Baby apparel are clothing especially designed for infants and toddlers. They are highly comfortable, convenient, and safe for the infant and generally made of cotton, wool, and silk. The manufacturers create the different types of outerwear, underwear, nightwear, socks and tights in various styles for the attractive look. Growing demand for trendy and stylish baby wears and penetration of the e-commerce industry are the major factors driving the market growth. The baby apparel industry has been strongly influenced by rising social media influence and shifting fashion trends. Parents in today's world are concerned about their children's clothing choices, which is driving up demand for fashionable clothing.
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Market Dynamics
The ever-growing rise in new born children is the primary factor for the growth of baby apparel market, assisted by the rising awareness towards importance of these specialty clothing in child health. Also, macro-economic factors such as increasing income levels, spending towards child healthcare, awareness campaigns led by government and non-profit healthcare bodies are resulting in increased adoption of baby apparel from parents. Reduced infant mortality rates have come from advancements in medical technology, which has boosted product consumption. PT Matahari Department Store Tbk announced a partnership with OVS, one of the most well-known Italian clothing brands that also sells baby clothes. Matahari stores will become the official distributor for OVS products in Indonesia as a result of this partnership, broadening the company's product offering.
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Segment Analysis
Top wear includes tops/shirts and bodysuits among others Top wear, such as bodysuits, is a practical option for parents in terms of diaper coverage and allows them to change their child's diaper easily. Similarly, these types of garments are comfortable for babies and can be worn as an outside outfit. Baby girls are more likely to wear dresses/frocks, resulting in a higher demand for tops. Furthermore, a large range of vests and jackets as winter clothing adds to the top wear segment's growth. Key players are launching various products under this segment, which is further expected to drive the market growth. For instance, Loulou LOLLIPOP introduced their Fall 2020 Baby Apparel line in October 2020. Eco-Soft Technology and eco-friendly materials have been used to make the bodysuits.
Competitive Landscape
The baby apparel market is fragmented, due to which the competition between players is expected to increase. Key manufacturers in the market are adopting various strategies such as acquisition and mergers to increase market share. For instance, in April 2019, The Children's Place acquired the assets of Gymboree and Crazy 8, both of which offer kids clothes. The Childrenplace's product portfolio is likely to grow as a result of this. Similarly, players are releasing new product lines in order to attract more customers. For example, H&M launched their Kidswear capsule collection based on the popular Harry Potter film series in August 2020. Tops, sweatshirts, trousers, skirts, and bodies, among other items, are included in the collection for babies. Gymboree Group Inc. acquired Janie and Jack, a children's fashion company, to Gap Inc. in March 2019. Gap's children's wear product portfolio is likely to grow as a result of this.
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