Why Korea's children's wear market keeps growing despite falling birthrate

The Korea Times

The Korea Times

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Wed, September 27, 2023 | 23:46

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Why Korea's children's wear market keeps growing despite falling birthrate

Posted : 2023-03-03 17:19

Updated : 2023-03-05 16:06

A Fendi Kids store at Hyundai Department Store in southern Seoul / Courtesy of Hyundai Department Store

By Kim Jae-heun

The children's wear market in Korea has continued to grow in recent years, despite the nation's falling birthrate, as parents and other relatives spend more on clothes and other kids' items, according to retail industry officials, Friday.

According to the Korea Federation of Textile Industries, the domestic children's apparel market expanded by about 32 percent from 912 billion won ($699.5 million) in 2020 to 1.2 trillion won in 2022.

Given that the overall domestic fashion market grew 13.5 percent from 40.3 trillion won to 45.7 trillion won during the same period, the children's clothing market showed much faster growth.

As people barely give birth to more than one child per household, parents and grandparents do not hesitate to spend much money on their one and only child. According to Statistics Korea, the country's birthrate was 0.78 in 2022, down sharply from 1.17 in 2016. The figure, meaning that far less than one baby is born on average per woman, was the lowest since 1970 when the agency began collecting the data.

On top of that, as the obligation to wear face masks indoors has been partially lifted and the new school semester is just around the corner, more people are coming out to purchase clothes for their children.

"Although the fertility rate itself is falling currently, sales of children's clothing are increasing significantly, especially with the luxury brands," a local department store official said. "It is because of parents in their 30s and 40s spending millions of won on luxury clothes for their child and the new school semester."

From January to February this year, the total sales of children's clothing and luxury goods rose 15 percent and 20 percent, respectively, at Lotte Department Store locations.

Shinsegae Department Store also saw an 11.4 percent improvement in its children product sales in the same period and Hyundai Department Store showed 18 percent and 26.5 percent sales growth in its children's clothing and luxury apparel segments, respectively.

To meet the increasing demand for children's luxury apparel, retailers are opening luxury boutiques for children's lines.

Lotte Department Store operates Givenchy, Fendi and Kenzo Kids stores at its Jamsil and Myeong-dong branches currently.

Hyundai Department Store opened a Tom Browne Kids pop-up store last November in Seongnam, Gyeonggi Province, and a Baby Dior boutique last month in southern Seoul's Apgujeong-dong.

jhkim@koreatimes.co.kr