Increasing awareness about baby health and nourishment coupled with the rise in purchasing power has resulted in the growth of the kids’ retail market in India. At least 30 new retailers are either entering the Indian market in the next two years or expanding into new categories, said Joji George, Managing Director of global business media company UBM.

UBM, that conducted Asia’s first baby and kids’ exhibition in Mumbai, noticed a jump in interest in the Indian market.

While Mumbai-based Indvest Group is looking at extending into apparels and toys, Taiwan-based Piyo Piyo plans to enter the Indian market by partnering with Chennai’s Little Feet. Another brand Prowl, based out of Germany, plans to sell its merchandise here soon. Besides, media and entertainment firms such as Dream Theatre and Fifa are also expanding into kids’ merchandise in the coming months.

Indvest Group, which is into baby feeding accessories since the last 30 years, plans to enter the largely unorganised Rs 4,500-crore toy market and Rs 45,000-crore apparel market in India.

“Even as the purchasing power of an average Indian parent has gone up, there are about 65 per cent Indians who cannot afford branded toys such as a Fischer Price or Hamleys. We plan to tap these consumers who end up buying pirated toys that come from China. These toys are of bad quality and can cause health hazards,” said Darshan Deora, Managing Director of Indvest Group, who plans to re-launch their brand ‘Littles’ across 525 cities with toys and apparels in the next six months.

Deora said that ‘Littles’ with Rs 30 crore sales, at present, is targeting Rs 100 crore turnover by FY15-16.  The company, with diverse business interests in real estate, consumer and packaging, also plans to launch its own retail outlets.

Meanwhile, Taiwan’s Tung Ling Industries, which owns Piyo Piyo, is looking at an investment of Rs 200 crore over the next three years to open 150 standalone retail stores in tier I and II cities and Dream Theatre is infusing about Rs 100 crore in next two years.

UBM in its latest report said that the baby and children care products market is growing faster than the emerging markets despite global economic crisis. The market in 2011 was pegged at Rs 57,600 crore owing to strong demand for apparel, footwear, toys and baby cosmetics. It is expected to grow at 17 per cent CAGR annually till 2015.

The shopping mall culture has provided a platform to brands such as Zara, Burberry, Hamleys, US Polo Association, Chicco, UCB and Carter’s in the premium space while Gini and Jony, Mee Mee, Mom and Me, and Liliput, among others, are ruling the mass segment.

Besides, better education, high media exposure, rising peer affluence levels, increasing interaction with technology are driving growth in the segment.

priyanka.pani@thehindu.co.in

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