Report: Children's Clothing - US

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Market at a glance
Alternative channels offer moms access to secondhand children' s clothes
Children under 12 will increase by two million in 2014 and include growing number of Hispanic children
Growing number of older moms and unmarried moms will warrant marketing focus
Increases in children' s weight is driving need for plus-sized clothing
Recession drives down demand, compels consumers to change shopping habits
Concern with environment and child safety drives demands for organics
Brand identities run the gamut from "kid cool" to "age appropriate"
Advertising and marketing emphasize savings and value during downturn
Consumer findings: Who purchases clothing
The amount spent on clothing is driven by income and age of children
Choice of retailer varies substantially with mom' s age and income level
Children make their voices heard in clothing choices
Moms enjoy shopping for their kids
Age appropriate clothing a key concern, especially for moms aged 35+
Moms are changing their shopping habits to trim costs
Hispanics show high demand for children' s clothing and warrant long-term focus
Market Size and Forecast
Key points
Population growth can' t compensate for families' economizing efforts
Market should stabilize, with Hispanics and kids aged 6-11 offering growth prospects
- Figure 1: Total U.S. sales of children' s clothing, at current prices, 2004-14
- Figure 2: Total U.S. sales of children' s clothing, at inflation-adjusted prices, 2004-14
Competitive Context
Key points
The state of the apparel industry
- Figure 3: Change in selected Consumer Price Indices, 2000-09
Economic downturn hurts overall demand as consumers cut back
- Figure 4: Changes or plans to change spending to save money, by gender and presence of children, march 2009
New-to-you is replacing brand new for some shoppers
Strong growth in sales and traffic at resale and thrift shops
Craig' s List garage sales and "for sale" postings increase two-fold from 2007-08
Moms are changing shopping habits and open to secondhand clothing
Segment Performance--Overview
Key points
Infant/toddler clothing outperforms other segments from 2007-09
Girls' clothing segment shows steepest decline
- Figure 5: total U.S. sales of children' s clothing, by segment, 2007 and 2009
Segment Performance--Infants' and Toddlers' Clothing
Key points
Growth slowed to crawl in 2007-08 and falls in 2009
Strong growth of 2004-06 driven by consumer confidence and proliferation of high-end offerings
Moms trade down and turn to affordable, private label brands
Sales and forecast of infants' and toddlers' clothing
- Figure 6: Total U.S. sales and forecast of infants' and toddlers' clothing, at current prices, 2004-14
Segment Performance--Girls' Clothing
Key points
2009 marks third year of decline for girl' s clothing segment
Trends for fall 2009 include plaids, buffalo checks, leggings
Sales and forecast of girls' clothing
- Figure 7: Total U.S. sales and forecast of girls' clothing, at current prices, 2004-14
Segment Performance--Boys' Clothing
Key points
Boys' clothing shows zero net growth from 2004-09
Characters, sports teams and surfer looks
Sales and forecast of boys' clothing
- Figure 8: Total U.S. sales and forecast of boys' clothing, at current prices, 2004-14
Retail Channels
Key points
Mass merchandisers dominant channel, used by two thirds of moms buying kids' clothing
- Figure 9: Where children' s clothing is bought, May 2009
Consumers turn away from high-end retailers and wait for sales
- Figure 10: How economic downturn has impacted shopping for children' s clothing, by agree, May 2009
Profiles of major retailers
Mass merchandisers--Walmart and Target
Walmart profits from low pricing strategy and strong private label offerings
Target offers hip, stylish offerings at affordable price points
Value-priced department stores
JCPenney
Sears/Kmart
Kohl' s
Discount stores
TJX Companies (T.J. Maxx and Marshalls)
Ross
Higher-end department stores
Macy' s (Macy' s and Bloomingdale' s)
Market Drivers
Key points
Market boosted by baby boomlet
Opportunity for growth strongest among older children
- Figure 11: U.S. Population by age, 2004-14
Among under-12s, Hispanic population growing much faster than total
- Figure 12: U.S. Hispanic population, by age, 2004-14
- Figure 13: Fertility rate, by race & Hispanic origin of mother, 1996-2006
Other birth trends: Increase in older moms and unmarried moms
- Figure 14: Number of births and Fertility rate, by age of mother, 2005-07
Suppliers and retailers will need to address non-traditional families
Increasing weight of kids drives need for larger sizes
- Figure 15: Prevalence of overweight among children and adolescents aged 2-19, for selected years 1976-80 through 2003-06
Green trends drive demand for safe, eco-friendly clothes
- Figure 16: Degree of concern relative to environment, October 2008
- Figure 17: Belief that shopping habits make a difference in the world, and other attitudes, October 2008
Leading Companies
Suppliers with their own retail stores
Carter' s
Gap and Old Navy
Gymboree
The Children' s Place
Tween Brands
Other major suppliers
Children' s Apparel Network
Garanimals
Gerber Childrenswear
Adult and teen brands extended to kids
Premium brands also available for babies and children
Private label brands at major mass merchandisers and department stores
Brand Qualities
Key points
Carters offers a sense of trust, tradition and great affordability
Gap offers cool classics; Old Navy, trendy value
Gymboree offers rugged, colorful clothes and higher-end, vintage looks with Janie and Jack brand
American Eagle (77kids) offers new "kid cool" brand
The Children' s Place offers affordable, kid-friendly fashions
Tween Brands targets girls aged 7-14 with "fun and cool" image
LT Apparel offers range of brands, including age-appropriate Healthtex
Garanimals offers mix-and-match brand that helps kids build confidence.
Gerber capitalizes on strong association with healthy, happy babies
Innovation and Innovators
Sears offers buyer' s protection program
Avril Lavigne to expand rock star-inspired Abbey Dawn line to girls
Organic clothing appearing at specialty suppliers and mass merchandisers alike
Gap: Organic baby clothes, Junk Food t-shirts and upcoming Stella McCartney line
Advertising and Promotion
Key points
Advertising and marketing strategies embrace a widening range of media
The economic downturn is impacting strategies across the retail spectrum
Walmart
Nordstrom
Limited Too/Justice
Burlington Coat Factory
- Figure 18: Burlington coat factory: TV ad, 2000
Old Navy' s ads advance overall brand identity, while offering specific promotions on kid' s clothes
- Figure 19: Old navy short promotion: TV ad, 2009
- Figure 20: Old navy swimwear promotion: TV ad, 2009
Dual focus warranted as both moms and kids have voice in buying clothes
Some brands embrace "age-appropriate" clothes and ad campaigns
Others invite kids to follow pop idols and take on more sophisticated looks
Licensed products allow clothing makers to take advantage of beloved characters, new movies and emerging pop stars
Clothing suppliers and retailers attract kids through websites and "virtual" events
Garanimals and Tween Brands among brands using websites as "fun" destination sites for kids
American Eagle uses innovative online concert to launch "kid cool" brand
Who Buys Children' s Clothing
Key points
Moms dominant shoppers, with older moms turning to more hand-me-downs
- Figure 21: Incidence of buying children' s clothing, by age, May 2009
Tiered pricing warranted as clothing is a necessity for parents with children
- Figure 22: Incidence of buying children' s clothing, by household income, May 2009
Variations seen in purchasing based on child' s age and gender
- Figure 23: Age of child clothing was bought for, May 2009
Amount Spent on Children' s Clothing
Key points
Amount spent on clothing rises across income brackets
- Figure 24: Amount spent on children' s clothing in last year, by household income, October 2007-December 2008
Amount spent on clothing increases as children age
- Figure 25: Amount spent on children' s clothing in last year, by age of child, October 2007-December 2008
Trended data show significant drop in spending levels from 2004 to 2008
- Figure 26: Trends in amount spent on children' s clothing, January 2002-December 2008
Where Children' s Clothing is Bought
Key points
Mass merchandisers dominant channel, favored especially by 18-34s
- Figure 27: Where children' s clothing is bought, by age of parent, May 2009
Moms with HH income of $50K+ shop at greater range of retailers
- Figure 28: Where children' s clothing is bought, by household income, May 2009
Attitudes and Behaviors Relative to Kids' Input and Clothing Choices
Key points
As children age, they have more input in clothing choices
- Figure 29: Who makes decisions about clothing bought, by age of child, May 2009
Almost half of kids like sports teams and characters on clothes
- Figure 30: Reported children' s interest in clothes with sports teams or characters, by age of parent, May 2009
Most moms enjoy shopping for children' s clothes
- Figure 31: Enjoyment in shopping and ease in finding clothes child likes, by age of parent, May 2009
Majority of moms find clothes too grown up
- Figure 32: Finds children' s clothes too grown up and child dresses like friends, by age of parent, May 2009
Attitudes and Behaviors Relative to Cost, Value and Economic Downturn
Key points
Most moms find clothes overpriced, many seek hand-me-downs
- Figure 33: Finds clothing over-priced and prefers hand-me-downs, by age of parent, May 2009
Economic downturn has dramatically changed shopping habits
- Figure 34: How economic downturn has impacted shopping for children' s clothing, by household income, May 2009
Impact of Race and Hispanic Origin
Key points
Hispanics spend the most on children' s clothes
- Figure 35: Amount spent on children' s clothing in last year, by race/Hispanic Origin, October 2007-December 2008
Upper-income blacks invest heavily in children' s clothes and warrant focus
- Figure 36: Average amount spent on children' s clothing in last year, by race/Hispanic Origin and household income, October 2007-December 2008
Appendix: Other Useful Consumer Tables
Trended incidence of purchasing clothes from 2006-08
- Figure 47: Trends in incidence of buying children' s clothing, January 2002-December 2008
Appendix: Trade Associations

Children's Clothing - US - August 2009