MINOR PROJECT

END-TERM JURY21ST MAY 2012

TOPIC: THE KIDSWEAR MARKET IN INDIA

PRESENTED BY:RITUPARNA NEOG, 25ROMANI LAKHANI, 27

MFM IINIFT, DELHI

INTRODUCTION

• Kids is a diminutive version of adults wear. • Double income and one or two kids are the

supporting factors to the growth of kidswear market

RESEARCH METHODOLOGY

Secondary research study on the kids wear market

Changes in the market scenario

Growth drivers

Primary research

Primary research analysis

OBJECTIVESS.No. OBJECTIVES RESEARCH TYPE METHODOLOGY

1. To analyze the growth of the kids wear market segment in India

EXPLORATORY SECONDARY DATA

2. To identify its challenges and opportunities.

EXPLORATORY SECONDARY DATA

3. To study the consumer buying behavior towards this segment.

CONCLUSIVE QUESTIONNAIRE

RESEARCH DESIGN

EXPLORATORY RESEARCH

SEARCH FOR SECONDARY INFORMATION

SURVEY OF KNOWLEGEABLE PERSONS MARKET SCAN LITERATURE

REVIEW

• The apparel market in India is estimated at Rs 117300 cr. And kids wear market is estimated at Rs 28,800 cr. This makes it 24.5% of the total apparel market. (Technopak advisors,2008)

LITERATURE REVIEW

OBJECTIVES

To study the kids wear market share and the brand positioning of various brands in the market.

To study the consumer behaviour towards the rising number of brands in the market.

To identify its challenges and oppurtunities.

STRENGTHSGrowth rate of 12.8 % during 2003-2004A significant growth of 41% in value terms in super premium segment and an average growth of 20% in the premium ,medium and lower segmentsLicensing from international brandsWillingness to spend large amount on advertising for kids

WEAKNESSESOccupies only 15% of the Indian Apparel market currently valued at Rs.78094 crore in value termsVery few national players in the branded marketLack of brand orientation amongst customers

OPPURTUNITIESLow brand penetration rate of 8%Increased presence of brands across all retail formatsAvailability of higher level of discretionary incomes with parents and lesser number of children per coupleIncreasing number of malls across Indias A and B class cities prominently featuring branded apparels

THREATSInternational kidswear brands like Kanz of Germany, Mother Care of U.K. ,Disney entering the marketTrendy and cheap apparel imported fom ChinaPrivate label of retailer like STOP by Shoppers 'Stop.

SWOT ANALYSIS INDIAN

KIDSWEAR MARKET

Growth rate of Kids apparel in crores

The above graph depicts that the growth rate of kids wear apparel is in increasing trend, which will reach above 30,000 crore by 2014.

The above graph depicts that the growth rate of kids wear apparel is in increasing trend, which will reach above 30,000 crore by 2014.

Grow

th rate of Kids apparel in crores

Media and Promotions

Demography

Untapped market potential

Fashion innovations

Increased incomes

Visual merchandising

Price ranges

GROWTH DRIVERS

Source: Technopak Analysis & Fibre2fashion

MARKET SHARE

• Current market share is Rs. 38000 crore

• Estimated to touch Rs. 58000 in 2014

• Growth at 17%

BRAND SEGMENTATION

Luxury brands

Premium segment brands

Mid-segment brands

Fendi, Burberry, Armani

Zara, Tommy Hilfiger, Monnalisa,Benetton, Gini n Jony

Catmoss, Lilliput, Weekender Kids, Ruff, Zapp, Mom n Me

CHARACTERISTICS OF THE MARKET

Infants (0 - 6

months)

Toddlers (7

months - 2

years)

Kids (3 - 8 Years)

Pre-teens (9 - 12 Years)

Kids { 3-8 years}

Major focus:

Pre-teens {9-12 years}

CHILDREN IN PURCHASE DECISION MAKING

CHILDREN

PRIMARY MARKET

INFLUENCER MARKET

FUTURE MARKET

ACTIVE PASSIVE

INDEPENDENCE TO MAKE A CHOICE

INDEPENDENCE TO MAKE A PURCHASE

PARENTAL YIELDING

Source: fibre2fashion

Determining the most popular brands in kidswear

Determining the most popular store format

Occasions for purchase

Determining the category with the highest number of pieces in a single purchase

Preferred amount spent in each category

Relative importance of product attributes

Socio cultural impact on purchases

Determining the most popular type of media

Link between the age and brands preferred

Link between income and brands preferred

Link between age and choice of store format

Link between income and choice of store format

Relative positioning of brands on the basis of brand image and fashion forwardness

QUESTIONNAIRE

FORMAT & TYPES OF QUESTIONS

FIXED

ALTERNATIVE

MULTIPLE

CHOICE

STRUCTUR

ED

TYPES

FORMAT-CLOSE ENDED

DICHOTOMOUS QUESTIONS

SAMPLINGSAMPLING

TYPE

COVENIENCE

JUDGEMENTAL

PARENTS WITH KIDS IN THE AGE GROUP OF 2-14 IN THE REGIONS OF

DELHI-NCR

SAMPLING UNITSSAMPLE SIZE

50 CUSTOMERS

ANALYSIS

The tests performed are: Hypothesis testing ~ one-way ANOVA test Graphical Analysis

SPSSSOFTWARE

Q. Ranking 5 factors: STYLE, PRICE, BRAND, QUALITY, DURABILITY on a scale of 1-5, 1 being the highest & 5- lowest

• Here, STYLE is the most important factor while purchasing kids wear; which shows that even kids wear the latest designs, colors and the liking of the children towards particular characteristics are more important.

• The last factor that influences purchases is DURABILITY of the product. Durability here signifies that the parents are aware that their children would grow out of the apparels soon, so the only concern they have is even if the clothes fit the kids for 3-4months on an average, they are satisfied by the product.

• PRICE & BRAND of the product are ranked second while purchasing kids wear by the parents.

• Again, some parents ranked STYLE & PRICE as 3 as a factor influencing their purchase.

• QUALITY was ranked 4 on a scale of 1-5 as factor influencing the purchase, which means that since the brand of the product plays an important role, the parents are assured of the quality of the product the brands would provide

One-way ANOVA Hypothesis testing

• 1) Hypothesis: the brands that parents prefer for the kids are dependent on the Monthly household income. C.I- 95%

• The sig. level is 0.752>0.5,

hence the hypothesis is accepted and shows that the brands the parents prefer are highly dependent on the monthly income of the household.

• 2) Hypothesis: the purchase patterns (planned/impulse purchase) is dependent on the Monthly household income. C.I-95%

• The sig. level 0.333<0.5, so the hypothesis is rejected and shows that the type of purchase and income are not related. Most of the parents said they prefer buying clothes for their kids when they have time from their office and the kids are free from school, so mostly it is a planned purchase depending on the time schedule of both parents and kids.

• 3) Hypothesis: the brands preferred by kids is dependent on the average monthly budget for kids shopping. C.I-95%

• The sig. level 0.921>0.5, so the hypothesis is accepted, which shows that

the parents decide the average monthly budget for kids shopping depending on the brands that the kids prefer and like.

GRAPHICAL ANALYSIS

• 72% of the respondents were married with kids between the age group of 2-15 years if age.

• This question was asked to judge the decision to shop for kids. 54% of the parents said they decide when to shop according to their time schedules while another 40% said they go shopping when their kids ask them to.

• 88% of the parents said that their kids who are between the ages of 2-15 years of age accompany their parents while shopping.

• 56% of the parents take their kids for shopping; they go to only those stores which their kids ask them to.

• 88% parents (most of them with kids below the age of 5 years of age) said they especially like those stores which have a play area in them so that the kids can enjoy the shopping time.

• 70% of the parents said they prefer the exclusive brand outlets instead of those stores which contain all the brands under one roof.

• 50% of the parents decide to shop for their kids when the children grow out of their clothes. This shows that though parents like to buy their kids what the kid’s desire but only when there is a need.

• Close to 80% parents said their kids were aware of fashion due to various factors like peer pressure, movies, social networking, etc.

• 68% of the parents said that the final decision to buy the clothes was a joint decision.

• 20% parents said that their child preferred brands are all the brands except the luxury brands

• Similar for the parents, 40% of them said that they preferred most of the mentioned brands except luxury brands.

• 72% of the parents said they don’t have any arguments with their over what clothes should their kids wear.

• 62% parents prefer sizes that are a little bigger to the child so that they don’t have to visit the malls often if their child grows out of the clothes.

• 72% parents said they go for a planned purchase as they have to work out their office schedules and the school schedules of their kids.

• Average monthly spending in 42% of the families is between Rs.3001-6000.

• Most of the above factors influence the parents to go shopping. 24% of the parents said all the specified factors induce them to go shopping for their kids.

CONCLUSION

• Kids are highly self conscious and can be easily affected by peer pressure, at a young age and thus can be very demanding.

• Children tend to become influenced by brand names at a very young age which could be seen as a way of acceptance, approval and harmonious relationships with others.

• More dual income families and nontraditional households have led to greater responsibility being placed upon tweens and teens, giving them greater purchasing power and more independence and are thus being targeted by marketers.

• Parent’s frequency of communication with peers and precedent set by older brothers and sisters play an important role for young consumers’ purchasing behaviors. TV advertising provides young consumers knowledge and insights in their products and behavior as consumers.

• Kid’s clothing is usually purchased by mothers where peer pressure and kids’ requests have a strong role to play.

• Branded kids wear are well established in the tier I cities and are now experiencing a good growth in tier II and Tier III cities as well

• 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.

• Stores that offer wide range of selection at discounts and low prices attract more traffic.

• As kids grow quickly and are less attentive in keeping their clothes safe, parents consider kid’s apparel as functional and disposable as well.

• The parents look forward to taking their kids on their shopping trips to malls & markets. This not only suggests that parents buy their kids what they want; they also decide the budget according to the brands.

CONCLUSION

BIBLIOGRAPHY

WEBSITES:• http://articles.economictimes.indiatimes.com/2009-10-30/news/27655503_1_kids-segment-kids-wear-kids-app

arel• www.researchandmarkets.com• www.fibre tofashion.com• http://retail-trends-india.1061731.n5.nabble.com/• www.apparelonline.com• http://www.iiste.org• http://dspace.iimk.ac.in• http://dspace.iimk.ac.in• http://www.amsreview.org• http://digitalcommons.

BOOKS:• Conceptual Issues in Consumer Behavior-the Indian Context by Kumar ramesh

REPORTS:• “The Fascinating World of Small & Lovely”-Sanya Sagar V., Valliammai C., Vimalya R., Yashaswini N.V.• Apart from that we also took the help of the text books like – “Research Methodology”- by C.R.Kothari and

“Marketing Research” – by G.C.Beri. We also went through several articles published in Brand equity/ The Strategies etc