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Children’s wear Market Research

B+ BOOTential

Report

June 9th, 2014

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Children’s Wear Market Research would include 3 main parts

Market Overview

Recommendations

Segmentation, Targeting and Positioning

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What’s happen in Viet Nam childrenswear market?

Market Size & Trend

Competitive Landscape

Prospect

▪ In 2012, childrenswear market size is 5.000 billion VNĐ and witnesses current value growth of nearly 10%

▪ Baby and toddler wear enjoys the fastest value growth

▪ Childrenswear remains highly fragmented with many small brands and unbranded items

▪ Many Vietnamese consumers start to shift to domestic brands

▪ Childrenswear is projected to see a growth of 3%

▪ Both international and domestic manufacturers are expected to introduce new products in terms of design and price to cater for different needs and demands

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In spite of decrease in children population, kids apparel still reach 5.1 thousand billion VNĐ in 2012 with growth of 10%/year

Childrenswear

47,9

2010

53,0

10%

100%

MenAnd Women

2009

5,1

47,2

4,6

42,7

3,8

33,3

2011 2012

40,6

4,1

36,5

37,1

6.714

7.044

20.904

6.750

6.84710-14

5-9 6.711

7.248

20.993

7.146

20.850

2012

6.815

6.761

7.034

20.928

7.253 7.352

2009 2010 2011

0-4

Although the number of children decrease generally between 2009 and 2012…

Revenue of childrenswear market size still increase by 10%/year

Children populationThousand people

Revenue of VietNam apparel marketThousand billion VNĐ

Souce: Euromornitor International Report

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Girl’s Clothing has the highest revenue and sale units, while Baby and Toodler Wear experienced a highest growth

Girl’s Clothing

Boy’s Clothing

Baby and Toodler Wear

2012

5,06

2,42

1,57

1,07

2011

4,57

2,19

1,42

0,96

2010

4,10

1,97

1,28

0,8512%

10%

10%

Girl’s Clothing

Boy’s Clothing


2012

41,59

17,87

12,35

11,37

2011

40,50

17,44

12,10

10,96

2010

39,41

16,99

11,84

10,58 3.7%

2%

2.4%

The reason of differences between growth ratio of revenue and sale units may be:- Increase in price

(inflation or …)- People tend to spend

more for experience items

Revenue of kids apparel in categorisesThousand billion VNĐ

Revenue of kids apparel in categorisesMillion units


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Childrenswear remained a highly fragmented market, with the market share of leader players only 0.5%

Brands 2009 Company 2010

Nike Inc 0.4%

Adidas VietNam Co Ltd

Nike

Reebok

2011 2012

0.5% 0.5% 0.5%

Others

0.2% 0.2% 0.2% 0.2%

99.4% 99.3% 99.3% 99.3%

Childrenswear market share in VietNam

Percentage


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There are 3 main players in childrenswear market with differences competitive advantages

▪ Very famous brands such as Nike, Adidas,…

▪ Usually sold at their retail outlets or through department stores in shopping

centers

▪ Superior quality and diversified products portfolio

▪ Customer target is mostly higher income consumers living in big cities

such as Ho Chi Minh and Hanoi city

▪ From neighbouring countries, for instance, China, Thailand and Cambodia

▪ Cheap prices (15-20% lower than local brand) and eye-catching designs

▪ Acceptable quality, affordable price to many Vietnamese parents.

▪ Concentrate more on new designs

▪ Many privates brands with distribution advantages

Europe Imported Brand

Imported unbranded products

Local brands

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Childrenswear is expected to see a growth of 3%/year due to the roll-over of the economic downturn

60,0

2016 2017

5,6

57,3

5,3

52,1

57,4

5,5

54,5Men and women

Childrenswear

2013 2014 2015

5,2

49,9

55,1

62,9

5,8

60,2

66,0

4%5%

5%5%

4%2%4%2%

Childrenswear market expected growthThousand billion VNĐ

“The roll-over of the economic downturn starting from 2011 till now may leave a negative impact on growth of childrenswear in the short term as the budget for clothing will be tightened and Vietnamese consumers are predicted to prefer to purchase economy and standard childrenswear rather than premium. However, it is expected that with the efforts of the government, the economy should start to recover in the next couple of years. Thus, this threat may only be short-term” – Euromornitor International Report


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While Girl’s Clothing is expected to have highest revenue growth, Baby and toddler wear enjoy the best performance of sale units

1,15

5,45

2,56

1,61

1,12

5,29

2,65

1,65

2013 2014 2015


Boy’s Clothing

Girl’s Clothing 2,48

1,59

1,09

5,16

2.7% 2.6%

1.2% 2.4%

3.2% 3.5%

12,80

45,70

18,80

12,90

12,30

44,00

19,50

13,40

2013 2014 2015


Boy’s Clothing

Girl’s Clothing 18,30

12,60

11,80

42,70

4.2% 4%

2.3% 3.8%

2.7% 3.7%


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Segmentation

24/50 chon Quality > Design > Price 9/50 chon Quality > Price > Design 7/50 Quality > Design = Price 12 Other

Quality As 1st Priority Price or Design as 1st Priority0

5

10

15

20

25

30

35

40

45

Chart Title

Segment 1 Segment 2 Segment 3 Segment 4 Other

Design as 2nd Prior-

ity

Middle Income

Middle Low Income

Price as 2nd Prior-

ity

Middle High In-

come

High Income

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Segment 1: – Middle Low Income with Design as 2nd Priorities

Market Size Guestimation: Account for 18% of sample size Pricing Average Price/ Items: 105,000/ item Price Range: 75,000 – 150,000/item Spending Power: Average Spending/ Season: 1,350,000 Spending Range/ Season: 1,200,000 – 2,500,000

• 66.7% shops 4-5 times/ season

Frequency

• 55.6% Spend 300,000 – 499,999/ purchase• 33.3% Spending: < 300,000/ purchase

Spending/ Purchase

• 44.4% 1-2 items• 55.6 % 3-4 items

Volume of Products:

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Segment 2: Middle Income with Design as 2nd Priorities

Market Size Guestimation: Account for 26% of sample size Pricing Average Price/ Items: 185,000/ item Price Range: 125,000 – 267,000 Spending Power: Average Spending/ Season: 1,638,000 Spending Range/ Season: 1,000,000 – 3,000,000

• 69% shops 2-3 times/ season

Frequency

• 69% Spend 500,000 – 799,999/ purchase• 23% Spend 800,000 – 1000,0000

Spending/ Purchase

• 77%: 3 – 4 items

Volume of Products:

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Segment 3: Middle High Income with Price as 2nd Priorities

Market Size Guestimation: Account for 26% of sample size Pricing Average Price/ Items: 130,000/ item Price Range: 125,000 – 267,000 Spending Power: Average Spending/ Season: 2,052,000 Spending Range/ Season: 1,200,000 – 4,000,000

• 77.8% shops 4-5 times/ season

Frequency

• 56% Spend 500,000 – 799,999/ purchase• 23% Spend 300,000 – 499,999

Spending/ Purchase

• 78%: 3 – 4 items

Volume of Products:

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Segment 4: High Income with Quality as 1st Priority

Market Size Guestimation: Account for 26% of sample size Pricing Average Price/ Items: 327,000/ item Price Range: 200,000 – 1,000,000 Spending Power: Average Spending/ Season: 2,375,000 Spending Range/ Season: 1,600,000 – 3,000,000

• 75% shops 2-3 times/ season

Frequency

• 75% Spend 800,000 – 1000,000/ purchase

Spending/ Purchase

• 62.5%: 3 – 4 items• 37.5%: 1 – 2 items

Volume of Products:

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Segmentation

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