Luxury Products for Kids Market Overview
Luxury goods comprises of products such as accessories, footwear, apparel, watches and others which are quite expensive and target those consumers who belongs to premium class. The market for luxury goods consist of three types of end consumers, which includes kids lying between the age of 0-12 years, teenagers belonging to the age group of 13 to 19 years and the rest lies in adult group.
Whereaskidsare concerned they are the smallest consumer group. Although being a smaller consumer group, the luxury products market for kids is experiencing tremendous growth in recent years due to changing consumer lifestyle and availability of the product. It is expected that spend on luxury shopping by consumers will grow by 25% in 2015. Luxury products for kids market is associated with higher margin as compared to adult’s luxury products segment. It has been found that baby’sluxury product accounted for more than 7.2% market share of luxury market in 2014.
Luxury product market highly depends upon thefactors such as attractivemarketing, promotion techniques and proper distribution channel.
Luxury products market for kids can be broadly segmented on the basis of product type, distribution channel and geographies. On the basis of product types it can be subsegmented into accessories, apparels and footwear.
Among all these sub segments apparel market is expected to account for highest market share followed by footwear sub segment. The growth of apparel segment is fuelled by the frequently changing fashion and continuous need for new clothing for growing children. In 2014, U.S. and European market account for the most dominating market for apparel.
The market for luxury baby product also depends upon the mode of distribution channel used for offering products to the consumers. The mode of Distribution channel is segmented into retail outlets, sell out through internet, company’s brand outlet and others.
Among all these distribution channel online retailing is expected to be most preferred mode for distribution in the forecasted period. This ishis is due to consumer convenience preferences and availability of the products at lower price. Furthermore, the second most preferred mode is expected to be the company’s brand retail outlets as they provide better offerings at less price.
Furthermore, the luxury products market for kids inAsia pacific is expected to account for fastest CAGR in the forecasted period as compared to other regions. This is because the growth in luxury expenditure is expected to increase by 40% by 2020.
In addition, countries such as Malaysia, Thailand and Singapore and are expected to contribute a significant share to overall Asia Pacific luxury products market for kids. Whereas, spending from China is expected to witness a fastest growth in Asia Pacific.
It is predicted to boost the customer base and prominent contributor in the revenue of global luxury products market for kids.Moreover, presently North America and Western Europe dominate the total luxury products market for kids due to high purchasing power of consumers. These regions are expected to witness a slow growth as compared to the growth exhibited by countries in Asia Pacific.
The key factors driving the growth of luxury products market for kids includes continuous innovation in products sub segments, rising disposable income, changing consumer lifestyle, awareness of products through internet and social media, improving countries economy, influence of the consumers through their peers, friends or neighbours, and others.
However, there are some restraining factors which are affecting the growth for luxury products market for kids which include the expensive price range for consumers in emerging markets and less product variants availability across the distribution channel. Moreover, internet being a prominent medium for distribution of the luxury goods is expected to witness low adoption among the consumers in emerging markets. Thisis due to less internet penetration in these markets.
Initially the market for luxury baby products was dominated by specialty retailers such as Children’s Place The Walt Disney Company, Mothercare plc, The Gymboree Corporation and others. However, with the increase in premium consumers leading to a shift in consumer buying behavior, due to this various companies have entered the market which includes GAPInc, J Crew Group, Inc, DKNY, Gucci Group, Diesel,Dolce &Gabbana, United Colors of Benetton, Jack & Jill clothing Inc,Giorgio Armani S.p.A, BLOCH, Burberry Group plc, Converse, Christian Dior S.A, FENDI and others.
This research report presents a comprehensive assessment of market and contains thoughtful insights, facts, historical data and statistically-supported and industry-validated market data and projections with a suitable set of assumptions and methodology. It provides analysis and information by categories such as market segments, geographies and types.
Evolving Fashion Trends to Propel the Demand for Luxury Products for Kids Ove the Forecast Period
The global luxury products for kids market is being propelled by the inflating per capita income of individuals and evolving fashion trends worldwide. The market is further gaining momentum on account of the growing influence of social media and cinema on parents, coupled with the rising availability of diverse types of luxury baby brands and products on the e-commerce platform. In addition, the market growth has been fuelling due to the surging frequency of advertisements by key players through different media channels, along with the growing development of innovative luxury products. However, the market growth might hinder as a result of the high costs associated with luxury products for kids. In addition to this, the lack of internet facilities in rural and undeveloped regions might act as a market deterrent over the forecast period of 2022-2032.
Surging Demand for Luxury Products for Children Over the E-Commerce Platform to Boost the Market Growth
On the basis of distribution channels, the market is predicted to be led by the e-commerce/ online segment. This can be attributed to the manifold services offered by the e-commerce industry, such as product comparison, product discounts, free product delivery, and easy payment, among other services. Several stores are now expanding their retail business to further sell luxury branded clothes for children online, thus contributing towards the segment growth over the forecast period. The online availability of premium kidswear brands helps procure the best deals on major categories, options like COD/ cash on delivery, and free shipping. Further, the extensive range of games, toys, apparel, and other accessories for kids on the e-commerce platform also supports the market growth.
North America and Europe to Account for the Largest Market Share of Luxury Products for Kids
Geographically, Europe and North America account for a major revenue share of the global luxury products for kids market. This can be ascribed to high consumer spending on several kids luxury products, like apparel, and footwear, among others. In addition to this, the expanding e-commerce segment in economies like the UK, Germany, France, Italy, the United States, and Canada in these regions is also anticipated to propel the market development in the forecast period. Parallel to this, the Asia Pacific market is expected to observe lucrative growth on the basis of the generation of revenue in the target market due to the surging adoption of various designs and patterns of kids luxury products in countries like China, Japan, and India. The Middle East and Africa, and Latin America markets are expected to witness average growth over the forecast period.
Launch of a New and Exciting Range of Premium Products for Kids to Facilitate Market Development
The key players in the market are constantly striving to enhance their product offerings and upscale their line. For instance, in 2021, Poppabum, a sustainable luxury clothing brand for children aged between 0-4 years, announced the launch of a uniquely designed and exciting range of pinafores and jumpsuits in India. The organic range revives the old ’60s pop-culture vibe with its distinct illustrations. It is smartly designed to make on-the-go changes quick, easy, and hassle-free for active, fashion-conscious, and professional parents of millennials.
The report covers exhaustive analysis on
- Market Segments
- Market Dynamics
- Market Size
- Supply & Demand
- Current Trends/Issues/Challenges
- Competition & Companies Involved
- Value Chain
Regional analysis includes
- North America
- Latin America
- Asia Pacific
- Western Europe
- Eastern Europe
- Middle East & Africa
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also the maps qualitative impact of various market factors on market segments and geographies.