Retail franchise Jan, 04 2012

Toddlers crawling towards lucrative returns

Possessing branded products and accessories is not just the monopoly of Indian youth. In fact infants can also take privilege of having branded products. With the emergence of lot of international and national brands in baby care products via franchising

By Abha Garyali
Sub Editor
Toddlers crawling towards lucrative returns

With increasing trend among Indians of having one or two kids, parents today make every possible effort to provide the best to their kids. Cashing on this latest trend is the entrepreneurial world that deals in child care products. Johnsons & Johnsons used to be the only renowned brand during earlier times. Though it continues to be one of the favorites but competition is really tough giving ample choice to parents to buy the best for their kids.  Entrepreneurs realising the profit margin in the segment are continuously exploring and trying to grab their maximum share. To add to this is the rising consciousness among parents, increased disposable incomes, and emergence of large number of brands in the child care sector. The sector is sure to present lucrative business opportunities to the aspiring entrepreneurs in the segment in 2012. Majority of the brand prefer franchise route for the expansion of their brand thus presenting aspiring entrepreneurs an opportunity to be the business owners.

Growth prospects: 2012

A report published by RNCOS has declared India as the most preferred market for the companies involved in baby care product manufacturing and marketing.

The increasing number of television commercials by baby care products manufacturers (international as well as national) indicates the need and demand in this segment. There are advertisements accentuating the use of infant diapers, baby soap, oils, shampoo and creams for a smoother and softer skin. A visit to any mall will make you realise the presence of various  organised baby products stores, showcasing the complete range of toys, soft toys, strollers, walkers, car seats, baby care products, feeding bottles and other feeding gear, nursery furniture, bedroom furniture, baby linen and furnishings, premium party wear, ethnic wear, casual wear, footwear and accessories. Not limited to these products, the various brands also include a wide range of goods for moms-to-be for having a comfortable time during their nine months. These include maternity clothes as well as other products which were unheard of in the past. With such a wide variety to offer, 2012 is guaranteed to be a successful and fulfilling year for the baby care market. Moreover there are significant international brands like Hauck and Chicco and prominent Indian brands include Aardee Specials, Lilliput Kidswear, Toon Kidz, Gini & Jony, Lilstop, Zapp baby zap, Moms & me, Mother Care etc which have made a mark in infant care segment.

Developing factors

The present popularity of child care market can be attributed to many factors. Rakesh Dhawan, Proprietor, Aardee Specials, Sole Distributorship Licensee for Hauck in India shared: “India has a very young population with more than 50 per cent below the age of 25 years. Moreover, it has an ever growing middle class with large disposable incomes. Hence there is tremendous potential in businesses connected with babies and children.” In words of Sanjeev Narula, Managing Director, Lilliput Kidswear: “With the increasing strength of the price sensitive yet upwardly mobile middle class, a trend which is an offshoot of awareness, double incomes, nuclear families, and urbanisation, this sunrise sector ensures incessant splurging of the ‘discretionary income’ by the target group.”

Franchise stimulus

Sprouting up of many international brands in the Indian child care product market is providing huge opportunity to the aspiring entrepreneurs. Brands like Hauck and Chicco have taken the franchise route for their entry into India. Hauck, a Germany based company entered India in 2009 through Aardee Specials. Hauck Group has been manufacturing baby prams, strollers, car seats, playpens and many more such items. The brand Chicco, which is considered the master brand in the global baby care market, has entered India recently. It offers almost all categories of baby care products like toys, hard goods (strollers, prams, high chairs, and car seats etc), along with apparels and shoes for both child and mom.

Seeing the success of international brands, Indian players were also motivated to enter the organised domain in the segment. Hanung Toys and Textiles Limited,a soft toys manufacturer and exporter expanded by franchising to expand its retail presence and global sourcing under the brand name FUNLAND. Mom & me, a popular brand by Mahindra retail is built around the needs of pregnant women, young mothers, infants and children. The brand has recently taken the franchise route for expansion.  Other kids apparel brands like Lilliput Kidswear, Toon Kidz, Gini & Jony, Lilstop, Zapp baby zap etc have also emerged successfully in the infant and baby apparel sector.

E-tailing

Year 2011 saw the sudden splurge of e-retail websites. Therefore the success and profitability of e-commerce is sure to increase in 2012. With the surge of interest in e-commerce from the investing community, there are many niche product offerings that have come up in the child care market. Kidloo, BabyOye, Hushbabies are few names in this category. However these websites are not into franchising. Firstcry.com has been like a breath of fresh air for baby care market in the franchise domain. It is the first online baby and kids store that is taking the franchise route. Therefore this segment can be sure to have presence in both offline as well as online domain and experience great success in 2012.

Growth and success seen in the year 2011 can rightly predict the bright and profitable business for the baby care segment in 2012. With the franchisors and retailers all set to make child care, a bigger segment in 2012, aspirants can surely bank on this sunrise sector to fetch them lucrative benefits.

With increasing trend among Indians of having one or two kids, parents today make every possible effort to provide the best to their kids. Cashing on this latest trend is the entrepreneurial world that deals in child care products. Johnsons & Johnsons used to be the only renowned brand during earlier times. Though it continues to be one of the favorites but competition is really tough giving ample choice to parents to buy the best for their kids.  Entrepreneurs realising the profit margin in the segment are continuously exploring and trying to grab their maximum share. To add to this is the rising consciousness among parents, increased disposable incomes, and emergence of large number of brands in the child care sector. The sector is sure to present lucrative business opportunities to the aspiring entrepreneurs in the segment in 2012. Majority of the brand prefer franchise route for the expansion of their brand thus presenting aspiring entrepreneurs an opportunity to be the business owners.

Growth prospects: 2012

A report published by RNCOS has declared India as the most preferred market for the companies involved in baby care product manufacturing and marketing.The increasing number of television commercials by baby care products manufacturers (international as well as national) indicates the need and demand in this segment. There are advertisements accentuating the use of infant diapers, baby soap, oils, shampoo and creams for a smoother and softer skin. A visit to any mall will make you realise the presence of various  organised baby products stores, showcasing the complete range of toys, soft toys, strollers, walkers, car seats, baby care products, feeding bottles and other feeding gear, nursery furniture, bedroom furniture, baby linen and furnishings, premium party wear, ethnic wear, casual wear, footwear and accessories. Not limited to these products, the various brands also include a wide range of goods for moms-to-be for having a comfortable time during their nine months. These include maternity clothes as well as other products which were unheard of in the past. With such a wide variety to offer, 2012 is guaranteed to be a successful and fulfilling year for the baby care market. Moreover there are significant international brands like Hauck and Chicco and prominent Indian brands include Aardee Specials, Lilliput Kidswear, Toon Kidz, Gini & Jony, Lilstop, Zapp baby zap, Moms & me, Mother Care etc which have made a mark in infant care segment.

Developing factors

The present popularity of child care market can be attributed to many factors. Rakesh Dhawan, Proprietor, Aardee Specials, Sole Distributorship Licensee for Hauck in India shared: “India has a very young population with more than 50 per cent below the age of 25 years. Moreover, it has an ever growing middle class with large disposable incomes. Hence there is tremendous potential in businesses connected with babies and children.” In words of Sanjeev Narula, Managing Director, Lilliput Kidswear: “With the increasing strength of the price sensitive yet upwardly mobile middle class, a trend which is an offshoot of awareness, double incomes, nuclear families, and urbanisation, this sunrise sector ensures incessant splurging of the ‘discretionary income’ by the target group.”

Franchise stimulus

Sprouting up of many international brands in the Indian child care product market is providing huge opportunity to the aspiring entrepreneurs. Brands like Hauck and Chicco have taken the franchise route for their entry into India. Hauck, a Germany based company entered India in 2009 through Aardee Specials. Hauck Group has been manufacturing baby prams, strollers, car seats, playpens and many more such items. The brand Chicco, which is considered the master brand in the global baby care market, has entered India recently. It offers almost all categories of baby care products like toys, hard goods (strollers, prams, high chairs, and car seats etc), along with apparels and shoes for both child and mom.

Seeing the success of international brands, Indian players were also motivated to enter the organised domain in the segment. Hanung Toys and Textiles Limited,a soft toys manufacturer and exporter expanded by franchising to expand its retail presence and global sourcing under the brand name FUNLAND. Mom & me, a popular brand by Mahindra retail is built around the needs of pregnant women, young mothers, infants and children. The brand has recently taken the franchise route for expansion.  Other kids apparel brands like Lilliput Kidswear, Toon Kidz, Gini & Jony, Lilstop, Zapp baby zap etc have also emerged successfully in the infant and baby apparel sector.

E-tailing

Year 2011 saw the sudden splurge of e-retail websites. Therefore the success and profitability of e-commerce is sure to increase in 2012. With the surge of interest in e-commerce from the investing community, there are many niche product offerings that have come up in the child care market. Kidloo, BabyOye, Hushbabies are few names in this category. However these websites are not into franchising. Firstcry.com has been like a breath of fresh air for baby care market in the franchise domain. It is the first online baby and kids store that is taking the franchise route. Therefore this segment can be sure to have presence in both offline as well as online domain and experience great success in 2012.

Growth and success seen in the year 2011 can rightly predict the bright and profitable business for the baby care segment in 2012. With the franchisors and retailers all set to make child care, a bigger segment in 2012, aspirants can surely bank on this sunrise sector to fetch them lucrative benefits.

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