What exactly will the “three-child policy” bring to the children’s clothing industry?
In order to actively respond to the aging of the domestic population, the announcement of the comprehensive liberalization of the “three-child policy” after the seventh census has aroused widespread concern and heated discussion in the society.
This policy has also made related maternal and infant concept stocks active. Blonde Rabbi, Meibang Apparel, etc. have reached their daily limit, and Anael, Baby Care, etc. have followed suit. Now, the new policy has been announced for more than a month. What feedback has the market received? How do professionals view the impact of the “three-child policy” on the children’s clothing market?
New markets have spawned “potential stocks” in the industry
The “three-child policy” is coming, which is undoubtedly good news for the children’s clothing industry. From the implementation of the “individual two-child policy” in my country in 2013 to the liberalization of the “comprehensive two-child policy” in 2016, many families have increased their consumer spending on children, and China’s children’s clothing industry has experienced explosive growth. Relevant surveys show that the “post-90s” and “post-95s” parents, who are the main consumers, spend 20% of the total household expenditure on children’s clothing. Coupled with the impact of the upgrading of the consumption concepts of the new generation of expectant parents, in the future, with the ” With the arrival of “second and third children”, the trend of gradually increasing consumer spending on children’s clothing will surely drive the rapid development of the children’s clothing market.
With the implementation of the “three-child policy”, practitioners in the children’s clothing industry have expressed promising prospects. Lin Haoliang, chairman of the Board of Directors of Golden Rabbi Maternal and Infant Products Co., Ltd., said that at present, continuously upgrading the quality of products and services and improving consumer experience are the key to facing market competition, and it is also the key for mothers to face competition in the market. The key to the long-term sustainable operation of baby brands. In the first quarter of this year, Kingfa Rabbi achieved total operating income of 62.824 million yuan, a year-on-year increase of 19.8%; net profit attributable to the parent company was 6.839 million yuan, a year-on-year increase of 812.7%.
The relevant person in charge of Shenzhen Annil Co., Ltd. said that the company will increase the research and development and design of children’s clothing and promote the “Annil” brand. At the same time, it will also appropriately expand and optimize the product line in a timely manner. Brand expansion, actively negotiate cooperation opportunities with well-known brands in the market to achieve brand joint and coordinated development. As a leading upstream company, Anair has always been at the forefront of the high-end maternal and infant consumer goods industry. It is also constantly innovating on the product side and actively leading the high-quality development of the industry. In the first quarter of this year, Anair achieved total revenue of 62.8243 million yuan, a year-on-year increase of 19.80%; net profit attributable to the parent company was 6.8394 million yuan. The company expects to achieve net profits attributable to shareholders of listed companies from January to June 2021 of 18 million yuan to 27 million yuan, a year-on-year increase of 71.77% to 157.66%.
With favorable policies and the high growth of the children’s clothing track itself, industry insiders are generally optimistic about the opportunities in the entire industry chain of the children’s wear track. According to data released by Euromonitor, the size of my country’s children’s clothing market in 2020 is approximately 229.2 billion yuan. It is expected that the children’s clothing market will maintain rapid growth in the next five years. By 2025, the domestic children’s clothing market is expected to reach 473.8 billion yuan. The comprehensive liberalization of the “three-child policy” will further stimulate consumer demand for children’s clothing.
Faced with this big piece of cake, in fact, major domestic sports brands such as Anta, Li Ning, 361 Degrees, and Xtep have already begun to engage in the children’s clothing business. Among them, Anta’s sales from children’s clothing account for the highest proportion, with the main brand Anta accounting for approximately 27% and the other major brand Fila accounting for approximately 10%. In addition, Anta also acquired the children’s clothing brand Xiaoxiao Niu in 2017, launching a multi-brand strategy in the children’s clothing market. 361 Degree, which has been developing slowly in recent years, also has high hopes for the children’s clothing business. Data shows that in 2020, the children’s clothing business contributed 18.4% of revenue to 361 Degrees. Ding Wuhao, president of 361 Degrees, said that children’s clothing has great opportunities in the future and should maintain long-term double-digit growth. It is also a sector that will help the group become stronger and bigger.
New demands force product track upgrades
With the arrival of a new wave of baby boomers, parents born in the 1990s and 1995s, who are the main consumers, have higher requirements for the style and quality of children’s clothing products, and pay more attention to the quality and product features of children’s clothing products. Whether it has sufficient brand effect, whether it has a unique brand label, whether it is in line with fashion trends or full of traditional charm, it will stimulate the children’s clothing industry to move towards a new era of branding, specialization and personalization.
In fact, some companies are aware of this. An unnamed person in charge of a clothing company revealed to reporters that the “low price for market” approach no longer works. The country’s introduction of the “three-child policy” will make the market demand for children’s clothing more diversified, which will inevitably drive the growth of children’s clothing. consumption upgrade and high-endization, and at the same time promote the segmentation of the children’s clothing market.
From the perspective of industry insiders, parents born in the 1990s and 1995s generally have a strong interest in the original design, market segmentation, brand positioning, brand image, consumer experience, product quality, brand power and other comprehensive strength-level brands of children’s clothing brands. The concept puts forward higher requirements, which also makes most children’s clothing companies start again on the same starting line.
In order to seize the positive opportunities of the “three-child policy”, Su Congbao, chairman of the Jamie Bear brand, said that adhering to the concept of “fashionable magic children’s clothing”, the Jamie Bear brand has comprehensively deepened the 2022 spring and summer series of products and brand positioning. and reinvention. In the future, Jamie Bear will move towards the IP brand route, upgrading products and optimizing supply.Chain management empowers terminals and brand promotion efforts to display brand image and products with a super IP image that brings its own traffic.
At present, positioning children’s clothing brands with different personalities, conducting market segmentation, and tailoring “fairy tales to wear on the body” for children has become the development philosophy of many children’s clothing companies to delve into market segments, especially for more mature ones. Brands pay more attention to personalized design. YeeHoO, the leading brand in the domestic infant and child industry, launched a new brand YeeHoO Rainbow this year. For the first time, the baby clothing products are extended from newborns to 3 years old and above, aiming to create diversified images and styles for children’s clothing and present the individual charm of children’s daily matching. The chief designer of the YeeHoO Rainbow brand said that the new brand will not simply pursue new and interesting visual styles, but will pay more attention to the growth elements and heartfelt expressions that children are passionate about. At the same time, it will combine the quality perspective derived from the hearts of parents to create a market-leading brand. Unique high-end quality aesthetic children’s clothing.
The children’s clothing market segmentation track has arrived. However, some experts predict that the effect of relaxing the birth control policy and the upgrading of related consumer goods may not be as good as expected in the short term. This market benefit may not be reflected until 2 to 3 years later. come out. At the same time, as competition from foreign brands increases, competition among children’s clothing companies will further intensify in the future, which is likely to put many clothing companies under greater pressure to survive.
In this regard, Semir Clothing also stated that while the company has shown rapid development in the children’s clothing market, many clothing brands have entered the children’s clothing market. Intensified market competition may bring uncertain risks to the development of Semir’s children’s clothing business. The rise in raw material prices may also cause Semir to face a situation where surface and auxiliary materials cannot be supplied in time and procurement costs increase.
Faced with the escalating challenges of the “three-child policy”, Zhou Ruxiang, CEO of Guangzhou Qierzhi Enterprise Management Co., Ltd., believes that leading companies with strong brands, guaranteed quality and good consumer reputation are expected to continue to benefit and further lead the development of the children’s clothing industry. Speed up development.
AAA
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.
AA
