According to the world clothing and footwear network, in recent years, with the liberalization of China’s second-child policy, the number of children aged 0-14 will continue to grow rapidly. The number of infants and children who continue to grow has also brought more imagination to the children's wear market. According to relevant data, the size of China's children's wear market has reached 150 billion in 2016. And it is predicted that by 2020, the size of China's children's wear market will exceed 280 billion yuan.
With the expansion of potential consumption, the vitality of the children's wear market has been thoroughly stimulated. In order to cater to the trend of consumption upgrading, more and more brands have begun to enter the children's consumer market. This effect continues to ferment and has shown explosive growth in 2017. Therefore, 2017 was also referred to by the industry as “the first year of the outbreak of children's wear marketâ€.
Li Ning began to "grab" the children of this big cake
The city beauty who started from underwear has to enter the children's wear market. The 361-degree children's wear that started sports has sold the best. Now Li Ning is also going to divide the big cake for children's wear.
At the 2018 spring trade fair held recently, Li Ning revealed that it will officially launch its own children's wear brand Li Ning YOUNG on January 1, 2018. It is expected that the number of stores will be around 500 next year, and more than 60% will be distributed in second- and third-tier cities.
In the past three years, Li Ning's income growth momentum has been obvious, and it has driven double-digit growth in revenue for three consecutive years. In 2016, revenue increased by 13% to RMB 8.015 billion. The main categories including running, basketball and training products recorded significant sales growth. At the same time, Li Ning also accelerated the distribution of children's wear market representing future consumption power. In the second half of 2016, Li Ning decided to set up a separate children's wear division to start the re-layout of the children's wear business and created a new brand, Li Ning, which has two product lines for children aged 3-6 and 7-14.
In the past, Li Ning's children's wear sector only had a brand of LI-NING KIDS, which operated in a third-party agent mode. At the end of this year, the agency contract expires. Starting next year, the company will promote “Li Ning YOUNGâ€, and LI-NING KIDS may be removed from Li Ning’s brand list.
Li Ning puts forward the concept of “born to loveâ€. The purpose of the brand is to explore the true potential of children by appropriately letting go and exploring the possibilities of children's growth. The new Li Ning YOUNG highlights the concept of “sports heritage, China pride, comfort, safety, fashion and colorfulnessâ€, while paying more attention to meeting the sports function needs of the target consumer groups. In terms of products, Li Ning's YOUNG product category mainly includes three categories: running training, basketball football, and sports life. It is attached to the promotion of the company's main brand, including the WADE series, which is basically consistent with the core categories of the Li Ning Group. Whether it is product design or store design, Li Ning combines professional sports and childlike fashion to give people a bright, bright and lively image.
It is not too late for Li Ning to launch a children's wear program. As the first generation of Chinese children has gradually become a parent, the new concept of parenting and consumption has quietly occurred. Young parents will pay more attention to all aspects of their child's growth and will not simply emphasize academic performance. They want their children to have a healthy and happy childhood. Under the enthusiasm of sports and fitness, the children's physical health is particularly concerned, and the cost on this has increased significantly. With the opening of the second child, the children's wear market in China is experiencing a high-speed outbreak. After all, children's wear has a higher frequency of update than men's wear, women's wear and other apparel products, and has rigid demand in household consumption.
The 280 billion children's wear market is competing
China's children's wear started late, the market concentration is low, and the R&D and production levels of various enterprises are uneven, which further restricts the development of the children's wear industry. The market share of the top ten Chinese children's wear companies has increased from 5% in 2008 to 12.5% ​​in 2016, but there is still a big gap compared to 40.4% in the US.
Independent children's wear categories, such as Barabala, Annai, and Pigner Banna, entered the children's wear market earlier. Among them, Barabara was founded in 2002 by Senma and has been in the children's wear market for 15 years. A number of indicators such as brand awareness, market share, and channel size are far ahead of other brands. From 2012 to 2016, the proportion of children's wear business accounted for 29.94%, 34.75%, 38.87%, 41.81%, and 46.88%, respectively. For this reason, Barabara is also known as "the first brand of Chinese children's wear."
The lower gross profit margin may also become the main culprit for Barabara's lack of stamina and “retreating to the second lineâ€. It is reported that Barbara's gross profit margin from 2014 to 2016 was 42.01%, 41.09% and 42.87% respectively. Below the industry average of 53.79%, 51.51% and 52.08%.
As a domestic children's wear brand that successfully landed on the Shenzhen Stock Exchange, Anaier has a real fire in the apparel industry. Since its inception in 1996, Anna has focused on the children's wear business. As of the end of 2016, Annai has established 1,458 offline stores nationwide. At the same time, online sales channels have been established in many well-known domestic e-commerce platforms such as Taobao, Tmall, Vipshop, and Jingdong. In 2016, Annai adopted a development strategy of online and offline integration. In the “Double 11†event of Tmall Mall, “Annai Flagship Store†ranked fifth in the sales ranking of children's wear and parent-child category stores.
Anail has only one brand of “Annil Annaiâ€. The main sales model is still relying on direct sales and franchise stores for sales. The department store is the mainstream channel for its sales. Its relationship with department stores has been more than 75%. If Annai is closed due to business or business adjustments, Annai can only choose to close the store, and if it can't find a new store in time, the sales of Annai will be directly affected. The online sales channel has not become an Annel. The main source of revenue.
However, in 2012-2017, Annelle was reported to be listed on the quality blacklist several times. In the long run, if Annai does not pay enough attention to the consumer psychology of the material that consumers care most about, it is safe and comfortable. Even if the company successfully raises a large amount of funds and successfully expands its business, the quality of the products is not too good, but even if the qualifications are too bad, it must be rational. Consumers will not pay for it.
Correspondingly, domestic sports brands have entered the field of children's wear. Among the many sports brands, Anta Children was founded in 2008 as the earliest sports brand in the field of children. Since its establishment nine years ago, Anta Children has grown at a high compound growth rate. Its products cover children aged 1-14 and currently have more than 2,000 stores and millions of members in China. In the first half of 2016, Anta's children's clothing contributed more than 30% of revenue, accounting for about 10% of total revenue. In the first quarter of 2017, the retail sales of Anta brand products still recorded a low double-digit increase year-on-year, with Anta children growing by more than 30%.
In addition, in 2010, 361 degrees decided to set up an independent children's wear business sector for the market for children between the ages of 5 and 12. In 2011, Xtep Group officially launched the “Xtep Children's Wear†brand, and in 2012 established a company that specializes in the operation of the brand. Not only that, Nike and Adidas also opened independent children's stores in recent years or opened professional children's areas in integrated stores.
At the same time, adult wear extended brands, domestic such as Taiping Bird, Jiangnan Cloth, etc., such as ZARA, H&M, Uniqlo, GAP, etc., in the face of the attractive children's wear market, of course, will not miss the opportunity to grab a smash, have been in the country Launched its own children's wear line. Their children's wear usually maintains a similar design style to their adult wear, using their original brand advantages and channel resources to promote children's wear products, such as adding children's wear areas or shelves in existing retail terminal channels to form a comprehensive store model. However, due to the failure to build a special children's wear brand, its brand image is not well recognized in the field of children's wear.
Different from the brands such as Barabara and Zara, sports brands are not completely independent and absolutely subordinate to the independent packaging and operation of the children's wear brand on the basis of their original brands. Not only can we better use the brand dividend of the parent brand, but also build consumer awareness, it can be said to kill two birds with one stone.
Senma is in front, how many opportunities do the latecomers subvert the pattern?
In the promising children's wear market, the number of children determines the consumption capacity of the market, and the strength of parental brand awareness determines the frequency of consumption in the market. The 280 billion children's wear market, although large in size, but with the strong presence of some foreign brands, and the rise of more and more children's wear brands in China, the competition in the children's wear brand market will become more intense, and it will usher in a new round of adjustment. The market segment of children's wear will gradually be separated from the entire clothing market.
Today's parents are basically, after 80 or even 90, their exercise habits are better, and they are more focused on fashion, which will directly affect the next generation. It is estimated that by 2018, the size of the children's wear market is expected to reach 194.1 billion yuan, and this figure was only about 116.4 billion yuan in 2013. In 2010-2016, China's children's wear market maintained a compound annual growth rate of 9.5%, which is the most stable sub-sector in the apparel industry.
Although the dividends in the children's wear market are constantly expanding, the pressure from similar manufacturers to target the same piece of cake cannot be ignored. At the same time, driven by consumption upgrades, consumers are increasingly shifting from price-oriented to value-oriented. At this time, the value of brand power is prominent, and the transition from pure commodity price to brand premium becomes more and more important. How to create a clear brand image, establish consumer awareness and even identity, has become the next growth point of many brands.
According to the mother-infant white paper published by Sina, the mothers in China are mostly in the 85s and 90s. They are generally well-educated and have higher requirements for quality of life. The quality of children's products has been put first, not price. The younger the family, the more democratic the expenditure decision, the greater the proportion of baby spending. They are willing to pay higher prices for high quality, comfortable children's clothing.
In addition, it is not difficult to find that such brands generally continue the traditional clothing sales model for the operation mode of the children's wear industry, and their retail terminals are usually concentrated in specific areas of shopping malls or shopping districts, which are relatively conservative overall. In the face of young Chinese parents, we must also comply with the new retail era, and the children's wear brand has also strengthened the combination of the upper and lower lines.
Secondly, the fashion of children's wear is relatively weak compared to adult wear such as women's wear. Whether it is possible to accurately grasp the changing trend of consumer preferences and timely provide seasonal products to consumers is the key to increasing the market share of children's wear brands. If the children's wear brand does not have enough research on the target consumers, the children's wear trend and consumer demand are not allowed to grasp, and the marketable products are not developed in time, resulting in slow sales of new products and poor sales in the peak season, it will have an adverse impact on product sales and inventory. .
At present, children's wear in the domestic market is divided by several brands, and has not yet formed a unique phenomenon of a brand, so all brands have the opportunity to occupy Shantou. At this time, Li Ning re-entered the children's wear market and launched the new children's wear brand Li Ning YOUNG, just in time to catch up with the new outbreak growth point of the children's wear market, how to use Li Ning's overall brand value and resources, accurately grasp the development trend of the future children's wear market, and cater to the new The needs of a generation of consumers will be the key to Li Ning's YOUNG sportswear market.
In addition, in addition to the children's wear market, Li Ning acquired the American professional dance sports brand Danskin at the end of last year, and also set its sights on the women's sports market. A former brother in the Chinese sports industry wants to catch up with Anta, a competitor with an annual revenue of 10 billion yuan, and needs to work harder.
In short, the product is the foundation of the brand. However, China's children's wear industry still has a certain gap compared with the international advanced level in terms of fabric research and development, functional design and style design. To truly open the market, it has strong competitiveness. On the basis of good products, it is also crucial in brand operation and user interaction.
For more exciting reports, please pay attention to the world clothing and footwear network.
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