Increase in number of nuclear families, growing disposable incomes, growth in the number of working women and growing number of children becoming brand conscious and decision makers when it comes to buying clothes has lead to a retail boom in the kidswear segment in India. Large number of international brands like Esprit, Walt Disney, Whoopi, Tommy Hilfiger, Lee Kids, Adams Kids, Pepe, Benetton Kids, Barbie and Mothercare have already made in-roads into the country posing tough competition for the Indian counterparts. According to the recent media report, current market size of branded kidswear in India comprising national brands such as Ruff Kids, Ruff Baby, Weekender Kids, Gini n Jony, Liliput, ZAPP, Li’l Tomatoes, Planet Kids and Little Kangaroos is estimated at around Rs 1,000 crore. Many Indian companies too have realized the business potential this segment holds in store for them.
Strength
Lifetime segment has also embraced kidswear segment since standard of living has gone up and parents like to see their children smart. Juniorwear domestic market is estimated to be of 7000 crore. Children’s wear amounts to 17 percent of the total Rs 43,000 crore apparel industry, or about Rs 7,310 crore, according to a study. However, the organised segment claims only about 7 percent or more than Rs500 crore. But the segment is growing rapidly at 10 percent per annum. Margins are between 20 and 25 percent (for dealers and distributors), while companies enjoy an average gross margin of about 10 percent. Thus, many apparel companies are making investment in this lucrative sector.
Kids change their sizes very fast and so do their clothing. Economy is booming. Lifestyle is elevating. Education is growing. Communication is on the rise. People are becoming more fashion-conscious. Family income profile has much more spending power at their disposal. Shopping has become a pleasurable experience. Besides these, there are many other changes, which have percolated down to the Indian consumers.
Out of Rs.7, 000 crorers, 200 crores is the share of the branded sector. Around 97 % of it is contributed by unorganized sector. This category is growing by 10% every year. 75% of junior wear in India is sold through family stores. These are conducive scenario for the industry to grow. The range is more vibrant comparatively and the segments are more versatile, differing by age and by sex. All these add to buoyancy in the business.
Kids wear domestic market is estimated at 12 million units. The category is growing at 10% and branded segment is growing at 20%. Kidswear market in India has maintained a steady growth of 3.6% in volume terms and 9.6% in value terms during the past 4 years.
Manufacturing centres
Kidswear usually manufactured by small manufacturers in different cities of India: as, Mumbai, Calcutta, Delhi, Ludhiana, Indore, Saharanpur, Kanpur, Poona, Solapur, , Ahmedabad, and many other smaller cities. Most of the manufacturers have less than a dozen staff. Their average manufacturing capacity is 50-150 units per day. Many of them do not have their own manufacturing unit. They outsource or they give job-work to karigars.
This market has been spread over in the above cities maintaining semi modern technology for making kids garments. Indore is a bigger kids garment manufacturing center amoung all having around 2200 small and big manufacturers, Exports are very less but as far as domestic market is concerned.
Age wise Classification
Kids wear category can be divided into four subcategories: as, 0-2 years, 3-6 years, 7-11 years, and 12-15 years. For the first three categories, parents are the primary customers. They look out for comfort, fitting, stile, design, and price. The children of 12-15 years have their own desires about these aspects.
Channel of distribution
Manufacturers generally distribute their products to family retail shop, small retail format. Middle economic class is the core target customer group of most of the manufacturers. Some of them also distribute their products to multi brand outlets and large format stores and hardly few of them have exclusive brand outlets. Most of them sell in local markets and in nearby markets. Here in this category, the brand is not so important as pricing. There is a tough competition in the market. Number of manufacturers has enormously increased in last few years. The supply has overtaken the demand. Sales have no doubt increased volume-wise and value wise both but profits have decreased due to tough competitions.
There are various elements involved in its production: as, embroidery, washing, designing, cargoes, and many others. They use a lot of accessories and fancy items. It takes much time and energy. Stitching, washing, matching, everything takes much time here. Its manufacturing includes a variety of small works.
They have to be very much particular about colour combination, trend, style everything. The owner must have practical experience of manufacturing, and designing. Most of the manufacturers are skilled persons. Many of them are designers. They personally involve in manufacturing. The cycle is very big from cutting to finishing.
Manufacturing process is long and hectic. Continuity of teamwork breaks frequently, if even a single worker absconds: as, karigar, embroidery worker, iron- worker, or any other. And production hampers as a result.
A lot of specialization is needed over here. Variation in designing, variation in items, variation in size and variation in colours are some of the factors, which make it complex.
Cotton fabrics are generally being used in junior wear. In South India cotton is in demand during 12 months a year. Even in North cotton fabrics are generally being used in Summer. Cotton fabrics are not allergic. Synthetics are only used in festivals and marriage seasons.
In the case of ethnic wear synthetics are used more, because greater range is available in synthetic fabrics. Cotton is heavier in price. And colour-fastness is less there.
Synthetic fabrics, polyester, siphon, and georgette, denim, blend, silk, orbit, rayon, velvet and lachka, are also used. But light weighted fabrics are preferred in kidswear. Rough fabrics are avoided in kidswear.
The market of kidswear will be more fascinating in future. Competition will be higher and higher. Developed technology will be adopted for value addition. Production will be higher due to growth in population. Big brands will also come into this category. Quality and manufacturing level will increase.
