The restrictions placed on educational institutions had a severe impact on the social lives of children in Brazil, making this group even more isolated in comparison to the routines of most adults who were still responsible for the household purchases. With fewer activities and long periods of quarantine, the only motivation for the purchase of new clothes among this group was due to the shorter lifecycle of the pieces worn by these consumers.
The pandemic has had a severe impact on most children-related categories. Many schools were closed as were many childrenswear stores, especially those independent businesses that were located in malls with high rents.
Children’s day, one of the most important dates in the annual sales calendar for the segment, is celebrated every 12 October and occurred during the recovery in consumption at a time when pandemic numbers of contagion and deaths were reducing in Brazil. This optimism helped sales performance to be less negative than store owners first projected.
Despite the difficult times, prospects for recovery rely on the traditional partnerships and licensing of prestigious brands popular among children and young teenagers. Important retailers such as Pernambucanas recently announced offers of Disney, Marvel and Star Wars brands.
Retailers such as Alô Bebê and specialised sites such as Lá Vem Bebê, Eu, Neném and I Baby Site have been promoting online baby showers to incentivise such purchases for the coming babies in a safe manner for the gifting process. The websites help the organisers of the online event to create a list of guests, send out the invitations, enable expectant mothers to receive gifts in the form of money or as home-delivered gifts and facilitate the event via app-based conference call.
An increasing number of second-hand retailers have appeared in the segment with potential to continue posting strong growth in the coming years. Arena Baby is a second-hand franchise with 19 stores that operates under the circular model, meaning that the chain receives donations, and exchanges and sells pieces of childrenswear fashion.
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This report originates from Passport, our Childrenswear research and analysis database.
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