News: Indian apparel cos cash in on branded kidswear
(TNN 02/04/2006) Mumbai - No more kidding around. The untapped kidswear segment in India is fast gaining momentum. The retail blitz and higher disposable incomes have led to a surge in interest in branded children’s wear. This, along with high margins, has prompted companies to spin off their own brands in the segment.
According to Anil Lakhani, director, Giny & Jony, one of India’s oldest exclusive children’s wear brands, kids fashion is now being clubbed with the lifestyle segment, with higher standard of living and more families willing to spend on brands.
“Naturally, a number of apparel companies are dipping their fingers into the pie,” he said. Children’s wear constitutes 17% of the total Rs 43,000-crore apparel industry, or about Rs 7,310 crore, according to a study by KSA Technopak. Of this, the organised segment is only about 7% or over Rs 500 crore.
But the segment is growing rapidly at 10% per annum. Margins are in the range of 20-25% (for dealers and distributors), while companies enjoy an average gross margin of about 10%.
Pantaloon recently set up a JV with Giny & Jony under the name ‘Giny & Jony Future Fashions’. This company will be responsible for setting up all the exclusive brand outlets, seven of which are planned for the April-June ’06 quarter.
The company also has a licencee agreement with Levi’s to market ‘Levi’s Skyes Junior’ from May ’06. The Anil Dhirubhai Ambani Group has also picked up a 22% stake in the company.
Raymond, India’s largest textile and apparel entity, recently launched its kidswear brand Zapp! targeting 4-14 year olds, and plans to open 12 large format flagship stores in the next year.
According to Gautam Hari Singhania, CMD, Raymond, “With the launch of Zapp!, Raymond is increasing its presence in the apparel segment. Kidswear is one of the fastest growing segments in India and a natural fit into our overall growth strategy.”
Large retail stores like Shopper’s Stop, Westside, Globus, Lifestyle and Landmark have also increased their presence in this segment. ITC is looking at the segment through its apparel division, Wills Lifestyle.
Existing children’s brands are also sprucing up. Gokuldas Images, India’s largest garment exporter, is positive on the growth of its children’s wear brand, Weekender Kids.
Another children’s brand, the Rs 85-crore Ruff Kids, is aggressively expanding. With companies having stepped up their interest in the segment, more excitement is in store for tiny tots.
According to Anil Lakhani, director, Giny & Jony, one of India’s oldest exclusive children’s wear brands, kids fashion is now being clubbed with the lifestyle segment, with higher standard of living and more families willing to spend on brands.
“Naturally, a number of apparel companies are dipping their fingers into the pie,” he said. Children’s wear constitutes 17% of the total Rs 43,000-crore apparel industry, or about Rs 7,310 crore, according to a study by KSA Technopak. Of this, the organised segment is only about 7% or over Rs 500 crore.
But the segment is growing rapidly at 10% per annum. Margins are in the range of 20-25% (for dealers and distributors), while companies enjoy an average gross margin of about 10%.
Pantaloon recently set up a JV with Giny & Jony under the name ‘Giny & Jony Future Fashions’. This company will be responsible for setting up all the exclusive brand outlets, seven of which are planned for the April-June ’06 quarter.
The company also has a licencee agreement with Levi’s to market ‘Levi’s Skyes Junior’ from May ’06. The Anil Dhirubhai Ambani Group has also picked up a 22% stake in the company.
Raymond, India’s largest textile and apparel entity, recently launched its kidswear brand Zapp! targeting 4-14 year olds, and plans to open 12 large format flagship stores in the next year.
According to Gautam Hari Singhania, CMD, Raymond, “With the launch of Zapp!, Raymond is increasing its presence in the apparel segment. Kidswear is one of the fastest growing segments in India and a natural fit into our overall growth strategy.”
Large retail stores like Shopper’s Stop, Westside, Globus, Lifestyle and Landmark have also increased their presence in this segment. ITC is looking at the segment through its apparel division, Wills Lifestyle.
Existing children’s brands are also sprucing up. Gokuldas Images, India’s largest garment exporter, is positive on the growth of its children’s wear brand, Weekender Kids.
Another children’s brand, the Rs 85-crore Ruff Kids, is aggressively expanding. With companies having stepped up their interest in the segment, more excitement is in store for tiny tots.
posted by InCar Group Press Room at 23:56
0 Comments:
Post a Comment
<< Home