lundi 2 février 2015

Luxury childrenswear in China

Luxury childrenswear in China : a market with a huge potential

Chinese parents are a profitable market for luxury brands with China being the world's second largest consummer market of luxury consumer goods. It also turns out that they are spending more and more money on luxury clothes for their children. The China Research Centre for Children's Industry explains this phenomenon by the fact that chinese parents « transfer their preferences in luxury goods to their children ». Parents also prefer buying brands they know, such as Dior, Burburry, Armani which successfully entered the childrenswear chinese market with Baby Dior, Burburry Children, Armani Junior in 2010 and 2011.
 Parents pay attention to safety and have more trust in the quality of products released by well-known luxury brands. Moreover, the connection between your identity and the clothes you wear is very strong in today's Asia and parents want they children to be stylish and to wear recognizable brands. They look for ideas by following children fashion blogs and spoil their children who are the center of the family because of the birth control policy. Two additional reasons make parents ready to invest a lot in children's clothes. The first reason is that today's chinese parents did not access such consumption goods during their childhood under the Mao regime. Consequently, they want to give their kids products they could not own at the same age. The second reason is that young parents spend huge amount of time working. Therefore, to make up for their absence, they do not hesitate to buy costly products to their children.

For the time being, children's product does not represent a major part of the revenues for luxury companies. But luxury companies can see a bright future in this market. It did even not suffer from the economic slowdown in 2011. Besides, less material is needed for chidren clothes, making production costs lower with prices still quite high. In such a context, many other luxury children's products stores can be expected to open in China in a close future.

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