By:Deepika Gupta MBA(fm

)

Introduction Industry overview of kids wear market Market size and growth of kids wear market in India Categories of kids wear market Success factor

1)fashion innovations 2)brand building 3)visual merchandising 4)pricing

Growth drivers Major players in kids wear market

Major players
1)Lilliput 2)Zapp 3)Gini and Jony 4) Catmoss

Swot Analysis
1)Strength 2)Weakness 3)Opportunities 4)Threats

Conclusion

Kids fashion is a diminutive version of adults wear. They like to have their own choice of clothing. This is enhancing the kids wear market. Double income and one or two kids are the supporting factors to the growth of the kids wear market.

Indian kids wear market
Global market for kids wear segment during 2006 was USD163.92 billion, a mere 3.6% of the total textile and clothing industry and grew by 3.6% over 2005 Indian textile and clothing industry during 2006 is estimated to be about INR1,511billion ( USD 38 billion) , which includes apparel of men, women and kids . Kids wear segment constitutes INR 226.66 billion (USD 5.7 billion) , about 15% of total textile and apparel market.

Indian kids wear market has grown at a rate of 11.60% in the last 5 years. The market is expected to reach INR347.67 billion (USD 8.7billion at current exchange rates) by 2010, at a growth rate of around 12%.

INDUSTRY OVERVIEW
Market for kids apparel is the fastest growing industry in India. Manufacturers are coming up with fancy materials targeting kids who are more interested in the upcoming fashion trends. A huge volume of kids apparel in India is being dominated by local and unorganized players. This gives an excellent opportunity for the organized players. Indian market is now moving towards an international look in terms of children·s apparel. International brands including Barbie, Mother care, Benetton Kids, Pepe, Lee Kids,

Tommy Hilfiger, and Adams Kids have also entered the Indian market Branded kids apparel market is in its nascent stage in India with a handful of national and international brands. Industry analyst estimate that market size of branded kids wear in India including brands like Ruff Kids, Ruff Baby, Planet Kids, Gini & Jony, ZAPP, Lilliput, and Weekender Kids is estimated to be around Rs 1,000 crore. They positively assert that branded market for kids is growing at 15% per annum. Cotton plays a major role in the clothing of children. Approximately, 86% of the kids wear are of cotton. .

MARKET SIZE AND GROWTH OF KIDS WEAR MARKET

According to the India Apparel Report, 2008 the size of kids wear market is estimated to be at Rs. 30, 510 crore. Industry experts predict that the market will further grow to reach Rs. 45, 000 crore by 2013, with branded apparels contributing to a major share.

The volume of market share of kids apparels in the total apparel market is at 24.9%, as against a 15% share in 2005. Urban kids apparel market comprises about 60% of the total kids wear market. A research states that more than 30% of the country·s population is below 15 years of age. The density of population makes kids wear to be one of the fastest growing segments in the Indian market scenario . Industry players further predict that the market is set to grow by 12% annually and reach its peak by 2010.

CATEGORIES OF KIDS WEAR MARKET

The market for kids wear is classified as follows: Infants (0 - 6 months) Toddlers (7 months - 2 years) Kids (3 - 8 Years) Pre-teens (9 - 12 Years) Children·s wear is mainly on a seasonal basis. Highest sales figures are usually recorded during the months of August ² September.

Success factors

Marketing task lies in capturing the imagination of the children with fashionable patterns, and of the parents with quality apparels supplemented by reasonable prices . All these determine the success of the manufacturer in this segment.

1) FASHION INNOVATIONS:
Use of cartoon characters in kid·s garments:  Apparel manufacturers are cashing on the popularity of cartoon characters.  Mickey Mouse, Powerpuff girls, Spiderman, Superman etc. have all found their way into the kids wear market and are currently selling like hot cakes in the market.

Coordinated 

Accessories:

In the current trend, leather bags, caps, key chains, and hair bands are considered as ¶requirement· with the dress.  Especially in case of branded apparels, garments coordinated with proper accessories sell well in the market, than individual apparels.

2) BRAND BUILDING
As apparel markets are growing in size rapidly, kids of today have a vast range of options to choose from. So, it becomes necessary for the manufacturers, and retailers to convince them to make the buying decision. Brands approach to market their product is focusing on unique colors, silhouettes and prints just as for adults . 3)VISUAL MERCHANDISING Now kids come along with their parents for buying their own clothes. So, the retailers who want to take a pie of the cherry should focus on attracting the attention of children along with their parents.

Good store presentation and product merchandising is like a good book that has an attractive cover, and an interesting first chapter that would lure the viewer.

4)PRICING
Kids apparel market is a price sensitive segment. Higher input costs add to the prices of the apparels. With the increase in the purchasing power of parents, it is expected that they will sustain the business in the long run. As kids have the tendency to grow up very quickly, new offerings are required. This raises two concerns one of range, and second of pricing. An effective combination of both determines the future of the brand. Deciding the price of the apparel mainly depends on defining the target group and identifying buyer behavior.

Growth drivers
Children always keep growing. So, the possibility of this market being strong even in tough times is evident, as there is always a demand for kids apparel.
1) 

Demography:
Generally stores that offer a wide range of selection at discounts and low prices attract more customers. As kids grow quickly, and are less attentive in keeping their clothes safe, parents consider kids apparel as functional and disposable as well. 

2) Untapped market potential:   

With a promising future for kids apparels, the market has attracted international brands into India. Representing Indian brands abroad, higher profit margins, and opportunities are assumed to be the reasons behind their success. India has a vast potential for export of kids apparel to foreign markets like US and EU.

3) Media Proliferation:    

A brand; positioning itself in the market, depends on the level of differentiation it is able to establish. With the effective publicity of mediums like TV channels, video games, and peer influence, children are aware of the latest fashion in apparels, and other accessories. Generally parents like to dress their children like themselves. They further seek to buy brands they are already aware of, and have confidence in. With the emergence of many TV channels, promotional strategies of companies have become more intense.

MAJOR PLAYERS IN MARKET
1)LILLIPUT:
Lilliput Kids wear Ltd. was incorporated in 1991 by the dynamic visionary Sanjeev Narula to export world class kids wear. With the opening of its first retail store in April 2003, it has rapidly grown and is now one of the largest Kids wear groups in India. In India, Lilliput has 250 stores.

Lilliput has its presence in Kingdom of Egypt, Saudi Arabia, UAE, Shanghai, China ,Nepal and they had a turnover of Rs 415 crores in 09-10. Throughout the range of their products, the quality is maintained at a consistent level to ensure optimum care for their sensitive customers.

2)ZAPP
Zapp!

presents an exciting range of apparel, accessories and lifestyle products for kids between the age group of 4 to 14 years. Zapp! has established itself as a leading player in the kids wear segment today. . Zapp! retails through 20 exclusive stores, is available across Shoppers Stop, Lifestyle, Pantaloon and Central and the top 120 multibrand kids wear stores in the country.

Baby

Zapp! consolidates the offering as a specialized category targeted at the 0 to 3 infant segment with great care on safety and comfort Its the only kids wear brand to retail in Bangalore and Hyderabad International Airports The Zapp! stores offer both fun while shopping and the best product available in terms of choice, design and quality.

Here comfort in clothing is given top priority and there are also accessories like blankets, range of caps, socks and irreversible nightwear. Prices range from Rs.249-Rs.1500.

3)GINI AND JONNY
The Company was incorporated in 1994 as a ready-made kids wear manufacturing company and has grown over the years to become one of India·s leading premium lifestyle kids wear companies. The Gini & Jony brand markets its dress materials under three names GJ Jeans UnLtd., Gini & Jony Freedom wear and Palmtree. The fashion franchise has been offering its service for the past 25 years

The kids wear franchise concentrates in manufacturing dresses for children between the age group of two and sixteen . Gini & Jony ltd stretches its arms to reach the customers with more than 110 outlets in the form of: Gini & Jony Exclusive Stores and Freedom Fashion stores. The range of daywear for kids is casual and stylish and is made available in a very competitive price range between Rs. 175/- up to Rs.795/-.

4)CATMOSS
Catmoss has in a short span of time, since its inception, has dominated the exciting and fast growing organized kids wear industry in India. This has become a leading brand in kids wear catering to the age group of 0-14 years The brand will widen its product range and strengthen its retail space to almost double, by the end of FY 2012µ.

Catmoss Retail, a kids wear retail chain, has decided to open 150 new stores by the end of 2012. This would include retail kids wear stores in Punjab. With this move, the total number of Catmoss kids wear stores would be 320 across the country.

Swot analysis
Strengths Good quality better and long term relationships with middle class customers heavy discount high brand recognisation focus on customer delightment Weakness weak in larger segment of market establishment of necessary infrastructure in it sector

doesn't cater to niche class customers.

Opportunities untapped market both rural and urban and also in geographical region. increase product offering by launching new product and widen the product line. scale up volume by expanding distribution. Threats increasing competition

Average budget for kids apparel The average annual expenditure on kids wear is approximately Rs. 3, 857.

Parents crave that their children should be dressed even in a better way then them. Kids are highly self conscious and can be easily affected by peer pressure, at a very young age and thus can be very demanding. This analysis also shows that price of the clothes is a major deciding factor in the purchase of the apparel along with the design and fabric used. Thus, it is important for the company to focus on these areas to increase their sales.

REFERENCES www.fibre2fashion www.babyshopmagazine.com http://economictimes.indiatimes.com http://retailia.blogspot.com