Pepe Jeans kids’ wear to spread retail network in Tier II, III cities

Premium apparel brand Pepe Jeans India has established itself over the years with its various offerings. After getting a proper foothold in the metros, it is now looking at spreading out to smaller towns with both adults and kids offerings. The plan is to open more EBOs and also spread out in MBOs and LFS.

Evolving kids’ wear market

Earlier kids used to love cartoons or kiddie elements on their clothes but with time, things have changed. They now want adult fashion like skinny fit or a collared T-shirt. Besides, they want specific brands, fits and styles. They want to be happening and fashionable like adults.

Kids’ wear has huge potential

As per industry reports, the kids’ wear segment is expected to grow at a compound annual growth rate (CAGR) of 10.5 per cent. In India, branded kids’ wear is one of the most promising markets. The segment is drawing attention anew and is currently estimated at Rs 45,220 crores and is projected to reach Rs 123,030 crores by 2023. What is interesting is that in 2013, the kids’ wear segment, alone contributed 20 per cent to India’s entire apparel market. However, given its higher growth rate, this share is expected to increase to 22 per cent by 2023.

Presently, Pepe Jeans kids’ wear is there in large format stores such as Shoppers Stop, Lifestyle and Central. The brand is with MBOs and has its own EBOs. Some EBOs have the brand’s entire line. In addition, they are with exclusive kids’ wear outlets too. There is one such in Kolkata and another in Ahmedabad. Some more will be opened on similar lines. Plans are afoot to open EBOs in Mumbai, Bangalore, Delhi and also small towns. Most of the EBOs are franchisees. Of course, it helps that Pepe Jeans for adults has a huge distribution network which is one of the best in India. So, for kids’ wear one doesn’t have to start from scratch. The brand is strong in metros like Mumbai, Hyderabad, and Bangalore. Yet, it’s the small towns which have aspirations for big brands and will be the major growth drivers.

Neha Shah, Senior Manager, Marketing, Pepe Jeans India, says, “Until more than a decade ago, there weren’t too many kids’ wear brands, kids-focused fashion chains, exclusive brand outlets in the country. Today, fashion has become a part and parcel of everyday life. The last 10 years, in particular, have registered robust growth because the upper-middle-class has grown multifold. Dual income households with one or two kids at the most, are capable and inclined to pamper their children.”

The brand is also present online. Brijesh Jathan, Senior Manager, points out, “Online makes buying easy from anywhere. The online children’s category is still evolving and the potential is yet to be exploited. In the online space, we do not offer discounts as in the adult section. Whatever promotion our brand has offline is replicated online. So, we control online prices.”