1 August 2016 - NEW YORK, UNITED STATES - Childrenswear is growing up fast. Having ended 2015 with an estimated $156.8 billion in revenue, the market is still expanding. According to retail technology company EDITED, the US childrenswear market grew 8.6 percent among the 20 biggest childrenswear retailers between April 15 and July 15, 2016 compared to the same period in 2015.
Thanks to a new class of parents eager to outfit their children in the contemporary, trend-conscious styles they wear themselves, a.k.a the Mini Me trend, childrenswear is undergoing what’s possibly its most profound revitalization to date. And its allure doesn’t stop there. According to Euromonitor, the US is looking forward to a population boom that could peak with up to 4.1 million babies born in the country by 2020.
For retailers, the demand is welcome and the rising population is reassuring. But capturing the market is going to require retailers to be ready with perfectly priced and on-trend childrenswear lines. To do that, EDITED has built a new software tool that lets buying and merchandising teams filter the kids’ market by age, size and gender. Using the new technology, fashion retailers can track childrenswear products and prices in real time to understand exactly how their competitors are navigating the market, and gain a huge competitive edge.
And that edge will be crucial. The competition is ramping up fast, already triggering price declines across the market as retailers try to lure shoppers with low prices. According to EDITED data, prices were down 8.6 percent, averaging $21, on all products new-in between April 15 and July 15, 2016, compared to the same period in 2015.
"Children's fashion has changed in terms of fast fashion and competitive pricing. Customers seem to be looking more for a deal versus on-trend fashion. Many childrenswear retailers are promoting more and more which has changed the children's fashion space dramatically," says Maddy Zimmerman, Buyer, Toddler Boys at Gap.
Part of that dramatic change has been the rate at which Mini Me styles have come into the market. Looking at the US and UK, kids activewear, which includes printed leggings, motif sweaters and sneakers, has seen a 27 percent increase in new arrivals when comparing April 15 - July 15, 2016 to the same period in 2015. For contrast, adult activewear was up 20 percent.
In that same period of time, children’s bomber jackets increased by 263 percent, more than twice the 93 percent growth in adult lines. Cold-shoulder tops and dresses also saw big increases, with childrenswear up 120 percent following the lead of adult lines, which were up 237 percent.
In the US market, tops currently shoulder the bulk of the market, accounting for 29 percent of all products. They’re followed by bottoms and footwear (both 14 percent), accessories (12 percent) and dresses (7.9 percent). The most stocked brands are Walmart, Carter’s, Nike, Under Armour and Disney.
About EDITEDEDITED helps the world’s best retailers drive sales by eliminating guesswork. The Retail Decision Platform uses A.I. to optimize buying and merchandising decisions, ensuring retailers get their product and prices right every time. This is how the world’s most innovative retailers stay ahead of the competition; including PUMA, Tommy Hilfiger, Diesel, Ann Taylor and the Arcadia Group. For more information, visit www.edited.com.
Press contact: Laura Kubica Grigerova, [email protected]
