Childrenswear in Colombia

2020 IMPACT

Childrenswear benefits from its more essential status than menswear or menswear

2020 saw childrenswear record less severe sales declines than either menswear or womenswear as the category benefited from the more essential status of these products generally. While many Colombians were willing to reduce spending on womenswear and menswear as their incomes came under pressure due to the unfavourable economic environment that unfolded over the course of the year, childrenswear is a category in which sales are dominated by products that are not regarded as optional in most cases.

Huge price discounts due to falling demand contribute to value sales declines

Another factor suppressing value growth in childrenswear during 2020 was the widespread use of price discounting by leading category players to attract consumers and spur sales during a period of suppressed demand. One of the key factors behind the low demand for childrenswear during 2020 was the five months of restrictions on the ability of non-essential retailers to operate at full capacity.

Shift noted towards more casual styles, with an emphasis on at-home living

The quarantine restrictions that were imposed upon the Colombian population during 2020 required people to stay at home wherever possible and this motivated the leading players in childrenswear to develop new collections that responded to the emerging needs of the population during this difficult period. The country’s leading brand of childrenswear OffCorss for instance launched its Hometastic collection, a range of comfortable and practical garments with light-hearted and amusing designs.

RECOVERY AND OPPORTUNITIES

A positive performance slated for childrenswear as demand rebounds robustly

The forecast period is expected to see sales of childrenswear register a stronger and faster recovery than either menswear or womenswear, with positive growth expected to be seen in the category from 2021 onwards and a return to pre-COVID-19 sales levels likely to be seen by 2024. A key element in the recovery of category is expected to be the reopening of all of Colombia’s schools at some point during 2021, once the government vaccination programme has achieved its aims of effectively curbing the spread of the COVID-19 virus among the population.

The importance of e-commerce in the distribution of childrenswear to continue rising

One of the key responses of Colombia’s childrenswear brands to the challenges created by the COVID-19 pandemic during 2020 was a substantial shift towards e-commerce as a primary sales channel. This has yielded positive results for the category generally and it is thus likely that the category leaders will want to build on this success during the forecast period.

Ecological positioning less important in childrenswear than other apparel categories

During the forecast period, the shift that is expected to be seen towards a greater focus on ecological sustainability in Colombia’s apparel and footwear industry is likely to be less influential in childrenswear than in other apparel categories. Indeed, even apparel brands that currently offer eco-friendly products in menswear and womenswear still offer a very limited array of such garments for children.