Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- 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
Insights and Opportunities
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- Differentiate strategies for younger vs. older moms
- Younger moms shop for fun and may seek cooler, hipper fashions for kids
- Highlight more traditional kids’ styles and value proposition when speaking to older moms
- Outreach to Hispanic moms and kids
- Expanding lines for larger children
Inspire Insights
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- Premium and Cutthroat
- What it’s about
- What we’ve seen
- Eco and Ego
- What it’s about
- What we’ve seen
Market Size and Forecast
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- Key points
- Population growth can’t compensate for families’ economizing efforts
- Market should stabilize, with Hispanics and kids aged 6-11 offering growth prospects
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- 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
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- Key points
- The state of the apparel industry
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- Figure 3: Change in selected Consumer Price Indices, 2000-09
- Economic downturn hurts overall demand as consumers cut back
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- 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
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- Key points
- Infant/toddler clothing outperforms other segments from 2007-09
- Girls’ clothing segment shows steepest decline
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- Figure 5: total U.S. sales of children’s clothing, by segment, 2007 and 2009
Segment Performance—Infants’ and Toddlers’ Clothing
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- 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
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- Figure 6: Total U.S. sales and forecast of infants’ and toddlers’ clothing, at current prices, 2004-14
Segment Performance—Girls’ Clothing
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- 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
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- Figure 7: Total U.S. sales and forecast of girls’ clothing, at current prices, 2004-14
Segment Performance—Boys’ Clothing
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- Key points
- Boys’ clothing shows zero net growth from 2004-09
- Characters, sports teams and surfer looks
- Sales and forecast of boys’ clothing
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- Figure 8: Total U.S. sales and forecast of boys’ clothing, at current prices, 2004-14
Retail Channels
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- Key points
- Mass merchandisers dominant channel, used by two thirds of moms buying kids’ clothing
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- Figure 9: Where children’s clothing is bought, May 2009
- Consumers turn away from high-end retailers and wait for sales
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- 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
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- Key points
- Market boosted by baby boomlet
- Opportunity for growth strongest among older children
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- Figure 11: U.S. Population by age, 2004-14
- Among under-12s, Hispanic population growing much faster than total
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- Figure 12: U.S. Hispanic population, by age, 2004-14
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- Figure 13: Fertility rate, by race & Hispanic origin of mother, 1996-2006
- Other birth trends: Increase in older moms and unmarried moms
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- 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
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- 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
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- Figure 16: Degree of concern relative to environment, October 2008
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- Figure 17: Belief that shopping habits make a difference in the world, and other attitudes, October 2008
Leading Companies
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- 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
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- 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
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- 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
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- 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
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- Figure 18: Burlington coat factory: TV ad, 2000
- Old Navy’s ads advance overall brand identity, while offering specific promotions on kid’s clothes
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- 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
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- Key points
- Moms dominant shoppers, with older moms turning to more hand-me-downs
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- Figure 21: Incidence of buying children’s clothing, by age, May 2009
- Tiered pricing warranted as clothing is a necessity for parents with children
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- Figure 22: Incidence of buying children’s clothing, by household income, May 2009
- Variations seen in purchasing based on child’s age and gender
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- Figure 23: Age of child clothing was bought for, May 2009
Amount Spent on Children’s Clothing
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- Key points
- Amount spent on clothing rises across income brackets
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- 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
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- 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
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- Figure 26: Trends in amount spent on children’s clothing, January 2002-December 2008
Where Children’s Clothing is Bought
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- Key points
- Mass merchandisers dominant channel, favored especially by 18-34s
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- 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
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- Figure 28: Where children’s clothing is bought, by household income, May 2009
Attitudes and Behaviors Relative to Kids’ Input and Clothing Choices
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- Key points
- As children age, they have more input in clothing choices
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- 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
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- 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
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- 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
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- 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
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- Key points
- Most moms find clothes overpriced, many seek hand-me-downs
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- Figure 33: Finds clothing over-priced and prefers hand-me-downs, by age of parent, May 2009
- Economic downturn has dramatically changed shopping habits
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- Figure 34: How economic downturn has impacted shopping for children’s clothing, by household income, May 2009
Impact of Race and Hispanic Origin
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- Key points
- Hispanics spend the most on children’s clothes
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- 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
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- Figure 36: Average amount spent on children’s clothing in last year, by race/Hispanic Origin and household income, October 2007-December 2008
Cluster Analysis
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- Introduction
- Joyful Shoppers
- Grudge Shoppers
- Unchanged Shoppers
- Cluster characteristics
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- Figure 37: Children’s clothing clusters, June 2009
- Figure 38: Incidence of buying children’s clothing, by children’s clothing clusters, June 2009
- Figure 39: How economic downturn has impacted shopping for children’s clothing, by children’s clothing clusters, June 2009
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- Figure 40: Where children’s clothing is bought, by children’s clothing clusters, June 2009
- Figure 41: Attitudes and opinions regarding prices, styles and child’s preferences, by children’s clothing clusters, June 2009
- Cluster demographics
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- Figure 42: Children’s clothing clusters, by age group, June 2009
- Figure 43: Children’s clothing clusters, by income group, June 2009
- Figure 44: Children’s clothing clusters, by race group, June 2009
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- Figure 45: Children’s clothing clusters, by Hispanic origin, June 2009
- Figure 46: Children’s clothing clusters, by marital status, June 2009
- Cluster methodology
Appendix: Other Useful Consumer Tables
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- Trended incidence of purchasing clothes from 2006-08
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- Figure 47: Trends in incidence of buying children’s clothing, January 2002-December 2008
Appendix: Trade Associations
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