The domestic children's wear market has begun to change, showing a variety of characteristics, the picture shows the domestic women's MO&Co. parent company EPO Group launched the children's wear brand little MO&Co.
Children's wear has increasingly become the profit engine of domestic apparel brands. Now the industry is concerned about why this market is popular and what changes have taken place in the market structure?
In 2002, Senma launched Barabala, a children's wear brand targeting middle-class families, becoming the first adult apparel brand to launch a children's wear line. From the point of view of the market environment at the time, the move did not arouse too much turmoil. Unexpectedly, in recent years, Barabara has become the most popular brand in China's children's wear market, and revenue continues to grow steadily. In 2016, the children's business contributed more than 40% of the revenue to the Semir Group, reaching 5 billion yuan, an increase of 26.52% over the same period, and became the core profit engine of the group. According to public data, the brand products cover the clothing, children's shoes and accessories of children aged 0-16. In 2015, the total number of stores has exceeded 3,800.
Today, Barabara has become a household name, and many consumers do not even know that their parent company is the same Senma clothing that people are familiar with. Thanks to the steady growth of its children's wear business and the recovery of the casual wear business, Senma apparel achieved double growth in its net profit for the first quarter of 2017. During the period, the company achieved revenue of 2.067 billion yuan, a year-on-year increase of 7.47%; net profit of 2.52 100 million yuan, an increase of 3.16%.
Ten years after the launch of children's wear in Senma, the domestic apparel market suddenly set off a wave of children's wear. It is worth noting that this time, the children's wear market is not an independent children's wear brand, but several domestic apparel brands including Jiangnan Cloth, MO&Co. parent company EPO Group and Taiping Bird.
According to the 2016 CBME China Pregnancy and Child Consumer Market Survey Report, 40.4% of retailers have developed or plan to develop their own brand of children's wear, up 2.4% from 2015, becoming the second largest category of store sales.
The earliest layout of the children's wear market is Jiangnan Cloth JNBY (hereinafter referred to as JNBY). At the beginning of May 2013, JNBY's children's wear series first appeared in Hangzhou in the form of a separate counter. Last year, this business became the key support for Jiangnan Cloth's listing in Hong Kong last October. According to the brand, JNBY's idea of ​​launching independent children's wear stems from the good performance of the previous "Women's Wear + Children's Wear" mix. According to informed sources, JNBY spent a year experimenting and mixed children's clothing sales in more than 100 stores with annual sales of more than 5 million yuan. The experimental results were quite impressive, adding to the brand's confidence in opening children's clothing counters.
In less than six months, sales of the children's wear line have accounted for 10% of JNBY's overall sales. Li Lin, the founder of the brand, said in an interview with the media in 2015 that compared with children's wear, the growth of traditional business women's wear has slowed down with the overall market downturn. At present, the growth rate of the women's wear market is far less than before 2011.
After 2011, the number of JNBY stores did not increase significantly, but the performance of new children's clothing brands rose rapidly. Taking this opportunity, the brand stressed that the growth of stores in the future will rely more on the children's wear brand jnby by JNBY, and children's wear has become a very good new market for the group. Some people in the industry have revealed to the fashion headline network that the growth rate of children's wear jnby by JNBY in the short five-year period has shocked the industry. The overall sales performance has occupied about 25% of JNBY women's wear, and the profit is quite amazing, which is almost equal to its women's JNBY.
In addition to jnby by JNBY, the group's other children's wear brand Pengma also grew strongly. The brand Pengma has launched 41 stores for children aged 6 to 14 years old. Some of Pongma's shops are open to the existing children's wear line jnby by JNBY. The two brands seem to have a slightly different style, but the price is similar to the crowd. In the second half of last year, Jiangnan Cloth's children's wear growth rate recorded nearly 60%, far exceeding the growth rate of men's wear and women's wear.
MO&Co. also followed the launch of the children's wear brand little MO&Co. on July 21 last year. Its parent company, Guangzhou-based EPO, also announced the development of group multi-brand. According to the brand's public information, little MO&Co. continues the design of MO&Co. It has a cool and interesting design style, and emphasizes that children's wear products mainly use natural skin-friendly fabrics.
MO&Co. has two main motives for launching the children's wear brand. One is the multi-brand matrix strategy of EPO Group. It hopes to create a multi-dimensional brand portfolio synergy through fashion, beauty and children's wear, attracting a larger consumer group and satisfying more. Many different ages and genders of consumer demand. Different from other children's wear promotion strategies, little MO&Co. is building a Cool Kids development plan to meet the emotional needs of mothers. It has been on the market for less than one year, and has launched skateboarding activities across the country to quickly attract young mothers to promote the children's wear market under the influence of social influence.
This month, the group launched the men's brand COMMON GENDER, and will launch the full line of autumn and winter products in August 2018. EPO Group has already revealed its ambition to create a multi-brand complete matrix from fashion to lifestyle. The group has four members including MOB Co., a women's fashion brand, MO&Co. Edition10, a children's wear brand, and a makeup brand. REC. The second motivation is based on changes in social patterns and market trends. Brand founder Jenny Kim believes that with the dynamic growth of the social population, the improvement of people's consumption power and the maturity of brand concepts, the children's wear market has full potential.
In order to expand a wider customer base, the multi-brand matrix strategy has become a common development direction for domestic apparel groups, and the children's wear business has become an important part of the matrix. Another major domestic apparel group, the Pacific Birds, also owns the children's wear business. The five major brands currently include PEACEBIRD WOMAN, PEACEBIRD MEN, LED'IN Rakucho, MATERIALGIRL and children's wear Mini Peace.
Mini Peace also confirmed the status of the children's wear engine in the future development of the brand's profit engine. In the fiscal year ended December 31, 2016, Mini Peace's children's wear brand sales rose 65.91% from the previous fiscal year to 516 million yuan, and gross profit increased 63.4% year-on-year to 277 million yuan. Taiping Bird believes that the rapid growth of children's wear performance is the key to the company's overall profitability.
If the advantages of Jiangnan Cloth, MO&Co. and Taiping Bird Development Children's Wear brand are mainly to extend the design style of major brands to the children's wear line, to exert synergy and meet the ever-changing needs of the consumer groups, then the sports brand Li Ning's advantage in launching the children's wear business is It is functional.
In 2016, Li Ning and Tencent QQ IOT jointly launched a children's smart positioning shoes, from the perspective of smart wearable devices to force children's wear. This month, Li Ning Company (02331.HK) also announced the adjustment of the children's wear business, starting next year to promote the new brand "Li Ning YOUNG". In view of the prospects for the children's wear market, Li Ning plans to take back the agency rights of its children's wear brand and increase its investment in the children's wear business. At the 2018 spring trade fair held recently, Li Ning revealed that it will officially launch its own children's wear brand Li Ning YOUNG on January 1, 2018. It is expected that the number of stores will be around 500 next year, and more than 60% will be distributed in second- and third-tier cities.
Due to the excellent functional design of the sports brand, consumers often trust the sports brand children's wear line, so the sports brand launches children's wear has the "innate" advantage. In the current children's wear market, there are many children's wear brands with a market share that are derived from sports brands. According to a data from the China Business Federation in 2015, Adidas and Nike ranked second and third in children's wear, while domestic sports brand Anta ranked sixth, with a market share of 1.94%.
Obviously, the growth rate of children's wear has been higher than the traditional men's and women's wear business, and this market has become a new growth point for domestic apparel brands. So why is the development of children's wear so fast?
First, after nearly 30 years of development, the domestic apparel group is experiencing changes in consumers and their needs. For example, JNBY claims that its motivation for launching a children's wear line is the change in the brand's loyal consumer base. At present, JNBY members have exceeded 1 million. Many VIP guests of JNBY have grown up with the brand and converted into the role of mother. They have begun to demand the purchase of children's wear.
Little MO&Co. also began to choose to build the store inside the MO&Co. store, trying to satisfy the shopping needs of many “mother†consumers in the form of a mixed store, providing one-stop shopping. With the continuous upgrading of domestic apparel brands, most of the stable consumers who have grown up with the brand have grown into consumers who pursue high-quality products and lives. In the process of rejuvenating domestic apparel brands, more parents from the 80s and 90s have become consumers of these brands. Most of them are only children, they are well-educated, and they also advocate high-quality consumption and pay attention to the characteristics of the brand. This group will create more opportunities for the development of the fashion children's clothing industry.
The second is the change in the policy environment and social environment. According to the scale and forecast data of the third-hand data CIC company's China apparel market submitted by JNBY Jiangnan Cloth, the size of China's children's wear market has increased significantly from RMB 82.7 billion in 2011 to RMB 157.1 billion in 2015. During the period, the compound annual growth rate was 17.4%, demonstrating that the market is booming and has potential in the future. From 2011 to 2015, the per capita expenditure of children's wear increased significantly from RMB 367.4 in 2011 to RMB 678.6 in 2015, with a compound annual growth rate of 16.6%.
In view of the strong development momentum of high-end and mid-end children's wear brands, it is expected that the average per capita clothing expenditure of Chinese children will increase more rapidly in the short term. The implementation of the two-child policy is expected to be a driving factor for the continued development of the Chinese children's wear market. As a result, the average clothing expenditure of newborn babies is expected to increase, especially for wealthier families in more developed cities.
Analysts said that China's social complex factors, including the early opening of the second birth of the Chinese government, the late birth and late birth of parents, the increase in the financial situation, and the love of the ancestors to their grandchildren, will help promote the rapid growth of the children's wear industry. In the past few years, including a series of luxury brands, they have begun to design clothing for younger consumers. Fashionbi CEO Ambika Zutshi said: "Today, parents will not hesitate to give their children the best."
The third is the stable nature of the children's wear business. Because children's clothing is a rigid demand, the growth of the children's clothing market is not affected by economic fluctuations, and the high-end children's apparel market has more potential.
Because of this, the already mature overseas children's wear market is still growing strongly. In 2015, the US children's wear market is expected to reach US$156.8 billion. By 2017, the UK children's wear market is expected to climb to approximately US$8.5 billion. Even if stock volatility and fashion retail are sluggish, market growth for such commodities is not expected to slow. British luxury goods group Burberry 2016 financial report shows that children's wear sales rose 18% from 2015 to 50 million pounds. Star designer Victoria Beckham also said in an interview that she thinks that children's wear is the second biggest brand worth investing in. The dress of her daughter, Seven, has always been the focus of public opinion.
Interestingly, the media also looks at the advertising potential of children's wear business. Hypebeast, the trend website, recently announced the launch of the children's wear channel Hypekids, which also confirms that children's wear is becoming a new market that cannot be ignored. Hypebeast Group said that due to the increasing age range of the audience, Hyeckids, the children's wear channel, has already met the needs of users, and Kids Foot Locker will be the sponsor of the channel. The channel will include news and trend stories between the designer and children, Hypebeast of electronic business platform will also be on the line HBX more children's apparel products.
However, it is worth noting that the increasingly popular children's wear market has also brought more intense competition. Senma clothing, which is located in the head of the children's wear industry, has begun to upgrade its industry. It not only has Barabara, but also launched a one-stop all-in-one apparel category for children aged 0-7 in 2013. Marcolor Mackay, children's overall styling and expert brand dreams Mondododo, at the same time introduced the Italian sales business of the luxury children's wear brand salabanda of Italy's beautiful club Miniconf spa, the ultimate goal is to build a children's entire industry chain.
On June 1 this year, Annai was successfully listed as the first share of A-share children's wear, with a market capitalization of 2.5 billion. Annai is a private label clothing company specializing in the high-end children's wear business. It owns the "Annil Ann's" children's wear brand. The company's products cover two major categories of children's wear and children's wear. According to 2015 data, Annai ranks fourth in the Chinese children's wear market with a market share of 3.34%.
Overall, whether it is the little MO&Co., jnby by JNBY and Mini Peace with the background of adult clothing brand, it is the first brand of children's clothing, Parabar, which is the first brand of children's clothing. The domestic children's wear market has begun to show diversified characteristics. In this segment that is not “freshâ€, opportunities have quietly begun with challenges.
Baby Product,Solid Swaddling Quilt,Children'S Quilt,Swaddle Blankets
Hengshui Dahan Textiles Co.,Ltd. , https://www.dh-towel.com