[Distribution Hot People] The World of Kids Fashion Two Weeks Ahead... Crowned Sales Queen

Characteristics of Children's Fashion Worn by Adults
Trend-Sensitive, Achieving Results through Early Preparation and Timely Planning
Specialized Sections Opened in the First Half, Satisfying Segmented Targets

Goh Yeonsu, Lotte ON Kids Fashion MD, is introducing products at the Yale & Harvard Kids pop-up store in Jamsil Lotte World Mall, Songpa-gu, Seoul.

Last year, Lotte ON's infant and children's fashion sales growth rate was 40%. Compared to the 12.8% increase in the domestic infant and children's fashion market sales during the same period, this is a significant achievement. In December, when year-end gifts and new semester demand were concentrated, sales grew by 70%.

At the center of this success is Yeonsu Go, Lotte ON's infant and children's fashion MD, who has been building experience as a fashion MD focused on infants and children since 2013. MD Go noticed that trends, new product launches, and seasonal events in infant and children's fashion occur about two weeks earlier than in adult fashion, and planned events one step ahead to achieve these results. He explained, "In 2021, we sourced brands with the mindset of filling a water jar, and last year, we aimed to expand the filled water jar by segmenting preferred brands by age group and setting the goal of 'store openings in the first half and visible performance in the second half.' Through this, we were able to maintain an annual high growth rate of 40-50% after transitioning to Lotte ON."

Last year, brands like Daks and Beanpole, which also perform well in department stores, recorded sales growth rates of over 60%. Leveraging the experience of a specialist MD in infant and children's fashion, they accurately identified the timing of seasonal transitions, prepared business agreements (JBP) for strategic partnerships with major brands in advance, and secured exclusive quantities, which led to good results. He explained, "Products for infants and children are more sensitive to weather and environment, so parents prepare clothes in advance. Because parents are highly interested in their children, they tend to purchase new products immediately after release, so sales start to rise faster compared to adult fashion."

Per capita purchase quantities are also higher than in adult fashion. Since children spend a long time at home, interest grows, and due to hygiene issues, clothes need to be changed frequently. It is also characteristic that parents, rather than children, make satisfying purchases and are active in self-expression through social networking services (SNS). Securing female customers in their 30s and 40s through infant and children's products positively affects adult fashion sales as well, as customers who come to buy children's clothes also browse their own clothes. Last year, based on the growth of infant and children's categories, Lotte ON's women's fashion for the parent age group (35-44 years old) also grew by more than 40%.

He said, "When I majored in fashion at university, I mainly focused on women's fashion and never thought about infant and children's fashion until I was assigned to it, so I researched a lot and studied extensively." He even developed a professional habit of not being able to take his eyes off children when on vacation. This is to capture the clothes children like to wear in various places and situations. Visiting mom cafes is basic, and he has wandered around nearby new town elementary schools during drop-off and pick-up times several times. MD Go said, "I try to empathize with mothers' concerns about rising heating costs because household spending ultimately affects purchasing power. I focus on timely sourcing while sharing mothers' worries about whether to buy or not." In response to the heating cost surge, he planned 20,000 sets of products priced around 10,000 won with free shipping, which sold out, and later introduced additional quantities with changed configurations.

MD Go planned large-scale infant and children's events tailored to the season on average more than once a month. Last year, he held a total of 14 seasonal theme events featuring new semester, summer vacation, holiday hanbok, and winter ski wear, achieving success with sales more than doubling compared to the previous year. MD Go emphasized, "Because infant and children's customers are sensitive to the environment and female customers in their 30s and 40s who are highly interested in their children respond very sensitively to seasonal products, quick brand and product proposals are important."

Lotte ON will open a 'Kids Specialty Hall' in the first half of this year. The online distribution industry currently lacks a clear leader in infant and children's categories, with platforms covering some areas such as streetwear (Musinsa), trends (Boribori), and brands (department stores, E-Land). Lotte ON aims to become number one by emphasizing that customers can shop all categories of brands at once. MD Go said, "Women in their 30s and 40s who want reasonable consumption tend to mix premium and cost-effective products depending on the situation rather than always choosing one or the other." He added, "Lotte ON's strength lies in having everything from Lotte Department Store brands, premium brands, trendy fashion, sports, streetwear, designers, to baby products all in one place." By further segmenting the target audience to make it easy to find products that suit their tastes and increasing average order value through cross-brand purchases, mutual benefits among brands are also possible. MD Go said, "Our goal is for Lotte ON's infant and children's category to be number one online and lead sales in other categories as well."