LONDON--(BUSINESS WIRE)--Technavio’s latest global children’s wear market report highlights three key emerging trends predicted to impact market growth through 2019. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.
“Increased spending by baby boomers is predicted to significantly impact the global children’s wear market until 2019. Consumer spending on children's wear is increasing worldwide. In 2014, the average family spending in developed countries accounted for approximately USD 105 annually on children's clothing needs. Growing disposable income in developed countries is another reason for the increase in spending on children's wear. The availability of designer children's clothing and footwear is has also increased consumer spending on children's wear and this trend will likely continue over the forecast period,” said Vijay Sarathi, one of Technavio’s lead industry analysts for apparel and textiles research.
“Globally, it is also estimated that baby boomers spend more on expensive and luxurious products. In the US, baby boomers accounted for close to 70% of the total disposable income and their daily spending increased at a CAGR of 13.81% from 2009 and reached USD 105 in 2014. It is also estimated that baby boomers in the US will spend close to USD 35 billion on their grandchildren in 2015.”
Technavio’s market research study identifies the following three emerging trends that are expected to propel the growth of the global children’s wear market:
- Demand for luxury children's wear in developed economies
- Growth of online retailing
- Growth in organized retail
Demand for luxury children's wear in developed economies
Children’s wear is not restricted to only comfort dressing but is evolving into fashion clothing. Fashion-consciousness among children in developed economies like the Americas and Europe has increased significantly over the past decade. It is largely driven by increased fashion consciousness of parents in developed economies.
Rising income has also played a major role in fueling the demand for luxury children's wear. The UK's household disposable income increased by approximately 4% from the fourth quarter of 2014 to the first quarter of 2015. In 2014, the personal disposable income in the US increased by approximately 2.5% compared to 2013. The growing desire among children, especially in high-income households, in developed countries to follow the latest fashion trends. To cater to their needs, leading retail clothing companies like H&M and Zara have tasted success in replicating adult designs for their children’s range. Luxury brands such as Burberry and Dolce&Gabbana are also investing in premium children's wear. The growing demand for luxury children's wear in developed economies is therefore expected to significantly support the growth of global children's wear market during the forecast period.
Growth of online retailing
With a steady year-on-year increase in the number of internet users, the global children’s wear market is witness a growing demand for faster shipping, and it will continue to be a key trend during the forecast period. Easy access to smartphones and rise in the use of e-banking have made the online channel popular.
Low prices and discounts are other factors expected to further drive the popularity of these platforms over the next four years. In 2014, the global online retailing market accounted for close to 6% of the total retail sales, and it is expected to reach almost 9% by 2018. Market vendors have reaped immense benefits from the online channel and have increased their customer base to a considerable extent. This trend will likely continue and boost the sales of children’s wear products until 2019.
Growth in organized retail
The retail sector in developing countries such as China, India, and Brazil is undergoing rapid transition with the rise of organized retail. Organized retailers like specialty stores and supermarkets provide a large number of products under one roof and it help customers save significant time. In 2014, organized retail accounted for close to 8% of the total retail expenditure in India, of which the apparel segment accounted for 35% of the total sales. Therefore, the transformation of unorganized retail into an organized one is predicted to have a far-reaching impact on manufacturers and retailers of branded apparel during the forecast period. Some examples of popular department stores selling children’s wear are Macy’s in the US, F&F in Korea, and Shoppers Stop in India. Mom & Me, FirstCry, and Kiddicare have emerged as popular specialist stores for children’s merchandise and this trend is expected to encourage many other vendors to venture into the market during the forecast period.
Browse related reports:
-- Baby Clothing Market in the US 2015-2019
-- Children’s Footwear Market In China 2015-2019
-- Global Baby Electronic Toys Market 2015-2019
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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