The market for baby and kids is a huge one in India, given that one-fourth of the Indian population is below sixteen years of age. The Indian market offers huge growth potential in the baby and kids segment, riding on the fact that India is one of the youngest nations in the world—29% of its 1.2 billion population is under 14 years, according to the World Bank. This makes India an attractive market for brands.
The baby and Kids market in India primarily comprises Apparel, Footwear, School Supplies, Baby Care Products, Eyewear and Toys.
While globally the 8-12 years old category tends to sell the most, in India the 0-2 years old category has the maximum buyers. The rise of kids wear and related accessories in India has attracted both domestic and international players like Lilliput, Gini & Jony, Chicco, Mom & Me, Mothercare and Pigeon in the industry. To further get into this highly lucrative segment, many exclusive children's brands have also expanded their presence exponentially in last couple of years. The brands are also going in for franchise for expansion. They work with partner brands to establish their presence in different parts of India through an extensive retail and distribution network.
Children today have become a very important demographic segment for the Indian marketers. Since there are a few brands in the category, the segment remains largely untapped. Parents who have been classified as “baby boomers” are spending a large amount of money on their kids – whether it’s apparel, shoes, eyewear, toys or school supplies. These parents typically fall in the age group of 28-40 years hailing from metro cities and tier II cities. They are well travelled and informed about latest trends which is also a major driver in this segment.
The high growth potential in the Baby and Kids segment can be attributed to factors such as rising incomes, urbanisation, availability of multiple options, brand awareness and availability of multiple options at discounted prices at the click of a mouse.
It is not just the offline stores that are thriving – there are specialised e-commerce firms for kids that are doing awesome business. Websites like Firstcry, Hopscotch and Babyoye are some of the renowned brands that are offering lucrative online opportunities, especially in the Baby and Kids segment. According to a report by the Internet and Mobile Association of India, out of the total Internet population, 75 percent (i.e. 9 million) consists of youngsters. Out of this, 1.9 million users are kids and this segment has been experiencing a substantial 70 percent year on-year (YOY) growth. Significantly, the baby and kids segment has generated a lot of interest after the emergence of multi-retail e-commerce firms such as Amazon, FlipKart, Snapdeal, Jabong, etc. With thousands of products from multiple brands, and great discounts mostly on offer, parents and kids always have some reason or the other to go for the best buy of their choice, depending on their budget, need and advise from their near and dear ones.