Starting
a Kid-focused Business in India
Do you remember your childhood days? Do you have pleasant
memories of the toys you played with? Or do you have similar experience with
your kids? Or Do you find kids' perspectives interesting and often funny? When you
experience the similar traits in you, then, probably you can start your own
business in India related to baby products, etc in India.
Considering the growth of online industry in India, let us focus
on the data provided by Google India recently on the online Industry which also
covers baby products selling online in India.
Online Shopping Growth in India-
Online shopping in
India saw 128 per cent growth in interest from the consumers in 2011 to 2012 in
comparison to only 40 per cent growth in 2010 to 2011, making 2012 the tipping
point for online shopping in India.
In terms of product
categories, consumer interest on Google search for Apparels & Accessories
(30 per cent) emerged as the second biggest product category after consumer
electronics (34 per cent) and is expected to become bigger than consumer
electronics in 2013 in terms of absolute query volumes. Other categories that
Indians searched for online were Books (15 per cent), Beauty & Personal
care (10 per cent), Home & furnishing (6 per cent), Baby products (2 per
cent) and Healthcare (3 per cent).
The data was compiled
by combining information from Google Trends and online research conducted by
TNS Australia with a sample size of 800 respondents on behalf of Google India
in November 2012.
Apart from having interest in ding a Kid-focused business, one
must have a solid understanding of the kids' industry is crucial before you
decide where your own special niche might lie.
Kids' Industry Overview
There's no shortage of potential customers in this industry:
According to the ASSOCHAM report, Kids wear industry likely to touch Rs. 80,000
crore by 2015.
Growing at a compound annual growth rate (CAGR) of about 20
percent, the kids apparel market in India is likely to reach Rs 80,000 crore by
2015 from the current level of about Rs 38,000 crore, according to a paper
released by the Associated Chambers of Commerce and Industry of India
(ASSOCHAM), an apex industry body.
The market for kids apparel in India exceeds Rs 38,000 crore, of
which around Rs 5,000 crore is constituted by branded kids wear. The kids wear
market is growing at the rate of 20 percent per annum, which makes it one of
the fastest growing markets. Rising media exposure, high disposable income of
the parents, peer pressure, growing fashion, and brand consciousness among
children are together driving the growth of kids apparel market in the country,
the paper said.
An analysis carried out by ASSOCHAM on “Market of Indian kids wear,” pointed out that kids fashion has percolated down to tier II and III cities like Dehradun, Chandigarh, Pune, Nashik, Indore, and Varanasi.
Releasing the paper, ASSOCHAM Secretary General, D S Rawat said that kids are aware of branded goods and brands are also realising the potential of market and are increasing their presence in this segment. These brands are developing categories such as infant wear, kids' formal wear, kids' ethnic wear, swim wear, and casual wear, along with a wide range of other merchandise for children. Children's apparel includes clothing for kids between 1 and 14 years of age.
The trend of buying kids apparel from small stores and street shops and not opting for branded garments is gradually changing. The market for branded kids clothing is growing.
Dungarees, shorts, and shirts are the evergreen fashions in kids' apparel. Short skirts, tops with puffed volume, halter tops, lace trims, and cropped trousers are also 'in' these days. In terms of prints, butterflies, flowers, polka dots, skulls and pirates, and stripes are popular in kids' apparel as highlighted in the paper. Also, kids outgrow their clothes very rapidly. Hence, it is necessary that a kids apparel range be reasonably priced.
An analysis carried out by ASSOCHAM on “Market of Indian kids wear,” pointed out that kids fashion has percolated down to tier II and III cities like Dehradun, Chandigarh, Pune, Nashik, Indore, and Varanasi.
Releasing the paper, ASSOCHAM Secretary General, D S Rawat said that kids are aware of branded goods and brands are also realising the potential of market and are increasing their presence in this segment. These brands are developing categories such as infant wear, kids' formal wear, kids' ethnic wear, swim wear, and casual wear, along with a wide range of other merchandise for children. Children's apparel includes clothing for kids between 1 and 14 years of age.
The trend of buying kids apparel from small stores and street shops and not opting for branded garments is gradually changing. The market for branded kids clothing is growing.
Dungarees, shorts, and shirts are the evergreen fashions in kids' apparel. Short skirts, tops with puffed volume, halter tops, lace trims, and cropped trousers are also 'in' these days. In terms of prints, butterflies, flowers, polka dots, skulls and pirates, and stripes are popular in kids' apparel as highlighted in the paper. Also, kids outgrow their clothes very rapidly. Hence, it is necessary that a kids apparel range be reasonably priced.
As per the ASSOCHAM assessment, mothers are now spending
enormous amounts on clothing for their children as they believe that the way a
kid is dressed is often a reflection of the parents’ sense of style.
Higher-cost brands are generally reserved for special occasions due to the fact
that parents tend to dress their children like themselves and will seek to
incorporate brands that fit with the family's lifestyle.
The biggest retail markets are those in which fashion for adults
is most developed, such as France, the UK, and the US. Emerging global markets
like India and China hold promise for children's wear because of the sheer size
of the retail industry, as well as the growing number of wealthy people.
The market for girl's wear is far greater than boy's wear throughout the world. Boy's apparel tends to center on basics. Girl's wear, however, thrives in all channels from specialty stores to department stores to discounters.
The market for girl's wear is far greater than boy's wear throughout the world. Boy's apparel tends to center on basics. Girl's wear, however, thrives in all channels from specialty stores to department stores to discounters.
Brands such as Benetton, Pantaloon, and Reebok have roped in
popular characters like Pucca, Ben10, and Power Rangers to attract the 4-14 age
group customers.
"The branded children's wear segment is presently worth Rs 4,000-5,000 crore; it is growing at more than 25 percent," added ASSOCHAM.
"The branded children's wear segment is presently worth Rs 4,000-5,000 crore; it is growing at more than 25 percent," added ASSOCHAM.
What does this mean to you? Children are savvier consumers than
ever before. They know what products and toys are out there. To make sure your
business will stand out in this marketplace, you have to be sure you're
providing something that kids want-and that means doing lots of research. Let's
start with the following overview of the kinds of kids' businesses profiled in
this book and the trends shaping each of their industries.
Trends in Kids' Businesses
Each of the following kids' businesses-baby products &
Clothing, educational toys and games, and party planning is covered in-depth in
separate chapters in Kids'-Focused Businesses Startup Report. For now, here's a
quick industry analysis for each.
Baby Products & Clothing
The sheer breadth of this category, which encompasses everything
from books and music to fragrances, makes it a promising market.
Under this, all kinds of baby needs in terms of Diapers, Wipes,
Bags, Feeding & Nursing needs, Bath, Skin & Health related needs;
Clothing & Shoes, Books, Moms & maternity are covered.
Since spending on and by children typically increases every
year, kids' gift and bath products should be a strong market for the
foreseeable future.
Kids' Educational Toys and Games
Baby Toys & Games includes Soft toy, learning toys, action
toys, sports toys etc. As far as Brands are concerned, it includes Hello Kitty,
Fisherprice, Playgro, Barbie, Hotwheels, etc. and these brands are so far very
popular in kids market. Industry observers believe that educational toys'
mass-market appeal will only continue to grow, as parents continue to search
for meaningful enrichment activities for their children. Also, toys are the
only substance one can think of gifting in friends, family, etc.
Kids' Party Planning
This is purely a new concept and innovative one under
Kid-focused business. This is a booming industry, especially in the teen party
sector, where coming-of-age parties are increasingly popular. In addition to
the traditional birthday and graduation events, bar and bat mitzvahs and sweet
16 parties signal a trend toward increased celebration of kids' milestones.
Given the significant India population, age 15 parties in particular can be
expected to rise in popularity.
Although no numbers exist for this market, it is predicted that
the industry will continue to grow, as parents provide not only a greater
number of parties but also more expensive ones for their children.
Personality Matters
Being interested in kids isn't all you'll need. Depending on
what kind of business you start, you may need some of the following traits as
well:
Patience: Working
with kids takes patience, even under ideal conditions. Accidents and bad moods
can create a tense atmosphere, not to mention you may need to deal with a wide
range of behavioral issues, personality differences, energy levels and
attention spans. You need to be able to work through it.
Flexibility: The
ability to deal with the unpredictable glitches that arise is essential.
Sense of fun and wonder: Kids live in a world of magic, excitement
and endless possibilities. Try to enter that world with them. This is
especially important if you're designing kids' gifts or toys.
Empathy: Remember
what it was like to be a kid? The better you are at putting yourself in the
place of your young customers, the stronger your business will be.
Persistence and energy: As with
any business, perseverance is an important success factor. Launching a business
is a time- and energy-consuming venture. It's not unusual to work 70 to 80
hours per week during the first year, or even longer.
Helpful Experience
Helpful Experience
In addition to having a personality that meshes well with
children, there is an entire range of skills and experience needed to run a
business. If you're operating your business solo, you'll need all of them to at
least some degree, unless you outsource the work. If you hire employees, make
sure to hire people whose skills complement, rather than duplicate, yours.
As a general rule, you should have some kind of experience with
whatever you're selling. You or your employees may need a background in the
following:
Sales/marketing: While
you don't need a degree, you do need to be good at selling-or hire someone who
is.
Public relations: Any
business owner needs to know some basic guidelines for dealing with the public
and the media.
Accounting/bookkeeping: If you
don't have an employee to handle these tasks, consider outsourcing them. To
tackle them yourself, you'll need some previous experience and preferably a
bookkeeping class.
Management: Chances
are, you'll start out with no employees and therefore won't need this
experience. As your business grows, it may become more important. The more
employees you have, the more time you'll spend on management-type tasks.
Informal management experience is usually sufficient for dealing with a small
number of employees.
Design: If
you're planning to design the products you sell, you'll need some design
experience, preferably with the particular kind of item you have in mind.
Sewing/arts/crafts: Launching
a custom sewing business (for custom-made plus-size kids' clothes) naturally
requires skill at sewing.
Teaching: A teaching
background is helpful, although not mandatory, for conducting cooking lessons.
You can get by without formal training, but it's best to have at least some
practical experience.
Event planning: There's
no substitute for experience in party planning. Consider volunteering to help
at a few children's events or getting a part-time job with another party
planner to learn the ropes.
Parenting/mentoring: No
matter what kind of kids-related business you decide to start, experience with
children is important. If you don't have it, do whatever it takes to get it.
Competitors Analysis
Now, coming to online
players in India for Baby Products in India;
Steps
to start a Kid-focused Biz in India
1.
Choose
a name catchy and easy to remember by kids
2.
Register
the domain name
3.
Register
the business entity (LLP/ Company)
4.
Make
a list of products you will have under this business
-
Branded
-
Non
Branded
5.
Make
a list of vendors from where you will procure the products at cheaper price
6.
Design
the fb page
7.
Prepare
the material to be posted at fb page regularly to test a sample of the market
i.e. the potential customers
8.
Get
quotes from the courier companies who will supply the material
9.
Get
your letterheads, other printing material ready for branding the product
10. Get Set go and kick start the business
If you want to start a
Kid-focused business in India, then, contact us at csnehaseth@gmail.com. We provide complete start up packages right from Market
Research, registrations to post set up compliances.
