The kidswear segment is one of the fastest growing segments in the Indian apparel market. The market was worth Rs 59,520 crore in 2015 and accounted for 20 per cent of the total apparel market of the country. It is expected that kidswear will significantly surpass the growth of men’s wear and women’s wear by growing at a CAGR of 10.8 per cent to reach Rs 1,65,120 crore in 2025.
Today’s well informed kids, due to increased penetration of media, have become very demanding. They have increasinglystarted contributing in purchase decisions. Expenditure on kids clothing is not restricted only to religious festivals or occasions such as birthdays, etc., but has become more frequent. With growing disposable income, exposure to global fashion trends and entrance of foreign brands in the country – the huge middle class of the country has started spending more for their children. This also shows the changing consumer behaviour, with a growing inclination towards branded wear, which in turn, is catalysing the growth of retail in the kidswear category.
So, it is quite evident that the kidswear segment has attracted retailers’ attention in recent times. However, the key challenge is to understand how to tap this lucrative segment. Despite the recent growth in branded retail, majority of Indian parents prefer to buy children’s wear from local shops or street side shops. These international and domestic players are struggling to reach these hyper-local points of sales. Also, existing private labels pose a major threat to the organised retailers as these private labels offer wide spectrum of economical options for different customers.
In order to capture this market, the apparel retailers need to focus on factors such as pricing, quality, supply chain, customisation, etc. Also the retailers have to develop basic and low cost product range to cater the huge rural Indian market in this segment.
A well planned approach is required to understand the nuances of the Indian kidswear market. A right business model backed by a strong supply chain will ensure brands capitalising on the growth of the kidswear market segment.
11 612 League
612 League is a leading kids wear brand focusing on providing quality oriented products for the age groups of 6 months to 12 years. The brand offers a complete range of trendy, high quality, affordable and comfortable apparel for boys and girls in knits and woven, for both summer and winter season.
Product Portfolio: The brand’s current product category is majorly divided into infant, boys and girls. Ripped jeans, track pants and layered shirts have done exceedingly well for boys. Scottish skirts, leggings and shirt dresses are a favourite with pre-teen girls.
Top Innovations: 612 League constantly strives hard to innovate something new for its consumers. Currently, the brand is successfully running the 612 Wonder Store, which is a unique virtual reality shopping platform. It also has invested in digital real estate pioneering with three differentiated features – 612 Genie, 612 Mommy Moments and 612 Icon.
Theme & Core Elements of Spring-Summer’17 Collection: 612 League’s Spring-Summer’17 collection brings together the colours of the season in a slew of vibrant avatars. The trends are incorporated in every creation and playfully intermixed with a colour palettes that reflect outdoor and leisure spaces of summers.
Target Audience: For its infant range, the brand targets parents belonging to middle and upper-middle income households, where as for pre-teen kids its major target audience are the mothers as well as children who are fashion conscious and love to wear smart yet comfy clothes.
Manufacturing Capacity: The brand has manufacturing capacity of 60,000 sq.ft. in Ludhiana where it produces 1.35 lakh garments per month. Its total investment to date has been around Rs 80 crore.
Design Capabilities: 612 League, makes it a point to bring together the best of talents from across the nation to design the trendiest clothing range for its customers, so that styles have a pan-India flavour. Similarly the brand also observes global, social media trends and international market patterns; and customises them according to suit Indian sensibilities. Its average cycle is of about 6 months for converting products from concept stage till time they reach the stores.
Marketing Strategy: Being a kidswear brand, 612 League looks for marketing strategies that are both innovative and interactive for the kids. Adapting to the evolving shopping patterns in India, where even kids are more fashionably aware than one would imagine, the brand tries to connect with the sensibilities of little fashionistas as much as it tries to appeal to their parents. Going further, the brand will add nightwear, inner wear, accessories and shoes by 2018. This would make it an umbrella brand for children in the age group of 6 months to 16 years.
Brand’s Presence in Online Retail: Adapting to the contemporary retail scenario the brand has bolstered its digital presence and today it is available on all leading e-commerce websites like Myntra, Amazon, Snapdeal, etc. Apart from this, it also focuses on expanding its digital reach by collaborating with online wallets like Paytm to make payments easier for the customers.
New Territory/ Region added: This year, 612 League opened exclusive stores in Vadodara, Ahmedabad, Kurla and Bengaluru. It has also expanded its presence recently in Uttar Pradesh, Karnataka, Tamil Nadu and Rajasthan through Reliance Trends, Central and Shoppers Stop stores.
New Territory/ Region Targeted for Next Few Years: The brand plans to expand its exclusive store presence in the West and South, in particular.