How Covid 19 is Impacting the Global Baby Apparel Market?

With lockdowns underway as COVID-19 cases surge to record highs worldwide, the vast majority of moms and dads are finding themselves more in their pajamas than before. Indeed, the pandemic has changed how we dress. Many people traded in their fancy high heels and trendy suits for comfy shirts and jeans.

However, this change in lifestyles during the pandemic is propelling the growth of the baby apparel market. Also, with people spending more time on the internet as they work from home, the influence of social media on children and their parents is driving the children’s apparel industry across the globe.

The Baby Business Took a Big Hit From COVID-19

A report from the Brookings Institute suggests the pandemic will likely lead to a baby bust due to the current economic recession. And, this puts many baby businesses in serious danger, whether it is diapers or preschools. The report also anticipated that the overall economic cost in the next decades could be as high as $5 trillion.

For now, around 66% of consumers in the U.S are having a decrease in personal finances. And, around 30% of buyers are still suffering from anxiety and depression due to the COVID pandemic. All of these affect people’s spending significantly. As a result, at least 63% of shoppers said buying clothes “is not a priority right now”, according to Brookings Institute’s latest report.

Even though the retail sales of baby clothing still increased 11% from August to September in 2020, it only came after devastating drops in March (-49.4%) and April (-75.2%). Despite that, fashion executives are still looking forward to a huge climb in baby and children’s clothes sales.

Meanwhile, online shopping has steadily soared during the pandemic as most consumers prefer shopping online more now. However, one problem is that people are far more likely to return items if they buy the wrong sizes online. This could cause a headache for online shoppers who are struggling to return their purchases in the middle of travel restrictions. The only way to deal with this is to fall for a baby clothes online shop with easy return policies and great customer service.

On the other hand, physical stores have been hit hard by the outbreak. Well-known retailers like Children’s Place had decided to close 200 of their stores in 2020. Meanwhile, Carter’s is also expected to close at least 200 stores, including OshKosh B’gosh, in the next couple of years due to low productivity and high rent.

COVID-19 Have a Mixed Impact On The Baby Apparel Market

According to a report fromFortune Business Insights, the growing inclination towards fashionable kid clothes among modern-age parents will be the key to boost this market growth. Moreover, it also anticipates the global baby apparel market will reach $82.54 billion by 2027, exhibiting a CAGR of 4.2% during the forecast period.

In the U.S, the children’s wear market is estimated at $68 billion now, which is still higher than its baby apparel market value before Covid-19 ($62.04 billion in 2019). For the infants and toddlers category, big markets like the US, Canada, Japan, Chile, and Europe are expecting to reach $51.4 billion this year.

Despite the decrease in demand due to the pandemic, there is an unexpected growth in online sales of children’s goods this year. While many famous children’s clothing brands are slowly closing their stores as we mentioned above, small and medium-sized businesses are actually thriving with notable increases in online ordering. With more and more companies shifting and focusing on the online platforms now, the market has gradually recovered from the outbreak.

Also, the pandemic has changed the way we dress our kids. Indeed, consumers are prioritizing comfort over style, spending less on buying fancy, trendy kids clothes, instead adopting basic apparel in neutral colors and comfortable fabrics.

Overall, even though Covid-19 is having a huge impact on the baby apparel market, the online sale is still increasing significantly over time to make up for the loss of demand. We believe the market will fully recover soon and completely adapt to the current situation in no time.