A brand new market report providing in-depth insight into childrenswear retailing in the UK. An exploration of market dynamics, expenditure and demographic trends, strategic issues and how the wider economy is impacting the childrenswear market
Description
INTRODUCTION
Verdict Retail forecasts the childrenswear market to grow by 1.7% in 2012, underperforming total clothing due to lower inflation. However, despite pressure on disposable incomes we expect the market to be the most resilient by volume. Parents are reluctant to cut back on childrenswear, purchases are more needs-driven and the market is value-driven allowing for high volumes - supporting volume recovery
FEATURES AND BENEFITS
Provides data and insight on market size, sales and growth rates for childrenswear, overall and at category level, helping to plan range development
Provides expenditure breakdown across the value, midmarket and premium sectors highlighting to you the areas which offer the most growth potential
Market issues are examined; the economy, demographic trends, polarisation and multichannel, improving your awareness of challenges and opportunities
Childrenswear expenditure forecast to 2015 and analysis of volume growth and inflation, aiding future planning and strategising
HIGHLIGHTS
While clothes shopping for their children is one area parents are reluctant to cut back on, the planned changes to child benefits in the UK, is likely to reduce consumers' discretionary spending on childrenswear unless they make further cost savings elsewhere. We expect spending cuts to fuel the ever growing popularity of value clothing retailers
Market growth is dependent on demographic changes such as birth rates and the average age of mothers. A forecast fall in the number of children aged under one between 2014 and 2016 will negatively affect the market, particularly in infantswear. However, women delaying starting a family will help drive expenditure as incomes are generally higher
In the last five years the value sector of the childrenswear market has become the largest proportion of consumer expenditure, overtaking the midmarket. The low prices offered by value players continue to resonate well with cash conscious shoppers and the premium market satisfies the demand for buying into luxury pieces - squeezing the midmarket
YOUR KEY QUESTIONS ANSWERED
How will the government spending cuts impact childrenswear expenditure and what can I do to encourage customers to purchase discretionary items?
What impact will Kiddicare have on the market and who is at risk from its expansion plans? How can I compete with their business strengths?
Which segments of the market offer the best growth potential? How is the premium/luxury sector performing considering restricted disposable incomes?
Which retailers will gain the most market share in 2012, and who are expected to be the greatest share losers and why?
Table of Contents
EXECUTIVE SUMMARY
Key findings
(Untitled sub-section)
Main conclusions
Childrenswear expenditure to grow 1.7% in 2012 up from 0.9% in 2011
Demographic changes impact future market growth
Value-driven nature of market to keep inflation low
Polarisation to continue
Back to school market dominates value sector
Premium and luxury retailers will extend presence in UK market
New entrant Kiddicare promises increased competition
Mainstream retailers target tween girls, but could do better ...
... and growth opportunities remain for boys tweenwear
Online has yet to be fully utilised by retailers
STRATEGIC OPPORTUNITIES
(Untitled section)
Encourage shoppers to spend despite limited disposable income
Justify price positioning
Maximise potential sales by taking advantage of mini me trend
Premium and luxury market will continue to grow
Adapt offer to meet the changing needs of tweens
Gaps remain in tween boyswear
Utilise technology to communicate and meet demands of customers
CHILDRENSWEAR MARKET
Market definition and analysis
Causes of polarisation in the childrenswear market
Clothing market spending trends
Dominance of value players shrinks childrenswear share of the clothing
market
Clothing market value
Childrenswear in context of the clothing market
Lower inflation causes childrenswear to underperform total clothing
Spending trends in childrenswear
Most resilient clothing sector by volumes ...
... as parents continue to buy into the sector
Birth rates will impact future growth
Older mothers contribute to a rise in spend per head in childrenswear
Declining household income will constrain recovery in 2012
Government spending cuts will impact ability to spend on childrenswear
Inflationary pressures kept at a minimum as price competition remains
intense
Market segmentation
Expenditure breakdown of childrenswear market
Market dominated by fashion focused clothing retailers
Luxury brands see childrenswear as a further growth avenue
Back to school market dominates the value sector
Kiddicare and its future impact on the rest of the childrenswear market
Morrisons' purchase of baby care specialist fuels growth in UK presence
Online innovation and customer service put it ahead of the rest
Threatens Mothercare's specialist dominance ...
... though clothing will be a tough market for Kiddicare to gain
authority in
Shift in tween market set to continue
Less desire for tween girl specialists
Boys tweenwear market provides growth opportunities
Utilising technology in childrenswear
Online channel allows retailers to build relationships with consumers
Limitations of online
Retailers should target specific age groups via online
MARKET SHARE ANALYSIS
Clothing market share methodology
Specialist share is depleted further
Next remains market leader, though Primark approaches the top
Winners and losers
Mothercare struggles to keep up - despite being the only specialist
Sainsbury's heads towards being in the top five alongside Asda & Tesco
Peacocks imminent store closures causes share to slide
COMPANY DATA COMPARISONS
(Untitled section)
Key UK operating statistics
APPENDIX
Definitions
Current prices
Inflation
Constant prices
Total growth
Volume growth
Abbreviations
Further reading
Ask the analyst
Verdict consulting
Disclaimer
TABLES
Table: Childrenswear market definition 2012
Table: Summary of clothing sectors 2012e
Table: Clothing market value and growth drivers 2002 - 12e
Table: Clothing market spending trends 2002 - 12e
Table: Childrenswear market value and growth drivers 2002 - 12e
Table: Childrenswear market inflation/deflation 2007 - 12e
Table: Price competitiveness of childrenswear back to school retailers,
February 2012
Table: Non-specialist childrenswear market shares 2007 - 12e
Table: Childrenswear retailers key UK operating statistics
Table: Childrenswear retailers key UK operating statistics continued
FIGURES
Figure: Polarisation in the childrenswear market 2012
Figure: Sector shares of the clothing market 2002 and 2012e
Figure: Childrenswear inflation/deflation, volume and value growth vs
clothing 2007 - 12e
Figure: Childrenswear expenditure 2001 - 11 and forecast to 2016
Figure: Motivations for spending on childrenswear 2012
Figure: UK births and y-o-y change % 2004 - 10
Figure: Forecast UK population of children under 1 year old and growth
2011 - 16
Figure: Childrenswear, girlswear, boyswear and infantswear volume growth
2011 - 16e
Figure: Childrenswear spend per head 2002 - 12
Figure: Spend per head in childrens, girls, boys and infantswear 2002 and
2012e
Figure: UK household disposable income vs volume growth in childrenswear
2009 - 15e
Figure: Child benefit cuts proposed for 2013
Figure: Methods to reduce impact of inflationary pressures
Figure: Childrenswear expenditure breakdown % 2007, 2012 and 2016
Figure: Positioning map of childrenswear players in the UK 2012
Figure: Mini-me trend adopted by celebrities like Nicole Richie and
Victoria Beckham 2012
Figure: Jennifer Lopez' children modelling for Gucci in its spring/summer
2011 campaign; Suri Cruise in a Burberry coat with Little Marc Jacobs shoes
April 2011
Figure: What is most important when buying school uniform, price or
quality? 2011
Figure: Tesco back to school girls dresses February 2012
Figure: Tesco Nativity Shepherd and Superman dress-up costumes, February
2012
Figure: Opening & closing price points for three key back to school
garments February 2012
Figure: Kiddicare store, Peterborough 2012
Figure: Strengths & threats of Kiddicare 2012
Figure: Kiddicare clothing offer 2012
Figure: Next Baby Boutique Blog, Love Parenting blog by Mamas & Papas,
February 2012
Figure: Kiddicare TV February 2012
Figure: Consumer online shopping barriers for retailers to overcome
Figure: Boden competition on Facebook, February 2012
Figure: Childrenswear Top 16 - childrenswear market shares 2007 and 2012e
Figure: Childrenswear Top 16 - childrenswear winners and losers 2012e on
2011
Figure: UK space growth vs sales growth 2011/12e
Figure: Childrenswear sales densities 2011/12e on 2010/11
