Kids’ wear players eye expansion through franchise partners

The branded kids’ wear market in India is yet to taken off in a big way.

Though apparel majors like Madura and Arvind are entering this category with global players, the market is largely dominated by the unorganized small time players. They are quick to respond to the needs of parents, in terms of fashion as well as price.

Despite steep competition from the un-branded sector, existing brands like Lilliput and Giny & Jony are trying to revive their businesses. While others like Mahindra Group-promoted Mom & Me, Toonz and Mothercare are trying to grow their offline presence with the help of franchisees. Toonz Retail, for instance, plans to add 30 new stores this fiscal through franchises in new markets of the west and the north-east.

Estimated at Rs 25,000 crores, the kids wear retail is pegged to grow at 20 percent annually. After crossing a 100 stores mark, Mom & Me Stores is also using the franchise model to expand footprint into new territories. It will open 20 franchise stores in smaller towns like Kolhapur and Solapur and also in the north eastern states. They intend to focus on product procurement and sourcing while leaving the retail angle of the business to franchises.