After The "Two Child" Policy, Children'S Wear Market Has A Major Positive.

With the opening of the "two child" policy, the annual compound growth rate of the number of Chinese newborns is expected to reach 2.8%, which will greatly promote the growth of the number of newborn babies.

The consumption demand of products is multiple.

All of them are trying to win a share in the children's clothing market.

Although global retail is not booming,

In the eyes of Bruce Rockowitz, the chief executive and vice chairman of the brand limited company (hereinafter referred to as "Li Biao"), there seems to be much more to do in the eyes of Le Yumin.

Two years after the separation from Li Fung Limited (hereinafter referred to as "Li Feng"), the development focus of Li Biao recently shifted to the children's wear market.

Le Yumin said that after opening the "two child" policy, the children's clothing market has come to a great advantage. Future Ltd will not stop there. It will also focus on the fashion market with high gross margins.

According to the preliminary statistics of China's National Bureau of statistics, the number of children under 15 years of age in China in 2015 was 240 million, with 16 million 550 thousand births and 12.07% births throughout the year, indicating that China's children's wear market will have a huge demand in the coming years.

According to the world clothing shoes and hats net, the scale of Chinese children's wear market in 2015 was 137 billion 200 million yuan, with an annual growth rate of 7.9%.

According to the data, the average annual consumption per capita of children's clothing in 2008 was 350 yuan, which reached 740 yuan in 2012, with an average annual growth rate of 20.58%. It is estimated that the annual per capita consumption of children's clothing will reach 1700 yuan in 2017.

The children's clothing category of Li Biao includes two fields, cartoon characters and fashionable children's clothing. Among the cartoon characters, Li Biao is one of the largest authorized dealers of Disney and its main cartoon characters. While the fashionable children's clothing part also has good cooperation with Tommy Hilfiger, Calvin Klein, Under Armour, Nautica and other brands.

As of the end of September 2016, children's clothing business accounted for about 44% of the total business volume.

According to the world clothing and shoe net, children's clothing business has been relatively mature in the US market, but the European and Asian markets still have huge growth potential.

According to the Companies&Markets report, the global market for children's wear will be estimated at $173 billion 600 million by 2017, of which Europe and North America remain the main market for children's clothing and the growth rate of emerging markets will be higher than in other regions.

In an interview with reporters, Le Yumin said that the policy of opening the "two child" in the mainland has also made great progress in the development of children's clothing business. No matter how good the economy is, everyone is willing to buy clothes for their children.

In fact, in the past the implementation of the one-child policy, the children's clothing market is also developing well, because in the mainland, a child is often favored by parents, grandparents and grandparents three couples, they are more willing to spend money on their children.

Dr. Sullivan, global partner and President of Greater China, told reporters that the birth rate in China is about 12.3%. He predicts that by 2020, the birth rate of Chinese population is expected to grow to 13.5%, and the number of newborns will exceed 18 million. From 2015~2020, the annual compound growth rate of Chinese newborns will reach 2.8%. The rapid growth of the number of newborns brought by the "two child" policy will greatly push forward the consumption demand for children's clothing products, which will make the Chinese children's wear market develop in the long term in the future. "Sullivan"

In the growing market, in fact, many international brands are eyeing, the famous American children's wear brand Carter (Carter 's, Inc.) in 2015 by Tmall to enter the Chinese market.

In September 2016 and October, Carter opened new stores in Nanjing and Xiamen.

According to the quarterly report of Carter in the third quarter of 2016, the total turnover of Carter in the third quarter increased by 6% over the same period last year, especially in e-commerce, up 18% over the same period last year.

Carter emphasized in his report that such a strong growth is mainly due to the rapid growth of China's e-commerce business.

Despite the seemingly endless potential of children's clothing market, the competitive pressure is not small.

Le Yumin revealed that the focus of future development will not only be placed on children's clothing, but compared with adult fashion, children's wear is always a big cake.

Le Yumin said, in the discovery of children's wear market, in fact, the target customers are mothers. This can also have a synergistic effect with the men's and women's fashion business, and the brand of Li's brand is a light luxury route. This brand positioning is very popular in the Chinese market.

At present, there are only 20% of the fashion sales for the men and women who make profits. But if we look at the profit margin, the business seems to be very impressive.

According to the company's semi annual report, the gross profit margin of men's and women's fashion is up to 41.7%, higher than that of children's wear.

The position of Li Biao is the best business partner of the top Brand Company in the United States. This kind of company mainly focuses on owning brand rather than operating brand business. Therefore, Li can take the opportunity to rapidly expand its scale in the field of men's and women's fashion. This category includes several classic brand names such as Spyder, JuicyCouture, JonesNewYork, Joe 'sJeans, BuffaloJeans and Beckham.

With the increasing attention of mainland people to fashion, Le Yumin said that the company also attaches great importance to the design, and there are more than 1000 designers.

Le Yumin said that in addition to caring about what people wear, they also need to be concerned about the way people buy.

At present, many brands of Li Biao are sold through e-commerce channels like Jingdong and Tmall.

With the development of e-commerce channels in the future, Lok Yumin said that the company will not stop here because more and more consumers want to interact in the shopping process. Maybe they will try clothes in the physical store in the future, but buy them online.

However, the fashion market for men and women is large enough, but competition is fierce.

Wang Xin said that in recent years, the competitive environment of the clothing industry has become increasingly fierce. With the rapid development of the Internet business, the profit margins of the garment industry have declined. In the future, with the increasing demand for clothing quality and other aspects, the profit margins of high priced clothing will still be maintained at a higher level. At the same time, some low priced goods may decline further in terms of profit margins due to the fierce competition environment.

More interesting reports, please pay attention to the world clothing shoes and hats net.