Childrenswear in South Africa

2020 IMPACT

Baby and toddler wear allowed to be sold despite COVID-19 hard lockdown

In 2020 retail volume sales of childrenswear saw a stronger decline than in the previous two years. In addition, a static performance was seen in current value terms, after many years of solid growth.

Online and offline retailers expand into childrenswear, further fragmenting distribution

Retailers such as Clicks, Dischem, Checkers, Game and Makro have slowly increased their childrenswear offering, and specifically their offering of baby and toddler wear. The expansion of these retailers, which were previously not associated with clothing, into this category, served to increase the competition in baby and toddler wear in 2020.

Fast fashion appeals, but low-income consumers seek value for money

In childrenswear, there are economy, standard, premium and super premium price bands. Childrenswear from fast fashion brands such as Cotton On Kids and H&M, for example, is priced higher than products from local economy retailers, but many consumers perceive them to be higher quality.

RECOVERY AND OPPORTUNITIES

Resilience for childrenswear despite negative forces

After seeing a notable retail volume decline in 2020, childrenswear is expected to maintain this decline in 2021, and indeed for the rest of the forecast period, although at a slow rate. Whilst the performance at the beginning of this period will be negatively affected by the continued impact of COVID-19 on consumers’ incomes, the latter part of the forecast period will be negatively affected by the falling number of children aged 0-14.

Consumers’ price sensitivity will create demand for promotions on childrenswear

In the forecast period South Africa is anticipated to experience renewed financial challenges, as the already poor economic performance seen at the end of the review period has been compounded by COVID-19. This will lead to declining GDP growth, increasing unemployment and lower disposable incomes.

Branded and licensed childrenswear set to gain popularity due to digital media

Young and educated parents are also increasingly interested in fashion, not just for themselves but also for their children, with this also being driven by the influence of social media, with proud parents sharing pictures of their children on sites such as Facebook and Instagram. In the review period, South African celebrities such as Mini Dlamini-Jones had babies, which were followed by media channels.