In this Market Report, the UK childrenswear market is defined as clothing for

children under the age of 15 years. The main sectors of the market are infant

clothing, girls' clothing and boys' clothing. In 2005, Key Note estimated the

value of the childrenswear market was PS6.3bn, having risen by 13.1% since

2001. This increase was lower than overall spending rises on clothing, as

well as total household spending.
Price deflation has been prevalent in the UK clothing market as a whole, with

prices falling by an average of 7.9 percentage points since 2002 and in the

childrenswear market this has been even more pronounced. The main factor

driving price deflation has been the success of supermarkets and value

retailers. The major multiples have been keen to extend their non-food sales,

and childrenswear has been an important area for groups such as ASDA and

Tesco. Value retailers, led by Primark, have also brought down price points

for childrenswear. This, in turn, has led to price cutting across a group of

retailers in order to maintain a more competitive position.
Girlswear accounts for the largest share of sales in the market although the

female under-15 population is smaller than the male. More clothing is

purchased for girls and they often have a much more extensive wardrobe than

their male counterparts. In addition, the market is more fashion led, such as

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handbags etc,which can boost spending. Boyswear has seen increased branding

in recent years, but sportswear continues to play a major role. In the

babywear market, the rise in the UK birth rate has boosted spending, but

again, price deflation has depressed sales rises.
The UK retail childrenswear market is product and brand led, with retailer

own label and exclusive lines dominating overall sales. This position has

been reinforced by the success of the supermarkets and value retailers who

tend to focus on non branded items. This has further encouraged a focus on

price. However, some areas of the market have managed to maintain

differentials; for example, fashion and designer brands, and character-

licensed clothing.
Children's clothing is purchased by around three in ten consumers. Even those

without children tend to participate in the market, buying products as gifts,

for example. As children get older they are increasingly likely to self

purchase items rather than allocate this role to adults.
The childrenswear market will continue to benefit from trends led by high per

capita spending on children. This has been driven by factors such as later

parenting ages and smaller family sizes. A focus on lower prices is not

indefinitely sustainable as profit margins will eventually be affected. As a

result, price points at the bottom end of the childrenswear market will begin

to rise in the medium term and this will boost sales values.

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