Childrenswear in Indonesia

2020 IMPACT

Relatively strong performance as childrenswear is seen as a more essential category

Childrenswear registered less negative sales growth than either womenswear or menswear in 2020. While the economic pressures created by the COVID-19 pandemic put pressure on consumer spending, this did not affect childrenswear as much as either menswear or womenswear as childrenswear is widely regarded as a more essential category of products, with purchases of baby and toddler wear considered unavoidable for parents of babies, infants and young children.

Small local players thrive in a highly fragmented competitive environment

One notable feature of Indonesia’s apparel and footwear industry is the high proportion of sales accounted for by small companies based within the country. Childrenswear is no exception to this general rule and 2020 saw “others” continuing to account for the vast majority of category sales.

The rental of children’s wear declines in popularity over the course of 2020

Another factor supporting sales growth in childrenswear during 2020 was the declining popularity of renting clothes. While it is more common for womenswear to be rented in Indonesia, many families still rent childrenswear and this is seen as an excellent way to avoid having to spend significant sums of money to buy childrenswear on a regular basis.

RECOVERY AND OPPORTUNITIES

A strong stable recovery slated for sales of childrenswear during the forecast period

The forecast period is expected to see childrenswear register a robust recovery from the sales declines recorded during 2020, with a return to pre-COVID-19 sales levels expected to be seen in 2024. The main factors supporting this strong performance are expected to be the recovery of Indonesia’s economy from the pressures created by the COVID-19 pandemic during 2020 and, moreover, the country’s relatively high birth rate.

Declining influence of children’s wear rentals expected to provide a boost to sales

As mentioned above, the unique exigencies presented by the COVID-19 pandemic led to the rental of childrenswear becoming a far less attractive option for many Indonesian families during 2020. This is expected to remain a longer-term trend during the forecast period.

Local manufacturers and independent brands expected to remain popular options

Local independent brands are expected to continue accounting for the vast majority of sales in childrenswear during the forecast period. At the end of the review period, only a very small proportion of sales of childrenswear in Indonesia were accounted for by major international brands, with independent local brands selling domestically manufactured apparel dominating the competitive landscape.