How Online Retailers have Succeeded in Baby Apparel Category

The baby fashion sector has more than tripled in size in the last year, as a half-dozen big stores and brands have introduced newborn clothes in recent quarters to capitalize on the rising move away from the unorganized market.

Companies such as Flipkart, Puma India Myntra, and Amazon have developed specialized infant lines for children up to the age of two, as well as new-parent programs, and have on-boarded additional baby brands that largely sell in tier 2 and tier 3 cities.

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Factors Contributing to the Market Growth

Baby clothing such as rompers, jumpsuits, gowns, and innerwear was traditionally purchased from tiny merchants in India, whereas branded items were acquired by the rich. The proclivity to purchase branded garments with the rise of dual-income households, the aspiration of millennial parents to wear brands and want their babies to keep up with the latest trends and the social media fad that has new parents wanting to make babies look their best for photographs have all contributed to the market’s growth.

Growth of Baby Apparel Category

With an estimated 120 million children in the 0-4 year age bracket in India, merchants think the growth rate of the infant-wear business is now paralleling that of the kidswear market. As a result of the large consumer base, tiny clothing is a significant business for merchants.

Baby clothing (0-2 years) has an estimated shelf life of six months, which is fewer than that of the youngster’s sector (3-14 years). Babies outgrow their clothing rapidly, which causes parents to purchase more frequently, generating a pull factor for ecommerce businesses.

Baby fashion sales are increasing at a rate of 100 percent year on year (YoY). Tier 2 and Tier 3 cities have been important development drivers, with Karnataka, Maharashtra, West Bengal, and Uttar Pradesh ranking among the top markets.

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Major Growth Drivers in Baby Apparel Category

This year, Myntra Jabong received a lot of attention in the newborn category. When compared to the previous year, they saw a three-digit increase in both the newborn and toddler categories throughout the first half of the year. They discovered that tier 2 and above accounted for more than 55% of all sales. These markets are projected to fuel this segment’s future growth.

Myntra, which has 40 dedicated brands and 100 national labels that feature infant apparel in its assortment, plans to add dedicated organic clothing brands and a winter collection for newborns in the near future.

During festivities, Walmart-owned Flipkart observed a 2X increase in ethnic and festive apparel for children. To expand up the kidswear market across tiers, the portal, which offers dedicated brands such as US Polo, Gini & Jony, Crocs, and private newborn label Miss & Chief, introduced a parents club programs for further encouraging parents to shop.

 Many foreign companies, such as Gap, Zara, Carter, and Mothercare, have entered India in recent years, owing to the segment’s growth potential.

The infant clothes market is mainly unorganized, with little brand differentiation and dominated by seller brands. Amazon continues to have a good overlap of clients from their consumables and baby items businesses, and so it remains a major opportunity for them.

In February, Puma India released an omnichannel baby and toddler range for children aged 0 to 3 years, which included joggers, newborn sets, and cushioned coats. In the coming season, it intends to create a shop-in-shops for children as well as an infant collection.

Arvind Fashions, which is responsible for getting in dedicated brands like Baby Gap, The Children’s Place, and a proprietary label called Donuts Kids Clothing, has had strong gifting sales. While the retailer acknowledges that the unorganized sector continues to drive a major share in India, it is optimistic about the future of the branded area.

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