Saturday 30 June 2018
Starting a Kid focused Business in India
Starting a Kid focused Business in India
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
Theres 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. Childrens 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. Childrens 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 familys 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 childrens wear because of the sheer size of the retail industry, as well as the growing number of wealthy people.
The market for girls wear is far greater than boys wear throughout the world. Boys apparel tends to center on basics. Girls wear, however, thrives in all channels from specialty stores to department stores to discounters.
The market for girls wear is far greater than boys wear throughout the world. Boys apparel tends to center on basics. Girls 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 childrens wear segment is presently worth Rs 4,000-5,000 crore; it is growing at more than 25 percent," added ASSOCHAM.
"The branded childrens 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 youre providing something that kids want-and that means doing lots of research. Lets 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, heres 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 isnt all youll 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 youre 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. Its 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 youre operating your business solo, youll 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 youre selling. You or your employees may need a background in the following:
Sales/marketing: While you dont 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 dont have an employee to handle these tasks, consider outsourcing them. To tackle them yourself, youll need some previous experience and preferably a bookkeeping class.
Management: Chances are, youll start out with no employees and therefore wont need this experience. As your business grows, it may become more important. The more employees you have, the more time youll spend on management-type tasks. Informal management experience is usually sufficient for dealing with a small number of employees.
Design: If youre planning to design the products you sell, youll 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 its best to have at least some practical experience.
Event planning: Theres no substitute for experience in party planning. Consider volunteering to help at a few childrens 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 dont have it, do whatever it takes to get it.
Competitors Analysis
Now, coming to online players in India for Baby Products in India;
