KID’S KID’S

APPARELAPPAREL

Neeraj Balchandani 05

Deepak Buswal 10

Tanvi Motta 59

Anand Nainar 60

•Rs.1 Trillion industryRs.1 Trillion industry

•22ndnd largest employment provider. largest employment provider.

•6% contribution to GDP6% contribution to GDP

•India 3rd most attractive market for apparel retailersIndia 3rd most attractive market for apparel retailers

•30% of the total exports30% of the total exports

•65000 organized garment manufacturing units65000 organized garment manufacturing units

•55% of total domestic textile market.55% of total domestic textile market.

•14% of the total Industrial production14% of the total Industrial production

•Rs.90 billion Brand equity.Rs.90 billion Brand equity.

• Kids between 1 and 14 years of age and infants below 1

•Total turnover of Rs.30000 cr, of which around Rs.3000 cr is constituted by branded kids' wear.

• This segment is growing at the rate of 10% per annum

• Shift in preference towards branded apparels.

POPULAR BRANDS

INDIAN KIDS-WEAR MARKET

Spaghetti tops, Crystal studded denims, Italian cuts, Capris, and exclusive party wears; Kids fashion is a diminutive version of adults wear.

Children becoming independent buyers, increase in the amount of disposable income, and retail blitz is enhancing the kidswear market.

Media exposures and promotions also cause a significant influence in the market.

Many manufacturers come up with their own brands, while some others enter into business through joint ventures.

Department stores have contributed towards segregating and building niche categories like infant wear, kid’s formal wear, kids ethnic wear, swim wear, casual wear, pre teen wear by stocking a wider range of merchandise and differentiating between them at the retail store level.

Like in every other retail segment in the country, the market is dominated by the unorganised sector. Branded kids apparel market is in its nascent stage in India with a handful of national and international brands.

PROMINENT KIDSWEAR BRANDS IN INDIA Gini and Jony Lilliput Catmoss Zapp Weekender Ruff Kids Lil Tomatoes Palm Tree Levis Sykes Jr Spykar Freedom wear Kanz (Of Cartoon network) Benetton Kids Colorplus Junior Ruff Baby Planet Kids Sach

INTERNATIONAL BRANDS Barbie, Mothercare, Benetton Kids, Pepe, Lee Kids, Mona Lisa, Espirit, Bossini, Kans Tommy Hilfiger, and Adams Kids have also entered

the Indian market.

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.

The market is now moving towards an international look.

Lilliput, Li’l Tomatoes, Catmoss, Kids’ Studio, Little Kangaroo and Mother’s Touch are a few other brands being retailed by lifestyle stores like Shoppers’ Stop, Big Bazaar, Westside, Ebony and Globus.

International brands like Tommy Hilfiger, Freelook Junior, Lee Kids, Adams kids, Benetton and Pepe are also making efforts to capture a slice of the market in India.

MARKET SEGMENTATION The market size includes the Rs. 114,500 million

uniform segment that saw an annual value growth of 22.50 % over the previous year.

The kidswear segment has grown at the rate of 15.6 % in value terms and 4.36% in volumes in 2007, which is a significantly higher growth rate in 2005 (11.4% and 3.8%, respectively).

There exists a need gap in terms of availability of a greater range of branded and quality merchandise for children and infants in India.

The branded children’s garment market in India is large running between Rs 12,000-18,000 crore per year.

Children’s garments are largely bought off the streets in this country. The vast number of small shops that line the back-alleys of our high streets are where kids’ garments sell out . While the high street remains the point of purchase for the branded garment, the back-alleys remain the spots that attract the masses buying in numbers.

Many brands which have carved an USP in the general category have hit the kids industry with their product. Pantaloons which entered into a joint venture with the brand Giny & Jony, Liliput, Zapp by Raymonds, United Colors from Beneton (UCB) and Ruff Kids by DS Corporation are among the first liners in the kid’s fashions in India.

MARKET SIZE AND GROWTH

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

Urban kids apparel market comprises about 60% of the total kidswear market.

Branded kidswear are well established in I tier cities, and are now experiencing a good growth in II & III tier cities as well. Industry players further predict that the market is set to grow by 12% annually and reach its peak by 2010.

At a time when every other international brand is eyeing a share of the big pie in the fast growing Indian kidswear market, homegrown brands like Gini n Jony, Lilliput, Catmoss, Li’l Tomatoes and Ruff Kids are all set to take the international market by storm.

According to industry estimates, the organised kidswear market in India is around Rs 4,000 crore and it is growing at 20-30%.

CHARACTERISTICS OF KIDSWEAR MARKETS

The market for kidswear 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 – September. The average annual expenditure on kidswear is approximately Rs. 3, 857.

For children’s wear, cotton is the most preferred material due to its non-allergic, comfortable, and easy caring virtues. But it faces competition with other synthetic ones, which are preferred for its washability, and non-creasing abilities.

A survey states that, the maximum sales in children’s wear market comes from smaller towns like Patiala, Bhatinda, Coimbatore, Phagwara, and Sonepat.

Generally stores that offer a wide range of selection at discounts and low prices attract more traffic.

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

The greatest challenge faced by kidswear brands is the proliferation of licensed apparel, given a shot in the arm by the growing popularity of characters on kids’ television channels.

Market share of the Major Apparel Segments (2007)

Total size Rs. 122, 400 crore

BRAND AWARENESSGnJ Benetton Lilliput Catmoss

Mean 2.486 1.5714 3.226 2.714

Std Error 0.111 0.0945 0.0891 0.15

Median 2 1 3 3

Mode 2 1 4 4

Std Dev. 0.928 0.7907 0.7454 1.253

Variance 0.862 0.6253 0.5557 1.569

Kurtosis -0.079 1.06 -1.09 -1.51

Skewness 0.32 1.3 -0.04 -0.039

BRAND PERFORMANCE

FASHION INNOVATIONS

Use of cartoon characters in kid’s garments: ‘Character inspired merchandising’ is emerging as one of the hottest market trends. Mickey Mouse, Powerpuff girls, Spiderman, Superman etc. have all found their way into the kidswear market and are currently selling like hot cakes in the market.

Coordinated Accessories: This season’s style statement includes dressing up with accessories, where everything from dress, bag, and hair clip is color, and design coordinated.

Some retailers and department stores have taken the lead in creating an in-store arrangement with play areas, and kids oriented promotions within the store. Ex: ‘Back to School’ promotion by Lifestyle.

SUPPLY AND DISTRIBUTION

In the domestic market, the various channels, which are used to distribute the apparels, are

• Exclusive Brand Outlets (EBO)

• Shop-in-Shops (SIS)

• Multi Brand Outlets (MBO)

• Distributors

COMPARISION OF DISTRIBUTION CHANNELS

SWOT ANALYSIS

LILLIPUT Set up in 1991 by the successful garment manufacturing and export enterprise

called “Anand International”. Lilliput has its presence in China, Middle East & Egypt. Its turnover in FY 07-08 has

been Rs. 260 crores. In Exports, Lilliput is very active in Europe, The USA, and other countries.

To produce quality kids wear the production facilities are equipped with more than 2000 modern machines.

Lilliput, the dominant player in the Kidswear industry walked away with the prestigious ‘Brand of the Year’ 2007 Award in the Kidswear category at the APEX Awards organised by the Clothing Manufacturers Association of India (CMAI).

This Rs 182-crore kids apparel brand currently has 135 exclusive outlets, over 105 large format multi-brand outlets and more than 450 point of sales. Lilliput now has presence in Bahrain and China and will expand by opening 50 stores in West Asia and 100 stores in China by 2010-11.

Target Segment Primarily aimed at 0-11 years age group

which caters to middle and premium segment.

Products It manufactures all kinds of knitted and

woven garments for girls as well as boys. It not only manufactures garment but creates and develops them.

It invests heavily on design and development of new garments every season with the help of international designers and its own team of merchandisers. The idea is to provide the buyers a wider choice in terms of designs, fabrics, trimmings and accessories. The brand also has plans to launch home furnishings for kids shortly.

Retail Formats Besides the exclusive stores the brand is

available in major chains like Shopper’s Stop, Westside, Lifestyle, Ebony, Pantaloons etc.

The brand plans to tap the potential of South India and intends to open more exclusive stores by 2010.

Lilliput has always been synonymous with quality, design and high-end kid apparels that satiate the fashion desires of the urban children and parents.

The Adventure wear ranges from shorts & capris to t-shirts & bermudas all available in earthy as well as bright colours.

The party wear is apt for the wedding and festive season making the little ones look more beautiful and elegant. It ranges from ethnic lehengas, party wear frocks for girls to sherwanis, jackets & trousers for boys.

The character wear includes character licensed clothing from the likes of movies as Bhoothnath, Incredible Hulk, Spiderman, Iron Man and many more.

The casual wear has a vast range from jeans, t-shirt, skirts, tops to choose from in the age group of 0-12 years.

Lilliput has launched their Spring-Summer '09 Collection. With a mood board ranging from adventure & sports to feminine frills & trims, classic indo western to capricious bling , Lilliput Spring-Summer' 09 is an exuberant concoction of colors, creativity and fashion.

Details of the Collection: Infant Boys, the collection themes range from Pirates, Cars

& Beachwear, Fun words, Sportswear, Animals, Cranes to Thomas The Engine & friends.

Infant Girls get to choose from Spring Olive, Spring Floral, Romantic Pink, Spring Red, Spring Mix n Match, Spring Pink and Denim.

Toddler Boys get a taste of the outdoors with Motor Bikes, Automobiles, Aqua and Tropical and Bob the Builder.

Toddler Girls can look pretty with Fuschia Fancy, Strawberry Punch, Orange Sizzle, Play with Peach, Floral Charm, Mauve Magic and Patch Passion

Junior Boys can have their pick from themes like Red Hoax, Skull, Marine, Racer, Mix n Match. They can further throw caution to the wind with Ben 10, No Rules & Marvel Heroes (Spider Man, The Hulk & Iron Man).

Junior Girls get to strut their stuff with themes like Colorful Butterfly, Bubblegum Pink, Chocolate Muffin, The Red Fever, Shimmer n Shine, Rainbow, True Blues, Powerpuff Girls and the premium party wear ensemble – The Glitterati Collection.