The kids apparel market in India is expected to reach a whopping Rs 80,000 crore by 2015, up from the current level of Rs 38,000 crore, according to a recent study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). The segment, as per the Assocham study is growing at a CAGR of 20 per cent.

Interestingly, the study says that mothers are now spending enormous amounts on clothing for their children as they believe that the way a kid is dressed is often a reflection of the parents’ sense of style.

Leading players in kidswear segment — both online and in brick and mortar space - are latching on to the huge opportunity that unfolds with the opening up of smaller towns, tier II, tier III cities and the expansion of e-commerce platform.

“We are targeting a 360 degree growth plan through e-commerce portals, as well as exclusive brand outlets across cities. We are creating a presence through partnerships with large format stores,” Anil Lakhani, executive director, Gini & Jony, told Financial Chronicle.

Said Amurto Basuray, MD, Olive Tree Retail, which runs 17 Puma and Chicco’s franchise outlets and online platform babeezworld.com, “All the major domestic brands have huge plans. Chains of stores selling kids brands are coming up across the country. We are primarily an online player selling Chicco apparels on our site. We will add more brands as we go along. We are also looking at brick & mortar outlets.”

The Assocham report has more good news for the branded players. It says that the branded children’s wear segment is presently worth Rs 4,000-5,000 crore and is growing at more than 25 per cent. But more importantly, the trend of buying kids apparel from small stores and street shops and not opting for branded garments is gradually changing.

Both Basuray and Lakhani admitted that the unorganised sector is a threat or at least it poses stiff competition to branded players. Lakhani subscribed to Assocham views and said, “There is a trend we are seeing where parents need assurance of good quality, which they get from branded products. Hence they do not mind spending on branded merchandise. Parents are also getting more conscious about the kids’ dressing, which is getting them to our stores.”

Sundeep Holani, CEO of Channelplay, a fast growing retail marketing company, covering 15,000 retail shops across the country, came up with a completely different view. “It is the branded sector which is a threat to the unorganised sector. There are three problems that have been identified in the unorganised sector:

z Persistent quality issues,

z This sector typically copies what branded players offer. This means they are not trendsetters, rather they are followers,

z With growing affluence, people have become more brand conscious as brand is a reflection of one’s taste and choice. In order to move up the ladder, people in the unorganised sector should start creating brands to cater to the requirement of the brand conscious buyers. The brands that should be created can be mid-level or high level,” he said.

Mukti, a home grown Indian brand is now expanding in C-level cities such as Bhatinda, Nagpur to give unorganised sector a run for their money, he mentioned.

When it comes to brand building targets, Holani said that parents (being the decision makers) are being targeted for various brand building exercises. The kids are far away from the advertisements posed in print media but can at times relate to the ads in the TV.

Lakhani, however, felt, “This is a peculiar market, where the buying audience and consuming audience is different. The communication is towards both the audience, as the kid is increasing becoming an influencer in making the buying decision.”

Basuray also said if products are for infants, parents are targeted. But kids of say 6 years and above are exercising their choice now. Hence, for products of this age group, kids in addition to parents, will be targeted.