The children’s clothing market in South Korea is experiencing steady growth despite a declining birth rate and shrinking child population. (Image courtesy of Yonhap)
SEOUL, Jun. 25 (Korea Bizwire) – The children’s clothing market in South Korea is experiencing steady growth despite a declining birth rate and shrinking child population, according to recent industry analysis.
Data from market research firm Euromonitor reveals that the domestic children’s clothing market was worth 2.45 trillion won in 2023, a 33% increase from 1.84 trillion won in 2020. This growth occurred even as the population aged 0-14 decreased by 9.5%, from 6.31 million to 5.71 million during the same period.
The clothing industry attributes this growth to the “Gold Kids” trend, where parents spare no expense on their children, leading to an increased preference for premium brands.
In 2022, South Korea ranked fourth among major Asia-Pacific countries in annual per capita spending on children’s clothing at $294, surpassing Hong Kong ($272) for the first time. Last year, Singapore led the region at $548 per capita, followed by Taiwan ($392) and Japan ($377), while Korea ranked fourth at $332.
Euromonitor suggests that South Korea’s market has room for further growth, as its per capita spending is still relatively low compared to countries with similar economic scales like Singapore, Taiwan, and Japan.
The growth in the children’s clothing market is closely tied to parents’ preference for premium brands. This trend of premium children’s wear driving overall market growth is common in economically advanced countries like South Korea, Singapore, and Hong Kong.
Euromonitor’s analysis of average annual growth rates for children’s clothing brands in South Korea from 2018 to 2023 shows MLB leading, followed by Moncler Enfant, Gucci Kids, Moimoln, and The North Face. Luxury brands like Moncler Enfant and Gucci Kids saw average annual growth rates of 20% and 16% respectively.
Hong Hee-jung, a senior researcher at Euromonitor, noted that Moncler Enfant rose from 11th place in the domestic children’s clothing market in 2018 to second place last year. She also observed a trend where parents buy basic items from SPA brands or affordable domestic products online while opting for high-end brands for outerwear.
Reflecting this trend, specialized platforms for children’s clothing are also experiencing rapid growth. Kidikidi, a children’s clothing platform operated by E-Land World, saw its annual sales surge from 30 billion won at its launch in 2020 to over 100 billion won last year, with a target of 120 billion won for this year.
An E-Land World Kidikidi representative stated, “The ‘VIB’ (Very Important Baby) trend is spreading, where parents are willing to invest in dressing their children more specially.” They predicted significant growth for vertical platforms offering curated, sophisticated children’s fashion and products.
Ashley Song (ashley@koreabizwire.com)
