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Wednesday, December 24, 2014

Designer kids wear market to hit Rs 95000 crore by 2016: ASSOCHAM

Kids' wear market is growing at the rate of 20% per annum 

Rising media exposure, high disposable income of the parents, peer pressure and brand consciousness among children are driving the growth of kids apparel market in India from the current level of Rs 72,000 crore to Rs 95,000 crore by 2016, growing at a compound annual growth rate (CAGR) of about 20 per, apex industry body ASSOCHAM said today. 

The kids' wear market is growing at the rate of 20% per annum, which makes it one of the fastest growing markets and likely to reach Rs 95,000 crore by 2016 from the current level of about Rs 72,000 crore. 

In an ASSOCHAM recent paper on "Growing market for branded kids-wear in India", it has been pointed out that kids fashion has percolated down to Tier-II and Tier-III cities like Dehradun, Ludhiana, Pune, Nashik, Indore, Varanasi etc. 

"Children have become brand conscious, parents have more money (thanks to double-income families in the cities) and peer pressure is growing. This is only segment which has not been impacted by the economic crisis and poised for significant growth", said D S Rawat, Secretary General ASSOCHAM releasing the paper. 

Earlier, the trend was to buy functional kids' apparel rather than branded. Children's garments were usually purchased from small stores and from street shops, while branded garments were only bought by very high-income families, reveal the ASSOCHAM paper. 

The kids are having a good time with a pile of top brands including Allen Solly, Arrow, Reebok, Puma, Woodland and Marks & Spencer entering the branded kids apparel market. Brands such as Benetton, Pantaloon and Reebok have roped in popular characters like Pucca, Ben10 and Power Rangers. 

This influx will challenge niche brands like Lilliput and Catmoss in a place where they grew up. The kids segment is the most promising in apparel retail in India. Big brands are only now realising its true potential. Sports goods major Reebok launched its kids-wear brand Reebok Junior mid last year. 

Indian fashion designers are eyeing the premium space. Some have begun retailing their wares for kids through stores such as Kidology in Delhi, Mumbai and Hyderabad, and in Mumbai. The big business houses are also examining the opportunity includes Pantaloon chain and Mahindra Retail. 

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. 

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. 

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. 

ASSOCHAM suggests that kids-gear will likely snowball into a Rs 95,000 crore market by 2016. Online sites have also launched for shopping branded kids wear and accessories for the age group between 2-16 years. The portal brings collection from some of the biggest brands in the categories of apparels and accessories. 

Apart from this, the film industry and the west also have a huge influence on the ever-evolving fashion scenario in India.
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