Childrenswear in Israel

2021 DEVELOPMENTS

Sales rise in 2021 due to consumers returning to pre-pandemic purchasing patterns

Childrenswear experienced notable declines in 2020 on par with both womenswear and menswear as a result of the pandemic-induced lockdowns and restrictions on movement outside of the home, in addition to store closures. Malls and retail stores were also closed during 2021, negatively impacting childrenswear.

Fox retains leadership in 2021 thanks to availability and convenience

Fox Wizel Ltd retained its overall leadership of childrenswear in 2021 as the only player to hold double-digit value share, placing it at some distance from its nearest competitors Castro Model Ltd, Shilav Group Ltd and Golf & Co Group Ltd. The player offers a wide range of popular brands including The Children's Place, Fox Kids, Fox Baby, American Eagle Outfitters, and Mango.

Adults and children dressing the same is becoming increasingly popular in 2021

In recent years young parents are increasingly purchasing clothing that is the same for parents and children. As a result several companies that manufacture children's and adults' clothing continue to launch similar collections for children and parents.

PROSPECTS AND OPPORTUNITIES

E-commerce likely to continue recording sales growth over the forecast period due to offering convenience and competitive prices

E-commerce is expected to continue to grow in popularity as a major distribution channel over the forecast period. Price competition is likely to remain strong, but online platforms often have more affordable clothes or sales and many childrenswear e-commerce players have established and trusted websites.

Population growth expected to assist childrenswear sales during the forecast period

Childrenswear is predicted to continue registering robust retail value sales growth (at constant 2021 prices) during the forecast period, although growth rates will decelerate over the course of the forecast period. The category’s overall trajectory will very much be linked to overall population growth, which has steadily been increasing over the review period, and whether Israelis feel financially stable enough to start a family or have additional children.

Children’s loungewear set to boost demand during the forecast period

During 2020 and 2021, there was a shift towards more casual clothing and loungewear in Israel. This trend also affected childrenswear, leading to childrenswear manufacturers launching kid's loungewear.