vol4/Trends in India's Domestic Fashion market.pdf 3. http://www.apparelresources.com/ 4. http://www.fashionnewspaper.com/articles/6423/1/Kidswear-Market-in-India-2010--Researchand-Markets/Page1.html

IT'S GROWN UP NOW

by: Amanpreet Kaur Share Share THE kids wear market in India is shaping up well. The demand is increasing and so does the presence of global kid's wear brands in India. Even premium brands such as Tommy Hilfiger, Allen Solly, Puma and Nike, are not far behind and are now including more kids' product and accessories. Though growing but a large segment of the kids wear market is still untapped, which means brighter prospects for many new players to infiltrate into the industry. Business potential After metros, smaller cities are also attracting brands due to their growing demand and profitability to franchisors. Says Ashwani Chawla, Chief Managing Director (CMD), Catmoss Retail Pvt. Ltd, For us, tier II and III towns are

contributing very good business and growing at a decent pace. The total market size of the branded kids wear market is estimated at Rs 4,000 crore per annum and we feel that the contribution of tier II and III towns should be around 35 per cent. Some years ago, the kids wear market in India was disorganised with local retailers serving the masses in backalleys. After the entry of foreign players, family-owned stores, denim makers and casual apparel makers diversified into the kids wear to capture the market's share. In India, kids wear is largely retailed through multibrand stores. Fashion quotient Franchising is playing a pivotal role in the kids wear segment. After brands like Catmoss, Mom & Me, Lilliput, Toonz Kids, Giny & Jony, Li'l Tomatoes and Ruff kids, other big brands also picked up franchising to rope in designated customer footfalls in their stores. Franchising works best in metros while in smaller cities, minimum guarantee is the preferred way. Talking about the business model, Chawla states, In smaller towns, the rental value of the property is not too high. So we use pure franchisee model. Lock-in period is exercised not to bound anyone but to help both the parties take the business more seriously. Toonz Kids follows a COFO (company-owned, franchise operated) model with guaranteed annual returns. For this, it forges a three-year lock-in with its franchisees. Fashioning expansion After establishing themselves in metros and now facing high rentals and other problems, franchisors are targeting tier II and III cities/towns. Toonz Kids will be taking its store count from 44 to 100 by this calendar year. Says Rajni Kaur, Director, Franchise Operations, Toonz Retail India Pvt. Ltd, We have conducted a market study and identified 200 locations in India (tier II, III), where Toonz stores should come up. We have a dedicated team to identify properties for stores and the finalisation process involves three-point study i.e. retail, finance and marketing. On expanding their brand, K. Venkataraman, Chief Executive Officer, of Mahindra Retail P. Ltd, says, The plans are to grow into 100-plus stores in 25-30 cities soon and the footprint would focus on major cities and select smaller towns first. The expansion into tier II and III cites would follow in 2012 and beyond. Going ahead, Mom & Me might look at the franchise model. The market of kids wear is certainly big but extremely disjointed with a large share stretched across India's hinterland. While entering the market, which is crowded with competition, one needs to keep a watch on every step. It is important for any new player to assess the market viability before planning any expansion. Speed - breakers Getting the right location in a reasonable price in the overly crowded markets of metro cities or malls is a challenge. According to Rajni Kaur, Director, Franchise Operations, Toonz Retail India Pvt. Ltd, The major challenge faced by the franchisee is in updating the knowledge with respect to the merchandise, inventory control and knowledge of sales pattern. In case of Toonz, the franchisee will have to update his knowledge regarding various cartoon characters. Another challenge is to find the right workforce for overseeing the store operations. Informs Chawla, The staff is appointed by the joint selection of franchisee and our area sales manager. We have a training module of nine days, in which we devote three days on each subject (product/VM, customer handing and ERP). The training is undertaken at our head office by the respective department team members. Commenting on the biggest differentiation in growing the brand and beating the competition, Venkataraman elucidates, The business strategy of Mom & Me is highly customer-centric, from target identification to merchandising development to customer service in store to provision of allied services.

http://www.franchiseindia.com/magazine/2011/may/IT-S-GROWN-UP-NOW_74-1-3/

TOI

Kidswear spells big business in India

IANS Jan 20, 2012, 12.00AM IST

Tags:

tom cruise| Suri Cruise| style| Roberto Cavalli


(Kidswear line by brand Giny and Jony.)

With style icons like little Suri Cruise and Harper Seven being talked about in India and movies, advertisements and TV reality shows catering exclusively to children, the kidswear market is the next big thing to watch out for, says leading brands and designers. Taruna Vasu, faculty, Pearl Academy of Fashion, Jaipur, said: "The kidswear segment in India is touted to be the most promising segment in apparel. It is growing at nearly 14-17 per cent and is estimated to be worth Rs.38,000 crore ($7.5 billion)."

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Online/Cash on Deliverywww.firstcry.com Kids wear for kidsChoose from a range of shops to buy from, around your home for kids.MyCity4Kids.com/Kids+wear "The good news for the branded children's wear segment is that though presently it is worth Rs.3,000 to Rs.4,000 crore, it is growing at more than 25 per cent," Vasu added.

The growth rate has worked as an inspiration for several brands and designers. Gauri and Nainika, Gaurav Gupta, Malini Ramani, Ritu Kumar, Namrata Joshipura, Sonya Vajifdar andPayal Singhal are among those who have already forayed into this sector. International luxury brands like Lanvin, Dolce and Gabbana, Gucci, Galliano, Ralf Lauren,Roberto Cavalli and Versace are also planning to tap the market here. "Luxury brands are launching kids' lines because of the tremendous growth potential in the area. Moreover, this area is less likely to be affected during economic and financial hardship. Even during the recession, parents were willing to spend more on their children than on themselves," said Rahul Anand who runs a label called RNA with partner Anushka Laul. Awareness is playing an important role, points out Monika Jain of the label Beebay.

"With the growing influence of internet, social networking sites and increasing connectivity, children have become aware of fashion. There is definitely an influence of Hollywood celebrity kids like Suri Cruise and Harper Seven, international movies and serials and children movies," said Jain. Hollywood star couple Tom Cruise and Katie Holmes' daughter, Suri, is seen as a trendsetter. From wearing designer clothes to heels and matching bags, the five-year-old is already considered a fashion icon. Recently she stepped out carrying a metallic designer bag worth 540 pounds and her wardrobe is reportedly worth a staggering two million pounds. The same holds true for Harper Seven, the only daughter of ace footballer David Beckham and wife Victoria. Brands like Liliput, Gini and Jony and Catmoss have been producing fancy and trendy stuffs for some time now. Talking about the change, Anil Lakhani, director of Gini and Jony, said: "Consumers were not as brand conscious in the past as they are today. Traditionally, they shopped from the unorganised retail outlets, which is not the case today. Now a brand plays a very important role in their buying behaviour with respect to selection of clothes." "The Hollywood influence is always a big factor," he admits. Designer Payal Singhal recently launched her kidswear line and she was surprised to see the demand. "We recently launched our kidswear line and it was sold out. So I am assuming people are willing to spend on the kids line. I think the demand for clothes is more for Western garments, but there is still a huge vacuum for good Indian clothes for kids," she said. When asked about the most popular style, designer Sonya Vajifdar said: "Kids (girls) love frills and ruffles and glitter, but you need to know when to hold out on it. Frocks in vibrant colours like pinks, purples, blues and yellows with frills, ruffles, and playful cuts are making trends."