Global online children's apparel sales to pass $225bn by 2020, report shows

By

Benjamin Fitzgerald

Published
Jun 13, 2016

The global online children apparel market is expected to exceed $USD225 billion in revenue by 2020, driven by increased internet penetration, an increase in the average online spend, and younger populations.

According to a report by Technavio, the rise in global internet usage and the increase in 'buy it now' shopping will also contribute to the billion-dollar online sales haul.

“The average amount of money spent online per transaction and the number of transactions that take place online are on a rise. Increase in the number of internet users and the 'buy it now' attitude contributes significantly to the growth of this market,"said Brijesh Kumar Choubey, one of Technavio’s lead industry analysts for apparel and textiles. 

"In addition, the ease and time-saving aspect of online shopping, along with the wide range of products largely encourages consumers to shop online rather than in physical stores,” said Choubey.

Currently, the Americas represented the biggest chunk of online children's wear sales in 2015, valued at $6.36 billion or 37.24% of the global market last year. Demand for luxury and "quality" kidswear will drive the region toward future growth, said the report, as well as demand for new products, and growing internet penetration.

Europe's online kidswear market was valued at $4.8 billion in 2015, gradually regaining its economic stability after the Eurozone debt crisis, said the report. By nation, the UK accounted for 17% of sales, Germany 33%, and France attributed 20% of online retail last year.

The Middle East and Africa was valued at $970 million in 2015, representing a little over 5% of the global market. Looking forward, improving economic conditions and the growing internet and smartphone penetration are likely to emerge as key drivers of the growth of this market, said the report.

However, Asia-Pacific is forecast to experience the largest growth in the market by 2020, pushed on by growing populations (of which half are infants and toddlers), growing disposable incomes, and the demand for online retail.

The region, made up of both developing and developed countries, accounted for 28.98% of online revenues in 2015, totalling $4.95 billion.