The children's clothing market - Germany

1.1 Introduction

The market for children's clothing refers to all items intended for children's clothing. So it includes all classic items such as shoes, accessories, and clothes for everyday life. The market is very developed and divided into different segments: used clothing, new clothing, luxury clothing, etc.

The demand for children's clothing is growing worldwide. Every year there is a 5% increase in demand. However, due to the recent economic fluctuations and the general decrease in purchasing power, the sale of new children's clothing is decreasing and the secondhand industry seems to be developing more. There are a variety of customer types in this market. Some regular parents are looking for high-quality, durable clothing to dress their child for everyday wear. But there is also a more sophisticated clientele who is after luxury products.

Demand is also increasing in Germany, but it is nowhere near this market's average growth rate in the world, since German customers are more likely to be looking for high-quality garments that are long-lasting.

Multinational companies able to offer products at an attractive price while taking advantage of economies of scale dominate the German market:

• C&A
• Steiff
• H&M

However, these companies are often put under the spotlight for controversial reasons. They have raised many outcries because they are labeled as fast-fashion companies that employ cheap labor. This is one of the explanations for the success of new companies such as KiK, whose whole strategy relied on the fact they were offering an alternative.