MZ Parents Lead VIB and Gold Kids
Premium Children's Clothing Market Booms Despite Low Birthrate Trend
Kids Categories Expand Rapidly Online and Offline
"Growth Expected to Continue Due to Increased Outdoor Activities"
[Asia Economy Reporter Song Seung-yoon] "If possible, I want to give only the best."
Shin Se-young (33, pseudonym), who lives in Haeundae-gu, Busan, is part of the so-called 'Gold Kids' generation, cherishing and raising her only child with great care. She spares no expense on anything good for her 6-year-old only son. Not only education and food but even clothing investments are made without hesitation for her child. A department store's select shop brand near Shin’s home even tips her off first whenever new arrivals come out. Shin said, "I believe in having one child and raising them well, so I don’t mind spending money on anything related to my child," adding, "There are many parents like me around."
Among MZ (Millennial + Generation Z) generation parents, the so-called ‘VIB (Very Important Baby)’ group, who invest generously in their children, is increasing. Despite the ongoing low birthrate trend, the premium children's clothing market is steadily growing for this reason.
According to the Korea Federation of Textile Industries on the 24th, the domestic children's clothing market size last year was 1.0648 trillion KRW, growing 16.8% compared to the previous year. During the same period, the overall fashion market size was 43.3508 trillion KRW, growing 7.5% year-on-year, meaning the children’s clothing market grew more than twice as fast. Although South Korea’s total fertility rate was 0.81 last year, hitting record lows every year, the trend of MZ generation parents, familiar with luxury brands, opening their wallets generously for their children continues, leading the children’s clothing market in the opposite direction.
The industry expects the children’s clothing market to continue its growth this year as outdoor activities increase following the COVID-19 endemic phase. Especially, the 'Gold Kids' trend is steadily strong, and premium children’s clothing brands are expected to diversify rapidly.
Department stores are also competing to expand their kids luxury categories. Lotte Department Store introduced kids products from popular brands among MZ generation parents such as Off-White Kids and Maison Margiela Kids for the first time at the luxury kids select shop ‘Quii Quii’ opened last year at the Dongtan branch. Shinsegae Department Store houses Baby Dior, Ralph Lauren Children, Burberry Kids, Kenzo Kids, and also created 'Boon Junior,' a kids brand under the luxury select shop 'Boondeshop.' Hyundai Department Store is continuously expanding its kids luxury lineup with Fendi Kids, Givenchy Kids, Moncler Enfant, and more. Galleria Department Store also made headlines by hosting Korea’s first Tom Brown Kids pop-up store until the 14th of this month.
Online platforms are no different. Luxury platform Catch Fashion officially launched the Nordic premium children’s brand select shop 'Baby shop' this month. Baby shop, a brand originating from Sweden, is entering an online shopping platform for the first time. It has gained steady popularity as a direct purchase channel for kids luxury brands among domestic parents. Musinsa also launched ‘Musinsa Kids,’ a kids specialty section, expanding its lineup of kids fashion and baby products. The average daily number of buyers purchasing kids products on Musinsa Store increased more than 11 times compared to before the specialty section opened. On luxury commerce Must It, the kids category transaction amount in the first quarter of this year increased by 116% compared to the same period last year. ABC Mart also reported that kids product sales in the third quarter of this year rose about 20% year-on-year.
An industry insider said, "With the autumn season, outdoor activities such as experiential learning and travel have become more active, leading to an overall increase in demand for kids products," adding, "The Gold Kids trend is expected to continue, and the kids market centered on luxury brands is projected to grow further."
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