Kids Wear Industry

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Retail Business Environment

Kids-Wear Industry

Submitted By:
Neil Shah – 61
Himanshu Maheshwari – 56
PGPRM (2006-08)

Introduction

The overall apparels industry in India has shown an almost 14 percent growth. Kids apparels is growing at a fast rate in India today. With a growth rate of around 4.5 percent, it accounts for almost 20 percent of the overall apparels market. 88 percent of kids wear is readymade and thus brands have only been able to corner 12 percent. This leaves tremendous potential for international players to enter the market. The higher levels of incomes and kids being more informed due to media are some of the reasons for the growth of kids wear in the market.

The other reason is that 30 percent of the population in India is lesser than 15 years of age and this shows immense potential. In a country where there are 2 crore births every year, kidswear is big opportunity. The retail industry in India is 1,135,000 crore market, huge investments are expected. This will definitely help in the growth of this Industry.

Retail Scenario of Kids Wear in INDIA

Some of the leading brands in kids apparels in India are –

Gini and Jony, Weekender kids, Lee kids, Benetton, Ruff kids, Westside, Lilliput, Nike, Bare, Lil tomatoes. Out of these ‘Gini and Jony’ as the most popular kidswear brand across the country.

There are more than 6000 retail outlets that sell kidswear comprising about 700 exclusive brand stores. Retailers allocate from about 7 to 30% of space to kidswear. Prices are ranged different for different brands and for different types and styles but what is important to keep in mind is the fact that parents are willing to spend on clothing for their children. Also as the disposable income of families has gone up, they prefer to buy branded garments as a status symbol. The Indian retail paradigm is shifting with the emergence of new formats in the form of hypermarkets, supermarkets, and specialty and convenience stores. A host of foreign retailers are looking to enter the Indian retail market, where Indian business houses such as Reliance Industries, Aditya Birla Group and Tata are also rapidly building their presence.

The organized retail market in India is growing at a CAGR of 27 per cent, with revenues expected to exceed USD 100 billion in 2015. The retail revolution is making itself felt across the board with the urban Indian consumer looking for a superior retail experience, and diverse income groups providing an eager customer base across formats. Also the brand penetration at present is around 7-9 percent. Most of the kidswear is sold through Mom and Pop outlets and stores. A good way would be to offer category specific retail formats or speciality stores such as mom and infant stores.

In a sample study 69 percent were males and 31 percent were females., This was because male are more brand conscious while females are more in for the look and the accessories.

Kids Wear Industry

India’s domestic market for clothing, textiles and fashion accessories is estimated to be worth Rs.113,500 crore, of which nearly 19% is fully organized. The organized apparel and accessories retail market accounted for 13.6% of the total sector in 2004 when it was valued at Rs.10,900 crore. Share of this organized segment has steadily grown to 18.9% in 2006, with the sector showing a yearly growth rate of 30.3% during 2005-2006. At 2003-04 prices, the organized retail sector in 2005 was Rs.14,000 crore, which increased to Rs.18,500 crore in 2006.

Apparel and accessories retailing is the largest segment of organized retailing in India, constituting 38.9% of the total organized retailing business, which currently stands at about Rs.55,000 crore at current prices.

Kids apparels has a sizeable segment in the apparels industry. Growing at a significant rate, it has already cornered a massive 23.5% share of the overall market and the turnover this year for the kidswear and uniform market...
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