Exhaustive study of product assortment, pricing, product innovations, latest trends and retailing of Kids wear

Merchandising assignment

Submitted by JAIKISHAN
MFM- I

INDIAN RETAIL INDUSTRY: The Indian retail industry undergoes major revolutions. Retailing in India is gradually becoming the next boom industry. In India, there will be the fastest growth in retailing and real estate. The consumer buying patterns and behaviours are changing steadily. The growth of India's retail sector is not only limited to urban areas but also growing in rural areas. In the next five years, it is expected that, India's retail industry will expand more than 80%. Kids fashion is a diminutive version of adults wear. They have all the clothing as like that of adults, and even much more. Children of today are much more intelligent than their previous generation. They like to have their own choice of clothing. Lots of brands have come up in the sector. According to industry estimates, the Kids apparel market is divided into organized and unorganized segment which exceeds Rs. 14,000 crores, of which Rs.3000 - 4000 crores is constituted by branded Kidswear. It's growing @ 30 35% p.a. which makes it one of the fastest growing markets. Urban kids apparel market comprises about 60% of the total kidswear market. A research states that more than 30% of the countrys population is below 15 years of age. The density of population makes kidswear to be one of the fastest growing segments in the Indian market scenario. KIdswear includes a wide range of apparel and related products. KIdswear can be roughly classified into two major groups: Infant wear (0 24 months) and kidswear (2 12 years). There are two important factors to be considered for making a kids' apparel brand a success variety and price. Moreover, kids outgrow their clothes very rapidly. Hence it is necessary that a kids' apparel range be reasonably priced. MOTHERCARE: Mothercare is a British retailer which specialises in products for expectant mothers and in general merchandise for children up to 8 years old. Mothercare was founded in 1961 when a market was identified for specialised shops offering everything for the parent-to-be and their children under one roof. Mothercare is a multi-channel retail business employing around 5,000 people, and offering the widest range of clothing, hardware and toys for parents-to-be and pre-school children. Over the last few years Mothercare has made significant investment in the development of High Street and out-of-town stores, with new formats designed to enhance customers' shopping experience. The Company operates online, on the high street and out of town, and in November 2009 had over 1,060 stores worldwide of which 389 were in the UK and 671 were abroad in 38 other countries. PRODUCT ASSORTMENT: The assortment of products is very important in a retail store. Product assortment usually refers to the length (the number of products in the product line), breadth (the number of product lines that a company offers), depth (the different varieties of product in the product

line), and consistency (the relationship between products in their final destination) of product lines. Scanning through the streets of any town or city, one can see a mind boggling array of kids apparels. Spaghetti tops, Crystal studded denims, Italian cuts, Capris, and exclusive party wears. Mothercare offers a wide variety of clothing and related accessories for babies and children. The age group covered is 0 8 years. Mothercare sells a wide assortment of products that cater to almost all the needs of a new born baby. The British brand also sells maternity wear. The various categories of products sold by Mothercare include: Maternity Wear Clothing for babies and young kids Pushchairs Nursery products Car seats Bathing accessories Feeding accessories Safety products Kids bedroom merchandise Toys & Gifts

The following are the product assortments offered by Mothercare in case of Childrens Clothing: I. Baby Child: (0 12 months) S.No. 1

Merchandise Tops & Cardigans Dresses & skirts Sets & Overalls Trousers Body Suits & Vests Sleep suits & Pyjamas Socks, hats & Mitts Pram suits & Coats Bibs (often in sets) Gift Sets

Price Range (Girls) 6 to 19 6 to 42 10 to 27 5 to 18 3 to 26 10 to 18 2 to 20 7 to 35 2.99 to 19.99 6 to 48

Price Range (Boys) 6 to 22 5 to 37 5 to 20 3 to 25 12 to 18 2.50 to 20 4.50 to 35 2.99 to 19.99 6 to 48

2 3 4 5 6 7 8 9 10

II. Young Children (1 to 3 years) S.No 1 Product Tops Price range (Baby Price Range (Baby girl) Boy) 4 to 19 2 to 22

2 3 4 5 6 7 8 9

Trousers & Shorts Dresses & Skirts Sets & Overalls Bodysuits & Underwear Sleep suits & Pyjamas Socks & Tights Coats & accessories Character Merchandise

5.50 to 16 6 to 42 10 to 27 3.50 to 16 11 to 18 3 to 10 3 to 34 6 to 30

5 to 24 10 to 26.50 3 to 13.50 6 to 37 (Only socks) 3.50 to 10.50 3 to 34 5.50 to 27

III. Children (3 to 8 years) S.No 1 2 3 4 5 6 7 8 Product Tops Trousers Dresses & Skirts Underwear (sets) Night Wear Socks & Accessories Coats & Accessories Character Merchandise Price range (Girls) 3.50 to 20 7 to 17 7 to 37 3.50 to 10 8 to 18 4 to 14 4 to 34 6 to 24 Price Range (Boys) 2.50 to 28 5.50 to 32 3.50 to 9.99 7 to 20 4 to 15 3.50 to 10 5.50 to 26

In addition to these products Mothercare also offers products for prematurely born babies which are priced at the range of 6 to 20. LATEST TRENDS: The practice of dressing girls with a frock and boys with shorts are way beyond. New pattern of garments in par with the latest fad is being sought by parents. Fashion industry is boosting up the well dressed child trend with their new collections on the runways frequently. Kids apparel manufacturers make optimum utilization of latest trends in the fashion world to entice the kids and increase their sales. With wishes and demands getting added in the list of kids, manufacturers and retailers are making the most of it. Factions of domestic and international players are seen in the arena, with each of them wanting a slice in the pie. The fashion industry now caters to childrens designer clothing. Young children can now enjoy a varied and extensive range of fashion clothes, which helps them to set a fashion trend of their own. Even very young children have their own preferences, and many fashion designers are now focusing on babies and childrens wear. Colorful, original, ingenious, stimulating, and appealing clothes for both girls and boys are available in the market. Superhero costumes and outfits, as well as accessorized girls dresses can be found in the market in the recent times. Children of todays times are inclined towards aesthetics,

originality, and beauty. Clothing stores for children provide a wide range of clothing choices for boys and girls; and so your little one is taught to choose a particular fashion trend at a very early age. Clothing lines today are equally attractive as childrens toys. There is an increasing awareness among children about the value of wearing fashionable clothes. The latest trends in childrens wear include the introduction of designer wear in kids clothing. Also introduction of various character inspired merchandise is very much in vogue. So Mothercare has also introduced a range of designer kidswear called Baby K by Myleene Klass. This range includes stylish yet practical & comfortable clothing & accessories for children of the age group 0 3 years. Iconic characters of the children's world have now found their way into kids clothing, accessories, footwear, towels, lunch box, and even more. This mighty world of toon characters is tracking the kids and becoming a part of their breath. Kids too, are excited to welcome their own favorite character and adore seeing them on their clothing. Sales of cartoon inspired kidswear are gaining a positive momentum in childrens apparel market. 'Character inspired merchandising' is emerging as one of the hottest market trends. Manufacturers use renowned cartoon characters in apparels that grab the attention of kids and entice them. Mothercare has a whole range of character inspired exclusive merchandise designed by Sally Hunter based on the character Humphrey, the elephant. This collection includes clothes for kids of age group 0 2 years. It also includes elegant gift articles for children. This seasons style statement includes dressing up with accessories, where everything from dress, bag, and hair clip is color, and design coordinated. In the current trend, leather bags, caps, key chains, and hair bands are considered as required with an ensemble. Especially in case of branded apparels, garments coordinated with proper accessories sell well in the market, than individual apparels. The price ranges for such apparels are extravagant. PRODUCT INNOVATIONS: Mothercare incorporates a series of innovative ideas in its products for the comfort & ease of use: Pure cotton fibres that have natural thermal qualities are used for baby clothing so that they keep baby warm when it's cold and cool when it's warm. An interlock knit ensures a garment has lots of stretch and will return to shape after being washed and tumble dried. Neck and leg openings will keep their shape. Press-stud openings allow for quick and easy nappy changes. All eyelets, studs, and poppers and rivets come from approved suppliers who help the manufacturers apply them correctly and safely. All poppers are nickel-free to prevent irritation.

All the feet in the brands sleep suits and bodysuits have Toe Safe design to prevent loose threads from wrapping around tiny toes. Envelope necklines make garments easier to pull on and off over your baby's head. All metal components are nickel free to prevent any possible skin irritation. All buttons are attached with a lockstitch machine, which gives a more secure stitch than the chainstitch machine. Spring loaded toggles are a safety hazard and are not used in baby wear.

RETAILING: There are numerous opportunities for retailers and suppliers to tap the kids retail segment, including designer apparels, discount retailing and other licensed products for children of all ages. Major factors that contribute towards the growth of childrens apparel segment include retail advancements in developing countries and the increased sales of premium products in developed economies. A change in the buying patterns of developing countries has motivated parents to spend a significant portion of disposable income on their children. This has enabled retailers to tap into the market potential in different geographic regions. Statistics show that the US market ranks highest in terms of the per capita spent on childrens wear. The company plans to open 100 stand-alone stores (under the joint venture route) over the next five years which may involve an investment of around Rs 200 crore. At present there are two stand-alone stores, while 25 shop-in-shop stores within Shoppers Stop outlets. The brand plans to have a cumulative 30 to 40 shop-in-shops over the next three year with their presence in Indian metros and towns as well. Around 40% of Mothercare's apparel requirements are sourced from India. The sourcing which started a decade back is expected to be stepped up to over 50% going forward. The brand also operates under a separate franchise agreement with Raheja group-promoted Shopper's Stop. BIBLIOGRAPHY: www.mothercare.com Market analysis for the launch of infant wear in Indian Market - A project