Children’s wear market aroused the interests once again due to the recent research conducted by Greenpeace in the previous weeks. The scandalous research revealed several hazardous residues found in children textile products, and now all the eyes have turned to the sector. Investigating the sector in detail, I found other remarkable facts about its market as well. Here is the evolution of the current state of the children’s wear's market around the world.
Children’s wear market is one of the most lucrative segments in the global apparel industry. Estimated to hit a value of 173,6 billion dollars by 2017, the kidswear market was not even affected by the meltdown on the global economy. The market for infants and toddlers wear is recalled as the perfect text book case for a market pattern as well. Affected by neither economic dynamics nor new fashion trends, this fast growing market is expected to have a stable CAGR of 4.2 percentage through to 2017.
It should also be noted that the exact market size cannot be predicted because many of the companies in the industry are privately owned. According to Reference for Business; there are roughly 1,000 children's fashion vendors supplying retailers, and specialty, mass and department store chains selling children's fashions totals just 47. Even in children's specialty shops, apparel accounts for 17 percent of floor space and 16 percent of sales (baby furniture accounts for two-thirds of space and revenues).
According to the report “Children’s Wear: A Global Strategic Business Report” published by Global Industry Analysts Inc., the global kidswear market is characterized by moderate level of competition, owing to the presence of large number of market participants and the lower switching costs. There are three main points spinning the industry: individuals, wholesalers and manufacturers, and retailers. Among those, individual consumers are the buyer segment, clothing wholesalers and manufacturers are the major suppliers, and retailers are sourcing supplies from both manufacturers and wholesalers.
Looking at the major players profiled in the report, Bealls Inc., Benetton Group SpA, Carter’s Inc., Esprit Holdings Ltd., Fruit of the Loom, Inc., FB Legacy, Gap Inc., Hanesbrands Inc., The Jones Group, Kellwood Company, Phillips-Van Heusen Corporation, Ralph Lauren Corporation, Sears Holdings Corp., Syms Corporation, Target Corp., The Children’s Place Retail Stores, The Warnaco Group Inc., and VF Corporation are seen. Grouping the market leaders is also possible. The first group, Discount/Department Store Retailers, composed of J.C. Penney, Sears Holding Co., Kmart and Wal-mart, reached a revenue value of 500 billion dollars in total with their nearly 3 billion employees. The second, the Chain Stores group on the other hand is composed of the ones which think that private label merchandise is more profitable than brand-name clothing. The report gives the examples as The Children’s Place Retail Stores Inc., Gymboree Co., GAP and Toys “R” Us, reached 16.5 billion dollars revenue by 2010 with their nearly 175 thousand of employees.
The consumer behavior of the buyer segment is also interesting. Recent years are witnessing rising sales in baby and infant clothing as a result of the trend of gifting is reinforced especially for high value products. In contrast to the changes in newborn clothing market, traditional dress is still preferred for the toddlers who simply need soft and comfortable products. That’s why, the only change manifested is the color variations for the toddlers group. For the children’s wear, however, the designers tend to create little adults models. Another trend for this segment is launching licensed clothes especially for the underwear and nightwear product groups. The advent of character-licensed clothing such as Barbie Princess and Spiderman nightwear has enhanced value of a category that was traditionally characterized by low-cost basic clothing.
According to Mat Bodimeade’s article on children’s wear market, the amount spent annually on children's clothing can vary dramatically from household to household, from under $25 to several thousand dollars. The average family spends $107.28 on children's clothing -- $123.79 for each girl, $90.77 for each boy. Spending varies dramatically depending on household incomes and age of the primary householders. Households with an income under $10,000 spend an average of $24.67 on boys' clothes and $49.75 on girls' clothes, while households that earn $70,000 or more spend an average of $167.04 on boys' clothes and $216.57 on girls' clothes.
At this point, Europe and the U.S are the major consumers of the global children wear market. And the growth in double income earning families and working population is shown as the leading reason. This reason is also expected to cause apparel market to have more gains for the prospective period.
The rise in international travel consciousness as well as enhanced peer comments are the other causes seems to increase the size in sales. The children’s influencing power on their parents to spend on kidswear should not be underestimated as well. And here, it is inevitable to escape from the smart adverts of brands which would attract smart kids of today’s world.
For more in-depth take on the market, DOWNLOAD FASHIONBI KIDSWEAR MARKET REPORT 2016.
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