Beware parents and grand-parents! Your children, too, are increasingly turning fashion-conscious. Not just that: they are also walking the ramp. The kids’ apparel market in India, for children as young as one year to as ‘old’ as 14 years, is witnessing a CAGR of 9-10% and set to grow from Rs. 90,000 crore now to Rs. 100,000 crore by 2020.
The market for kids’ branded apparel would be almost 20% of it, at Rs. 20,000 crore.
Welcome to the next generation’s fashion world. The fourth edition of India Kids Fashion Week (IKFW) will be held in Mumbai from June 3 to 5 and in Delhi from June 17 to 19. A number of major brands and companies in this segment are participating in the two events. In earlier editions, Bollywood celebrities and fashion icons including Sushmita Sen and Karishma Kapoor have walked the ramp along with children.
“IKFW aims to position India on the map of the fashion industry for kids. This initiative seeks to give India’s upcoming and highly potential fashion fraternity for kids a platform to showcase their talent and make a mark in the international fashion industry,” Manoj Mahala, Director, IKFW, told BusinessLine.
IKFW provides brands and designers a platform and opportunity to tap this nascent market, and clears the path for direct contact between the creator and the consumer.
Growth in the kids’ wear segment has been due to increased purchasing power, fashion-consciousness created by audio-visual media, penetration of latest fashion in semi-urban and rural areas, increased spending on children, brand awareness and organized players focusing on the kids’ wear market. “The premium segments are, however, governed by brand consciousness on part of both parents and kids”, he said.
The key trends observed in the kids’ wear market include ethnic wear, domestic and global adult brands expanding to include kids’ wear lines as well, growing number of Indian kids’ wear brands as focus turns towards domestic consumption rather than just exporting, and expansion of online retailing to kids’ wear.
Most of organised players initially focused on western wear categories like denims, shirts and T-shirts. But many brands and organized players have recently forayed into children’s ethnic wear categories and offering ethnically-styled, high-quality products for kids.
However, despite its recent growth, the kids’ wear market is still largely, almost 80%, unbranded with most sales taking place through unorganized retail channels. With a huge untapped potential, more and more fashion brands are recognizing this business category.
In the kids’ apparel market, nearly 30% component is that of school uniforms for both boys and girls. The girls’ apparel market is growing at a CAGR of 11% compared to that of boys at 10%. “The demand for both boys and girls’ apparel is almost 50% each.”
According to a Technopak report, the school uniforms market is demonstrating healthy growth with a rise in the number of schools and a decline in drop-out rates. In high-end schools, increasing competition and the desire to look smart has amplified brand consciousness among students. Further, many schools see uniforms as an extension of their overall image and ensure that the uniform reflects the image associated with the school. The market now sees different school uniforms depending on the season, occasion, class, etc.
The report pointed out that the Indian apparel market is expected to grow at a CAGR of 9%, from USD 41 billion in 2013 to USD 102 billion in 2023. In 2013, kidswear, at USD 8.3 billion, alone contributed 20% of India’s apparel market, but given its higher growth rate, this share is expected to increase to 22% by 2023.