"Continued Loss" In The First Quarter Of 2022

Three days ago, the "children's wear No.1" company released its first quarter financial report in 2022, showing that its business income was about 280 million yuan, a year-on-year decrease of 18.97%, and a loss of 28.421 million yuan. The performance loss is not the first time for annals. According to its annual report data, the company will lose 3.0295 million yuan in 2021 and 46.82 million yuan in 2020.

Although the "first share of children's wear" has been losing money, children's clothing business is becoming the driving force of more and more clothing brands and sports brands. How can we divide the "last piece of cake" in the field of clothing?

Various forces vied to enter the profession

"Gold Gobblers" are creating a huge children's wear market.

According to the main data of the seventh national census, there are 253.38 million people aged 0-14 years (accounting for 17.95%), and the population of children is nearly 250 million. According to Euromonitor, the market size of children's wear in China is expected to exceed 400 billion yuan in 2024 and 473.8 billion yuan in 2025.

The huge development potential of children's clothing market is self-evident, which also promotes more and more enterprises to develop children's clothing business.

Balabala, which has the highest market share in the domestic children's clothing industry, is the largest source of income for the domestic clothing brand SEMAR. In 2021, the revenue of SEMA children's clothing reached 10.272 billion yuan, a year-on-year increase of 14.88%, accounting for 66.62% of the total revenue.

In 2020, balabalabala will launch the seventh generation of image stores to upgrade the brand image with lifestyle, and its trend, high-end and younger process will also take a big step. According to big data statistics of win business, there are more than 1100 channels for barabara to enter the shopping center. Moreover, in the context of consumption upgrading, balabalabala premium, a high terminal brand incubated in Balabala, will also be launched this year.

By the end of 2021.25 billion yuan, the number of taipingniao's children's clothing stores increased by 29.29% to 2021.27 billion yuan, the same as that of taipingniao.

In addition, under the background of "double reduction" and the reform of physical examination, some sports brands are also actively laying out the children's wear field.

In early March, Li Ning Sports children's wear Co., Ltd. was established with a registered capital of 250 million yuan. The company is wholly owned by Li Ning (China) Sports Goods Co., Ltd. Previously, Li Ning established Li Ning kids in 2014, and established an independent children's wear business department in 2017, and launched a new lining young, which clearly defined the positioning of "professional sports children's wear brand with fashion originated from China". According to the latest financial report data of Li Ning, as of March 31, there were 1135 sales outlets in Li Ning, covering 30 provinces, municipalities and autonomous regions.

In addition, Anta, Tebu, 361 ° as well as Nike, Adidas, kappa and other sports brands at home and abroad are not willing to be outdone: Anta has realized the market coverage of children's clothing aged 0-14 years through the layout of Anta kids, FILA kids and the acquisition of xiaoxiaoniu King kow; Last year, Tebu put forward that by 2025, the revenue of children's clothing will be 3.5 billion, with an annual compound growth rate of 37%, far exceeding the target of 21% for adults

In addition, all kinds of capital is also in the children's wear market. For example, last year, Star Lane, a children's wear brand, received tens of millions of yuan in Angel round financing, Youlan, a children's wear brand, received nearly 100 million yuan in a round of financing, and patpat, a children's wear brand, won more than 600 million US dollars in one month.

"Opportunities" for professional high-end market

The children's wear brands with high market share in China mostly rely on adult wear development, and occupy the middle and low-end market. However, driven by the higher demand for brand and quality of the current new generation of parents, children's clothing professional brands and high-quality products have become a blue ocean area with great development space. As a result, some children's wear brands focusing on segmentation demand are emerging.

For example, moodyiger, established in 2018, aims at children aged 4 to 14, aims at the "middle class" sports children's wear market, and advocates to create fashionable sports functional clothing suitable for their sports and daily wear with scientific and technological fabrics. Through leggings, the brand has established a good reputation among domestic consumers and formed a high repurchase rate.

In the middle of March this year, moodyiger's first offline sports immersion store landed in huihenglong Plaza, Shanghai port, and joined hands with snow 51 to create a one-stop space, so that children can immerse themselves in the skiing scene and experience the comfort and fashion of children's sportswear.

Out n about, a children's wear brand established in Shanghai in 2020, aims at children aged 3-12 from light outdoor and develops sports children's wear products with both function and comfort. Its product series are mainly about different outdoor scenes, including T-shirt, sunshade fisherman's cap, children's raincoat, sports sweater and other products. At present, the brand has settled in Shanghai, Suzhou, a number of buyer's shops and outdoor collection stores.

In terms of products, the use of scientific and technological fabrics and cross-border co branding cooperation have become important means for children's wear brands to create higher quality. For example, the use of herbal antibacterial, Delong volcanic rock, Coolmax and other black technology fabrics, to meet the needs of consumers to upgrade clothing requirements; In recent years, balabalabala has frequently carried out cross-border co branding with Van Gogh, Dunhuang, Jason Wu and other well-known IP; Mini peace launched limited Gaoding Series in cooperation with Italian designers

Of course, at present, the high-end children's wear market is still occupied by some international brands. In addition to Burberry, Dior, Armani, Fendi and other luxury brands continue to expand children's clothing lines in the Chinese market, more and more international children's clothing brands have also entered the domestic market. For example, Denmark's high-end children's wear brand marmar Copenhagen entered SKP in Beijing in October last year and opened its first boutique in China; Last year, Bonton, the first French children's clothing company, plans to establish a brand in China.

At present, with the new generation of consumers' concept of child care and the improvement of their demand for consumer quality, the purchase of children's clothing is gradually changing to focus on the functionality, comfort, safety and fashion of products. Professional, high-end children's wear will be a "opportunity to take advantage of" the market.

Summary

Although the "two child" and "three child" policies have been liberalized, little has been achieved, and the fertility rate has continued to decline in recent years. However, the new generation of parents advocate high-quality baby rearing, and the family's spending on their children is increasing year by year, which forces the children's clothing market to continuously upgrade and tend to be brand-oriented, high-end and well differentiated.

According to Yingshang big data statistics, in 2021, the proportion of children's parents in the newly opened shopping centers will reach 11%, ranking behind the two major formats of retail and catering. Among them, children's retail accounted for 56.4% of parent-child business, and children's clothing / shoes accounted for nearly 65.7% of children's retail.

Therefore, when children's wear has become an incremental market, brands need to seize the opportunity to develop differentiated products and cultivate brands and product lines with different market positioning and ages. At the same time, pay attention to lifestyle changes, expand high-quality stores, build diversified experience, and increase brand and consumer contacts through multi-dimensional channels.

Of course, excellent quality still comes first. Secondly, starting from the design concept and values, it has won the favor of new families and created a good brand that is invincible in the tide of consumption iteration.