NEW DELHI (Commodity Online): Higher economic growth, higher disposable income for parents, rising media exposure and growing brand awareness has led to Indian kids apparel market witnessing rapid growth in recent years, according to an assessment by Associated Chamber of Commerce and Industry (ASSOCHAM).
Growing at a compound annual growth rate (CAGR) of about 20 per cent 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, the apex industry body said.
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 India, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
In an analysis carried out by ASSOCHAM on “Market of Indian kids wear”, it has been pointed out that Kids fashion has percolated down to Tier II and Tier III cities like Dehradun, Chandigarh, Pune, Nashik and Indore, Varanasi etc.
Releasing the paper, ASSOCHAM secretary general, Mr. 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. Children's apparel includes clothing for kids between 1 and 14 years of age.
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% per annum, which makes it one of the fastest growing markets.
One of the important changes is increasing preference for branded apparels are rise in the disposable income of the people and the increasing influence of foreign culture. The other important change that is taking place in this area is the emergence of kids as an independent buyer group. Influenced by mass media and peer pressure, today's kids are more informed and self-conscious.
Earlier, the trend was that most of the people prefer buying functional kids' apparel rather than branded ones. Children's garments were usually purchased from small stores and from street shops, while branded garments were only bought by the very high status families. This trend is gradually changing and 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 the in things in the world of children's apparel in today's times. In terms of prints, butterflies, flowers, polka dots, skulls and pirates and stripes are popular in kids' apparel, highlights the paper.
Moreover, kids outgrow their clothes very rapidly. Hence it is necessary that a kids' apparel range be reasonably priced.
As per 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 this is 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 powerhouse 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 centre 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 lure their 4-14 age-group customers. The branded children's wear segment is presently worth Rs 4,000 to Rs 5,000 crore, it is growing at more than 25%,"added ASSOCHAM.
ASSOCHAM highlights increased media exposure, double-income parents and peer pressure as the reasons for children becoming more fashion and brand conscious. Moreover, kids are aware of branded goods and have started asking for exclusive products. Brands are also realising the potential of this market and are increasing their presence in this segment, it adds.
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, adds the report.
