Kid's Retail Franchise: Rides High on the Low Cost Factor

Riding high on the growth of the purchase power, discretionary spend of aspirational wealthy middle class parents, Kid’s Retail is sure to experience unprecedented growth. Every brand worth its salt in the kid’s retail segment is banking heavily on franchising and licensing for their expansion. Good news for investors is that kid’s retail franchise demands low investment and assures high returns.

- Utpala Ghosh

Kid’s Retail is one segment where the sales start ‘converting’ even before the end customer has ‘walked in’ to the world. Growing number of single kid families have further accentuated the growth prospects of this segment. The last few years have seen the rise of various product line catering to different phases right from the prenatal to late teenage.

Magnitude of Opportunity

The soaring industry figures reaffirm the magnitude of opportunity in this segment which is very encouraging for entrepreneurs who want to venture into this sector. The product range starts right from maternity wears which happens to be the fastest moving products followed pillows, cushions, books and cd’s. As per Ken research, maternity products are expected to grow at 17.3% between years 2013-2018, followed by baby care products at a CAGR of around 17% over the period 20142019 and the toy segment at CAGR of 20% by the year 2020. With the increase in disposable income and close to one third of the population under 14 years of age the toy industry to set to observe greater opportunity to expand. These apart, educational supplies such as books, stationeries and other educational toys and games also provide a sea of opportunities for retailers to make profit from the growing demands in kid’s retail segment.

Consumption Trends