Growing at a compound annual growth rate (CAGR) of about 20 percent, the kids apparel market in India is likely to reach Rs 80,000 crore by 2015 from the current level of about Rs 38,000 crore, according to a paper released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), an apex industry body.
The market for kids apparel in India exceeds Rs 38,000 crore, of which around Rs 5,000 crore is constituted by branded kids wear. The kids wear market is growing at the rate of 20 percent per annum, which makes it one of the fastest growing markets. Rising media exposure, high disposable income of the parents, peer pressure, growing fashion, and brand consciousness among children are together driving the growth of kids apparel market in the country, the paper said.
An analysis carried out by ASSOCHAM on “Market of Indian kids wear,” pointed out that kids fashion has percolated down to tier II and III cities like Dehradun, Chandigarh, Pune, Nashik, Indore, and Varanasi.
Releasing the paper, ASSOCHAM Secretary General, D S Rawat said that kids are aware of branded goods and brands are also realising the potential of market and are increasing their presence in this segment. These brands are developing categories such as infant wear, kids’ formal wear, kids’ ethnic wear, swim wear, and casual wear, along with a wide range of other merchandise for children. Children’s apparel includes clothing for kids between 1 and 14 years of age.
The trend of buying kids apparel from small stores and street shops and not opting for branded garments is gradually changing. The market for branded kids clothing is growing.
Dungarees, shorts, and shirts are the evergreen fashions in kids’ apparel. Short skirts, tops with puffed volume, halter tops, lace trims, and cropped trousers are also ‘in’ these days. In terms of prints, butterflies, flowers, polka dots, skulls and pirates, and stripes are popular in kids’ apparel as highlighted in the paper. Also, kids outgrow their clothes very rapidly. Hence, it is necessary that a kids apparel range be reasonably priced.
As per the ASSOCHAM assessment, mothers are now spending enormous amounts on clothing for their children as they believe that the way a kid is dressed is often a reflection of the parents’ sense of style. Higher-cost brands are generally reserved for special occasions due to the fact that parents tend to dress their children like themselves and will seek to incorporate brands that fit with the family’s lifestyle.
The biggest retail markets are those in which fashion for adults is most developed, such as France, the UK, and the US. Emerging global markets like India and China hold promise for children’s wear because of the sheer size of the retail industry, as well as the growing number of wealthy people.
The market for girl’s wear is far greater than boy’s wear throughout the world. Boy’s apparel tends to center on basics. Girl’s wear, however, thrives in all channels from specialty stores to department stores to discounters.
Brands such as Benetton, Pantaloon, and Reebok have roped in popular characters like Pucca, Ben10, and Power Rangers to attract the 4-14 age group customers.
“The branded children’s wear segment is presently worth Rs 4,000-5,000 crore; it is growing at more than 25 percent,” added ASSOCHAM.