Indian kids take to luxury fashion

While the repercussion of a global slowdown is still being felt by the retail industry, recent research reports suggest, the children’s wear market remained strong against men’s and women’s wear categories in the past one year. This has led to

stronger competition among luxury brands to capture a larger pie of the lucrative market.

And what is egging them on is the numerous studies which have pointed out the kid’s wear market will remain buoyant and continue to grow in the near future. In India, the Associated Chambers of Commerce and Industry estimates that the kids’ wear industry is worth Rs 38,000 crores, and growing at a compound annual rate of about 20 percent to reach Rs 80,000 crores by 2015. Similarly, the Global Industry Analysts (GIA), a US-based market research company predicts the global market for children’s wear is projected to reach 156.8 billion dollars (above Rs 800,000 crores) by 2015.

Overall, the baby and children’s market in India is pegged at over 5 billion dollars (above Rs 27,000 crores), growing at 20-25 percent a year. A Technopak Report revels, the overall children’s market in India can be broadly divided into five segments: super premium (above Rs 2,500), premium (Rs 1,000-2,500), mid (Rs 500-1,000), economy (Rs 250-500) and lower (up to Rs 250). The research firm said by far the mid-segment, with a market share of 31 percent, is expected to reach 58 percent by 2020.

Growth triggers are many. As per an analysis ‘Market of Indian kids wear’, kids’ fashion has percolated down to Tier II, III cities like Dehradun, Chandigarh, Pune, Nashik, Indore and Varanasi, which is a catalyst for growth. And like for other segments of retail, the growth is led by increasing brand awareness, rising income levels, nuclear families and parents’ wanting to fulfil their children’s expectations by giving them the best. Another reason is the emergence of kids as an independent buyer group owing to increased media exposure, peer pressure and rise in nuclear families as well as disposable incomes.

And making the most of it are global brands. For example, the 66 million pounds (Rs 574 crores) of Burberry’s 2011-2012 revenue came from the sale of children’s wear, marking a growth of 19 per cent from the category, driven by the Asia Pacific region. They recently launched children’s wear in Mumbai. Giorgio Armani has also confirmed the launch of Armani Junior in India, with the assistance of local designer Suneet Varma. The store is just a few steps away from Les Petits, a 1,500 sq. ft. shop that is home to labels such as Baby Dior, Miss Blumarine and Fendi Kids. The range starts from Rs 5,500 and goes all the way up to Rs 1,71,500. Similarly, Indian label, Kidology has tied up with designers Gauri, Nainika, Gaurav Gupta, Namrata Joshipura and Ritu Kumar to design apparels for children up to 10 years. Beside its own stores in Delhi and Mumbai, Kidology also sells through other retail outlets in Mumbai and Hyderabad and are planning new stores in Chandigarh and Ludhiana.