Childrenswear in Romania

2021 DEVELOPMENTS

Rebound to growth for childrenswear as schools return

Following the outbreak of COVID-19, childrenswear saw declining current value sales in 2020. However, in comparison with womenswear and menswear, childrenswear was less severely impacted.

Baby and toddler wear struggles due to the falling birth rate during the pandemic

In 2020, baby and toddler wear was the least impacted category within childrenswear, with current value sales seeing the least decline. Given the fact that babies and toddlers require new clothing more often, as they grow more rapidly compared with older children, parents were more likely to purchase these items regardless of the impact of the pandemic.

Pepco performs well due to its price point and outlet expansion

Pepco, the leader in childrenswear, managed to register value growth in 2020, even though it was forced to completely cease its store-based activity for two months. Whilst the overall category and many players saw declines, Pepco managed to register growth due to expansion of its number of stores in the country.

PROSPECTS AND OPPORTUNITIES

Rapid rebound, as despite lower birth rate parents will buy more and buy better

Childrenswear is set to maintain strong but slowing current value growth in the forecast period, with sales returning nearly to the 2019 level as early as 2022, due to the reopening of schools and a general return to pre-pandemic norms. The performance of the category will be limited to some extent by the general trend of having a smaller family and postponing establishing a family.

Move towards quality and sustainability amongst parents that can afford it

In the two years of the pandemic, an increased interest in the quality and sustainability of childrenswear was observed, especially amongst parents with average to high incomes. Currently, fast fashion is prevalent throughout most apparel categories, as consumers can find plenty of lower-priced clothing, and many Romanian parents do not care that these garments will not last.

E-commerce set to maintain its dynamism

E-commerce plays an important role in childrenswear, and has huge potential for growth over the forecast period. The number of online retailers is constantly rising, as Romanian parents have started to prefer online shopping for their children, especially babies and toddlers, as it is much easier than going with them to the shops.