Market Drivers According to Euromonitor, 2015 US sales of children’s clothing totaled $135.6 billion, which was 12% of the entire apparel market. Since 2011, the children’s clothing market increased 6%, compared to 4% for both the men and women’s apparel markets. A number of factors leading to this successful growth includes young adults marrying and having children at a later age when they are earning more income, a large number of Baby Boomer grandparents also with money and an increase in the US birthrate. Other factors are more parents dressing their children in adult looks, which children also choose for themselves, the influence of celebrities and child influencers on social media and a trend towards a coordinated family look.

Women Dominate Children’s Clothing Shopping The Media Audit Fall 2015–Winter 2016 survey data for multiple US markets supports women’s control and/or influence of at least 70% of their family’s purchases, as 66.5% of adults 18+ who purchased children’s clothing during the past 4 weeks were women. When the data is narrowed to women 18+ with children at home of any age and who purchased children’s clothing during the past 4 weeks, 64.7% are 25–44, with another 12.2% 45–49. Although Caucasian American women were the largest group by ethnicity, at 47.5%, African American women, at 22.7%, and Latina American women, at 24.7%, represent significant segments of this consumer audience.

Women, Mothers Are Digital Divas Women, and mothers, specifically, are at the forefront of the use of social media and the mobile channel. A Fluent survey found that mobile notification was the most effective marketing channel to motivate purchases, at 72%, followed by social media, at 71%. Facebook was clearly women’s preferred social media network, at 77%, while Facebook-owned Instagram was a distant second at 11%. Instagram research has found that 93% of mothers access the site at least once per day. Instagram also discovered that the conversion rate for department stores’ ads on the site among mothers was 2.8 times and for retail, apparel and accessories ads 2.1 times.

Children and Teens Know What They Want According to the Piper Jaffray 31st Semi-Annual Take Stock with Teens Survey, Spring 2016, 38% of teen TV consumption was on Netflix, followed by cable TV, 26%; YouTube, 23%; Hulu, 5%; and other streaming services, 8%. Although Snapchat has only recently introduced advertising opportunities on the site, it is the most popular site among teens, at 72%. For strong engagement, advertisers must create and share posts that generate user content and word-of-mouth conversations. Because teens and children are more likely to view genders as equal, the children’s clothing market is leading the trend towards gender neutral or unisex designs. Many are being marketed as simply “for children” and not boys or girls.

Brands and Retailers in Catch-Up Mode Major retailers are reacting in various ways to the competitiveness of the children’s apparel market. Although Amazon has increased its inventory of apparel items by 83% during the past year, baby clothing only represents 2.3% of all its apparel products. Since Target is second to Wal-Mart among mass merchants in children’s apparel sales, Target recently introduced a new children and baby’s apparel line, Cat & Jack, which replaces its former Cherokee and Circo labels. As in the women’s apparel market, brands and retailers are scrambling to respond to the growth in teens’ demand for plus-sizes, often called special sizes, apparel. Half of them want to buy apparel in both regular and plus-sizes.

Advertising Strategies Since more families are shopping for a “family look” in apparel, children’s clothing specialty stores should consider co-promoting with men and women’s clothing specialty stores a family discount with qualifying purchases at each store. Children’s clothing stores that are the first to offer a greater selection of plus sizes for teens and use TV for branding and social media to engage with mothers and teens are more likely to grab and retain market share from the slower-reacting large chains. With an enormous Baby Boomer population of grandparents, children’s clothing stores can co-promote a special offer with a local entertainment venue or activity. Grandparents who make a qualifying purchase receive “fun bucks” they can spend at the venue.

New Media Strategies Not just social media, but the mobile channel, must be components of children’s clothing stores’ marketing. Use Facebook and/or Instagram to conduct a poll, for example, about mothers’ views on children’s unisex designs and give each participant a coupon. Instagram and Snapchat, specifically, are the best social media platforms for stores to generate conversations about plus-sizes for teens. Consider appointing one or more customers to serve as “brand ambassadors” and post photos, videos and thoughts. Add a social media component to the grandparents’ promotion on the previous slide, inviting them to post photos and videos of them with their grandchild/children in their new apparel and during their visit to the co-promoting entertainment venue/activity.