Luxury brands sneak into Indian kidswear market

The kidswear segment in India that has always been considered a complex business to deal with, is gradually coming out on its own. Traditionally the segment has always been dominated by unorganized players. Now designers and global luxury labels are venturing into this space, creating miniature versions of their designs especially for kids. And even parents don’t mind spending for their little ones.

Eye-catching designs and colours, cute little motifs and custom-made luxury labels have added an edge to the fashion clothing of children. From Versace, Armani Junior to Fendi global brands have found a dedicated customer base in India showing aspiration for luxury. Recently, designer Monisha Jaising launched a label called ‘MJ Kids’, marking a foray into the category. Even designer Jattinn Kochhar has been designing for kids after his children were born. His collection includes identical sets for the mothers and daughters and fathers and sons.

Little kids flaunt luxury fashion

From Gucci booties to Armani Junior jeans for toddlers, Burberry trench coats for seven-year-olds, parents are going all out to splurge on their little ones without blinking an eyelid. And children are not even aware that the brands they are donning are some of the names from the world’s premium luxury market.

Globally, the market for children’s wear is projected to reach 156 billion dollars (over Rs 9,65,000 crores) by 2015, according to Global Industry Analysts (GIA), a US-based market research company. In India, the Associated Chambers of Commerce and Industry (Assocham) estimates the kidswear industry to be worth Rs 38,000 crores and growing at a compound annual rate of about 20 percent to reach Rs 80,000 crores by 2015. While globally, the 8-12 years category tends to sell the most, in India the 0-2 category has the maximum takers. Experts attribute it to the fact that the birth of a baby and baby’s first birthday is a big event in Indian families, involving a lot of gifting.

Brands spreading reach

Les Petits, a multi-brand luxury kidswear store at Delhi’s DLF Emporio was set up by Swati Saraf when her sister had a baby and she realised that except for Burberry and Gucci, there were no luxury brands available in India for children. Just a few shops away from Les Petits is Armani Junior, launched in September 2012, the only dedicated kidswear luxury brand in India selling apparel, shoes and accessories for children in the zero to 16-year age bracket.

Gucci, which launched its kidswear collection globally in 2010, offers it at its Mumbai, Kolkata and Gurgaon stores. Burberry, whose kids collection has been a great success globally, contributing 19 percent to its total revenue in 2012, has been selling it at its flagship store in Delhi since 2010. And it’s not that the luxury customers are confined to the metros, luxury is finding them in India’s Tier II and III cities. And, luxury kidswear is no exception with almost 45 percent of ultra-high net worth households living in these cities, as per the Kotak Top of the Pyramid Report, 2014.

Exposure to social media and internet, parents wanting to buy the best for their children without bothering about the rates, rise in middle-class nuclear families and working women are some of the factors leading to the growth of this segment.