• The Trend of the Kids Wear Market

The Trend of the Kids Wear Market (Part One)

With the opening of the two-child policy, the number of Chinese children will suddenly rise. In 2016, there were 480 million children aged between 0 and 16 in China and the annual consumption was 100 billion. The consumption demand for children's clothing is about 4 billion 600 million pieces per year. By 2018, the size of the children's clothing market is expected to reach 194 billion 100 million RMB. However, this figure was only about 116 billion 400 million RMB in 2013. From 2010 to 2016, the size of Chinese children's clothing market maintained 9.5% average growth rate per year. The Chinese kids wear market is the sub-industry with the most stable growth in the clothing industry.

The longer China joins the WTO, the more opportunities for China to show itself in the world. With the development of the economy and culture, the concept of brands is becoming more and more mature in Chinese consumption. In some developed areas, the consumer's demand for children's clothing tends to be fashionable and branded.

With more and more parents born in the 80s and 90s entering the consumption group of the children's clothing, this trend will become increasingly and especially obvious. Most of the new parents are the generation who grow up with brands, and pursuing the brand has become a habitual behavior for them.

At present, the world economy faces a downturn and China's inflation indexes rise all the way. The growth rate of the income always can not catch up with the growth rate of the price. Money is getting less and less valuable. Limited income has limited consumption, and parents can only try their best to save money. Among the families that have preschoolers in Chinese cities, 80% of them have the ordinary income; 10% of them are rich families and 10% of them are extremely poor families. 

That is to say, at present, ordinary consumption is the trend of kids wear for 90% of families who have preschoolers, which is the mainstream of the Chinese kids wear market. In fact, in this consumption area, the average age of the parents is between 25 and 32 years old. They basically work very hard for their careers and are in the early stage of entrepreneurship, so their economic conditions are not good. Every expense should be carefully calculated. Therefore, the consumption of the children's clothing in this field has the following characteristics. 

1. Parents can not buy too expensive children's clothing due to their limited incomes.
2. Parents need to buy children's clothing very often because of children's growth.
3. Parents want to buy beautiful children's clothing because of love for their children.
4. Parents want both the good quality and the low price.

The current children's clothing market can be divided into three grades roughly, namely the low-end market, the mid range and low-end market and the high-end market.

The low-end market is mainly wholesales kids wear, and kids wear is still in the stage of no brand, weak brand or regional small brand. The low-end market accounts for about 40% of the current market share of children's clothing. Low-end kids wear has relatively low prices, which mainly dominates urban and rural markets. The current low-end market disperse. There is a serious problem that the supply exceeds the demand. The low-end market is in a stage of a disordered competition. The high-end market is dominated by domestic famous kids wear brands, and the representative cartoon images are Mickey, Snoopy, Balabala, Pepco, etc. The high-end kids wear has characteristics of high price and good quality. The famous kids wear is made basically in China. The high price totally reflects the value of the brand.
 
kids wear