Childrenswear 2006

In this Key Note Market Report, the UK childrenswear market is defined as clothing for children under the age of 15 years. The main sectors of the market are infant clothing, girls' clothing and boys' clothing. In 2005, Key Note estimated the value of the childrenswear market was £6.3bn, having risen by 13.1% since 2001. This increase was lower than overall spending rises on clothing, as well as total household spending.

Price deflation has been prevalent in the UK clothing market as a whole, with prices falling by an average of 7.9 percentage points since 2002 and in the childrenswear market this has been even more pronounced. The main factor driving price deflation has been the success of supermarkets and value retailers. The major multiples have been keen to extend their non-food sales, and childrenswear has been an important area for groups such as ASDA and Tesco. Value retailers, led by Primark, have also brought down price points for childrenswear. This, in turn, has led to price cutting across a group of retailers in order to maintain a more competitive position.

Girlswear accounts for the largest share of sales in the market although the female under-15 population is smaller than the male. More clothing is purchased for girls and they often have a much more extensive wardrobe than their male counterparts. In addition, the market is more fashion led, which can boost spending. Boyswear has seen increased branding in recent years, but sportswear continues to play a major role. In the babywear market, the rise in the UK birth rate has boosted spending, but again, price deflation has depressed sales rises.

The UK retail childrenswear market is product and brand led, with retailer own label and exclusive lines dominating overall sales. This position has been reinforced by the success of the supermarkets and value retailers who tend to focus on non branded items. This has further encouraged a focus on price. However, some areas of the market have managed to maintain differentials; for example, fashion and designer brands, and character-licensed clothing.

Children's clothing is purchased by around three in ten consumers. Even those without children tend to participate in the market, buying products as gifts, for example. As children get older they are increasingly likely to self purchase items rather than allocate this role to adults.

The childrenswear market will continue to benefit from trends led by high per capita spending on children. This has been driven by factors such as later parenting ages and smaller family sizes. A focus on lower prices is not indefinitely sustainable as profit margins will eventually be affected. As a result, price points at the bottom end of the childrenswear market will begin to rise in the medium term and this will boost sales values. SHOW LESS READ MORE >

1. Market Definition

Report coverage

MARKET SECTORS

MARKET TRENDS

Demographic Influences

Table 1: The UK Child Population (000), 2000, 2002 and 2004

Prices In The Clothing Market

Table 2: Retail Price Indices for UK Retail Market and Garments (index 2002=100), 2001-2005

Character Licensing

ECONOMIC TRENDS

Gross Domestic Product

Table 3: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005

Household Disposable Income

Table 4: Household Disposable Income Per Capita (£), 2001-2005

Inflation

Table 5: UK Rate of Inflation (%), 2001-2005

MARKET POSITION

The UK

Table 6: Trends in Total Consumer Expenditure, Spending on Clothing and Spending on Childrenswear (index 2001=100, and %), 2001-2005

Overseas

2. Market Size

THE TOTAL MARKET

Table 7: The Total UK Market for Childrenswear by Value at Current Prices (£m at rsp), 2001-2005e

Figure 1: The Total UK Market for Childrenswear by Value at Current Prices (£m at rsp), 2001-2005e

By Market Sector

Girls' Clothing

Table 8: The UK Girls' Clothing Sector by Value at Current Prices (£m at rsp), 2001-2005e

Boys' Clothing

Table 9: The UK Boys' Clothing Sector by Value at Current Prices (£m at rsp), 2001-2005e

Infants' Clothing

Table 10: The UK Infants' Clothing Sector by Value at Current Prices (£m at rsp), 2001-2005e

Schoolwear

OVERSEAS TRADE

Table 11: Imports and Exports of Clothing† (£m), 2003-2005

3. Industry Background

Recent History

Number of Companies

Table 12: Number of UK VAT-based Enterprises Engaged in the Manufacture of Wearing Apparel, and Dressing and Dyeing of Fur, by Turnover Sizeband (£000 and %), 2005

Employment

Table 13: Number of UK VAT-Based Local Units Engaged in the Manufacture of Wearing Apparel, and Dressing and Dyeing of Fur, by Employment Sizeband (number of employees), 2005

Distribution

How Robust Is The Market?

Legislation

Key TRADE ASSOCIATIONS

British Retail Consortium

National Childrenswear Association

4. Competitor Analysis

The Marketplace

MARKET LEADERS

Manufacturers and Distributors

Cosalt PLC

Company Structure

Current and Future Developments

Financial Results

Other Suppliers

SR Gent

Crystal Martin Holdings

Specialist Schoolwear Suppliers

Sportswear

MARKET LEADERS

Clothing Retailers

Adams Kids Ltd

Company Structure

Current and Future Developments

Financial Results

H&M Hennes Ltd

Company Structure

Current and Future Developments

Financial Results

New Look Group Ltd

Company Structure

Current and Future Developments

Financial Results

Next PLC

Company Structure

Current and Future Developments

Financial Results

Other Clothing Retailers

Benetton

Gap UK Ltd

Monsoon PLC

Mixed Retailers

Bhs Ltd

Company Structure

Current and Future Developments

Financial Results

Debenhams Retail PLC

Company Structure

Current and Future Developments

Financial Results

Marks & Spencer PLC

Company Structure

Current and Future Developments

Financial Results

Mothercare PLC

Company Structure

Current and Future Developments

Financial Results

Woolworths PLC

Company Structure

Current and Future Developments

Financial Results

Supermarkets

ASDA Stores Ltd

J Sainsbury PLC

Tesco

Value Retailers

Matalan

Company Structure

Current and Future Developments

Financial Results

Other Value and Discount Retailers

Peacock Group PLC

Ethel Austin

Mackays

Primark Stores Ltd

QS Stores

Sportswear Retailers

Mail Order

Outside Suppliers

Marketing Activity

Main Media Advertising Expenditure

Table 14: Main Media Advertising Expenditure on Childrenswear (£000), Years Ending December 2004 and 2005

Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

CONSUMER PENETRATION

Table 15: Purchase of Children's Clothing (% of women), 1999, 2001, 2003 and 2005

Purchase by Sex

Table 16: Purchase of Children's Clothing by Sex (% of shoppers), 2005

Purchase by Age

Table 17: Purchase of Children's Clothing by Age (% of shoppers), 2005

Purchase by Social Grade

Table 18: Purchase of Children's Clothing by Social Grade (% of shoppers), 2005

Purchase by Presence of Children In The Household

Table 19: Purchase of Children's Clothing by Presence of Children (% of shoppers), 2005

7. Current Issues

COMPANY AND BRAND DEVELOPMENTS

Aitken & Niven

B'eautique

Boden

Bratz

Harley Davidson

Polarn O Pyret

Precious Babywear

Orchestra

Pex

Topshop

Charles Tyrwhitt

USC

Umbro

Replica Football Shirts

Organic Textiles

FairTrade Clothing

Obesity in Kids

8. The Global Market

GLOBAL COMPANY DEVELOPMENTS

France

Asiatex

The US

Carter's Inc

Tommy Hilfiger

Central Europe

Cherokee Inc

Hong Kong

Giordano

Italy

Kid Kalos

Spain

Primark

India

Raymond Ltd

Savio Jon

9. Forecasts

INTRODUCTION

The Economy

Gross Domestic Product

Table 20: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010

Inflation

Table 21: Forecast UK Rate of Inflation (%), 2006-2010

Forecasts 2006 to 2010

Table 22: The Forecast UK Childrenswear Market by Value at Current Prices (£m at rsp), 2006-2010

Figure 2: The Forecast UK Childrenswear Market by Value at Current Prices (£m at rsp), 2006-2010

Market Growth

Figure 3: The Total Forecast UK Childrenswear Market by Value at Current Prices (£m at rsp), 2001-2010

FUTURE TRENDS

Demographics

Table 23: Projected UK Population (000), 2003, 2006 and 2009

Market Segmentation

Product Development

10. Company Profiles

Adams Childrenswear Ltd

ASDA Stores Ltd

Bhs Ltd

Cosalt PLC

Debenhams Retail Plc

Woolworths PLC

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

A Slow Start to 2006

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2005, May 2005, August 2005, November 2005 and February 2006

The Desire to Borrow Stays Strong

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2005, May 2005, August 2005, November 2005 and February 2006

THE WILLINGNESS TO SPEND FROM SAVINGS

Spending From Savings Declines

Table C: The Proportion of Adults Without Any Savings (%), February 2005, May 2005, August 2005, November 2005 and February 2006

Table D: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2005, May 2005, August 2005, November 2005 and February 2006

Consumers Increasingly Cautious

Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), February 2005, May 2005, August 2005, November 2005 and February 2006

Further Sources

Associations

Publications

Government Sources

General Sources

Others Sources

Bisnode Sources