Childrenswear in Sweden

2021 DEVELOPMENTS

Slow decline is followed by rapid recovery

Childrenswear saw much slower retail volume and current value declines than womenswear and menswear in 2020. Demand for childrenswear proved more resilient, as consumption is more closely driven by necessity and demographic factors than by temporary trends and indulgence.

Girls’ apparel sees the highest sales and recovers the fastest

Mirroring the relatively high demand for womenswear compared with menswear, demand for girls’ apparel has traditionally been stronger than for boys’ apparel. This higher level of demand was also reflected in the slower current value decline for girls’ apparel in 2020, and the fact that it also saw the strongest growth in 2021.

Natural and organic remain strong trends

2021 saw continued consumer and media interest in childrenswear that was marketed as organic or “natural”, focusing on the sustainability of production, products free-from toxins, and organic fabrics. Consumer interest was higher the younger the target audience – parents are more actively involved in the health of their children the younger they are, whilst parenthood and child-rearing itself is an area for the projection of environmental concerns.

PROSPECTS AND OPPORTUNITIES

Demographics to remain the most important growth driver

With childrenswear consumption dependent on the constant renewal of the consumer base of children and adolescents, demographics will remain the most important driver of consumption in the forecast period. However, with a large part of Swedish demographic developments, particularly in younger age ranges, dependent on politically sensitive developments in the area of immigration, the forecast situation is volatile and may be subject to significant fluctuations over the coming years.

Mounting pressure will contribute to a static volume performance

Pressure on both price and turnover are expected to remain significant moving forward, thanks in no small part to the extensive penetration and entrenchment of a vast array of discounted, mass-produced items via e-commerce, particularly in the mid-priced segment, and with consumers’ purchasing power in the childrenswear category expected to continue to decline. During the pandemic, many consumers became used to consuming less, which will lead to a static volume performance.

Greater competition from second-hand products

Second-hand consumption has been widely accepted in Sweden for a long time, but has grown as sustainability concerns have deepened. Whereas second-hand was seen as a low-budget alternative for students, single parents and low-income households, it now has much wider appeal, and this will continue across the forecast period.