During the initial stages of the pandemic, COVID-19 related restrictions imposed by the government to halt the spread of the virus had a strong negative impact on childrenswear. Schools and parks were closed and all sports activities were banned, while children under the age of 15 were not permitted to enter shopping centres.
The country’s birth rate fell in 2020 with per-child annual spend dropping as consumers tightened their belts. As a result, amidst unprecedented uncertainty, which came on the back of economic downturn in 2019, sales of childrenswear experienced contraction in 2020.
Prior to the pandemic, expats continued to leave Saudi Arabia due to the country’s Saudization policy. However, this came to a temporary halt in 2020 due to the closure of the Kingdom’s borders in a bid to contain the spread of the virus.
Al Bandar Trading is present with the Baby Shop brand, which is renowned for being a one-stop-shop for all parents’ childrenswear needs. Its Max brand is also generally very popular due to its affordability.
One the pandemic recedes and life slowly returns to some sort of normality, parents are expected to continue enrolling their children in sports and activities as well as gyms for children, afterschool sports and nursery/day-care activities. This is set to boost consumption of childrenswear once more, with the category attaining sustainable growth rates from 2022 onwards.
In order to protect themselves from future shocks, companies such as Al Bandar Trading are expected to develop online marketing campaigns and offer consumers opportunities to buy their products online. As a result, e-commerce is expected to become increasingly important as a distribution channel for childrenswear in the coming years.
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Understand the latest market trends and future growth opportunities for the Childrenswear industry in Saudi Arabia 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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