The market for kids apparel in India is anticipated to grow at a CAGR of over 12% during 2016-2021, on account of growing sales of kids apparel through online sales channels and multi branded retail stores. T-shirts/shirts and bottom wear dominated kids apparel market in the country and the segments are projected to continue dominating the market in the coming years as well.
Rising disposable income of consumers and increasing number of nuclear families, especially in metro and Tier I cities is propelling demand for kids apparel in India. Growing influence of media and western culture on Indian mindsets is also anticipated to fuel growth in India kids apparel market. Major cities in India such as New Delhi, Mumbai, Bangalore and Pune that have a large middle and upper middle class population base are the major demand generators for kids apparel in the country.
India kids apparel market is highly unorganized and leading organized players are focusing on aggressively expanding their reach to Tier II and III cities. This is anticipated to fuel growth in the share of the organized sector in India kids apparel market in the coming years. A number of global brands are also penetrating India kids apparel market in order to address the diversified demands for clothing in kids apparel segment in the country during the forecast period.
Rising demand for T-shirts/shirts in the country can be attributed to increasing acceptance of these apparel as casual wear for kids. Additionally, demand for kids apparel in the country was the highest in Western and Northern India, due to growing influence of western culture, and Bollywood and Hollywood movies. Further, high disposable income of people in these regions as compared to other countries is also propelling demand for branded kids apparel.