The rapid growth of domestic baby clothing industry

According to the China Investment Advisors' report, in 2009, the consumption of children's products in China increased from 56 billion won to 153 billion won, a compound annual growth rate of 22%, and it is expected to grow to 306.1 billion yuan in 2013. This optimistic growth expectation is based on the general trend: "China's children's wear market forecast report for 2009-2012" shows that China will enter the fourth childbirth period, the new "baby boom" will bring "baby economy" The full-scale outbreak.

The rapidly growing domestic baby clothing market In 2007, the founder of the Xiongfeng Group, Jiang Xiongxin, persuaded Japan Sanrio to authorize him to operate Hello Kitty Kidswear in mainland China, also based on the judgment of the baby clothes market in China: " From the 2007 Golden Pig Baby to the 2008 Olympic Baby, the 2010 Tiger Baby, the 2012 Dragon Baby, etc., there will be many Chinese babies born.”

Under this trend, Xtep analysts believe that the new family model of the "421" model has gradually become the mainstream of society (the family structure produced by the only-child generation - 4 old people, 2 adults, 1 child). Children become the focus of the family, and families are investing more and more in children. This will directly accelerate the consumption of children's clothing.

In fact, for some adult wear brands, whether it is sports or casual wear, there is a more realistic consideration that the fierce competition in the adult market makes them have to find new growth points. Take Senma clothing (002563, stock market) as an example. In fiscal year 2011, its children's clothing revenue grew by nearly 40%, gross profit reached 38.02%, both figures are higher than casual wear.

In 2012, Semir still has plans to “bigger Balabala” and believes that “domestic casual wear is currently in a state of complete competition, and the domestic children’s wear industry is at a stage of growth”.

The domestic baby wear market seems to be brewing a competition without smoke. According to recent media reports, Li Ning Group is making efforts in children's wear. In the next 5-10 years, “Little Li Ning” will become the focus of the Group’s development, and Li Ning’s baby clothing brand will Focus on sports products for children from 5 to 12 years old. As early as 2010, Li Ning teamed up with the children's wear brand, Parkland, to launch Li Ning children's wear. Of course not only Li Ning. The sports brand has become a powerful force in the domestic baby clothes market.

In 2008, ANTA launched an affiliated brand ANTA KIDS as an extension of the ANTA brand. With the help of the mother brand's market influence, it broadened its sales and tapped new user groups. Within a year, it opened 160 children's clothing stores. 361° after listing in Hong Kong in 2009 also launched the children's wear series that year and plans to spend 9% of the HK$2 billion ** on R&D and expansion of children's wear. In April this year, on the occasion of the tenth anniversary celebration of Xtep, a message was also reported that Xtep will open 100 children's clothing stores this year. It is said that Peak also has the intention to enter the children's wear market. As early as 2001 and 2002, Nike and Adidas launched children's wear products in China.

Casual brands are not idle either. As of the end of 2011, Senma’s children’s wear brand Balabala’s revenue reached 205278.76 million yuan, accounting for approximately 1/4 of the company’s total revenue. In fiscal year 2011, Mebon apparel (002269, stock) also launched the independent children's wear brand “MooMoo”. Other casual brands, including Giordano and Septwolves, are also involved in the field of children's clothing. In China, enterprises that originally engaged in children's wear OEMs are also moving toward brand transformation. Dr. Frog and Xiongfeng Group are representatives of this group.

Another force comes from abroad. For example, in May 2012, the Japanese children's wear brand Dream Babys entered the Chinese market by cooperating with Chinese domestic company Xiongfeng Group. Before that, it had already “had a long history” for the Chinese market; and the Danish children’s wear brand Green Cotton also passed its embassy in China. Find Jiang Xiongyu and hope to enter the Chinese market in a cooperative manner. European and American luxury brands are also eyeing China's "children" and have launched children's wear series. So far, Gucci, Armani, Anna Su are doing children's wear.

Opportunities and Challenges The current status of the domestic baby wear market is that no brand or company has sufficient size or influence. Dr. Frog once stated in his prospectus that in fiscal year 2009, its turnover exceeded RMB 630 million. According to Frost & Sullivan’s rankings, it ranks first in the domestic high-end children's consumer goods market, but its market share is also high. Only 4%.

This is precisely an opportunity. Senma clothing in the financial report that the current domestic baby clothing industry is in the growth stage, "the new brand is not emerging." Therefore, foreign big names into China, China's domestic brands strongly attacked, showing that "opportunities and challenges coexist."