Children have become an important demographic segment
The Indian kidswear market holds huge potential for the global textiles industry. It is poised to grow at a CAGR of 10.5 per cent over the next ten years. Manu Indrayan, co-founder and CEO of 612 League, an emerging kidswear brand in India, talks with Fibre2Fashion.com about the huge opportunity for kidswear manufacturers and the targeted growth of the company in this segment.
What is the size of the kidswear market in India? What is the percentage pie claimed by the branded segment?
India, with a child population of 450 million and annual addition of eight million, presents a huge opportunity for the kidswear industry. It's no surprise that children have become a very important demographic segment for Indian marketers.
The kidswear market makes up approximately 20 per cent of the total apparel market. It is expected to grow at a CAGR of 10.5 per cent over the next ten years. The segment is currently estimated to be worth ₹ 45,000 crore and is projected to reach ₹ 120,000 crore by 2023. Within the kidswear segment, boyswear has the larger share (52 per cent). School uniform is another category where growth is expected for both boys and girls, especially with greater focus on girls' education. It comprises the largest market share of approximately ₹ 14,000 crore in both the segments. The branded segment forms a very small percentage of the total kidswear market.
What has been the growth percentage of 612 League in the last few years? What is your targeted growth?
The growth percentage of 612 League in the last few years are as below:
1. 77 per cent per annum in the last 5 years
2. 68.4 per cent per annum in the last fiscal
The targeted growth for 612 League is CAGR of 30 per cent per annum for the next three years.
Five years down the line, how do you see the kidswear market in India in comparison to the womenswear and menswear segments?
The kidswear market will be more brand-focused. So far, there is no clear market segmentation in terms of age groups. 612 League is the first Indian brand to create a separate segment for 'tweens' or pre-teen children within the kidswear sector. Going forward, there will be a clear segmentation based on age groups and product differentiation as has been seen in menswear and womenswear segments.
Please share some details of your fiscal 2015, and you expectations from the coming two fiscal.
During fiscal 2015, the company achieved a turnover of ₹ 71.15 crore. The brand was available at 387 sale points across more than 130 cities. The company targets to achieve a milestone of ₹ 100 crore in fiscal 2016, and a further growth of 30 per cent to ₹ 130 crore in 2017. It plans to give a major thrust to achieve a higher share in the growing e-commerce retail segment. Besides, it also plans to expand its exclusive store network. With the convergence of customers in the digital and offline space, the company plans to have an omni-channel presence shortly.
What is the budget allocated towards R&D?
Our R&D plans are geared towards development of innovative communication and engagement strategies to form a very strong community of 612 League users. We plan to allocate almost ₹ 3 crore towards development of technology for creating a strong customer engagement.
Published on: 22/01/2016
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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