Childrenswear in

Hong Kong, China

• Argentina
• Australia
• Austria
• Brazil
• Canada
• Chile
• China
• Colombia
• Czech Republic
• Denmark
• Egypt
• France
• Germany
• Greece
• Hong Kong, China
• Hungary
• India
• Indonesia
• Israel
• Italy
• Japan
• Malaysia
• Mexico
• Morocco
• Netherlands
• Nigeria
• Norway
• Philippines
• Poland
• Portugal
• Romania
• Russia
• Saudi Arabia
• Singapore
• South Africa
• South Korea
• Spain
• Sweden
• Taiwan
• Thailand
• Turkey
• Ukraine
• United Arab Emirates
• United Kingdom
• USA
• Venezuela
• Vietnam

PROSPECTS

Low birth rate boosts childrenswear

Hong Kong, as one of the most developed international cities in the world, has for a long time had a low fertility rate. Local parents, in general, have a high-income level in comparison with those in other Asian regions, and in 2018 the average number of children per household was one.

Millennial culture drives luxury childrenswear

Millennial parents are more willing to share updates of their family life than Generation X, and their focus is usually on their beloved child. Posting a photo of themselves and their children wearing the same clothing is one way of catching attention of followers on social media platforms.

Second-hand sales rise, potentially threatening the category

Opposite to the luxury trend in the local market, second-hand childrenswear is on the rise in Hong Kong, mostly pushed by local “mumpreneurs” and second-hand trading platforms such as Retykle. The increase in peer-to-peer selling makes second-hand trading much easier, and the short lifecycle of children’s clothing also motivates mumpreneurs to sell off their good-condition apparel and footwear to new mothers in need.

COMPETITIVE LANDSCAPE

Baleno’s low-price strategy could drag the category into a price war

The rapid expansion of fast fashion brands in the past decade has gained them a respectable share in domestic childrenswear, and Baleno has launched a cost-leading childrenswear line to regain its position in the low-end segment. Baleno’s Peppa Pig T-shirt with anti-mosquito function has granted the brand a unique selling point in childcare apparel, whereas its crossover campaigns with My Little Pony and Sesame Street for its apparel have continued to catch market attention.

Luxury brands thrive

International luxury brands had a fruitful year in Hong Kong in 2018. Stella McCartney, Fendi, Gucci, Balenciaga and other luxury brands recorded high single-digit growth or low double-digit growth in the year, thanks to the recovery of the retail market as well as the willingness of millennials to spend on their child.

Diminishing mainland tourist spending power shifts demand towards affordable brands

Whereas mainland tourists from first- and second-tier cities previously boosted spending in Hong Kong, the latest recovery in the number of mainland tourists to the region is being contributed by visitors from third- and fourth-tier China cities, with these people having moderate or even weak spending power. The trade-off effect due to the change of visitor composition also applies to childrenswear, which is why demand has shifted towards affordable brands, eg Baleno, Bossini, Gap and Zara.