Small clothes, big business: Kidswear retail comes out of infancy in India

The retail sector in India is nothing short of vibrant and one segment which stands out in this dynamic landscape is Kidswear. Evolving trends, constant innovation, changing preferences of parents and the industry’s adaptability to cater to the diverse needs of an ever-evolving younger generation has led to the segment witnessing remarkable growth in recent years.

As India experiences demographic shifts and an increasing focus on children’s well-being and fashion consciousness, the kidswear retail segment finds itself at the intersection of style, functionality, and cultural nuances. A closer look at the multifaceted world of kidswear retail in India reveals interesting market dynamics, emerging trends, and the unique challenges and opportunities that shape the segment.

Research

India is one of the largest contributors in the apparel-retail sector globally and is consequently becoming a hub for kids’ apparel and fashion retailers. The segment – which caters to children between 0 to 14 years of age – has been segmented into boys wear and girls wear.

As per a report by IMARC Group, while the boys wear segment currently accounts for the majority of the market share, the girls-wear segment is also exhibiting strong growth characterized by a gradual shift in preferences due to the changing trends. Traditionally, the girls-wear segment was inclined towards ethnic and cultural clothing, but it is also shifting towards more contemporary and comfortable garments.

The report states that the kids apparel market size in India reached US$ 21.6 billion in 2023 and is expected to reach US$ 26.5 Billion by 2032, exhibiting a growth rate (CAGR) of 2.28% during 2024-2032.

According to ResearchAndMarkets.com, the Indian kidswear market is growing on the back of rising disposable income of Indian households and changing lifestyles, especially in urban areas. The increasing number of nuclear families and rising number of dual income households is forecast to continue driving growth in the coming years, says the report.

The report goes on to say that increasing awareness and rising influence of the West means parents – in Tier I and II cities – have started spending more on their children, wanting them to wear the latest in fashion. Furthermore, increasing retail expansion and e-commerce retailing is also contributing to the growth of the kidswear market in India.

The Indian kidswear market is categorized based on gender, category, season, sector, distribution channel and competition. Based on distribution channel, the market is categorized into multi brand retail outlets, online, exclusive stores, supermarkets & hypermarkets and others. Multi brand retail outlets accounted for the 1/3rd share in FY2020 and the trend is likely to continue until FY2026, says the report.

“A key factor driving the Indian kids apparel market is the country’s huge population. Currently, around 375 million people are below the age of 15 years. This represents a huge consumer base for the apparel market. Moreover, due to the strong economic growth in the country, disposable incomes are witnessing continuous growth. This has increased spending on kids’ fashion over the recent years. A large section of parents in the upper middle and affluent classes prefer to shop for their kids abroad due to the lack of premium offerings and soft skin-friendly fabrics in casual clothing among Indian kids’ brands,” explains Prithvi Nama, Founder, kidswear brand Totle.

However, brands like Totle – among a host of other premium homegrown kids brands – are looking to change this trend. Like Totle, Les Petits was incepted in the year 2011 following one of Founder Swati Saraf’s international trips, wherein she saw parents – who themselves were well outfitted – struggling to find luxury products for their children. Upon deeper inspection, Swati realised that there was a dearth as far as luxury products were concerned in India and Les Petits was born to close this gap, bring trending global kids’ fashion to India. The brand offers premium fashion apparel, accessories, and furniture from 24 leading international brands including Versace, Moschino, Dolce & Gabbana and Fendi.

“Considering today’s social media era, parents profoundly seek fashion that is trending across the globe apart from seeking comfort and quality in a clothing line. Parents want fabric, quality, and durability of the apparel to be perfect and premium,” says Swati Saraf, President, Les Petits.

Studying the Market for Success

Brands in the Indian kidswear space employ various strategies and research methods to understand consumer behavior, preferences, and market trends. Studying strategies, product offerings, and marketing approaches of competitors helps them understand the competitive landscape, while analyzing successful and unsuccessful products in the market also help brands identify gaps and opportunities.

Ethnicwear brand BIBA, meaning ‘pretty women’ was founded by Meena Bindra in 1988 at a modest investment of Rs 8000. The brand gained prominence with its signature designs and intricate hand block prints and soon became a household name. The brand soon evolved into a bold, fearless, trend-setting, and stylish powerhouse in contemporary and traditional fashion. In 2010, BIBA entered the children’s wear segment, offering stylish outfits for occasions and festive wear for girls aged 2 to 15. BIBA has over 360 stores in 160 cities throughout India out of which 315 house their kidswear line, Biba Girls. The brand is also available in MBOs like Lifestyle and Shoppers Stop, aside from their own website www.biba.in as well as popular online marketplaces like Myntra, Ajio and Nykaa Fashion to name a few.

“In the vibrant landscape of children’s fashion in India, parental choices are a delicate interplay of comfort, style, and practicality. Decisions revolve around factors such as affordability, durability, and occasion-specific attire, all underscored by a keen eye for brand reputation, sizing precision, and the ease of maintenance,” says Siddharath Bindra, Managing Director, BIBA Apparels Private Limited.

Angel & Rocket was founded as a family-run business by Kate Bostock in 2014. In October 2019 A&R partnered with SP Retail Ventures Ltd (SPRVL), based in Coimbatore, India. Both brands had a joint passion for children’s clothing retail around the globe. Their clothes are designed in the UK and made in ethical factories around the world. “Our UK-based product and design teams conduct market research across continents in cities such as New York, Amsterdam, Hong Kong and Japan aside from cities in India, to pick up key market and fashion trends in kidswear. Participation in kids fashion shows and trade fairs around the world helps them stay abreast of changing trends,” says S Chendhuran, Managing Director of SP Retail Ventures Ltd.

For Les Petits, market research means a thorough analysis to determine Indian parents’ buying habits with regard to luxury brands. “We look into the most demanding international brands in India. In the process, factors like whether a brand or style will be appealing to Indian customers or will it suit the parents’ or kids’ tastes are profoundly taken into consideration. It helps in comprehending the parents’ requirements, preferences, offers, and goals. Also, another way to keep up with ever-evolving consumer preferences is through social media. Thanks to digitalization, brands can now be closely involved with their customers and periodically monitor their preferences through these social channels,” explains Swati Saraf.

“We make sure we’re always on the ball with what the parents of today like. Our brand employs a comprehensive and multifaceted approach, through trend forecasting on WGSN (global fashion trend report) and in-depth research among consumers and peers on what’s happening and missing in the Indian kidswear market. We also tried to identify gaps with interviews and surveys with young moms who offered great insights. Lastly, real-time digital analytics helped to drive precise decision-making,” adds Prithvi Nama.

Jayant Prasad, Director Sales Operations (U.S. Polo Assn.) Arvind Fashions Limited sums it up for his brand saying: “We recognize the importance of staying attuned to the dynamic preferences of our young audience. Here’s an overview of how our brand conducts market research:

• Customer Surveys: Regular surveys are conducted to gather insights directly from our young customers and their parents. These surveys cover aspects like favorite styles, preferred colours, and shopping preferences.

• Data Analytics: Utilizing advanced data analytics tools helps us analyze sales data, website traffic, and customer behavior patterns. This data-driven approach allows us to identify popular products and anticipate upcoming trends. Our retail outlets serve as valuable touchpoints for gathering direct feedback. Store associates are trained to engage with customers, especially parents and kids, to understand their experiences and preferences.

• Competitor Analysis: Regular analysis of competitors helps us benchmark our offerings against industry trends. Understanding what similar brands are doing enables us to identify white spaces and potential areas for differentiation.

MiniKlub works to consistently gather insights from its frontline team who serve as the embodiment of the brand, acting as the eyes and ears in the field. “Our partnerships with MBOs (Management by Objectives) offer valuable insights that enable us to grasp our audience’s needs at a highly detailed level. Additionally, we leverage various tools to analyze successful international trends, enriching our understanding of what resonates effectively across different markets,” says Anjana Pasi, Director, MiniKlub.

A kidswear brand that has extended its presence into online channels, MiniKlub’s journey began with its launch in multi-brand outlets, later expanding to exclusive brand outlets. As e-commerce gained momentum, the brand made itself available across major online marketplaces. Embracing the Direct-2-Consumer trend, MiniKlub soon launched its own D2C platform.

“Our evolution aligns with the shifts in consumer buying behavior and the tremendous opportunities we’ve identified along the way,” says Anjana Pasi.

Popular kidswear brand Gini & Jony has seen the evolution of brands in the Indian retail space in its 43 years of existence. It has therefore not just been able to understand the ethos of the Indian customer quite well, but also been able to serve its customers pan-India.

“We are a premium brand as opposed to value brands. Our competition would be Benetton Kids, US Polo Kids and the like in the organised market,” explains Prem Ranjan, CEO, Gini & Jony. The brand offers clothes and accessories from ages 0 to 14. The biggest chunk of the business comes from the middle rung of ages upto 8 years. Both online and offline, this segment is the biggest contributor to sales.

“We have separated the infant business for the brand now and have launched a sub-brand, Gini & Jony Baby. We realised the need to focus on the category because it is entirely different from grown-up kids,” explains Ranjan.

60% of the business in the category of kidswear happens with the Autumn-Winter collection and 40 pc with Spring-Summer

“The more we advertise on an e-commerce platform, the more the business is transferred to the stores. Customers also get to know that there is a store nearby from which these goods have come. This is one way of doing unified marketing for the stores,” he explains.

He says his brand is geo-tagging customers in catchments around each store and the stores themselves are also being digitized. “A centrally managed display network streams customised content and offers into stores. Onam offers, for instance, were streamed from Mumbai on 75-inch LED store screens in Kerala, targeting customers in the stores or the vicinity. Another leg of the marketing effort is stitching partnerships with payment and credit card companies, besides platforms and influencers targeting mothers,” he states.

Kidswear brand Spark, founded in 1973 uses surveys and feedback mechanisms to help gather direct insights from parents and children regarding their preferences, likes, and dislikes.

The brand has a rich history rooted in a passion for creating high-quality kids’ wear. It offers finely crafted and intricately designed clothing for children, aiming to cater to both domestic and international markets. Their premium quality garments blend comfort, style, and innovation. “Aside from feedback surveys, we also organize focus groups comprising parents and children from diverse backgrounds to provide in-depth qualitative insights into their preferences, styles, and the factors influencing their purchasing decisions,” says Rajesh Shah, Director, Spangle Clothing Pvt Ltd.

He says that social media monitoring to track trends, analyzing comments and hashtags related to kidswear, keeping an eye on trend forecasting and industry reports as well as leveraging data analytics from online sales, website traffic and consumer interactions helps the brand identify patterns and preferences of consumers. “Analyzing purchase behavior, click-through rates, and demographic data aids in understanding customer preferences and behaviors. Studying competitors’ offerings, customer reviews, and market positioning provides valuable insights into what’s working well in the market and potential gaps or opportunities for the brand,” he adds.

According to JD Seth, Founder & Director, Purple United Sales Pvt Ltd, his brand frequently carries out in-depth market research to comprehend how its young audience’s tastes are changing. “To make sure our designs connect with our audience, this entails analysing fashion trends from different market research firms, obtaining input through surveys, and closely observing social media interaction,” he states.

Currently, the brand has 14 EBOs & 161 MBOs pan India. Its strategic expansion plan is focused on increasing its presence in key markets to meet the growing demand for premium kidswear. In the next two years, Purple United plans on opening 12 stores, concentrating on key areas to optimise the brand’s premium exposure, accessibility, and top line accomplishment.

Another brand which has emerged as a most sought after fashionable brand in kidswear since its inception in 1999 is Taiga. It is known for its innovative and cutting edge styles in the world of garments. Specialising in boys wear, Taiga’s styling is distinct and unorthodox, its characteristics trendy and raw. The brand caters to boys between the ages of 1 and 15 and its products include T-shirts, shorts, cord sets, sweat shirts, lowers, hoodies, jackets and more.

“We get all our feedback from retailers and store owners and are thus able to decide on what are the best products for our target audience,” explains Manu Chawla, Director, Taiga Knitwear Pvt. Ltd.

The brand, which primarily operates offline is available over 700 in MBOs across India. It is most popular in Western & Northern India. Its approach is to provide high fashionable garments without compromising on quality but at affordable prices.

Social Media Presence

Catalysed by the strong economic growth in recent years, disposable incomes in India have been witnessing a continuous growth. This has resulted in an increasing spending on kidswear by parents. Urban India majorly constitutes nuclear families with working parents willing to spend more for their child’s comfort and convenience. Moreover, Indian kids in both urban and semi-urban regions are increasingly being exposed to media and are therefore more aware about brands which cater to them. This has resulted in children’s active participation in their apparel purchase decisions as much as their parents. Hence, in today’s fast evolving, online first world, brands need to keep an eye on social media platforms to understand popular trends, customer discussions, and feedback related to kidswear.

“With kids being more and more aware these days, they have their own say and preferences in most matters, then may it be fashion, sports or hobbies. We reach out to them through various relevant celebrities, through social media and various engagement activities,” says Shaifali Aggarwal, Manager, Category Kids, Puma.

“In tune with the digital age, a fascinating development emerges as modern Indian parents embrace Instagram trends, seamlessly blending their children’s fashion choices with the aesthetics of social media. The desire to curate picture-perfect moments for the virtual spotlight not only underscores the importance of contemporary trends but also adds an intriguing layer to the multifaceted considerations that guide these discerning parents,” says Siddhartha Bindra of BIBA.

“Our brand actively monitors social media platforms to understand real-time trends, engage with our audience, and gather feedback. This helps us stay connected with the pulse of our young consumers,” explains U.S. Polo Assn.’s Jayant Prasad. “The rise of digital and social commerce is transforming the way parents shop for kidswear. The convenience of online shopping, coupled with the influence of social media, has become a significant driver of purchasing decisions,” he adds.

Les Petits’ Swati Saraf adds that as a luxury fashion brand for kids, we make sure to keep on increasing our social media presence and stay connected with our target audience online to study their demand patterns and the key trends they follow. “By doing this, we hope to maintain our industry leadership and provide our clients with trending styles in accessories and clothing.”

The brand functions on an Omnichannel business model, reaching out to as many consumers as possible both offline and online. Les Petits has stores in DLF Emporio, DLF Avenue Saket, Palladium, and Banjara Hills, along with a robust website to service Tier II and beyond.

According to Prithvi Nama, children and their parents in urban and semi-urban regions are increasingly being exposed to social media and therefore are more aware of brands and trends. “They see influencers dressing stylishly and want to be stylish themselves. Unlike the previous generation where moms used to have the ultimate say while buying kids clothes, this generation is aware of what they want to wear. Hence, we increasingly see kids have a huge say in what they want to buy,” he says.

A strong social media presence allows kidswear brands to connect with their audience, showcase their products, build a community, and adapt to the dynamic nature of the fashion industry and consumer preferences. It plays a crucial role in brand building, customer engagement, and overall marketing strategy.

Marketing & Sustainability

Aside from social media, organised retailers and foreign investors are establishing brands which target the requirements of both parents and their children. They attract consumers through better visual merchandising, right product assortment, promotional strategies and focused advertising. Moreover, both Indian and foreign brands that previously catered to adults, have now stretched their product lines to include children’s clothing as well.

“We primarily focus on metros as they people living in urban areas have more disposable incomes. These are consumers who are aware of changing trends, sustainability, are environmentally consciousness, and prefer skin-friendly clothes,” says Prithvi Nama of Totle. “We also understand that this segment generally looks for premium fabric and so we work only with Fairtrade Certified factories and use 100% Fairtrade and Organic Cotton,” he adds.

“Sustainability is on the verge of becoming a significant trend in India. Our brand embarked on this journey quite early, focusing on sustainable practices. We’ve partnered with Indian manufacturers committed to sustainable production. Additionally, we’ve incorporated BCI cotton in select garment ranges, introduced FSC paper for all brand tags, and advocated for e-billing across our stores. We consistently communicate these efforts to our customers through various channels such as brand tags, emails, in-store communication, and specific social media campaigns,” states Anjana Pasi of MiniKlub.

“At U.S. Polo Assn.,” says Jayant Prasad, “we tailor our offerings to meet the specific needs of our primary target audience. We do this in three ways:

• Brand Integration: Our kidswear collection encapsulates the essence of classic American style. Drawing inspiration from the world of Polo, the designs are a perfect fusion of preppy elegance and playful charm. The range brings together the passion for the competition with the chivalry of the sport for the age group of 1-14 years.
• Engagement with Target Group: We actively seek feedback from parents through surveys, social media engagement, and customer service channels. This helps us understand their preferences, concerns, and expectations, enabling us to continuously improve our offerings.
• Age-Appropriate Styles: Our kidswear collection is curated to offer age-appropriate styles. From playful prints for toddlers to more sophisticated designs for older kids, we ensure a diverse range that resonates with different age groups.”

“At Puma, sportswear segment contributes to around 40% of total brand’s revenue. In the kids’ sportswear segment, walking / comfort proposition footwear and running apparel work really well for us. Softride footwear has been a consistent top seller in the category,” says Shaifali Aggarwal. She adds that the brand uses BCI cotton in all its apparel products. “Apart from this, we also use recycled cotton and recycled polyester across our range.”

S Chendhuran of SP Retail Ventures Ltd. says Angel & Rocket has been sustainability focused from Day One. “Our brand is always exploring new ways to captivate our audience. One unique approach is our focus on sustainability. We’re committed to using eco-friendly materials and ethical production methods, which resonates strongly with environmentally conscious parents. We use only fair trade cotton (BCI) and recycled polyster, as well as our courier and other packing materials, shopping bags are as recycled / sustainable as possible,” he states.

Angel & Rocket currently has retail stores in Bangalore and Hyderabad, and is looking to expand in other cities in the upcoming year. The brand is also present in 100+ MBO’s and premium shop-in-shops. It is especially popular in North and Northeast India. It also has three stores in the UK.

An Omnichannel Approach

Brands and retailers looking to create a seamless and convenient shopping journey for customers use the Omnichannel approach in India. This strategy recognizes that consumers may interact with a brand through multiple channels, such as physical stores, online platforms, mobile apps, and social media. By seamlessly integrating various channels and touchpoints to create a cohesive and enhanced shopping experience for customers, brands achieve loyalty, and the overall success of the retail business.

Les Petits functions on an omnichannel business model with a strong online and offline presence.

“We bring together a wide assortment of global brands under one roof in an effort to create a one-stop shop for luxury kids’ products. We are present in premium locations in major metros and at the same time have an online presence to reach consumers residing in Tier II and beyond.  We have been receiving good traction from Tier II cities in recent years. A lot of orders are placed from Hyderabad, Bangalore, Chandigarh and Jaipur. Apart from this, we have also been getting orders from Chhattisgarh and Assam as well,” says Swati Saraf.

The brand has also upgraded its services to meet the needs of customers pan India by riding the digital bandwagon. “We make extensive use of digital marketing to engage with the audience on a regular basis through social media channels. Periodically, information related to top trends in fashion is shared with the goal of boosting brand awareness and fostering natural public interaction,” she adds.

Totle too has multiple points of sale but all online. They launched their website in 2023 and have also tied up with various online marketplaces including Myntra, Ajio, and FirstCry to sell their premium products.

And while they don’t have an offline presence as of now, they are aggressively planning in the direction.  “Our focus is also on offline expansion as we believe that is the key to standing out from the competition. We have already tied up with a premium local Multi Brand Outlet in Hyderabad called ‘Minimee’ and are looking to tie up with other premium distributors and MBOs across the country in the coming months,” says Prithvi Nama.

According to Jayant Prasad, Arvind Fashions invested very early in technology that allowed all the brands in its portfolio to be Omnichannel ready. “U.S. Polo Assn. has benefited greatly from the same and we are proud to share that approximately 10% of sales (from our retail stores) come from the Omnichannel approach,” he says, adding, “Our latest advent in the Omnichannel direction was the recent launch of our website, www.uspoloassn.in. Having our own website allows us to ensure that branding elements, messaging, and visuals are consistent across all channels. This helps reinforce brand identity. We also integrate customer data from various touchpoints to create a single customer view. This helps in understanding customer behaviour and preferences comprehensively.”

Angel & Rocket too has adopted a hybrid approach, leveraging both online and offline channels to reach customers. “This strategy often involves having a strong online presence through e-commerce platforms and own websites while also maintaining physical stores and SIS for a more immersive customer experience. The combination allows us to cater to different consumer preferences and behaviours while creating synergies between our online and offline operations,” says S Chendhuran.

Purple United too has a robust omnichannel strategy, offering a seamless experience both online and offline. “This strategy includes our website, leading marketplaces (including but not limited to Myntra, Amazon, FirstCry, Shop Disney etc.) exclusive brand outlets, and partnerships with select multi-brand outlets along with PAN India distribution networks,” says JD Seth of Purple United Sales Pvt Ltd.

At Gini & Jony, Omnichannel has been a business way for a long time now.

“All our EBOs are omnichannel and the contribution of omnichannel franchisees will only increase in the next five years, with e-commerce numbers padding up our revenues. I would look at 40% combined increase in the next five years,” explains Prem Ranjan.

Gini & Jony ran a pilot with 22 exclusive stores going live with its omnichannel drive – with the stores connected to online marketplaces.

“This technology connect is helping the online channel contribute 30% revenue to each store’s sale. By next week, another 10 stores will be added to our Omnichannel programme, with the total number of stores going Omnichannel expected to touch 80 by December 2023. However, for omnichannel to work seamlessly, transport and serviceability is key. For stores in remote areas, this might take time,” he says.

He adds that while this arrangement holds for exclusive stores, the distribution channel will be more of a challenge as the point of sale billing software will have to be integrated with the brand’s own for it to work seamlessly. “This challenge is seemingly insurmountable at present in the case of large format multi-brand outlets, but the attempt is on to figure a way to integrate the distributor channel with the brand’s Omnichannel ambitions,” states Ranjan.

Ranjan says a big challenge is the problem of a slow supply chain. To counter this, the brand is going on a monthly fashion push wherein it will produce garments every month and supply this to trade partners within 45 to 60 days. “Starting December 2023, our B2B portal will display these products each month. This is important to increase the speed of the supply chain.

“That is where many of the brands have not been able to scale. The reason for 90% of the kidswear business being unorganised is that their supply chain/distribution is laggard. Their ability to reach a larger audience sitting in a faraway place is affected and so the whole business is fragmented, although the market is very large. We are trying to solve this problem using technology,” says Ranjan.

Gini & Jony is using technology to reduce the time taken to sort goods at warehouses for dispatch and also to enable correction of the ratio of products for the brand by mapping it to demand.

Currently, it is retailed through 124 large format stores, 155 shop-in-shops, 280 multi-brand outlets, 15 factory outlets and 8 e-commerce platforms. It announced in early September 2023 that it had added over 50 new retail windows this quarter to its network of over 500 doors. The number of exclusive brand outlets (EBOs) stands at 92, most of them franchised.

While the brand is present across India, its biggest strength lies in the East. The region also contributes the most to sales. The North of India is an immediate area of focus. The admitted intent is to ‘resurrect’ the North business to its best days.

Conclusion

The Indian kidswear market continues to be a dynamic and evolving sector, influenced by shifting consumer preferences, emerging fashion trends, and the growing awareness of global styles. With a diverse population and varying cultural influences across regions, the kidswear market in India caters to a wide range of consumer preferences.

The rise of e-commerce,  the influence of social media and innovation and sustainable practices are effective in reaching out and engaging target audiences and also impact purchasing decisions. Brands that understand and adapt to these regional nuances are better positioned for success.