Author: Mintel Group Ltd.
Last saved by: HTTP server

Childrenswear - UK - January 2010

ISSUES IN THE MARKET
Main themes
Definition
Abbreviations
FUTURE OPPORTUNITIES
Less about price, more about value
(Feel) the difference
Clothing with extra ‘oomph’
Tech-savvy and hip fashion for kids
Ethical Responsibility
Not quite virtual shopping
MARKET IN BRIEF
Price deflation hits retailers hard
Supermarkets and discounters benefit from a shift towards value...
...proving popular with those on low incomes in particular
Addressing continuing concerns should offer retailers opportunities
INTERNAL MARKET ENVIRONMENT
Key points
Retail environment rocked by the arrival of discounters...
...and the impact of low-cost imports
Figure 1: Implied price deflator, clothing, garments, percentage change, quarter on corresponding quarter of previous year, Q1 2006-Q2 2009
Value has emerged as the key battleground
Ethical issues begin to gain momentum
Online becoming an ever more important channel
Teenage spending power cannot be underestimated...
Figure 2: Money spent on clothing – 11-14-year-olds, by gender, 2009
...although the current recession appears to be involving parents more in purchasing
Brands continue to be important within the market
Issue of obesity set to place new demands on retailers
Figure 3: Current and projected levels of overweight and obese children in the UK, by age and gender, 2003 and 2010
BROADER MARKET ENVIRONMENT
Key points
Growth in number of newborns set to boost the number of infants and young children
Figure 4: Trends in number of children, by age group, 2004-14
Smaller families becoming the norm...
Figure 5: Trends in number of UK households, by size, 2004-14
...with one-parent families on the increase
Figure 6: Dependent children, by family type, 1997, 2001 and 2006
Higher levels of employment continue to boost household income
Figure 7: Trends in employment and unemployment, by gender, 2004-14
Clothing prices in freefall
Figure 8: UK Consumer Price Index changes, all goods and clothing and footwear, 2001-08
Economic slowdown impacts adversely on consumer expenditure
Figure 9: PDI and consumer expenditure, at current prices, 2004-14
COMPETITIVE CONTEXT
Key points
Figure 11: Performance of childrenswear market compared to womenswear and menswear, 2004-09
Childrenswear sales also suffer against children’s footwear
Figure 12: UK retail sales of childrenswear, children’s footwear and toys, 2004-09
Childrenswear performs better than toys
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Online activity becomes smart
Supermarkets seek to differentiate clothing from other products
Tie-ins to drive sales in difficult areas
Adult brands enter new territory
Giving shoppers a helping hand
Value shopping moves to another level
Using design to overcome the issue of price
MARKET SIZE AND FORECAST
Key points
Deflationary pressures result in falling market value
Figure 13: UK retail value sales of childrenswear, at current and constant 2009 prices, 2004-14
Infantswear sales remain robust
Figure 14: UK retail sales of childrenswear, by sector, 2004-14
Schoolwear market proves more robust
Figure 15: UK retail value sales of schoolwear, 2004-14
Future
Factors used in the forecast
RETAIL COMPETITOR ANALYSIS/MARKET SHARE
Key points
Discounters and supermarkets both make progress
Figure 16: UK retail value sales of childrenswear, percentage share, by outlet type, 2005-09
Value retailers become a mainstream alternative...
...resulting in childrenswear specialists coming under severe competition
Traditional retailers refocus their attention towards quality
Major retail brands increasingly dominate market
Figure 17: UK retail value sales of childrenswear, percentage share, by named retailer, 2005-09
Childrenswear supports a large number of retailers
Figure 18: Leading childrenswear retailers, key data, December 2009
COMPANIES AND PRODUCTS
 MAJOR PLAYERS
Adams Childrenswear
Bhs
Figure 19: Bhs Limited, financial performance, 2007 and 2008
Debenhams
Figure 20: Debenhams Plc, financial performance, 2008 and 2009
George at Asda
Marks & Spencer
Figure 21: M&S UK, financial performance, 2008 and 2009
Matalan
Figure 22: Matalan Limited, financial performance, 2008 and 2009
Mothercare
Figure 23: Mothercare UK, financials, 2008 and 2009
Next
Figure 24: Next Retail, financials, 2008 and 2009
Primark
Figure 25: Primark stores, financial performance, 2007 and 2008
Tesco
Figure 26: Tesco Plc, financial performance, 2008 and 2009
BRAND ELEMENTS
Key points
 BRAND MAP
Figure 27: Attitudes towards and visitation of childrenswear retail brands, December 2009
 BRAND QUALITIES OF CHILDRENSWEAR RETAIL BRANDS
M&S and Mothercare most kid-friendly
Figure 28: Personalities of various childrenswear retail brands, December 2009
 EXPERIENCE OF CHILDRENSWEAR RETAIL BRANDS
Low prices most popular
Figure 29: Consumer visitation of various childrenswear retail brands, December 2009
 BRAND CONSIDERATION FOR CHILDRENSWEAR RETAIL BRANDS
M&S and Mothercare top of mind
Figure 30: Consideration of various childrenswear retail brands, December 2009
 BRAND SATISFACTION FOR CHILDRENSWEAR RETAIL BRANDS
Top fashion brands best all round
Figure 31: Satisfaction with various childrenswear retail brands, December 2009
 BRAND COMMITMENT TO CHILDRENSWEAR RETAIL BRANDS
Like parent, like child
Figure 32: Commitment to various childrenswear retail brands, December 2009
 BRAND INTENTIONS FOR CHILDRENSWEAR RETAIL BRANDS
George and M&S are first choice
Figure 33: Future usage intentions for various childrenswear retail brands, December 2009
 BRAND RECOMMENDATION FOR CHILDRENSWEAR RETAIL BRANDS
Adult appeal most important
Figure 34: Recommendation of various childrenswear retail brands, December 2009
 MOTHERCARE
What the consumer thinks
Figure 35: Attitudes towards the Mothercare brand, December 2009
 PRIMARK
What the consumer thinks
Figure 36: Attitudes towards the Primark brand, December 2009
 GEORGE/ASDA
What the consumer thinks
Figure 37: Attitudes towards the George/Asda brand, December 2009
 GAP KIDS
What the consumer thinks
Figure 38: Attitudes towards the Gap Kids brand, December 2009
 TESCO
What the consumer thinks
Figure 39: Attitudes towards the Tesco brand, December 2009
 MARKS & SPENCER
What the consumer thinks
Figure 40: Attitudes towards the Marks & Spencer brand, December 2009
RETAILER ADVERTISING AND PROMOTION
Key points
Onset of recession appears to dent promotional support
Figure 41: Main media advertising spend on childrenswear, 2005-09
Childrenswear losing share of ad support
Figure 42: Childrenswear versus total clothing advertising, 2005-08
Short-term campaigns dictate much of the movement in this market
Grocery outlets and M&S lead the way in the promotion of childrenswear
Figure 43: Adspend on childrenswear, by company, 2008
OUTLETS WHERE CHILDRENSWEAR IS BOUGHT
Key points
Figure 44: Outlets where childrenswear is bought, November 2009
Supermarkets and value retailers dominate the purchasing scene
Figure 45: Type of outlet where childrenswear is bought, November 2009
Supermarkets and value fashion retailers succeed with lower-income families
Figure 46: Shopper base of leading childrenswear retailers, by age and affluence, November 2009
Traditional clothing stores opt to premiumise their offer
Baby stores hold a niche status
Figure 47: Index of childrenswear shopper base, by outlet type, by age, November 2009
Department stores are positioned towards wealthier shoppers
Further analysis of retailer strategies within the childrenswear market
ATTITUDES TOWARDS BUYING CHILDRENSWEAR AND SCHOOLWEAR
Key points
Gifting is an important reason to buy childrenswear
Figure 48: Attitudes towards shopping for childrenswear, November 2009
Those who gift may need help
Improving the shopping experience
Families under pressure
Older children have a greater say in choosing their own clothes
Value is uppermost when purchasing schoolwear
Figure 49: Attitudes towards buying schoolwear for children, November 2009
Larger families are likely to be focused more on getting a deal
Men are more likely to seek out value
Statements on attitudes towards schoolwear by where consumers shop
IMPACT OF RECESSION ON CHILDRENSWEAR SHOPPING
Key points
Recession prompts interest in getting a bargain
Figure 50: Impact of the economic downturn on the children's clothing market, November 2009
Women and young families attracted by sales…
…as well as well as opportunities for downtrading
Value ranges are not popular with everyone…
…although coupons are effective
High earners remain a lucrative market
Replacement shoppers
TARGET GROUPS
Key points
Figure 51: Target groups for childrenswear, November 2009
Enthusiasts (16%)
Gift Purchasers (29%)
Price Conscious (17%)
Apathetic (38%)
APPENDIX – INTERNAL MARKET DRIVERS
Figure 52: Shopping habits – boys aged 7-10, 2005-09
Figure 53: Shopping habits – girls aged 7-10, 2005-09
Figure 54: Shopping habits – boys aged 11-14, 2005-09
Figure 55: Shopping habits – girls aged 11-14, 2005-09
Figure 56: Source of income and amount received per week – 7-10-year-olds, by gender, 2009
Figure 57: Source of income and amount received per week – 11-14-year-olds, by gender, 2009
APPENDIX – BROADER MARKET DRIVERS
Figure 58: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14
Figure 59: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14
Figure 60: Trends in the age structure of the UK population, by gender, 2004-14
APPENDIX – THE CONSUMER – OUTLETS WHERE CHILDRENSWEAR IS BOUGHT
Figure 61: Most popular outlet type used to buy childrenswear, by demographics, November 2009
Figure 62: Most popular outlets used to buy childrenswear, by demographics, November 2009 (continued)
Figure 63: Other outlets used to buy childrenswear, by demographics, November 2009 (continued)
Figure 64: Least popular outlets used to buy childrenswear, by demographics, November 2009 (continued)
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS BUYING CHILDRENSWEAR AND SCHOOLWEAR
Childrenswear
Figure 65: Most popular attitudes towards childrenswear shopping, by demographics, November 2009
Figure 66: Next most popular attitudes towards childrenswear shopping, by demographics, November 2009 (continued)
Figure 67: Outlets used to buy childrenswear, by most popular attitudes towards childrenswear shopping, November 2009
Figure 68: Outlets used to buy childrenswear, by next most popular attitudes towards childrenswear shopping, November 2009 (continued)
Schoolwear
Figure 69: Most popular attitudes towards buying schoolwear for children, by demographics, November 2009
Figure 70: Next most popular attitudes towards buying schoolwear for children, by demographics, November 2009 (continued)
Figure 71: Outlets used to buy childrenswear, by most popular attitudes towards buying schoolwear for children, November 2009
Figure 72: Outlets used to buy childrenswear, by next most popular attitudes towards buying schoolwear for children, November 2009 (continued)
APPENDIX – THE CONSUMER – IMPACT OF RECESSION ON CHILDRENSWEAR SHOPPING
Figure 73: Agreement with most popular attitudinal statements on the impact of the economic downturn on the children's clothing market, by demographics, November 2009
Figure 74: Agreement with next most popular attitudinal statements on the impact of the economic downturn on the children's clothing market, by demographics, November 2009 (continued)
Figure 75: Outlets used to buy childrenswear, by agreement with most popular attitudinal statements on the impact of the economic downturn on the children's clothing market, November 2009
Figure 76: Outlets used to buy childrenswear, by agreement with next most popular attitudinal statements on the impact of the economic downturn on the children's clothing market, November 2009 (continued)
APPENDIX – TARGET GROUPS
Figure 77: Target groups, by demographics, November 2009
Figure 78: Attitudes towards childrenswear shopping, by target groups, November 2009
Figure 79: Outlets used to buy childrenswear, by target groups, November 2009
Figure 80: Agreement with attitudinal statements on the impact of the economic downturn on the children's clothing market, by target groups, November 2009
Figure 81: Attitudes towards buying schoolwear for children, by target groups, November 2009

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.