INDIAN KIDS E-BAZAAR: RISING NICHE MARKET
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1 INDIAN KIDS E-BAZAAR: RISING NICHE MARKET Mr. Vipukumar C. Patel Assistant Professor Shri Manilal Kadakia College of Management & Computer Studies Ankleshwar, Gujarat State, INDIA E Mail Id: vipul.ptl@gmail.com Mr. Yogendra U. Vasava Assistant Professor Shri Manilal Kadakia College of Management & Computer Studies Ankleshwar, Gujarat State, INDIA E Mail Id: yash_yogen@yahoo.com ABSTRACT: In India the trends of family structure is changing and with that change most of the couple are working and thereby their income increases. They are more concern for their kids and try to fulfill maximum needs of their children. This affects in expansion of retail market and kids segment which cover major share in the market. When organized retail markets are developed, one Niche Market which is online Kids Market where parents purchase goods for their Kids online also gets increased. Here we have used word Kids E - Bazaar which means Kids E tailing market or online shopping Market for Kids. Keywords: Kids Retail, Kids E tailing, Kids Bazaar, Baby Market, Indian Kids Retail Market. Volume 1, Issue 4, March Retail Management 113
2 INTRODUCTION: India having Crore people is the second most populated country in the world, just behind China. More than 12.7 Crore children are under 4 years and total around 21.6 Crore children are under 8 Years. In India nearly 2.7 Crore annual births make India an attractive market for the Baby and Kids industry. INDIAN RETAIL INDUSTRY: Current Indian Retail Market is USD 396 billion and Estimated USD 574 billion in 2015 with the growth of 12 per cent and USD 865 billion by Retail is the second most employing industry after agriculture and giving employability to around 35 million people. In India one find 92 per cent unorganized Retail market and only 8 per cent organized Retail market which is growing rapidly. Unorganized retail market includes Kiranawala, Small Shopkeepers, Local retailers etc and Organized Retail market includes Mall, Super Market, Teleshopping, E Commerce websites etc. According to different research agency this organized retail will have 20 per cent market share in Retail Market by This higher growth rate and wide level of acceptance by Indian consumer make organized retail attractive for newly emerging business man. Traditional retail is growing with the rate of 5 per cent but organized retail is growing at the speed of 25 per cent annually. Volume 1, Issue 4, March Retail Management 114
3 ORGANISED RETAIL (ONLINE RETAIL +OFFLINE RETAIL) As per research conducted by Technopak, Assocham and business world Indian Organized retail Industry consist of Offline Retail and Online Retail. Organized Retail Industry in which 98 per cent of Retail Format are Offline means by shopping through Mall, Super market, Teleshopping, Door to door selling etc. and Online Retail means purchasing through use of Internet and website. It just cover less than 2 per cent of the Organized Retail. Here online retail Industry includes both Online Retail and Online Market Place. Online Retail means Retail products sold online whereas Online (Jabong, Myntra, Firstcry.com etc.) Market Place provides Platforms where sellers and buyers transact online (Amazon, Flipkart, Snapdeal etc.). RETAIL INDUSTRY IN INDIA ON LINE RETAIL 2% UNORGANIZED RETAIL 92% ORGANIZED RETAIL 8% OFFLINE RETAIL 98% Volume 1, Issue 4, March Retail Management 115
4 KIDS RETAIL IN INDIA: Technopak have estimated Indian Kids Retail Industry of Rs.20,000 Crore for Apparel and Footwear market. And adding Toys market in it around 1000 Cr. Its Total Market size is 23,000 Crore. And Research of Technopak, Business World and Assochem revealed out that Kids Retail market will reach about 80,000 Crore in Next three years. Less than 2 per cent of shopping for kids is done online. Currently Kids e tailing market is of 200 Crore and is estimated to grow 1500 Crore over the next five years. However, with 19.5 Crore Internet users in the country who are expected to grow exponentially which analysts expect the number of online shoppers to magnify significantly. Volume 1, Issue 4, March Retail Management 116
5 Kadakia International Journal of Research in Multidiscipline KIDS RETAIL IN INDIA Source: C Compiled from Technopak Analysis, Indiatoday.in ESTIMATED 2014 KIDS RETAIL MARKET Cr ESTIMATED 2015 KIDS RETAIL MARKET Cr DURING KIDS RETAIL MARKET Crore (Apparel & Footware =22000 Cr )+ (Toys,FMCG & Others =1000 Cr..) Kids product which are highly in demand like apparels, diapers, toys, feeding accessories, baby and infant food easily available in domestic market by small and medium retail outlet which is unorganized retail market. Kids product which are specially available online like Infant and baby furniture, fashion accessories, Educational toys, toilet merchandise, activity kits, stationary, school items, gifts and novelties, activity kits etc. Volume 1, Issue 4, March Retail Management 117
6 Kids E-Retail in India having different product wise category contributing to industry are 30 per cent contribution coming from Footwear category and other products like bags, mattresses, bed sheet etc., 25 per cent coming from apparel categories which includes fashion products and its accessories, FMCG segment contributing 20 per cent which includes Soaps, Oils, Shampoo etc. Adding to Toys into a market it will give high value business of 20 per cent and Last categories is of Cribs and Strollers which contributing only 5 per cent because Indian families are not liking to assemble things at Home. Volume 1, Issue 4, March Retail Management 118
7 Kadakia International Journal of Research in Multidiscipline KIDS E-RETAIL IN INDIA source: Compiled from Technopak analysis 1500 Cr CATEGORYWISE CONTRIBUTIONN TO KIDS E RETAIL IN INDIA source: Compiled from Technopak analysis 200 Cr FMCG 20% Apparel 25% Toys 20% Footwear & Others 30% Cribs & Strollers 5% DEDICATED WEBSITES FOR KIDS Volume 1, Issue 4, March Retail Management 119
8 SWOT ANALYSIS: STRENGTH: Social media, Mobile and Internet are helping accelerate Online shopping adoption 24 7 hours availability of online shopping Provide convenience for working couple to easily access from Home and Office Product comparisons easy and available comparison on the basis of parameters Higher incomes of parents (By working of both husband and wife) motivate to purchase of essential and nonessential products for their Kids. Expanding Online shopping into Tier I, II, III cities Lifestyle trends and new technology creating replacement demand of products. Providing International brands like fisher and price and others at discounted price Rapid penetration of Different payment options like Debit Card, Credit Card, E Wallet etc. Cash on Delivery provide growth to online shopping among consumers who don t want to take risk in payment from Debit card, Credit Card. Provide large variety in Domestic and International Brand and also increase in Private level. Venture Capital used for online shopping growth. Educated parents, good spendable income provide growth to market. Impact of Aggressive marketing, Change in consumer behavior, Acceptance of premium class products accelerates online shopping market. Easily online tracking of customers such that customized or special product can be offered to customers and also loyal customer can easily developed. Volume 1, Issue 4, March Retail Management 120
9 WEAKNESS: When Kids Age is increasing he/she might be out of customer group and cease to be as customer. During online shopping for Kids size is main concern for customers. Heterogeneity of Indian Market means Large variety of Customers need different products Mostly Indian Kids market is highly fragmented and unorganized Local retailer sometimes providing more service at doorstep rather than online retailer. Rural Area is not into the reach of e retailer. For Delivery depend upon Courier company such that sometimes order get delayed in delivery due to depend upon courier company. Some products are not delivered to your pin code due to unreachable. Taking Delivery charges for some cities which are in list of Tier II, III. OPPORTUNITY: According to IAMIA 19.5 Crore Internet users in India which might be potential market Tier II and Tier III cities like Varanasi, Vadodara, Surat etc. getting more and more demand Many Companies try for providing goods by online shopping along with traditional channel. Social Media Integration like facebook, twitter etc. with online shopping make Aggressive Promotion. Increasing number of Mobile and Internet users create opportunity for E Retailer FDI will increase pretense of Global brands. India having 65 per cent population below age of 35 Years such that Potential Young Couple Market who are Modern, Educated, Aware and easily Access technology. Volume 1, Issue 4, March Retail Management 121
10 Entry of Larger player will further expand Online kids Market. Many Branded Kids goods manufacturer also go for online shopping website like Fisher and Price, Chicco etc. THREAT: Kids product must be Safe otherwise create problems to Kids as well as Supplier. Changing Kids fashion trends can create non moving inventories such that lots of stock which is out of fashion. Weak logistics and courier service can create a problem to suppliers. Weaker after sales service may dissatisfy customers. CONCLUSION: Kids E Bazaar is very rapidly increasing day by day and also this market has very high potential. Cash on Delivery (COD) is game changer in Indian Market such that uses this payment method effectively. Strengthen Logistics and Courier services may increase Customer satisfaction and Efficiency. Marketer should try to capture this market successfully for which it is imperative for marketer to provide Quality and Safe Goods and also to do quick delivery and to provide Better after sales service to the customers. Volume 1, Issue 4, March Retail Management 122
11 REFERENCES: 1) Crisil Research, February (2014), CRISIL Opinion. 2) Indian Brand Equity Foundation (IBEF),Volume 1, Issue 1, April-May (2014), India Now and Business Economy. 3) TATA Business Services Limited, (2014), White Paper on Indian Retail Trends. 4) Mc Kinsey & Company, Online and Upcoming: The Internet s Impact on India 5) Aranca Research, January (2013), Indian Retail Market. 6) Indian Brand Equity Foundation (IBEF), March (2014), Retail. 7) Vishal Krishna (Business World), 24 February (2012), The Baby Market. 8) Infographics:, Kids E tailing Market in India discountpandit.com 9) 10) 11) 12) 13) 14) /1/ html Volume 1, Issue 4, March Retail Management 123
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