Kids' Wear Market in India 2022

Market insights:

In 2021, the Indian kids’ apparel segment expanded the most as compared to the overall clothing market. Manufacturers use flashy material to keep up with the latest fashion trends. Local and unorganized businesses dominate the market for children's clothing in India. This will provide opportunities for organized players to establish a firm foothold to increase their presence in the market. In FY 2017, the kids’ clothing market in India was valued at INR 669.04 Bn. It was worth INR 1,413.97 Bn in FY 2021 and expanded at a CAGR of ~20.57% during the FY 2017 - FY 2021 period.

Cotton is used the most in children's apparel. It is used to manufacture around 86 % of the clothing worn by children. In India, the branded segment for kid's apparel is still at a nascent stage, with only a few domestic and international brands operating in it. Major market players for banded kids’ apparel including companies such as Ruff Kids, Ruff Baby, Gini & Jony, ZAPP, Li'lTomatoes, and Weekender Kids, are expected to reach revenue of INR 10 Bn by the end of 2022.

Impact of COVID-19:

During the April 2021 - June 2021 lockdown, the sale of children's apparel increased, both, at physical stores and from online retailers. Following the relaxation of the lockdown restrictions, companies such as Arvind Fashions, Flipkart, Amazon, Madura Fashion & Lifestyle, Puma, and Myntra saw increase in their sales volume. Since kids outgrow their clothes very fast, parents in both tier-I and tier-II cities made more online purchases of kids’ wear during April - June 2021.

In late July 2022, malls and shopping centers were allowed to open (partially) while following stringent regulatory guidelines. Despite that, sales on Flipkart, Amazon, and Myntra surged because demand for infants’ clothes continued to increase. This was on account of attractive offers and variety in terms of options.

Before the lockdown period, Myntra's sale of children's clothing increased by three times. The most popular type of clothing was infants’ clothing. The average bill value of overall customers increased, with most prioritizing children's requirements and daily essentials. Summer clothing and newborns’ walking shoes were in high demand during April - June 2021.