CHILDRENSWEAR IN INDIA

Euromonitor International
August 2013

CHI L DRE NS WE A R I N I ND I A P a s s p o r t I
E u r o mo n i t o r I n t e r n a t i o n a l
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 1
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 2
Table 1 Sales of Childrenswear by Category: Volume 2007-2012 ............................ 2
Table 2 Sales of Childrenswear by Category: Value 2007-2012 ............................... 3
Table 3 Sales of Childrenswear by Category: % Volume Growth 2007-2012 ........... 3
Table 4 Sales of Childrenswear by Category: % Value Growth 2007-2012 .............. 3
Table 5 Childrenswear Company Shares 2008-2012 ................................................ 3
Table 6 Childrenswear Brand Shares 2009-2012 ..................................................... 4
Table 7 Forecast Sales of Childrenswear by Category: Volume 2012-2017 ............. 4
Table 8 Forecast Sales of Childrenswear by Category: Value 2012-2017 ................ 4
Table 9 Forecast Sales of Childrenswear by Category: % Volume Growth
2012-2017 .................................................................................................... 5
Table 10 Forecast Sales of Childrenswear by Category: % Value Growth 2012-
2017 ............................................................................................................. 5


CHI L DRE NS WE A R I N I ND I A P a s s p o r t 1
E u r o mo n i t o r I n t e r n a t i o n a l
CHILDRENSWEAR IN INDIA


HEADLINES
Current value sales of childrenswear increase by 18% to reach Rs500.8 billion in 2012
Organic clothing and branded childrenswear are becoming popular across India
Baby and toddler wear sees the fastest value growth, up by 28% in 2012
Lilliput Kidswear Ltd is the category leader with a 2% value share in this fragmented market
area
Constant value sales of childrenswear are estimated to grow at a 12% CAGR over the
forecast period to reach Rs871 million


TRENDS
Current value sales of childrenswear increased by 18% to reach Rs500.8 billion in 2012.
Increasing disposable income in urban India is one of the factors aiding growth of
childrenswear in India. This, combined with the increase in number of retail outlets selling
branded clothing across major cities of India, is helping the growth of childrenswear in India.
Eco-friendly childrenswear is the latest trend in childrenswear and companies are focusing on
health concerns in the growing cities of India to grab market share. Branded apparel
manufacturers including Lilliput are already focusing on providing eco-friendly wear for
children and others are expected to follow them.
Birth rates are decreasing slightly in India year-on-year and do not have any impact on
childrenswear. Even as family sizes are becoming smaller, more working people have more
disposable income, thus are spending more on children aged 4-14 years old.
Value sales of baby and toddler wear grew by 28% in 2012 and it is the fastest-growing
category in childrenswear. The growth is mainly because of the rising disposable income and
growing environmental consciousness in metro areas. It is customary in India to buy an item
of clothing when going to meet a family with children. This tradition also helps the baby and
toddler wear category to grow.
Value sales of boys clothing grew by 20% while girls clothing grew by 13% in 2012. The
growth is mainly due to the increase in dressing options in India. New designs, shades and
organic clothing also boosted sales of childrenswear for the boys and girls.
In childrenswear, there is increasing availability of ethnic wear for children, to dress them up
for various occasions. This has also led to an increase in sales of childrenswear in India.
Children make up 22% of the total Indian population, which has a positive impact on the
childrenswear category, as demand for childrenswear is potentially much stronger compared
to that for mens and womens clothing in India. Children usually need a number of different
changes of clothes in a day; hence parents do not usually stop at buying a couple of pairs of
items for their child.
Increasingly, many retailers are stocking childrenswear in India. Parents tend to buy clothing
for children with new designs, shapes and shades


COMPETITIVE LANDSCAPE
Lilliput Kidswear Ltd is the category leader with a 2% value share in a fragmented market
area, wherein 95% of sales are accounted for by others. Wider presence with different store
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formats for childrenswear makes Lilliput the leader. Gini & Jony Ltd is ranked second with a
1% value share.
The presence of international brands is negligible and is limited only to metro cities around
India. Recently Tommy Hilfiger and Armani junior launched childrenswear lines in India.
Furthermore, the market is dominated by domestic players that have much wider presence
and control over the market than international players. Local knowledge and the ability to
respond to the local culture and tastes have made the domestic players successful.
According to trade interview sources, approximately 7% of childrenswear value sales are
generated through mother and baby specialist retailers and the leading retailing brand is Mom
& Me.


PROSPECTS
Constant value sales of childrenswear are estimated to grow at a 12% CAGR over the
forecast period to reach Rs871 million. Increasing advertising and branding across major
cities of India will drive the sales of childrenswear during the forecast period. The increase in
modern retailing across the cities in India will also drive the sales of childrenswear because of
increasing options and availability of brands.
The forecast growth rate will be comparable to the review period current value growth. The
increasing incidence of double-incomes in families and the wider presence of brands will
increase sales during the forecast period.
There is no major threat in the near future as the domestic branded apparel manufacturers
are appealing to consumers with new designs and shades.
It is expected that over the forecast period, eco-friendly childrenswear will be more widely
available. New players entering childrenswear are also expected to launch eco-friendly
products. Furthermore, the established players like Benetton India Pvt Ltd have already
started catering to demand for eco-friendly childrenswear.
Baby and toddler wear will continue to see the fastest growth over the forecast, with constant
value sales expected to increase at a CAGR of 17%. This is because babies will grow and
move into toddlers age category and will need larger sizes of clothing continually. The normal
culture in India is to gift new clothes for babies. Both of these factors will drive the category.
Constant value sales of boys and girls clothing are expected to see CAGRs of 13% and 7%,
respectively over the forecast period. This is mainly because in India, the median age is 25
years old and most of them are children aged from 4-14 years old.
More domestic and international players may enter childrenswear in India in the near future.
International brands such as Tommy Hilfiger and Armani have already entered this market
and others are expected to follow.


CATEGORY DATA

Table 1 Sales of Childrenswear by Category: Volume 2007-2012

mn units
2007 2008 2009 2010 2011 2012

Baby and Toddler Wear 161.2 187.2 217.5 253.0 293.5 343.3
Boys' Clothing 432.0 486.0 547.3 616.8 684.6 766.7
Girls' Clothing 332.5 360.1 390.8 424.8 463.0 509.2
Childrenswear 925.8 1,033.4 1,155.6 1,294.5 1,441.0 1,619.3
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Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 2 Sales of Childrenswear by Category: Value 2007-2012

Rs bn
2007 2008 2009 2010 2011 2012

Baby and Toddler Wear 18.7 22.9 28.2 34.8 45.2 57.9
Boys' Clothing 114.8 135.5 159.2 187.9 226.4 271.6
Girls' Clothing 89.5 102.5 117.5 134.7 151.6 171.3
Childrenswear 223.0 260.9 304.8 357.4 423.2 500.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 3 Sales of Childrenswear by Category: % Volume Growth 2007-2012

% volume growth
2011/12 2007-12 CAGR 2007/12 Total

Baby and Toddler Wear 17.0 16.3 112.9
Boys' Clothing 12.0 12.2 77.5
Girls' Clothing 10.0 8.9 53.1
Childrenswear 12.4 11.8 74.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 4 Sales of Childrenswear by Category: % Value Growth 2007-2012

% current value growth
2011/12 2007-12 CAGR 2007/12 Total

Baby and Toddler Wear 28.0 25.4 209.6
Boys' Clothing 20.0 18.8 136.6
Girls' Clothing 13.0 13.9 91.3
Childrenswear 18.3 17.6 124.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 5 Childrenswear Company Shares 2008-2012

% retail value rsp
Company 2008 2009 2010 2011 2012

Lilliput Kidswear Ltd 1.0 1.0 1.1 1.6 2.0
Gini & Jony Ltd 0.8 0.8 1.0 1.0 1.1
Biba India Ltd 0.5 0.5 0.5 0.6 0.6
Catmoss Retail Ltd 0.3 0.2 0.4 0.4 0.5
Benetton India Pvt Ltd 0.3 0.2 0.3 0.3 0.3
Arvind Murjani Brands - - 0.2 0.2 0.3
Pvt Ltd
Aditya Birla Nuvo Ltd 0.1 0.1 0.2 0.2 0.2
Shopper's Stop Ltd 0.1 0.1 0.1 0.2 0.2
Primus Retail Pvt Ltd 0.2 0.2 0.2 0.2 0.2
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Trent Ltd 0.2 0.1 0.1 0.1 0.1
Gini & Jony Apparel Pvt - - - - -
Ltd
Others 96.5 96.7 96.0 95.3 94.6
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 6 Childrenswear Brand Shares 2009-2012

% retail value rsp
Brand Company 2009 2010 2011 2012

Lilliput Lilliput Kidswear Ltd 1.0 1.1 1.6 2.0
Gini & Jony Gini & Jony Ltd 0.8 1.0 1.0 1.1
Biba Biba India Ltd 0.5 0.5 0.6 0.6
Catmoss Catmoss Retail Ltd 0.2 0.4 0.4 0.5
United Colors of Benetton India Pvt Ltd 0.2 0.3 0.3 0.3
Benetton
Tommy Hilfiger Arvind Murjani Brands - 0.2 0.2 0.3
Pvt Ltd
Allen Solly Kidswear Aditya Birla Nuvo Ltd 0.1 0.2 0.2 0.2
Stop Shopper's Stop Ltd 0.1 0.1 0.2 0.2
Weekender Kids Primus Retail Pvt Ltd 0.2 0.2 0.2 0.2
Westside Trent Ltd 0.1 0.1 0.1 0.1
Gini & Jony Gini & Jony Apparel Pvt - - - -
Ltd
Others 96.7 96.0 95.3 94.6
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 7 Forecast Sales of Childrenswear by Category: Volume 2012-2017

mn units
2012 2013 2014 2015 2016 2017

Baby and Toddler Wear 343.3 398.3 461.2 533.1 615.2 707.5
Boys' Clothing 766.7 851.1 943.0 1,041.0 1,145.1 1,257.3
Girls' Clothing 509.2 559.1 612.8 671.0 734.1 800.2
Childrenswear 1,619.3 1,808.5 2,017.0 2,245.2 2,494.5 2,765.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 8 Forecast Sales of Childrenswear by Category: Value 2012-2017

Rs bn
2012 2013 2014 2015 2016 2017

Baby and Toddler Wear 57.9 69.5 82.0 95.1 109.3 124.7
Boys' Clothing 271.6 309.7 351.5 398.6 450.4 508.0
Girls' Clothing 171.3 178.6 189.9 203.3 220.0 238.4
Childrenswear 500.8 557.7 623.4 697.0 779.7 871.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
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Table 9 Forecast Sales of Childrenswear by Category: % Volume Growth 2012-2017

% volume growth
2016/17 2012-17 CAGR 2012/17 Total

Baby and Toddler Wear 15.0 15.6 106.1
Boys' Clothing 9.8 10.4 64.0
Girls' Clothing 9.0 9.5 57.1
Childrenswear 10.8 11.3 70.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 10 Forecast Sales of Childrenswear by Category: % Value Growth 2012-2017

% constant value growth
2012-17 CAGR 2012/17 TOTAL

Baby and Toddler Wear 16.6 115.3
Boys' Clothing 13.3 87.0
Girls' Clothing 6.8 39.2
Childrenswear 11.7 73.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources