How kids' accessory market is blooming?
The kids’ accessories market is expected to grow at a CAGR of around 5% by the year 2020.BY Guest author | Jun 07, 2018 | comments ( 0 ) |
Parents, it has been seen in the past few years, have been spending more on children, and this has opened door for the accessory market in India. After apparel range, kids’ accessory is the category that has seen the maximum growth.A lot of brands are entering into this space and offering an exclusive space that is dedicated to kids’ accessories. The accessory market depends on two things – the purchasing power of parents and the number of children in a family. As the disposable income increases, the purchasing power of parents also increases. The growth rate of the accessory market seems to increase at a much faster rate in the developed economies as compared to that of the developing nations.
In the past decade, the business targeting babies and children has experienced an economic boom. Apart from the two factors mentioned above, factors like urbanization; higher participation of women in workforce has also acted as a catalyst in the demand for kids’ accessories. It has also been seen that working parents have been buying more toys for their children to compensate for the time lost.
Earlier, raising a child did not require a specified list of items during their growing stage. With time, the whole scenario has changed and accessory has emerged as one of the leading categories kids’ items. We can also see high growth potential in kids’ furniture, nursery, amongst others.
Parents also consider a lot of factors before buying accessories for their kids’. For example, parents prefer buying toys that are bright in colour, can be easily washed, does not break, and should not have sharp edges. As infants and kids’ enjoy putting these toys in their mouth, parents prefer toys to be big enough in size and also to be made of non- toxic material. A lot of kids’ are prone to allergies/rashes, as a result of which parents are willing to pay more and buy products from a well-established brand. While the infant toys are here to stay, we have seen a bit decline on toys segment in older kids and is replaced by sports products.
The kids’ accessories market is expected to grow at a CAGR of around 5% by the year 2020. And the market is expected to continue growing because of the increase in brand consciousness among consumers. As kids’ accessory market is at a growing stage in India, there are a lot of challenges for companies as they compete with established brands. Keeping this in mind, retailers consider product innovation as another important factor to beat the competition.The segment also forms a very important and major part of impulse purchase be it online or offline.
A major portion of kids’ accessory market is an untapped market. But, there is a huge opportunity for brands to make a mark for themselves in the untapped market.
Toiletries& Baby Feeding are an important category which nearly contributes approx. 12-15% of the baby basic market. These categories are seeing a major shift in their purchase patterns. People prefer brands and stick to it for a longer time. Brands are also investing in quality and research to make the products safe for the child. They continuously have to improvise the quality and go by the recent need of the mother. BPA free, Organic, Ayurvedic products are gaining much popularity. There has also seen a shift from plastic bottles to Glass and stainless steel bottles for kids. Many new travel products like sterilizers, travel cookers & accessories are also gaining popularity. Customers are willing to experiment in their trusted brands .
The article has been penned down by Sharad Venkta, MD & CEO- Toonz Retail India Pvt. Ltd.
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