Reportlinker Adds Childrenswear Retail in Europe: Market Size, Retailer Strategies and Competitive Success

Jun 10, 2010, 11:26 ET from Reportlinker

NEW YORK, June 10 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

Childrenswear Retail in Europe: Market Size, Retailer Strategies and Competitive Success


The childrenswear sector has not been immune to the impact of the recession, with EU expenditure tumbling 3.5% in 2009. However, its replacement-driven nature has kept sales comparatively resilient, outperforming other clothing categories. As a result, both value and high-end clothing retailers have expanded their childrenswear ranges leading to intense competition in the sector.


  • Key sector statistics including clothing and childrenswear expenditure, spend per child and growth from 2004 to 2009e in each of the EU27 markets.
  • Analysis of emerging players and the sector's most prominent competitors including ID Group, Mothercare, Orchestra, OVS industry and Zara Kids.
  • Strategic recommendations surrounding issues such as in-store services, range diversification, multi-channel retail and global expansion.
  • An assessment of the key opportunities and threats impacting the sector including socio-demographic trends and new forms of competition.


Childrenswear is outperforming the overall clothing market despite consumers trading down. Furthermore, the sub sector is increasing its share of total EU clothing expenditure to 10.5%. Growth has been boosted by rising birthrates and increased expenditure per child.

Competition is growing amongst all the core competitor groups in the childrenswear sector. Grocers and department stores are increasing the amount of space allocated to this category while trend focused fashion multiples are tapping into the 'mini-me' sector with many opening stand alone childrenswear stores.

Childrenswear retailers that wish to broaden the presence of their own brand frequently do so by selling the brand at multibrand childrenswear stores or department stores. For example, Catimini operates 155 stores in eight countries, yet sells its branded clothing at 1,446 multibranded stores in 29 different countries.

Reasons to Purchase

  • Make informed investment decisions by understanding the size of EU childrenswear retail markets and the nature of the competition within them.
  • Understand the dynamics of the market and which categories and target segments will produce further market share gains.
  • Develop innovative strategies to enhance your retail proposition in areas such as in-store services, loyalty programmes and design collaborations.

Summary 1

Executive Summary 2

Struggling mid-market specialists are being squeezed out of the childrenswear market 2

Childrenswear in the EU has suffered a decline as consumers cut back and trade down 2

Replacement purchases have maintained the subsector's resilience 2

Childrenswear share of the total market is rising 2

Cautious spending patterns have provided a boost for value operators 2

Intense competition at the value end has pushed childrenswear specialists upmarket 2

Polarisation has pushed the market in opposing directions 3

A broadening competitor mix has put pressure on child specialists 3

Diverging retail concepts have responded to different kinds of children and family needs 3

Specialists have implemented new initiatives to drive sales and remain competitive 3

Broadening their offer to target wider audiences is helping retailers maximise revenue 3

Developing a global network will boost revenues and broaden a brand's reach 3

Increasing fashionability will help to improve the perception of a brand 4

Retailers are capitalising on their knowledge in the childcare arena 4

A multichannel strategy captures all sales opportunities 4

Table of Contents 5

Table of figures 6

Table of tables 7

EU Clothing Market Overview 8

The EU27 has suffered major falls in overall clothing expenditure since 2007 8

Newer member states are still lagging behind in per capita clothing expenditure 12

Specialist clothing retail sales have followed the downward trend of overall clothing spend 13

Childrenswear in the EU 17

Childrenswear expenditure has declined, but less sharply than the total clothing market 17

Necessity-driven purchasing makes childrenswear the more resilient clothing sector 17

A focus on value and more cautious spending patterns are evident across all EU markets 17

Core Childrenswear Markets 24

Childrenswear expenditure in France accounts for nearly a fifth of the EU total 24

The French childrenswear market remains large despite weak growth rates 26

Birth rates in France will continue to be higher than average 26

Key competitor mix - specialists form a very large part of France's childrenswear market 28

Recent developments - rising competition is forcing childrenswear retailers to seek new growth avenues 32

Intense competition is forcing domestic retailers to focus across the border 32

Kiabi is consolidating its position through the acquisition of Veti 32

ID Group moves away from clothing to differentiate its brand 33

Outlook - growing competition will result in a changing retail landscape 33

Falls in retail prices are not maintainable 33

Wholesale is a key strategy in the face of intense competition 33

Meanwhile, international players continue to expand in the market 33

Childrenswear takes a marginal share of the sluggish German clothing market 34

We forecast that the childrenswear market will stabilise in 2010 34

Key competitor mix - the German clothing market is dominated by a large number of value players 37

Recent developments - as the value end becomes more saturated, retailers are eyeing the high-end market 40

Competition at the value end heats up as Primark enters the market 40

American Apparel is looking to capitalise on the upper tier of the market 41

Mothercare is extending its reach in Germany as an all-round child specialist 41

Struggling luxury retailer Escada is re-launching its childrenswear range 42

Outlook - the market will be tested by further polarisation and declining birth rates 42

The demise of the department store is leading to increased competition from specialists on the high street 42

Mid-market and upmarket players have launched standalone childrenswear stores 42

The market is set to polarise further 42

Differentiation is key to staying afloat 42

Declining birth rates will hit babywear specialists 43

While clothing sales are suffering, childrenswear is gaining ground in the market in Italy 44

Consumers in Italy are still maintaining their spend on their children 44

Key competitor mix - mid- to high-end players continue to grow in Italy's childrenswear market 47

Recent developments - domestic and international mid-end players are increasingly entering the market 49

Abercrombie & Fitch is targeting Italian kids 49

Benetton is marketing its childrenswear range through a dedicated pop-up shop 49

Gruppo Coin boosts its presence of OVS Kids through the acquisition of Upim 50

Outlook - income per child through falling birth rates will boost revenues for high-end players in the future 50

Childrenswear is picking up the slack of falling clothing expenditure 50

Falling birth rates will keep mid- to high-end players outperforming the market 50

Sluggish economic recovery will fuel the growth of value players 50

Childrenswear has been resilient in the face of a declining Spanish clothing sector 51

Spanish parents are continuing to spend on childrenswear clothing 51

Key competitor mix - Spain has a variety of clothing players across the price spectrum 53

Recent developments - childrenswear specialists continue to gain ground in the market 56

International chains continue to target Spain 56

Child specialist chains are riding on the sector's resilience to continue to expand 57

Prenatal invests in larger stores to become a department store for children 57

Custo Barcelona launches a full childrenswear line 57

Boboli's growth has been driven by the addition of new franchises 57

Children's clothing brand Caribu closes down as it falls victim to the crisis 58

Charanga bolsters its low-cost offer through a factory outlet concept 58

Outlook - childrenswear specialists battle for alternative growth channels 59

Pressure from large chains has pushed childrenswear specialists to differentiate 59

Domestic players continue to look abroad for growth opportunities 59

Franchising presents growth opportunities for smaller childrenswear specialists 59

The childrenswear sector in the UK is outperforming the overall clothing market 60

Childrenswear outperformed the overall clothing market for the first time in 2008 60

Key competitor mix - only two major childrenswear players exist in the UK clothing market 63

Recent developments - childrenswear continues to struggle as multiples enter the subsector 65

Childrenswear specialists have to work hard to keep up with the rise of value retailers and grocers 65

Mothercare is increasing its brand exposure through a new contract with Boots 65

Mid-market specialist Adams calls in administrators for the third time 65

Mid-market fast fashion multiple River Island is launching a childrenswear range 66

Online is emerging as a vital channel for niche high-end specialists 66

Outlook - despite increased polarisation in the market, lower prices will soon start to rise 67

Grocers will continue to aggressively expand their childrenswear ranges 67

The polarisation of the market will squeeze out mid-market players 67

Tightening sales volumes in 2010 mean that exceptionally low prices are unsustainable 67

Rising demand will help to fuel competition 67

Strategic Issues 68

Changing demographics will greatly impact growth in the childrenswear market 68

Europe's ageing population is resulting in fewer children 68

The child population in the EU is declining 69

Smaller family sizes and motherhood later in life will boost children's spending power 71

Rising levels of obesity mean that children are resorting to larger clothing sizes 73

Competition is heating up in the childrenswear market as other retailers move in 75

Grocers, value players, fashion multiples and online retailers offering childrenswear are on the rise 75

High-end clothing retailers are extending their childrenswear ranges 76

Trend-focused mid-market retailers are branching out into childrenswear in response to rising demand 78

Fashion multiples are expanding their childrenswear offer and launching standalone concepts 78

Value childrenswear retailers are threatened by grocers growing their childrenswear offer 79

Case study - Tesco's MY concept bridges the gap between grocer and department store 80

The different categories of EU childrenswear retailers continue to evolve 83

Childrenswear specialists are implementing innovative strategies to remain competitive 88

Many specialists are developing a global network to grow revenues and broaden the reach of their brand 88

Franchise partners provide a cost-efficient expansion opportunity 88

Designer childrenswear boutiques offering mid- to upmarket brands are growing their network globally 90

Wholesale trading provides a large distribution channel 92

Increasing product fashionability helps to improve brand perception 92

Lower-end childrenswear retailers are adjusting their image by renovating and rebranding stores 92

Retailers are increasing brand exposure and fashion credibility through design collaborations 94

Developing a strong reputation for expertise in childcare and good customer service is key 96

Offering a loyalty programme will encourage customer retention and provide customer insight 96

Child specialists should emphasise niche knowledge about parenting and young children 97

Diversification into other product categories emphasises expertise in children's requirements 97

Widening the clothing categories on offer will help to maximise revenue opportunities 98

Extending the clothing offer will incentivise additional target audiences to enter the store 98

Broadening a store's offering to cater for different age groups will boost revenue if implemented correctly 98

Incorporating multi-channel, online tools and social media into the mix boosts revenue opportunities 99

Retailing through multiple channels is fundamental to remaining competitive 99

Using innovative online tools will help draw customers to a website 99

More retailers are developing an online presence through new social media 99

Key Competitor Analysis 101

ID Group - French specialist augmenting revenue opportunities through four diverse brands 101

Key financials - childrenswear accounts for the largest proportion of ID's turnover 102

Geographic presence - global expansion is a key growth driver for all brands in the group 102

Strengths and strategies - ID Group maintains the individual identities of its wide range of brands 102

The group's growing portfolio consists of a variety of brands selling different product lines 102

Segmentation by age group and price points differentiates each brand 103

Mothercare - UK retailer successfully consolidating its position as expert in childcare 105

Key financials - store consolidation helped to boost 2009 profits 106

Geographic presence - expansion through franchised stores forms part of Mothercare's core strategy 106

Strengths and strategies - a strong brand and good customer service help retain Mothercare's reputation 106

Mothercare demonstrates strong specialism in child-related goods and services 106

The retailer is consolidating its Mothercare and Early Learning Centre networks 107

Brand exposure is maximised through wholesale distribution and overseas franchises 107

Online and mail order continue to be strong revenue drivers 107

Orchestra - French childrenswear specialist with a large global presence through wholesale 108

Key financials - strong sales in Orchestra's domestic market lifted weak turnover for 2009 108

Geographic presence - Orchestra's store estate is largely centred in France 109

Strengths and strategies - segmentation of store concepts caters for a range of products and events 109

A loyalty card helps to track the group's core customer base 109

The company has developed two different store concepts for different locales 109

OVS Industry - Italian fast fashion player undergoing aggressive domestic expansion 110

Key financials - OVS hopes that store refurbishments will help the company recover falling sales 111

Geographic presence - OVS Kids stores will open across Italy and Eastern Europe 111

Strengths and strategies - the development of product lines and the group's estate is strengthening the OVS brand 111

The company is in the process of modernising its brand and store format 111

OVS offers wide ranges for different ages 112

Gruppo Coin's acquisition of Upim and Melablu will further strengthen brand presence 112

OVS is implementing a strong international expansion strategy 113

Zara Kids (Inditex) - capturing 'mini-me' spend with standalone stores 114

Key financials - sales of childrenswear are making significant gains 115

Geographic presence - standalone Zara Kids stores are located primarily in Western Europe 116

Strengths and strategies - the Zara brand is ideally positioned to attract young children and parents 117

Zara Kids' fast fashion concept appeals to trend-conscious parents 117

A large store network allows for global reach 118

Larger Zara stores cater for young family fashion 118

Appendix 119

Glossary 119

Abbreviations 119

Financial statistics 119

Source - Verdict Research 119

Ask the analyst 119

Verdict Research consulting 119

Disclaimer 119

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Nicolas Bombourg



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