UK Childrenswear Market Will Continue to Benefit

In this Market Report, the UK childrenswearhandbags etc,which can boost spending. Boyswear
market is defined as clothing for children underhas seen increased branding in recent years, but
the age of 15 years. The main sectors of thesportswear continues to play a major role. In the
market are infant clothing, girls' clothing and boys'babywear market, the rise in the UK birth rate
clothing. In 2005, Key Note estimated the value ofhas boosted spending, but again, price deflation
the childrenswear market was PS6.3bn, havinghas depressed sales rises.
risen by 13.1% since 2001. This increase wasThe UK retail childrenswear market is product and
lower than overall spending rises on clothing, asbrand led, with retailer own label and exclusive
well as total household spending.lines dominating overall sales. This position has
Price deflation has been prevalent in the UKbeen reinforced by the success of the
clothing market as a whole, with prices falling bysupermarkets and value retailers who tend to
an average of 7.9 percentage points since 2002focus on non branded items. This has further
and in the childrenswear market this has beenencouraged a focus on price. However, some
even more pronounced. The main factor drivingareas of the market have managed to maintain
price deflation has been the success ofdifferentials; for example, fashion and designer
supermarkets and value retailers. The majorbrands, and character-licensed clothing.
multiples have been keen to extend theirChildren's clothing is purchased by around three in
non-food sales, and childrenswear has been anten consumers. Even those without children tend
important area for groups such as ASDA andto participate in the market, buying products as
Tesco. Value retailers, led by Primark, have alsogifts, for example. As children get older they are
brought down price points for childrenswear. This,increasingly likely to self purchase items rather
in turn, has led to price cutting across a group ofthan allocate this role to adults.
retailers in order to maintain a more competitiveThe childrenswear market will continue to benefit
position.from trends led by high per capita spending on
Girlswear accounts for the largest share of saleschildren. This has been driven by factors such as
in the market although the female under-15later parenting ages and smaller family sizes. A
population is smaller than the male. More clothing isfocus on lower prices is not indefinitely sustainable
purchased for girls and they often have a muchas profit margins will eventually be affected. As a
more extensive wardrobe than their maleresult, price points at the bottom end of the
counterparts. In addition, the market is morechildrenswear market will begin to rise in the
fashion led, such as replica purses,replicamedium term and this will boost sales values.
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