The main reason for childrenswear recording lower declines when compared to the market’s average in 2020 was mostly related to the category’s essential nature. The lower the age of the child, the shorter the lifespan of an item in terms of usage.
In a category where store-based consumption is still largely significant, the lockdown brought challenges for most brands of childrenswear that were unable to suddenly drive their sales online. Apparel and footwear specialist retailers such as Ernsting’s Family and Kik, have in some cases several stores in the same city, and rely on their proximity to consumers as a strategy to grow sales.
Despite the relatively better economic performance compared to other European countries in terms of job retention and income availability across the population during the pandemic, following various government schemes launched in 2020, economic uncertainty has played an important role in Germans’ attitudes to spending. Due to historical and cultural reasons, the market environment has resulted in higher levels of saving and reducing expenditure on non-essential items or services.
In a similar effect to the one witnessed approximately a decade ago in the aftermath of the financial crisis, birth rates in Germany are expected to be hit as a consequence of higher economic uncertainty and job losses among the younger generation. The birth rate is therefore, projected to fall at a faster pace than prior to 2020, to just nine per 1,000 people by 2025.
The biggest challenge in the coming years for major childrenswear players, besides the predicted decline in birth rates, will be the purchasing methods of German parents. Already taking shape over the review period, the country is experiencing a cultural transformation where an increasing proportion of parents are growing up digitally connected and feel extremely comfortable with an online world.
Despite increasing challenges for brands and retailers to compete in a new market environment, perceived quality is still seen as a major factor for selecting a brand. Trust is important, and this aspect is likely to benefit already established brands such as Yigga from Ernsting’s Family and CFL from Otto GmbH & Co KG.
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Understand the latest market trends and future growth opportunities for the Childrenswear industry in Germany with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Childrenswear research and analysis database.
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