Shopping for Childrens Clothing - US - November 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Market source data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Small growth sustained by infant/toddler clothing sales
Market drivers include a diversity of factors
Where the opportunities lie
Competition becoming more fierce
The new frugality is in
Companies and brands use similar tactics
Marketing strategists learning to adapt
The consumer
INSIGHTS AND OPPORTUNITIES
Encouraging parents to spend more on their kids
Taking advantage of social networking and media
Taking a cue from smaller companies
Dickies cornering the market on uniforms
Parents and their “mini-me” tots
INSPIRE INSIGHTS
Trend: Learning Through Play
MARKET SIZE AND FORECAST
Key points
Recession hits children’s apparel market as it drives down sales
The gift of thrift
Upscale chain closes its doors
Total sales and forecast
Figure 1: Total U.S. sales and forecast of children’s clothing, at current prices, 2005-15
Figure 2: Total U.S. sales and forecast of children’s clothing, at inflation-adjusted prices, 2005-15
MARKET DRIVERS
Hispanic population growing faster for children under 12
Figure 3: U.S. Hispanic population, by age, 2005-15
Figure 4: Purchases of children’s clothing, by race/Hispanic origin, February 2009-March 2010
Figure 5: Average annual expenditures on apparel—Hispanics vs. non-Hispanics, 2008
Older children present slightly more opportunities for growth
Figure 6: Total U.S. population, by age, 2005-15
Figure 7: Total amount spent on children’s clothing—6-11s, by gender and age, February 2009-March 2010
Back-to-school sales stronger for many retailers in 2010, compared to an especially anemic 2009
Grandparents taking care of their grandchildren
More children wearing uniforms in both private and public schools
Figure 8: Percent of public schools requiring uniforms, by selected cities, 2000
40 is the new 30
SEGMENT PERFORMANCE
Key points
Sales of children’s clothing, by segment
Figure 9: Total U.S. retail sales and forecast of children’s clothing, at current prices, by segment, 2005-15
Fleece wear remains buoyant for girls and boys
Figure 10: Total U.S. retail sales of children’s clothing, by segment, 2008 and 2010
SEGMENT PERFORMANCE—INFANT AND TODDLER
Key points
Growth predicted for sales of infant/toddler clothing
Figure 11: Total U.S. retail sales and forecast of infant and toddler clothes, at current prices, 2005-15
SEGMENT PERFORMANCE—GIRLS’ CLOTHING
Key points
Recessionary woes continue to impact girls’ clothing
Figure 12: Total U.S. retail sales and forecast of girls’ clothes, at current prices, 2005-15
SEGMENT PERFORMANCE—BOYS’ CLOTHING
Key points
Boys’ clothing sales show decline as well, not as much as for girls’ apparel
Figure 13: Total U.S. retail sales and forecast of boys’ clothes, at current prices, 2005-15
COMPANIES AND BRANDS
Key points
Many retailers now competing in all clothing categories
H&M
Dollar stores and mass merchandisers
Consignment becoming all the rage
Venture capitalists acquire Gymboree
Target
Sears
Von Maur
Carter’s
JCPenney
Bloomingdale’s
Macy’s
OshKosh B’gosh
Justice for Girls
Old Navy/GapKids/babyGap
INNOVATION AND INNOVATORS
Stella McCartney
Umi and its unique promotions
BBC International and a focus on technological innovation
My Baby Rocks
CH Caroline Herrera
MARKETING STRATEGIES
 OVERVIEW
Brand positioning and TV advertising
Crocs
Figure 14: Brand analysis of Crocs, 2010
Figure 15: Crocs television ad, 2010
Garanimals
Figure 16: Brand analysis of Garanimals, 2010
Figure 17: Garanimals television ad, 2010
Stride Rite
Figure 18: Brand analysis of Stride Rite, 2010
Figure 19: Stride Rite television ad, 2010
Skechers
Figure 20: Brand analysis of Skechers, 2010
Figure 21: Skechers television ad, 2010
Social media tools and tactics
“Mommy blogs” gain in power
Customer reviews
Crocs
GapKids
Carter’s
Other brands
CHILDREN’S CLOTHING PURCHASES
Key points
Purchases in the previous year
Figure 22: Purchases of children’s clothing, by age, February 2009-March 2010
Figure 23: Purchases of children’s clothing, by household income, February 2009-March 2010
Ages of children clothing was purchased for
Figure 24: Ages of children clothes bought for, by age, February 2009-March 2010
AVERAGE SPEND BY AGE OF CHILD
Key points
Amount spent on children <1 year old
Figure 25: Total amount spent on clothing for kids <1 year old, by age, February 2009-March 2010
Figure 26: Total amount spent on clothing for kids <1 year old, by household income, February 2009-March 2010
Amount spent on children 1-5 years old
Figure 27: Total amount spent on clothing for kids 1-5 years old, by age, February 2009-March 2010
Figure 28: Total amount spent on clothing for kids 1-5 years old, by household income, February 2009-March 2010
Amount spent on children 6-11 years old
Figure 29: Total amount spent on clothing for kids 6-11 years old, by age, February 2009-March 2010
Figure 30: Total amount spent on clothing for kids 6-11 years old, by household income, February 2009-March 2010
Amount spent on all ages
Figure 31: Total amount spent on clothing for children of all ages, by age, February 2009-March 2010
Figure 32: Total amount spent on clothing for children of all ages, by region, February 2009-March 2010
PURCHASES FOR GIRLS AND BOYS
Key points
Girls’/boys’ purchases
Figure 33: Clothing purchases for boys vs girls, by gender, October 2010
Figure 34: Clothing purchases for boys vs girls, by age, October 2010
IMPACT OF RECESSION ON SHOPPING HABITS FOR KIDS’ CLOTHES
Key points
Most parents wait for sales
Figure 35: Impact of recession on shopping habits for kids’ clothes, by gender, October 2010
Figure 36: Impact of recession on shopping habits for kids’ clothes, by age, October 2010
Figure 37: Impact of recession on shopping habits for kids’ clothes, by household income, October 2010
Figure 38: Impact of recession on shopping habits for kids’ clothes, by region, October 2010
RETAILERS SHOPPED FOR CHILDREN’S CLOTHING
Key points
Mass merchandisers remain the top venue for shoppers
Figure 39: Source of last children’s clothing purchase, by gender, October 2010
Figure 40: Source of last children’s clothing purchase, by age, October 2010
Figure 41: Source of last children’s clothing purchase, by household income, October 2010
CLOTHES SHOPPING BEHAVIORS
Key points
Children’s clothing—time to shop and outgrown or outworn
Figure 42: Children’s clothing—time to shop and outgrown or outworn, by gender, October 2010
Figure 43: Children’s clothing—time to shop and outgrown or outworn, by age, October 2010
Figure 44: Children’s clothing—time to shop and outgrown or outworn, by household income, October 2010
Attitudes towards children’s clothing and shopping
Figure 45: Attitudes towards children’s clothing and shopping, by gender, October 2010
Figure 46: Attitudes towards children’s clothing, by age, October 2010
Figure 47: Attitudes towards children’s clothing, by household income, October 2010
Figure 48: Attitudes towards children’s clothing, by region, October 2010
IMPACT OF RACE/HISPANIC ORIGIN
Key points
Purchases in the previous year
Figure 49: Purchases of children’s clothing, by race/Hispanic origin, February 2009-March 2010
Purchases by age of child
Figure 50: Ages of children clothes bought for, by race/Hispanic origin, February 2009-March 2010
Amount spent on children <1 year old
Figure 51: Total amount spent on clothing for kids <1 year old, by race/Hispanic origin, February 2009-March 2010
Amount spent on children 1-5 years old
Figure 52: Total amount spent on clothing for kids 1-5 years old, by race/Hispanic origin, February 2009-March 2010
Amount spent on children 6-11 years old
Figure 53: Total amount spent on clothing for kids 6-11 years old, by race/Hispanic origin, February 2009-March 2010
Purchases for girls and boys
Figure 54: Clothing purchases for boys vs girls, by race/Hispanic origin, October 2010
Impact of the recession
Figure 55: Impact of recession on shopping habits for kids’ clothes, by race/Hispanic origin, October 2010
Retailer choices for children’s clothing
Figure 56: Source of last children’s clothing purchase, by race/Hispanic origin, October 2010
Opinions, preferences and features about children’s clothes
Figure 57: Attitudes towards children’s clothing and shopping, by race/Hispanic origin, October 2010
CLUSTER ANALYSIS
Mass merchandise downturners
Demographics
Characteristics
Opportunity
Gifted and self-indulgent
Demographics
Characteristics
Opportunity
Recession-resistant
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 58: Children’s clothing clusters, October 2010
Figure 59: Clothing purchases for boys vs girls, by children’s clothing clusters, October 2010
Figure 60: Impact of recession on shopping habits for kids’ clothes, by children’s clothing clusters, October 2010
Figure 61: Source of last children’s clothing purchase, by children’s clothing clusters, October 2010
Figure 62: Attitudes towards children’s clothing and shopping, by children’s clothing clusters, October 2010
Cluster demographics
Figure 63: Children’s clothing clusters, by gender, October 2010
Figure 64: Children’s clothing clusters, by age, October 2010
Figure 65: Children’s clothing clusters, by household income, October 2010
Figure 66: Children’s clothing clusters, by race, October 2010
Figure 67: Children’s clothing clusters, by Hispanic origin, October 2010
Figure 68: Children’s clothing clusters, by marital status, October 2010
Cluster methodology
CUSTOM CONSUMER TABLES—MOSAIC GROUPINGS
Key points
Incident of purchase of children’s clothing
Figure 69: Purchases of children’s clothing, by Mosaic groupings, February 2009-March 2010
Ages of children clothing was purchased for
Figure 70: Ages of children clothes bought for, by Mosaic groupings, February 2009-March 2010
Amount spent on all ages
Figure 71: Total amount spent on clothing for children of all ages, by Mosaic groupings, February 2009-March 2010
APPENDIX—OTHER USEFUL CONSUMER TABLES
Figure 72: Total amount spent on clothing for children of all ages, by household income, February 2009-March 2010
Figure 73: Clothing purchases for boys vs girls, by region, October 2010
Figure 74: Source of last children’s clothing purchase, by region, October 2010
APPENDIX—TRADE ASSOCIATIONS