The market for maternity and childrenswear in the Middle East is to become more crowded, as kidswear giant The Children’s Place prepares to enter the region. So what does the market offer for mother- and childrenswear retailers looking for international growth?
The Children’s Place, which has more than 1,000 US stores, is muscling in on territory that UK childrenswear retailers such as Mothercare are increasingly focusing on to boost growth.
The region presents strong potential for growth for clothing retailers in general, while the childrenswear category in particular provides “massive opportunity”, according to Planet Retail senior analyst Isabel Cavill.
Driven by a general disposition to larger families, combined with high disposable incomes, kidswear sales - especially at the high end - are growing, she adds. “The market is getting a lot more competitive, because brands realise its potential.”
George at Asda, for example, revealed plans to invest in the region earlier this year, and its children’s offer will form a key element of that move, according to Cavill.
Other retailers in the market include Mamas and Papas as well as Mothercare, which is due to open 20 to 30 stores a year across the Middle East and Africa, where it already has 290 stores. Bhs launched Bhs Kids in the region in 2007.
US retailer Destination Maternity, meanwhile, inked its first international franchise agreement in 2008 and recently opened three stores in Saudi Arabia, while pure plays include bilingual shopping portal mumzworld.com.
There is also a move towards diversification of brands in the Middle East, which compounds competition, adds Cavill. “As shopping malls look to differentiate from each other they constantly look for new brands,” she said.
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