Kids’ retail market flourishes in India

With increasing awareness about baby health and nourishment coupled with the rise in purchasing power, there has been a growth in kids’ retail market in India. At least 30 new retailers are either entering the Indian market in the next two years

or expanding into new categories, according to UBM, that conducted Asia’s first baby and kids’ exhibition in Mumbai.

India on the radar with kids' retail

While Mumbai-based Indvest Group is looking at extending into apparels and toys, Taiwan-based Piyo Piyo plans to enter the Indian market by partnering with Chennai’s Little Feet. Another brand Prowl, based out of Germany, plans to sell its merchandise in India soon. Besides, media and entertainment firms such as Dream Theatre and Fifa are also expanding into kids’ merchandise in the coming months.

Indvest Group, which is into baby feeding accessories since the last 30 years, plans to enter the largely unorganised Rs 4,500-crores toy market and Rs 45,000-crores apparel market in India. The group plans to re-launch their brand ‘Littles’ across 525 cities with toys and apparels in the affordable category, in the next six months. ‘Littles’ with Rs 30 crores sales, at present, is targeting Rs 100 crores turnover by FY15-16. The company, with diverse business interests in real estate, consumer and packaging, also plans to launch its own retail outlets.

Meanwhile, Taiwan’s Tung Ling Industries, which owns Piyo Piyo, is looking at an investment of Rs 200 crores over the next three years to open 150 standalone retail stores in Tier I, II cities and Dream Theatre is infusing in about Rs 100 crores in next two years. UBM in its latest report said that the baby and children care products market is growing faster than the emerging markets despite global economic crisis. The market in 2011 was pegged at Rs 57,600 crores owing to strong demand for apparel, footwear, toys and baby cosmetics. It is expected to grow at 17 percent CAGR annually till 2015.

The shopping mall culture has provided a platform to brands such as Zara, Burberry, Hamleys, US Polo Association, Chicco, UCB and Carter’s in the premium space while Gini & Jony, Mee Mee, Mom and Me, and Liliput, among others, are ruling the mass segment.