Five-year-old Neha pesters her mother to buy her a similar dress that she had watched Suri Crusie (daughter of Tom Crusie) wearing on television. Today, not only adults but kids also want to dress up in branded attires. Undoubtedly, kidswear is ushering i
A NIL Lakhani, Executive Director, Gini & Jony, notes the growth of this industry: “According to ASSOCHAM, the kids' apparel market is worth Rs 38,000 crore, of which Rs 5,000 crore is constituted by branded kidswear. The kidswear market is growing at the rate of 20 per cent per annum, which makes it one of the fastest growing markets.” Prominent players in franchising like Gini & Jony, Lilliput Beebay, and Trendy Diva are catching the fancy of investors. Let's catch a glimpse of what franchising has to offer in this kidswear bandwagon.
Kidswear: Myriad business opportunities
Kidswear offers many opportunities to franchisees and has a lot of prospects for expansion. One of the leading brands in kidswear is Gini & Jony that was established in 1980. It is India's leading garment manufacturer, retailer and distributor of premium lifestyle kidswear. One can gauge the big profits that can be made from kidswear franchise in view of the remarkable success achieved by Gini & Jony. The brand started franchising in 2006, and currently, it boasts of 246 franchise units present in 80 cities. A franchisee has to invest Rs 30-40 lakh and must have an area of minimum 1000 sq.ft to open its outlet. The business activity of Gini & Jony primarily includes designing, manufacturing, branding, and distribution of garments and lifestyle accessories for kids under various brands through exclusive brand outlets.
The key drivers that have fuelled growth in this segment are- augmentation of organised retail franchising, rise in discretionary income, and entry of international players. The market of 'tweens' (9-14 years) is the best to invest in this segment. The market of branded apparel for adults is also finding its way into this budding sector. Gini & Jony has three international brands under one roof- Levi's kids, United Colors of Benetton, and Puma kids.
The concept of Trendy Divva, a retail venture for girls, is awe-inspiring. The brand's motive is to display its presence at all stages of a girl's life, right from childhood to teenage, workplace to her wedding. Taking into consideration every stage of her life, the brand endeavours to provide the best of fashionable clothing for girls. It seems that the market for girls' wear is far greater than that of the boys. Tapping the niche markets of girls' apparel between the age group of two and 12 years, Trendy Divva has shown remarkable growth.
Talking about the brand's expansion plans Gurprit Singh Sawhney, Promoter, Trendy Divva, said: “We are currently looking for tie-ups with multi-brand outlets (MBO's) like Shoppers Stop, Lifestyle, etc. We are open for exclusive franchise stores for tier-I and II cities.” The franchise store area of Trendy Divva should be 800 sq ft. onwards; merchandise is worth Rs 20 lakh. The company will also offer its franchisees reasonable discounts and return of about 20 per cent per month. The brand initiated franchising in 2011 and has two franchise outlets. Currently, they have 10 stores in Delhi-NCR, Amritsar, and Chandigarh store that will be operational by May'12. A majority of Trendy Divva stores find their presence in malls.
Another promising player in kidswear is Beebay, which is the brainchild of a husband-wife duo, Avanish and Monica Jain. The vision behind this venture is to build a brand of clothing for children aged 0-12 years with themes ranging from pretty and feminine for the little girls to smart casuals for both boys and girls. Having commenced retail operations in early 2008, in a span of mere four years, Beebay now has exclusive retail outlets in Delhi-NCR, Jaipur, Udaipur, Sri Ganganagar, Jalandhar, Kanpur, and Amritsar. “Beebay is guided by the dynamic leadership of young entrepreneurs, who are constantly striving for greater excellence in every aspect of their various enterprises and projects. We have a dedicated and committed workforce, both at the store level and manufacturing level, providing conducive work environment for long-term growth,” said Monika Jain, Brand Director, Beebay.
Beebay is targeting franchisees pan-India. Currently, their focus of expansion is North India, especially Punjab, UP, and Rajasthan, along with Delhi-NCR. One can become a partner with the brand by having an MBO or exclusive brand outlet (EBO). Both models are suitable for the brand as both of them work on outright markdown basis. The investment required for an MBO is Rs 1.5-2 lakh, and an area of 500-700 sq ft. For EBO, it's eight lakh each on goods and interiors.
Growing with franchisor
Just as tiny tots need the support of their parents while growing up, a franchisee also needs assistance from his franchisor. Key personnel of Beebay are deputed to their franchisees to help them initialise their operations. They also provide training for customer handling and managing of billing operations through company provided software. Support in branding, store designs, layout, colour scheme, etc are also provided.
Gini & Jony aids its franchisees by providing them product training every season, besides sales training and grooming sessions. They convert the investor into an entrepreneur by providing modern retail training. The company supports the franchisee with merchandise and fixtures.
Exploring other avenues
With the influx of numerous luxury lines in kidswear, many brands are exploring other offshoots in this sector. Beebay is among the first in India to launch exclusive children's wear online through its website. The online sales are growing rapidly and complementing the sales of its physical stores. Besides its own website, the brand is also available through various other online e-commerce portals. Beebay commenced its US operations two months ago and now it has been selling successfully through its international distribution network. “We were fortunate; we entered this segment two years ago. Today we believe this segment has given our brand more visibility in less time and has helped us to balance the monetary aspect of the business effectively,” said Jain.
FirstCry.com has been touted as the largest online shopping portal for kids, babies, and expectant mothers in Asia. With the adding of over 200 stock-keeping units on a daily basis, they currently have over 20,000 products that parents can choose from for their kids. They currently store products for expectant mothers and for children in the age group of 0 10 years. Franchising has helped FirstCry to have physical stores so that people can actually have a look at the brands that are sold online. They currently have six franchisees and they plan to open at least 60 franchisees in the next 12 months.
If you think that haute couture exists only in adult apparels, you're mistaken. Even children's wear brands compete with each other to grab the attention of kids. Gini & Jony has its spring/summer collection as Gen Y kids, giving parents a run for their money. Trendy Divva is making sure to turn little girls into divas by showcasing sophisticated sheath dresses lavished with lace petals to luxury pleated styles in its collection. Beebay also wants to expand its party wear, foot wear and infant apparel collection from this season.
Going beyond kidswear
Other opportunities that can be explored in the toddlers' world are of baby products. Mom & me, Aardee Specials, etc., are some of the prominent names in this genre. Hauck Group, a German company entered India through Aardee Specials to develop their channel pan-India via the distributorship model. Being optimistic about the growth of this segment, Rakesh Dhawan, Proprietor, Aardee Specials, said: “India comprises young populace with more than 50 per cent below the age of 25 years. Therefore, there is humungous potential in businesses connected with babies and children.”
The company currently has six outlets operating under the distributorship model and has an investment of about Rs eight lakh.
One of the leading beauty brands, The Body Shop, has also entered the segment of baby care products under Buriti Baby Range. The brand has a wide range of products for kids from shampoos to lotions, body wash, and many more.
No kidding business
India is emerging as one of the top global markets in kidswear segment because of the sheer size of retail industry. Given the demand and increase in supply, the organised children's wear segment is expected to surmount Rs 5000-crore mark with the rapid expansion of domestic players. Needless to say, kidswear is spoiling not only kids but also franchisees in matters of choice!
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