Tough times reduce market for kiddies' clothes

Economic difficulties and rising inflation have sharply reduced parents' purchasing power, for low and medium-income earners in particular, and many of them have had to reduce what they spend on their children.

Kanjana Tangsereesuksan, assistant vice president of ICC International, said the total market value for children's clothes was estimated at about Bt1.1 billion. Last year's growth was stagnant.

ICC International is the manufacturer and owner of many leading brands for children's wear and accessories, including Enfant Little Wacoal, BSC Kiddo, Elle and Trombone.

"The increase in petrol prices and other commodities has affected parents on low to medium salaries, and they have had to adjust their shopping habits," Kanjana said. "For instance, parents are only buying three pieces of clothing compared to five before. They are being more selective and placing more emphasis on good-quality outfits as they last longer."

ICC International has reshuffled its business strategy and opened its own Mother & Child shops at major hospitals to be a one-stop outlet for baby products.

The first 109-square metre Mother & Child pilot shop has been open for about a year at the CentralWorld shopping complex.

"During this time of high inflation, driven by rising oil prices, parents don't want to spend time and money on travelling to buy clothes and accessories for their children. It is more convenient to go to a one-stop shop," Kanjana said.

She said the company was negotiating with major private hospitals, including Phyathai, Kasemrat, Saint Louis and Viparam, to site its Mother & Child stores. Options include rental of retail space or partnerships such as joint investment with the hospital.

Kanjana said that the company would open its new stores at five major hospitals by the end of the year. The investment will be about Bt2 million per shop.

She said ICC International would expand its product portfolio to cover all children's products, ranging from clothing to accessories, bedding, toiletries and baby feeding products.

"We have marketed our flagship Enfant brand for almost 20 years and are now the leading brand in the local baby clothing market," Kanjana said.

She said Enfant had a 35-per-cent market share. The company's other major brands - Little Wacoal and Absorba - hold shares of 17 per cent and 15 per cent, respectively.

"We achieved 6-per-cent sales growth of our Enfant products in the first half of the year. We have set a 2008 sales-growth target of 12 per cent," Kanjana said, adding that last year, Enfant had chalked up 14-per-cent sales growth for about Bt400 million.

The Enfant brand name has been categorised into three sub-brands - Enfant Gold, Enfant Blue and Enfant Basic - to serve customers from all salary levels.