Kidswear business is not a game of children as this segment in India is gaining strong retail grounds.
People are spending more as they have extra money; moreover, high margins have induced companies to launch their own brands.
Lifetime segment has also embraced kidswear since standard of living has gone up and parents like to see happy faces of their children in reputed brands, said Anil Lakhani, Director, Giny & Jony.
Children's wear amounts to 17 percent of the total Rs43,000 crore apparel industry, or about Rs 7,310 crore, according to a study. However, the organised segment claims only about 7 percent or more than Rs500 crore.
But the segment is growing rapidly at 10 percent per annum.
Margins are between 20 and 25 percent (for dealers and distributors), while companies enjoy an average gross margin of about 10 percent.
Thus, it is understandable that many apparel companies are making investment in this lucrative sector, Lakhani added.
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