Childrenswear in Chile

2020 IMPACT

Despite the decrease in category sales, childrenswear performed comparatively better than menswear and womenswear because of the shorter lifecycles of the products. It is also important to note that some of the companies specialising in childrenswear have very well developed their e-commerce platforms, which has helped the decline to be less severe.

Childrenswear in Chile is characterised by few brands. Some 10 brands dominate more than three quarters of value sales.

In terms of imports, there have been no major problems in this category, and the downturn is due primarily to the drop in sales, and as an overstock situation has been created, so the number of imports is expected to decrease in the last quarter of the year. Although there are promotions and discounts, they are not generally used in this category, which is expecting a recovery in 2021.

RECOVERY AND OPPORTUNITIES

E-commerce has become a key feature of the sales mix of companies within this category, increasing its sales by more than three times compared to 2019. The importance of this channel is expected to continue to grow in 2021.

As a consequence of the pandemic, new business opportunities have been opened. Euromonitor’s Digital Consumer survey indicates an increased willingness to buy goods and services via s-commerce, a channel in which Chile appears to be one of the leaders in the region, which is opening a whole new platform to sell products in the country.

2021 is expected to be a very difficult year, with a much-deteriorated economic situation in the country as a result of the pandemic and an equally unstable socio-political environment, so growth in the industry is expected to be moderate. An important player in the category also estimates that the 2019 sales level for the industry will take at least four years to recover.

In a category where fewer companies are present, all the leading childrenswear players except fast fashion giant H&M are domestic ones

In Chile, fewer companies are strongly present in childrenswear than might be seen in other apparel and footwear categories. Indeed, 10 players accounted for more than three quarters of the category’s value sales in 2020.

E-commerce becomes key feature in sales strategies for childrenswear players

One reason that online shopping for baby clothes is thriving in Chile today is that new parents aged between 30 and 40 years or younger are quite accustomed to getting advice and information via social media channels they know, such as Instagram, Twitter or YouTube, and to shopping online, all of which can save them time and money. Because of this, e-commerce dedicated to selling baby products is thriving in Chile.