Kids-wear Indian segment & rising aspirations

05 May 2023, Mumbai   

Compared to the entire clothing market, the Indian kids' apparel segment experienced the most growth in 2021. To stay current with fashion trends, manufacturers utilize dazzling materials.

Neighborhoods and unorganized enterprises dominate India's demand for children's clothes. Organized players will be able to do so, giving them a solid foundation to grow their market share.

What all you need to know

The Indian market for children's clothes was worth INR 669.04 billion in FY 2017. According to a study by ReportsAndMarkets.com, the Indian kids' wear market was valued at $16.62 billion in 2020 and is projected to grow at a CAGR of 5.89% through 2026, reaching $22.53 billion by 2026, reaching a market size of USD 23.89 billion by 2028.

The increasing disposable income and changing lifestyles of people are driving the demand for kids' wear in India.

Common observations

The most common fabric used in kid's clothing is cotton. Approximately 86% of the clothing worn by children is made using it. Only a few domestic and foreign brands are active in India's emerging branded kid's apparel market.

By the end of 2022, major market participants for banded children's clothing, including businesses like Ruff Kids, Ruff Baby, Gini & Jony, ZAPP, Li'lTomatoes, and Weekender Kids, are anticipated to generate INR 10 Bn in sales.

India's Aspirational Society

Aspirational brands are desirable and bought as people's income increases. Although pricey, they are perceived as a status symbol, and companies often maintain the image by charging a premium and avoiding discounts.

India is emerging as a hub for kids' apparel and fashion retailers, with the boys-wear segment currently dominating the market share. However, the girls-wear segment is showing strong growth, with a shift in preferences toward contemporary and comfortable clothing.

The country's huge population of around 375 million individuals below the age of 15 years provides a substantial consumer base for the kid's apparel market. The increasing disposable incomes of Indian parents, particularly in urban areas, have led to a willingness to spend more on children's clothing.

A quick look

This growth is expected to be fueled by the rise in the number of nuclear families and the increasing number of dual-income households in the coming years. The market is segmented based on gender, category, season, sector, distribution channel, and competition.

Among these, the distribution channel is further divided into multi-brand retail outlets, online, exclusive stores, supermarkets, hypermarkets, and others. Multi-brand retail outlets held a 1/3rd share of the market in FY2020, and this trend is expected to continue until 2026.

Pack of aspirational brands

Gini & Jony, a leading and established kidswear brand in India, offers a wide range of quality and unisex apparel for children aged from 1 to 16 years old. The brand has a strong presence in the Indian market and its products are available on various online shopping websites such as Amazon, Myntra, and Ajio.

Cucumber, a well-known and reliable kidswear brand founded in 2001, caters to newborns, infants aged 1 to 2 years, and toddlers aged 3 to 5 years old. Its Cucufun sub-brand features products for children aged 3 to 16 years. The brand offers high-quality clothes made of chemical-free cotton and follows a stringent multi-level quality check process.

Although Cucumber stores are limited to Eastern India. Nauti Nati, an exclusive online store for kidswear in India, offers a wide variety of baby-friendly and high-quality apparel for girls and boys.

The collection includes everyday clothes, formal dresses, party wear, summer and winter dresses, jackets, skirts, jeans, and more. The brand also offers accessories such as hats, hairbands, sunglasses, and handbags.

Conscious, Sustainable Brands with Indian Inspiration

Some of the brands that need mention here having a strong eco-friendly positioning are Nigh Nigh, Masilo, Smartivity Labs, etc launched around kids' sustainability narrative in the 0-12 age group.

Desire for success

An aspirational brand is one that customers tend to buy as their income increases, considering it a symbol of wealth. Though the price may deter some potential buyers, these brands often maintain their status by charging a premium and refraining from offering discounts. Examples of aspirational brands are commonly found in various industries.

What do the store lines for the sector look like?

Both physical stores and online retailers saw an increase in sales of children's clothing from April 2021 till date as we write. Businesses including Arvind Fashions, Flipkart, Amazon, Madura Fashion & Lifestyle, Puma, and Myntra witnessed a sales volume boost due to improved customer sentiments.

Parents in both tier-I and tier-II cities purchased more children's clothing online between April and till date, as we publish due to the rapid rate at which children outgrow their clothing.

Late in July 2022, under strict regulatory guidelines, malls, and shopping centers were permitted to operate (in part). Despite this, sales on Flipkart, Amazon, and Myntra increased due to the rising demand for baby clothes.

This was due to the attractive offers and range of available possibilities. Children's clothes sales on Myntra soared three times before the lockout. Infant apparel was the most often used category of clothing.

Customers had higher average bills, with the majority prioritizing daily necessities and children's needs. Between April and Dec 2023, there was a high demand for summer clothing and baby walking shoes albeit in the last couple of months there is a cautious optimism as the world stares at recession/already part of the world is under recession presently.

Westernization peeking into the Indian cultures

One of the oldest and richest cultures in the world is Indian culture. However, rising westernization, nuclear families, and purchasing power positively impact consumers and the country's Kids Wear.

Nowadays, parents spend more money on their children and want them to wear the newest branded clothing. This trend is widespread in Tier I and II cities.

The growth of the Kid's Wear industry in the nation is also aided by expanding store space and online commerce. Due to television and internet advertisements, people are more aware of foreign companies today. As a result, they buy kids' clothes with the newest fashion trends and designs.

The growing fashion trends among children these days

Many brands, whether established or new, are attempting to market their kid's collections exclusively in the market after realizing that kids are receiving more exposure these days. By releasing various lines of childrenswear, brands are fostering distinctive client experiences.

They are entering the Indian kidswear market to establish and develop a new niche. Children today are more stylish and affluent thanks to our current culture and society. Kidswear buying today is actually on par with purchasing for young people. The latest children's fashion trends in the Indian market are luring their parents out to shop.

The expanding kidswear sector in India is mainly due to Bollywood children's fashion, another critical factor. Because people are interested in learning more about them, celebrities' children always receive the same attention and spotlight as their famous parents.

The paparazzi constantly pursue the small ones for exclusive photos of their attire.

People are usually curious to see what their favorite B-town kid is wearing, whether they are attending birthday parties, vacations, or even visits to relatives' homes. Taimur, Jeh of Saif Ali Khan, Kareen Kapoor Khan, Princess Inaaya of Soha Ali Khan, and Kunal Kemmu are just a few of the celebrity kids that people are interested in learning more about.

The fashion trends for kidswear have naturally adopted the looks and labels of Bollywood children.

Unfolding story

Organized retailers and foreign investors are targeting both parents and children with better visual merchandising, product assortment, and advertising strategies.

The Indian kids' apparel market presents numerous opportunities for entrepreneurs, investors, and business strategists, as the market continues to grow and evolve.

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