Pester power to the forefront

With children emerging as an important segment of buyers apparel makers and retailers in India are cashing in on the opportunity. A recent Technopak Advisors study has shown that the children’s apparel and footwear market -

organized and unorganized – in India is estimated at Rs 22,000 crores. Of this, the share of branded segment is 12-15 per cent. Overall the segment is growing at 20 per cent annually. And what’s helping growths is the awareness among kids about latest trends and style and their parents’ willingness to spend given their greater spending power. What’s more, with niche international kids wear brands like Next, Mothercare, Ladybird, Chicco, ELC et al, opening stores in India, kids are now spoilt for choices. In fact as the apparel market is coming out of the slowdown the market for children’s apparel is seeing a new growth opportunity.

Making the most of it are big brands like Reebok, Tommy Hilfiger, Benetton, Allen Solly and Puma, who are all offering kidswear. Similarly, the Mahindra Group forayed into the children’s segment with their Mom & Me stores. These stores sell a range of clothes and accessories for would be mothers and infants.

As Saloni Nangia, Senior VP and Head, retail and consumer products, Technopak Advisors points out, “The last five years have seen many new formats focusing on one or more of these categories: infant and kidswear, footwear, infant and kids’ wellness, furniture and kids’ rooms, etc. These formats are a mix of international and Indian retailers, and range from category killers such as Hamleys and Mom & Me, to smaller specialty stores.” With bigger companies coming in, the market is changing and consumer awareness towards branded kidswear is growing. In fact, the frequency of kidswear purchases too is going up now.

And with brand which launched their kid’s products doing well, others are following suit. In fact, there is large scale segmentation in the category now. They broadly range from school uniforms to fashion wear, sports, casual, outdoor and party wear for various age groups.

Looking at the potential many kidswear brands are now looking at expansion in a big way. Gini & Jony the well known kids wear brand which retails trendy apparels for kids has joined hands with Pantaloon for a retail store chain for kidswear. In fact, many retail chains like Benetton have dedicated shop floors for just the kids segment in some of their EBOs. They also have dedicated exclusive stores for kidswear in the premium segment. In the last six years, its growth has been 40 per cent year-on-year. The kidswear revenue contribution to the overall pie at Benetton India is 28 per cent. For Pantaloons kidswear contributes at least 15 per cent of revenues of the overall pie.

Weekender, the apparel brand is looking at expanding its kids section. The company has 113 stores and is looking at opening 130 by the end of this financial year and 250 by 2011 end. It has tied up with Walt Disney and Warner Bros for a new kidswear collection, Toon World. The Ruff Kids brand of kids garments, owned by DS Corporation, is planning to expand its retail presence.