Five Reasons Why Kids Wear Franchises are Investment-Worthy

Nikita Arya
Nikita Arya Jul 20 2019 - 4 min read
Five Reasons Why Kids Wear Franchises are Investment-Worthy
Indian and foreign brands in kids wear segment are increasingly investing in the kids wear market as the demand for trendy and stylish kids wear is blooming over the past few years.

Today’s kids are very outspoken in their choices when it comes to clothing and accessorising themselves. With increased access, affordability, brand consciousness and spending power, parents also find themselves capable of fulfil their demands for branded clothing, thereby accelerating the growth of entire kids wear market.

According to recent reports, an e-commerce giant witnesses 80% growth in its kids wear category. Indian and foreign brands in kids wear segment are increasingly investing in the kids wear market as the demand for trendy and stylish kids wear is blooming over the past few years. The booming demand is also giving rise to franchise opportunities, making the market an investment-worthy opportunity for aspiring entrepreneurs. Here are some reasons why kids wear franchises are investment-worthy.

E-commerce finding growth in offline

As offline stores are often considered by parents while finding the perfect size for their kids, online existing players are looking to expand their business through offline presence, mainly through franchised stores. For instance, popular e-commerce brand FirstCry has set-up offline stores to showcase their products directly to the customers to add tangibility. With omnichannel presence of such brands, the market is booming altogether.

Lucrative Franchise Opportunity for Entrepreneurs

Consumer preferences are witnessing major shifts; as a consequence, the kids wear market is flourishing like anything. With such a huge shift in preference, entrepreneurs are showing their interests in buying franchises of big brands in the market. The estimated size of kids wear market in India is Rs 70,000 crores and the market is expected to grow at a CAGR of over 12% during 2019-2021. Such a whopping size of market is attracting entrepreneurs, hence more and more franchise business are emerging in the industry. As per sources, a kids wear franchise could be owned in an investment of Rs 20-30 lakhs for an area of 1000-1500 sq ft and can be earned back in 18-24 months. With such a small investment and high RoI, the market is becoming investment-worthy; hence the number of franchised stores is rising year by year.

Changing Lifestyles of Parents Adding Fuel

Until few years back, there was no existence of a kids wear sector as parents were the decision-maker of their children’s clothing. Handed-down, oversized and cheaper unbranded clothes were often chosen by the parents keeping into consideration factors like faster body growth of children, comfort and quality of the clothes. And, fancy clothes were bought just for special occasions.

But with time, the influence of cosmopolitan culture infiltrated the parent’s mindsets; their children’s fashion has become their status and reflects their standards. Therefore, they are picking up fashionable clothes for their children even as regular clothing. The gradual shift in the mindsets is one of the growth catalysts of the industry, making it a perfect market to invest in.

Children emerging as Decision-makers

As mentioned above, parents were the deciding force behind their children’s fashion status. But now they are being given to choose their own clothing by themselves – thanks to the increasing encouragement about self-confidence and independence among kids at young age.

As children are emerging as their own decision-makers, the entire kids wear market is pumped up. Influenced by the media and peer pressure, today’s kids are more informed and self conscious. Owing to this, kids wear brands also plan their marketing strategies targeting rather than targeting their parents. For instance, First Cry, one of the leading shopping stores in kids wear category, has recently planned all their advertisements around children, attracting kids and their parents towards their stores.

Increasing Preference for Branded Apparel

As various retail and franchise brands are foraying into kid’s apparel by extending their product lines to include children, parents who shop from those brands are also buying apparel for their children. Major fashion brands such as GAP and Marks & Spencer have entered into the kids segment and are targeting parents and children to buy branded clothes for their children. Also, with changing lifestyles and increased purchasing power, a lot of new-age parents can afford buying brands for their children, hence pushing the industry further.


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