Childrenswear in Argentina

2020 IMPACT

Minimal contraction for childrenswear irrespective of COVID-19 as children outgrow existing clothing

Despite the pandemic, childrenswear performed exceptionally well in 2020 and much better than the industry as a whole. Children continued to grow and require new clothes, making demand for this category somewhat inelastic.

Strong performance of baby and toddler wear due to emotional element in demand

Baby and toddler wear registered the best performance within childrenswear in 2020 as these products generate demand that has a high emotional component. In the case of boys’ and girls’ apparel, sales of jeans, shirts and shoes declined due to fewer social interactions (parties, celebrations), while comfortable clothes such as pyjamas and leisurewear registered a better performance.

In a change from the previous year, the average unit price rises in line with inflation as players endeavour to boost cash flow and stay afloat during the pandemic

The average unit price of childrenswear rose in line with the general inflation rate in 2020. This represented a change in strategy from the previous year when companies increased the prices of childrenswear at levels well below the general inflation rate.

RECOVERY AND OPPORTUNITIES

Growth in e-commerce due to lockdown with ongoing uplift expected due to cessation of some bricks and mortar stores

E-commerce played a key role in 2020 and registered a strong increase in this category. Compared to adults, children tend not to try on clothes at the purchasing stage with parent intentionally buying slightly larger sizes for them to grow into.

COVID-19 and import restrictions set players back and discourage new players from entering Argentina

The pandemic hampered the expansion of multinational brand Carter’s in 2020. The company only just launched in Argentina in mid-2019 opening three stores.

Price-sensitive parents eschew fashion trends and opt for cheaper products

Due to the complex economic situation and restrictions over social interactions, demand for premium brands registered a worse performance than less expensive alternatives. According to industry sources, despite awareness of fashion trends in childrenswear among parents, social restrictions increased demand for lower-cost brands.