The concentration of China's children's clothing

Compared with the segments of women's clothing, men's clothing and sportswear, which are entering or are in the mature stage, China's children's clothing industry is still in a growth period of rapid growth and is a popular segment of China's apparel industry. Children are in the stage of rapid growth, and the frequency of clothing replacement is higher than that of adults, about 15-20 pieces of clothing are updated every year, while adults are about 10 pieces; in addition, my country has always had the concept of attaching importance to the next generation, and the daily expenditure for children is expressed as The characteristics of low price sensitivity and the pursuit of quality make children's clothing more willing to consume than adult clothing and are willing to pay for the brand. On the whole, the market prospects of China's children's clothing industry are broad.

My country's children's clothing market is in the growth stage
My country's children's clothing market developed in the early 1990s, and it started relatively late compared to the entire international children's clothing market. With the improvement of people’s living standards, the public’s demand for children’s clothing has begun to show a diversified trend. Domestic children’s clothing brands have gradually risen, and overseas children’s clothing brands have also entered the market. However, the overall development of my country’s children’s clothing market is still compared with men’s and women’s clothing. At a low level.
The concentration of China's children's clothing industry has steadily increased, and the leader reflects the Matthew effect
Compared with adult clothing, the children's clothing industry is easier to achieve increased concentration. From the perspective of demand, parents, as the main decision-making body for children's clothing purchase, are more comfortable and safe than fashion. Therefore, it is conducive to the development of products that are closer to standardization. It is easier for manufacturers to achieve scale effects and industry concentration is increased. The younger generation of consumers has a new consumption concept and has a stronger willingness to consume branded and quality products. At the same time, the increase in the level of residents' disposable income is conducive to consumption upgrades. Therefore, brand children's clothing will be more able to capture market share and expand concentration. From the supply side, the scarcity of channels and industry norms have led to the weakening of the competitiveness of small and medium-sized brands. Online and offline traffic is increasingly concentrated on brands. Maternal and child consumption is a type of consumption that focuses on physical experience, and offline channels are becoming more and more fierce to the survival of the fittest by brands.
Compared with adult wear, children's wear has low fashion requirements and high functional requirements. The scale effect of the enterprise is more obvious, and the industry concentration is expected to continue to increase. From 2014 to 2019, the CR5 of my country's children's clothing industry increased from 6.8% to 11.5%. Among them, Semir's balabala brand accounted for 6.9% of the market in 2019, making it the industry's number one leader. Weak macroeconomics will accelerate the survival of the fittest in the industry. Leading companies rely on their excellent inventory management capabilities and channel operating efficiency to cross the down cycle, and their market share will further increase, which in turn will lead to a steady increase in industry concentration.
In the clothing sub-industry, the prosperity of children's clothing is second only to sportswear, and the market scale is growing relatively fast. According to Euromonitor statistics, China's children's clothing market reached 239.15 billion yuan in 2019, and the CAGR reached 13.5% from 2014 to 2019.
In the context of the implementation of the domestic two-child policy, the domestic second-child fertility rate has shown a significant increase, and the post-80s and post-90s parents have a stronger concept of eugenics and post-natal care, combined with the continuous rise of the national per capita income level, and the per capita consumption of children’s clothing in China continues to increase ; In 2019, the per capita consumption of children's clothing in my country reached 1018 yuan, and the CAGR from 2014 to 2019 reached 12.6%, which is a rapid growth rate. It can be seen that the main driving force for the growth of China's children's clothing market is the increase in children's per capita consumption expenditure on children's clothing.
According to data from the National Bureau of Statistics, the overall number of children in my country from 2010 to 2019 is on the rise; in 2019, the number of children in my country is 235 million, accounting for 16.78% of the population. The huge number of children is the basis for the vigorous development of China's children's clothing industry. In the context of the continuous popularization and strengthening of the concept of prenatal and postnatal care, the per capita consumption expenditure of children's clothing in China will continue to rise, providing support for the continued expansion of the market scale of the children's clothing industry. It is expected that the size of China's children's clothing market will grow rapidly with a CAGR of 12.1% in the next few years, and the market size is expected to exceed 400 billion yuan in 2024.