"Precious My Child's Endemic School Commute" Department Store Children's Clothing 'Soaring'

Children's Clothing Sales Continue Growth Trend This Year Following Last Year

Hyundai Department Store Apgujeong Main Branch 'Fendi Kids' Store Exterior [Photo by Hyundai Department Store]

Last year, the total fertility rate hit a record low of 0.78, continuing its relentless decline, yet sales of children's products at department stores have been steadily growing. This is the first school enrollment season since the transition to the endemic phase of COVID-19, and the so-called ‘ten-pocket’ trend?where not only parents but also grandparents, relatives, and acquaintances open their wallets for one child?is driving increased demand for high-end products.

According to the distribution industry on the 6th, the sales in the children's departments of the three major department stores?Lotte, Shinsegae, and Hyundai?have continued to grow this year following last year’s trend. Lotte Department Store reported that sales of kids' product categories from January to February this year increased by 15% compared to the same period last year. In particular, the sales growth rate of luxury kids' products was 20%, surpassing the overall growth rate of the kids' product category.

Shinsegae Department Store also saw an 11.4% increase in sales of children's products from January to February this year compared to the same period a year ago. Although the growth rate has slowed compared to 23.3% in 2021 and 18.8% last year, it still maintained double-digit growth. During the same period, Hyundai Department Store’s related sales rose by 18.1%, showing a three-year consecutive increase around 20%, with 20.3% in 2021 and 19.4% last year.

With indoor mask mandates easing and the first normal school enrollment since the endemic phase, the trend of ‘raising even one child well’ is spreading despite the low birthrate trend, leading to continuous growth in sales of children’s products such as clothing, backpacks, and sneakers. Although the birthrate continues to decline, demand for premium children’s products is increasing, centered on MZ generation (Millennials + Generation Z) parents and the ten-pocket group who spare no investment for their children.

In line with this trend, the department store industry is continuously strengthening its children’s product categories. Lotte Department Store has reinforced kids’ lines from brands like Givenchy, Fendi, and Kenzo, mainly at its main and Jamsil stores. Shinsegae Department Store introduced the French luxury infant and children’s brand ‘Atelier Choux’ for the first time in Korea last month at its Gangnam store, expanded luxury stroller brands Bugaboo and Stokke stores to 1.5 times their current size, and plans to open a separate store for the British premium comfort doll brand ‘Jellycat.’ Hyundai Department Store operated a Thom Browne kids pop-up store on the first floor of its Pangyo store last November and opened a new ‘Baby Dior’ children’s clothing store, the children’s line of the French luxury brand Dior, on the second basement floor of its Apgujeong main store last month.

An industry insider said, "As the number of ‘Gold Kids’?children who are cherished as the only child?increases, sales in the children’s category are rising every year," adding, "Since consumption is concentrated on one or two children, we plan to target this demand by continuously expanding the related categories."