India Kids' Apparel and Footwear Market Outlook to 2020 : Ken Research

What Is The Scenario Of The Kids’ Apparel And Footwear Market In India?

Apparel and footwear products are one of the basic amenities and utility items in the list of parents for their kids. The apparel and footwear industry for kids in India has witnessed a healthy growth at a CAGR of ~% during FY’2010-FY’2015. Growing demand of kids’ apparel and footwear products, rising disposable income of parents, increasing brand awareness, growth in international brands and adoption of branded products by fashion savvy younger generations have all resulted in the incline of this market. Moreover, educational institutes prescribe a specific set of uniforms and shoes for summer/winter, regular and co curricular activities. This has also resulted in stupendous growth of the overall industry. The overall market grew from INR ~ billion in FY’2010 to INR ~ billion in FY’2015.

What Is The Potential Of Kids’ Footwear Market In India ?

• Footwear production in India has been majorly propagated through manual and semi-mechanized processes. India domestically produces leather and other raw materials at abundance. The footwear industry in India is comprised of numerous small and medium scale enterprises which have utilized leather as the prime raw material for footwear in over ~ leather based manufacturing units spread across the country. The kids’ footwear industry has been considered as one of the most steadily growing segments in the country. The industry has expanded at a CAGR of ~% during FY’2010-FY’2015 and registered revenues of INR ~ billion in FY’2015.

• Kids’ footwear industry has been largely an unorganized one, with organized brands comprising ~% of the overall market as of FY’2015. Products manufactured by local players are much in demand due to their lower costs. Higher bargaining and lower prices for the customers have provided a boost to the dominance of the unorganized sector. Higher availability of raw material in the country has allowed the unorganized sector to flourish by offering products at affordable prices. Bata Liberty, Lancer, Relaxo, Nike, Reebok and others have been the prominent players in the organized branded wear market amongst others. However, most of these brands are characterized by poor penetration in rural areas and have their presence only in the urban, tier I and tier II cities

What Are The Key Trends In India Kids’ Apparel Market ?

• The kids’ apparel industry in India has been considered as one of the fastest growing market in the apparel segment. During the period of FY’2010-FY’2015, the industry grew steadily at a CAGR of ~%. The market observed a number of key events which nurtured the growth of the industry in the country.

• India domestically produces cotton, silk, jute and other raw materials at abundance. The country ranks first in cotton and jute production in the world, second in silk production, fifth in man-made fibers and eighth in the total production of wool in the world. India has highest number of looms: ~ million handlooms (at around ~% of the global capacity) and ~ million shuttle looms (at ~% of the global capacity). It has the second highest number of spindles in the world with ~ million spindles (at ~% of the global capacity). Sales for kids’ apparel products increased from INR ~ billion in FY’2010 to INR ~ billion in FY’2015.

• In FY’2015, sales of boys’ apparel products accounted for a major portion of the kids’ apparel sales, such that it had contributed for about ~% of the total kids’ apparel sales. The high sales of boys’ apparel products as compared to girls’ apparel are due to higher population of boys in the country which led to more demand for boys centric products.

• Casual wear apparel products witnessed maximum demand by consumers and comprised ~% market share of the overall kids’ apparel industry in terms of revenues.

• Pure cotton is a very light fabric and quite difficult to do embroidery work in it so as to make it more appealing to the kids. Hence, blended form of cotton is used for the same as it is easier to care and less likely to shrink or wrinkle as compared to a garment made from pure cotton. In FY’2015, blended cotton was the most preferred fabric used for kids’ apparel with a share of around ~% in terms of revenue followed by wool, denim, polyester, nylon and others.

• Kids’ apparel market in India has been driven by the demand of non-recognized brands which manufacture garment products in local settings. Despite growing at a very healthy rate of ~% per annum during FY’2010-FY’2015, the organized players accounted for only ~% of the overall kids’ apparel market in FY’2015.

• Demand from urban cities accounted for about ~% of the kids’ apparel sales as compared to ~% from the rural areas in FY’2015. Delhi NCR, Mumbai, Chennai, Kolkata, Bangalore together contributed to about ~%of the total sales in FY’2015. Inhabitants of metro cities are believed to be much more aware about the latest fashion trends and brands and have higher personal disposable incomes. Mumbai and Delhi, owing to the huge number of people residing in these cities, were the top revenues generators. The former was responsible for ~% while the latter was responsible for ~% of the total sales.

What Are The Growth Prospects Of The Online Kids’ Apparel And Footwear Market In India?

• India has witnessed a steep rise in internet users since 2010 with a rapid adoption amongst young population. It was estimated that around ~% of the Indian population had known to access the internet by the end of 2015, a figure which inclined from approximately ~% in 2010. Although some e-commerce giants such as Flipkart, Amazon and Snapdeal have gained significant market traction in the past few years, specialty kidsweare-commerce companies have struggled to get going. Stiff competition in a niche market has resulted in perishing of some online portals while some has been acquired by rival companies; for instance, BabyOye acquired Hopoos. FirstCry, BabyOye and Hopscotch have emerged as the market leaders in single category kidswear segment.

Owing to the rise of internet facilities, a large number of entrepreneurs in the country will be encouraged to establish their ventures in the e-commerce sector. The competition in this sector is likely to intensify with the increase in number of online retail portals. Moreover, international player such as Flipkart and Amazon will increase investments to boost their presence in the local market which will also get high competition from specialized kids’ e-tailerssuch as FirstCry, Hopscotch, BabyOye and others. Amplified marketing and social media campaigns will allow these organizations to penetrate at a faster rate in the local Indian market. Moreover, with a large population of children and young aged parents and increasing media advertisement of online shopping, rising internet penetration the industry is expected to grow at a healthy growth rate. The high surge in internet users in the country is likely to drive the industry which is estimated to grow rapidly at a very healthy CAGR of ~% during FY’2016-FY’2020 and register sales of INR ~ billion by FY’2020

Key Factors Considered In The Report

• Comprehensive analysis of the apparel and footwear market and its segments

• Industry is presented by apparel and footwear; by end users and by manufacturers

• Listed major players and their positioning in the market

• Identified major industry developments in last few years and assess the future growth of the industry

• Regulatory framework help to understand investment opportunities and complexity involved

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