May 2017 | India News
India has witnessed a steep rise in internet users since 2012 with a rapid adoption amongst young population. It was estimated that over 40% of the Indian population were known to access the internet by the end of 2016, a figure which inclined from approximately 7.5% in 2010. The number of internet users in India was reported to be around 469.3 million by FY’2017, which made India home to the largest online user base after China.
Stiff competition in a niche market has resulted in exit of some online portals while some has been acquired by rival companies. The online market for kids’ apparel and footwear has grown at a very impressive rate between FY’2012-FY’2017. The online market for kids’ apparel and footwear is quite a consolidated market, owing to top two pure-play players comprising for majority of the market share in this space.
FirstCry has opted a hybrid online and offline business model right since its inception and has been able to gain significant market traction in the online space. The firm has attracted funding from investors despite the shutdown/slowdown of some of the major organized players in kids’ apparel industry. Through its innovative marketing strategy of involving expecting mothers in hospitals, next day product delivery and merger with Mahindra Retail, the company has made significant progress in this niche organized market.
Flipkart, along with its two subsidiaries: Myntra and Jabong, majorly sold western wear clothes including party wears, T-shirts, Jeans, Shirts, Rompers, Sweaters and several other items. Owing to heavy marketing and popularity of Flipkart, the company has been able to capture a substantial chunk in the market for online sales of kids’ apparel and footwear products. Hopscotch, founded in 2012, has been able to gain customer’s confidence through its unique flash sales business model of several national and international brands. It has been able to bring in a different shopping experience for parents looking for quality kidswear products for their children. Several other players such as Amazon, Snapdeal, Shopclues, Mybabycart, Kidology and many others form the part of online ecosystems.
The report titled “India Kids’ Apparel and Footwear Market Outlook to 2022 – Surging Online Adoption and Launch of Private Label Brands will Drive Growth” by Ken Research suggested the kids’ apparel and footwear market is anticipated to grow at a CAGR of 12.8% during the period FY’2017-FY’2022.
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