Stop Kidding

Radhika Sachdev

Posted: Tuesday, Feb 19, 2008 at 0044 hrs IST
Updated: Tuesday, Feb 19, 2008 at 0103 hrs IST


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: been present in the country since 2004. It currently runs 200 licensed outlets across India.

The newest kid on the block is Walt Disney Company (India). It tied up with Indus Clothing in November 2006 for the distribution of Disney jeans, its non-character based fashion brand. “The Indian market is driven oth by character and non-character merchandise, but the latter still commands 85% share,” Roshini Bakshi, director, Disney Consumer Products (DCP) in India. “Compared to the West, we have a long way to go,” she adds.

The reasons for the steady growth of this market are not difficult to guess. When Sonia Narang (28) sets out to clear her four-year old’s wardrobe every few months, she has to discard not one or two but probably the entire range of jeans, shirts and several pairs of shoes in one go. Don’t they grow up fast!

That’s not to say kids themselves are not conscious about brands. Sanjeev Narula of the Rs 182-crore Lilliput Kidswear remarks, “Indian kids are brand aware. Till the age of two, it’s the mom who chooses; but after that the child is the mom and the mom the child.” And to spoil the child further, there are also matching accessories—footwear, belts, eyewear, innerwear, swimwear, ethnic wear, and of course, partywear, where the price starts at Rs 3,000 or more.

Incidentally, this predicament that mothers of kids between 0-12 years face everywhere around the world is what makes this a volume-driven market. Add to it the new fashion consciousness in today’s tweens and you will also find value, inspiring several erstwhile exporters to now play close attention to the domestic market.

“The biggest challenge we face,” says Narula, “is maintaining huge inventories in every size, style and colour. The stock stays on the shelf for barely a month, before 70% of it is sold (normally). The rest is liquidated through sales or discount formats. This year, we are launching 2,000 colours and patterns, so at any given point of time we would be putting out 4,500 styles on the racks. That is, 600 pieces per style in all sizes,” declares Narula.

Lilliput, founded by Narula in 1991, clocked Rs 71 crore in domestic sales besides Rs 111 crore in exports last year it. The brand has been posting a year-on-year growth of 80%-plus. Narula is quick to point out that the domestic market component is growing at double the pace of the...

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