Gone are the days when kids used to wear everything and anything that their parents used to choose for them. Now, it is the time for fashionable kids, and fashion begins with birth itself. Earlier, parents used to call tailors to make clothes for their children but, they were able to give the required shapes and designs in accordance to the latest trends. But now, children are not able to select the latest and trendy clothes from a kid's store.

The style trends have also changed, as kids also want to be in latest style. The shops are filled with a various types of apparel and are available in reasonable price. Good looking colorful glittery jeans, jackets, trousers, t-shirts, capris, spaghetti, halter tops, embroidered lenghas, sherwanis in various cuts and styles are offered. Kids have and access to everything that matches with the latest trends. Not only this, but even the infants are going trendy. 'Cool' casuals as well as many fancy dresses are offered for the infants with multiple accessories.

For new born babies, cotton is the only fibre that is comfortable, but this fibre needs to be softer and have extra stretchability. Therefore, garments for kidswear need to be produced by extra long-staple cotton, which offers both these properties.

Though children outgrow their size very quickly, it has always difficult for parents to make sure that their wardrobe is sufficiently stacked, though not over-stacked.

The quality parameters of kidswear are precise as orders have increased. Quality compliance is firmly followed in childrenswear, more than that in adult wear. Greatest care is taken in making kid's wear and the garments are kept at a lesser pH value and are free of lead, nickel, etc. For children wear, cotton is the most preferred fiber, though it now faces a tough competition with cotton-polyester due to the washability and crease-resistance characteristics of the later.

Children sometimes have a tendency to copy or imitate their adults, even while guarding zealously their own desires. They have a strong wish and requirement for designs worn by their playmates which they find attractive. The variety of children wear is as huge as that of adult wear, even in terms of accessories. Designs and styles of children garments are complicated and abundant that many a times it makes selecting, between the needs of the child and the pressure on the wallet whilst making sure that the psychology of the child are properly satisfied, a difficult task.

While, the branded sector is one up on the unorganized sector in the case of adult garments that is not the case for children garments. In this case the unorganized sector practically rules the market, while the branded sector's inclination is more towards designs, which attract the children.
For example, designs related to Micky Mouse or Teddy bear, Spiderman and so on. It is a fact that such designs are available at a price, since royalties are also included.

Though, for the religious-minded, designs related Ramayana or Mahabharat are equally appealing. Price plays a minor role in such garments. These garments are made largely by the unorganized sector. The production of this sector is estimated to be 2,000 million pieces per year with not much to contribute in the value by foreign exchange earnings. Hence, this sector adds two pieces per capita per annum, totaling on an overall per capita consumption of only 6 pieces, which is short of nearly 100 pieces in a country like USA.

There are numbers of units in India focusing on making children garments with entire new units opening in cities like Tirupur and Bangalore. All units have been spending largely on expansion of production capacities, which is yet an extra effort towards the development of this sector.

Indian kidswear market size
In India, the size for branded youth wear (covering kids wear) market is about Rs 600 crore. The kidswear market has a size of Rs 350 crore. Overall per capita consumption of kidswear is only 6 pieces. The size of the western-style garment industry is accounted to 5,500 million pieces worth Rs. 1 trillion. Export covers 1,500 million pieces, amounting to Rs. 27,000 crores, hence, the domestic market to provide to a population of about 1.2 billion people is 4,000 million pieces about value of Rs. 73,000 crores, approximately 4 pieces per capita each worth Rs. 180.

Volume wise, children garments comprise 20 - 22 per cent of the total production of garments in the country. This market particularly holds with the knitted sector and is increasing at 10 to 15 per cent per year. At present the market of new-born baby wear stands at 8 per cent of the total volume of production of garments in India. The kidswear market in India is nearly 15 per cent of the total apparel market and lies absolutely untapped.

The exports of Indian kidswear is on the rise
With the abundant market opportunities in the US and EU, the export of kidswear from India has witnessed an increasing growth of nearly 10-15 per cent in the period of January-March 2005. And it is anticipated that this movement will continue during the year.

Till now, many kids wear products were collectively considered with the ladies' categories, and exports were thus limited by quotas. Though, during the last year, after removing quota, exports of kidswear have increased by as much as 15-20 per cent. The average unit value gain is approximately US$ 3.5-4. India's kidswear exports exist with about Rs 2,500 crore per annum, and further this will rise by approximately 10 per cent this year.

To satisfy the increasing demands, many kidswear exporters are in the process of expanding their production capacities and are planning to increase their networks.Indian exporters are in expansion moodsThe demand for kidswear has increased in the first year after the quota removal and to satisfy this, many companies are increasing production capacities.

At present Enn Enn Expo International has the capacity to produce 30,000-40,000 pieces per month, which it is trying to double. Also, they are planning to set up new machines, upgrade technology and do value-addition with sequins, embroidery, etc.

Seeing the inclining trend and opportunities, Sarju International, has set up a new factory on the outskirts of Tirupur, with a manufacturing capacity of 5,000 pieces per day. Of this, kidswear accounts for 40 per cent. Besides, Man Singh and Sons, a leading exporter of kidswear and infantwear to the UAE with the current capacity about 20,000-25,000 pieces per month, is planning an expansion.

Amongst other players, Quality Apparel Fashion exports kidswear to France, UK and US with the current capacity of 10,000-15,000 pieces per month. Another company that is a leading player of kidswear exports is Novell Indo Design, which exports high fashion kidswear, denim wear and casual wear to the European market and is the authorized agent for Walmart and functions through buying houses like JC Penny, Triburg, Hi Fashion Paris, etc.The company's present capacity is 20,000 pieces, and it has been expanding to double the capacity.

Seer Global makes and exports kidswear like sweat shirts, sweat pants, turtle neck tops, mock neck T-shirts, baby panty hose, jump suits, shirts, boxers, Bermudas, etc and exports them to Latin America. The company's current capacity is 5,000 pieces per month and it is increasing its capacities by setting up new machines and is aiming at a capacity of 7,000 pieces per month. Many kidswear exporters believe that the demand for kidswear has increased by 25 per cent, whereas many exporters have experienced a rise of about 5-10 per cent in their export destinations.

Veena Fashions exports kidswear to the EU and is planning to increase its capacity from the current 60,000 pieces of garments per month to 100,000 units per month and they have already invested around Rs 2 crore to establish a factory in Bangalore.

New ventures and development
Recently, Indus Clothing Ltd (ICL) has tried up with the Walt Disney Company for a venture and is planning to invest Rs 21 crore in it. The investment is a part of the company's plan to establish a green field facility in Uttaranchal, where it will be making one lakh pieces. ICL aims to gain a turnover of Rs 120 crore by the end of 2007. Focusing the 4-14-year-olds, the variety of apparel and fashion accessories including belts and bags will be distributed through stand-alone shops in the metros and towns. ICL plans to set up 20 such outlets in the coming year and raise the number to 50 by 2008.

The Reliance group has pulled out its 25 per cent share in the Mumbai-based kidswear major Gini & Jony Apparels, which mainly sells the Gini & Jony brand, for an undisclosed amount. The company is now introducing a new range of lifestyle products for kids, including accessories like belts and sunglasses.

Gini & Jony is likely to use the funds mostly for financing its capacity and retail expansion plans. The company is establishing a garment unit with a capacity of 1, 50,000 pieces per month at Baddi in Himachal Pradesh. Its total capacity is estimated to reach 2, 65,000 pieces per month after this expansion.

Milou, a Switzerland-based kidswear brand, Introduced its first direct retail store in Chennai and made its presence felt in the Indian market by presenting a variety of apparel for children in the age group of 0 to 12. India is the second country where this Swiss brand has entered after China, and it possesses over 100 shops. The Tirupur-based Sreeja Hosieries Group, which has been selected as the master franchisee for Milou's Indian operations, intends to start another 15 to 20 shops in the country in the next two to three years either directly or through franchise.

Recently, Woolen and worsted textiles developer Raymond has set up a new strategic team based out of Bangalore to foray into kidswear, denim wear and women wear segments of the branded apparel industry. The team that is seeking newer business opportunities is headed by Vineet Nair, designated as Director of Raymond Apparel Ltd, the third largest branded player in the domestic apparel market.

The India government has recently cleared the UK-based kids care retail chain Mothercare Plc's offer to establish a 100 per cent subsidiary in India with an investment of Rs 32.25 crore. Mothercare has already offered a license to Shopper's Stop to utilize its trade mark and brand name on the products, to be supplied by its Indian subsidiary.

Josef Kanz GmbH & Co KG has tied up with Pro Fashions Impex for a 50:50 joint venture for its production unit based at Hyderabad which will contribute to Kanz Retail as well as Exports. Kanz will present to children in the 0-16 years age group. It plans to sell garments from fabrics which are kind to the skin, with ultraviolet protection and designed for comfort.

The United Colours of Benetton posses a massive prospect for kids wear in the Indian market, and on the anvil are high street mega stores across the country, some 20 of them by 2007-end through the franchisee route. Benetton recently acquired the stake owned by the DCM group in a 10-year-old 50:50 joint venture company to establish a 100 per cent subsidiary. At present, Benetton runs 61 stores across India. It has already started six kids' exclusives.

Conclusion

In keeping with the National Demographic Policy, there has been a measured deceleration in population between 1991 and 2005; with the increase in population reducing year on year from 10.4 per cent to 8.1 per cent. In spite of this decreasing rate the market for children wear is estimated to increase by 10 to 15 per cent every year. Since, there is a considerable decrement in population in the age-group 0 to 14 years; there is an urgent need to look out on market trends.