Development trend of children's clothing industry: brand pattern is forming

- May 13, 2019-

    In recent years, the development speed of children's wear industry has been ahead of men's wear and women's wear, and the growth gap is gradually expanding.From 2013 to 2019, the compound growth rate of the market size of the domestic children's clothing industry reached 9.68%, exceeding the 21.17 PCT of the men's clothing industry and the 17.54 PCT of the women's clothing industry.According to the forecast, under the background that the children's clothing industry is in the growth stage of the clothing life cycle, the compound growth rate of the industry will remain at about 14% in the next three years, and the market size will reach 266.5 billion yuan by 2020.

    The birth encouragement policy has accelerated the upward trend of the birth rate in China. From 2013 to 2019, the birth rate in China increased from 12.08‰ to 12.43‰.The proportion of people aged 0-14 in China also increased year by year, from 16.4% in 2013 to 16.78% in 2017, reaching 233 million, an increase of 19 million compared with 2016.As the "two-child boom" continues to heat up, it is expected that the number of people aged 0-14 will still steadily increase, thus laying a solid population foundation for children's clothing demand.In addition, the update frequency of children's clothing is higher and the characteristics of rigid demand is conducive to the accelerated growth of children's clothing consumption volume.

    The domestic children's clothing industry is still in the growth stage, with the compound growth rate of the market size as high as 9.68% in the past four years. By the end of 2019, the absolute volume has reached 26.6 billion us dollars, far exceeding other countries and second only to the United States.However, the ceiling of the domestic children's clothing industry is far from being reached: the per capita consumption expenditure of Japan, the United States and the United Kingdom has reached 57.8/98.2/117.4 usd respectively, while the domestic consumption expenditure is only 19.2 usd. In comparison, the per capita consumption expenditure of children's clothing in China still has great room for improvement.In the long run, with the release of the "two-child economy" and "consumption upgrading" dividend, the per capita consumption expenditure of domestic children's clothing is expected to continue to increase, thus driving the overall growth of children's clothing consumption, which is good for domestic listed children's clothing companies from the demand side.

    China's children's wear market has entered a period of rapid growth, but the scale of children's wear enterprises is generally small, the market share and competitiveness of a single brand is limited.At the same time, changes in consumer demand lead to increasingly complex competitive components, market competition pressure accelerated the depth of children's wear market segmentation, but also narrowed the market space of a single brand.In this industry background, children's wear enterprises must be innovative thinking to meet the challenge, deep excavation.

    Brand pattern gradually formed.Monopolized national children's clothing brand, strong regional brand, agent brand and retailer brand will appear soon.The brand forms the echelon pattern from the region, the class, the style type and so on many levels.To this, children's wear enterprises must be accurate positioning, clear brand development direction.The first-tier market will be divided equally between domestic powerful and competitive local brands and foreign high-end brands, so as to break the current pattern of foreign brands dominating the first-tier market.Second and third-tier brands will be dominated by local mass brands or regional brands with unique scale.The wholesale market will appear excellent quality, pay attention to the brand image of the wholesale brand.

     Lean enterprise operations and terminal operations.Children's wear enterprises to focus on the rapid response of the terminal and profitability.The terminal marketing model presents a three-dimensional cross situation, which not only includes department stores, street stores, supermarket stores, multi-brand stores, but also keeps emerging "one-stop" children's commodities shopping life hall and experience hall.At the same time, e-commerce has also become the main means of sales.

    Brand integration marketing into the trend.Brand not only through the terminal and consumer interaction, but also through animation and cartoon marketing, Internet marketing, fast fashion marketing, experience marketing, custom marketing and other integrated marketing means to spread brand culture, enhance brand image.Children's clothing enterprises must integrate advantages and develop in a diversified way.

     Quality becomes the foundation of enterprise survival.In the future, children's wear enterprises should more actively integrate into the "low-carbon era", adopt green raw and auxiliary materials, strive to make children's wear more environmentally friendly and healthy, and take the initiative to study the physiological and psychological characteristics of children's growth, and strive to interpret children's needs through brands and products.

    High-end brands are still the focus of children's wear sales in cities, especially in large retail enterprises. The advantage of leading brands in children's wear sales is not very obvious, and the gap between brands is not large.Foreign and joint-venture brands are more expensive, but they are still popular in large department stores.

     Finally, from the perspective of the consumer audience of children's clothing market, the main force is mainly composed of post-80s parents, and it will spread to the post-90s parents in the next few years.At this point, the typical "6+1" family structure appears more and more.That is to say, the current children captured the whole society and family unprecedented attention, and children's wear market also from the basic wear practical to the pursuit of fashion and beautiful brand change.