Scope and Methodology

• Scope of Report
• Report Methodology
• Retail Sales Approach $15 Billion
• Table 1-1: U.S. Retail Sales of ITP Clothing, 1998-2007 (in billions of dollars)
• Apparel Accounts for 90% of Dollar Sales
• Retail Channels
• Favorable Demographics Will Help Market Growth
• Major Marketers and Brands
• The Competitive Situation
• Marketers Spend $24 Million to Advertise ITP Clothing in 2001
• Overview of Consumer Purchasing

Chapter 2: The Market

Market Size and Growth

• Market Definition: Apparel and Footwear
• Three Size Ranges for Apparel
• Methodology for Packaged Facts’ Estimates
• Retail Sales Near $15 Billion in 2002
• Figure 2-1: U.S. Retail Dollar Sales of ITP Clothing, 1998-2002 (in billions of dollars)
• Industry Estimates Infant/Toddler Apparel at $10.6 Billion in 2001
• Figure 2-2: U.S. Retail Dollar Sales of ITP Clothing, 1998-2002 (in billions of dollars)

Market Composition


• Apparel 90% of the Market
• Infant Clothing One-Third of Sales
• Market Composition by Retail Channel
• Mass Merchandisers Lead in Apparel Sales
• ITP Footwear Channels
• Shoe Stores Lead ITP Footwear Dollar Sales
• Figure 2-3: Share of ITP Clothing Dollar Sales by Category, 2002 (percent)
• Figure 2-4: Share of ITP Apparel Dollar Sales by Size Range, 2002 (percent)
• Figure 2-5: Share of ITP Apparel Dollar Sales by Retail Outlet, 2002 (percent)
• Figure 2-6: Estimated Share of ITP Footwear Dollar Sales by Retail Outlet, 2002 (percent)

Market Forecasts


• Demographic Trends
  • The Rising Birth Rate
  • Figure 2-7: U.S. Population of Children Age 5 and Under, 1998-2010 (in thousands)
  • More Older Mothers
  • Higher Disposable Income
  • Grandparents a Prime Market
  • Ethnic Populations Growing
  
  
• Market Dynamics
  • ITP Clothing Influenced More by Brands Than Fashion
  • Gift-Buyers Buy Sets; Moms Prefer Separate Pieces
  • The Price Dichotomy
  • Kids Outgrow Their Clothes Rapidly
  • Parents Seek Practical Features
  • Daycare Centers and Preschools Mean More Sales
  
  
• Sales to Top $18 Billion by 2007
• Figure 2-8: Projected U.S. Retail Sales of ITP Clothing, 2002-2007 (in billions of dollars)

Chapter 3: Competitive Situation

Marketers and Brands

• Famous-Brand Companies Dominate Branded Business
• Disney, Carter’s Lead ITP Apparel Brands
• Apparel Market Leaders
  • Carter Holdings, Inc. (Carter’s)
  • OshKosh B’Gosh, Inc.
  • VF Corp.
  • Garan, Inc.
  • Gerber Childrenswear, Inc.
  
  
• Second-Tier Marketers
  • Family Apparel Marketers
  • Privately Held ITP Specialists
  
  
• Footwear Market Leaders
• Licensing Companies
  • Marketers Producing Licensed Apparel
  • Popular Licensed Brands
  
  
• Designer Clothing
  • Popular Designer Brands
  
  
• Private Label a Major Factor
  • About Private Label
  • "House Brands" and Others
  • Exclusive Licensed Brands
  
  
• Figure 3-1: Selected Marketers and Brands of Infant/Toddler/Preschool Clothing

Marketing Trends


• Fashion Appeal Drives Sales
• Licensing Big Business
• Crossing Classes
• Fashion Trends
  • Adult-Fashion-Downsizing and Denim
  • Bright Colors in Baby Clothes
  • New Designer Names
  
  
• Licensing Trends
  • "Evergreens"
  • Current TV Characters
  • Brand-Name Toys
  • Sports Properties
  • Extending and Borrowing Brand Equity
  
  
• Private Label Complements National Brands
• National Advertising Expenditures
• Leading Advertisers
  • The Gap and Fruit of the Loom Lead Advertisers
  • Second-Tier Advertisers
  • Absentee List
  
  
• Advertising Positioning
• Consumer Promotions

Retail and Internet Trends


• Focus on Mass Merchandisers
  • Key Advantages: Value Pricing + One-Stop Shopping
  • Mass Merchandisers Upgrading Fashion Sense
  • Struggling Kmart Fields Powerful ITP Lines
  • Target Partnering with Prominent ITP Clothing Marketers
  
  
• Focus on Specialty Chains
  • Specialty Chains Increasingly Powerful
  • Three Types of Specialty Chains
  • Key Advantages: Depth of Selection + Customer Service
  
  
• Focus on Sears and JCPenney
  • Sears and Penney’s Hard Hitters in ITP Apparel
  • Key Advantages: Number of Units + Wide Selection of Brands and P.L.
  • Building Consumer Loyalty
  
  
• Focus on Department Stores
  • Showcase for Branded and Designer Apparel
  • Traditional Department Stores Losing Market Share
  • Key Advantages: Trendy Designer Labels + Private Label
  • Gift Registries
  
  
• Focus on Independent Specialty Stores
  • Distinguished by Assortments
  • Key Advantages: Unique Items + Superior Customer Service
  
  
• Focus on the Web: E-Commerce
  • An Increasingly Viable Option
  • Key Advantages: Availability Plus Ease of Shopping
  • www.healthtex.com
  • Amazon.com

Chapter 4: Competitive Profiles

Competitive Profile: Carter Holdings, Inc.

• Corporate Background
• Product Areas
• Competitive Advantages: Cute Kids Styles and Wide Distribution
• Moving Production Offshore Helps Bottom Line

Competitive Profile: The Gap, Inc.


• Corporate Background
• The Gap, GapKids, babyGap, and Old Navy
• Competitive Advantages: Casual Look, Store Presence, and Ads

Competitive Profile: Gerber Childrenswear, Inc. (Kellwood Co.)


• Corporate Background
• Product Areas
• Competitive Advantage: Banking On the Gerber Name
• Care Bears Layette

Competitive Profile: The Gymboree Corp.


• Corporate Background
• Product Areas
• Competitive Advantages: Distinctive Designs and Merchandising
• New Store Concept: Janie and Jack

Competitive Profile: OshKosh B’Gosh, Inc.


• Corporate Background
• Product Areas
• Competitive Advantage: An Unmistakable Look
• Expanding to the Mass Market

Competitive Profile: The Stride Rite Corp.


• Corporate Background
• Product Areas
• Competitive Advantage: The Leader in Kids’ Shoes
• New Mass-Market Initiative
• Playing Up High Tech
• Licensing the Stride Rite Name

Competitive Profile: VF Playwear (VF Corp.)


• Corporate Background
• Competitive Advantage: Sophisticated Marketing
• Healthtex Promotes Hard Play
• "Seeding" Word of Mouth

Chapter 5: The Consumer

Demographics

• Note on Simmons Survey Data and Figures
• Overview of Purchasing
  • More Consumers Buy Toddler and Preschool Items Than Infant Items
  • Tops and Sleepwear the Most Popular Items for Infants
  • Tops and Jeans the Most Popular Items for Ages 1-5
  
  
• Purchasing Patterns
  • A Family Profile
  • Hispanics and Blacks Prime Consumers
  • Regional Skew to the South
  • Education Not a Significant Factor
  • Affluent Income Skew
  
  
• Figure 5-1: Adult Purchasers of ITP Clothing: Overall, by Child’s Age Group, and by Type of Clothing, 2002 (U.S. households)
• Figure 5-2: Demographic Characteristics Favoring Purchase of Clothing by Child’s Age Group: Under 1 Year vs. 1-5 Years, 2002 (U.S. adults)
• Figure 5-3: Purchasing Indices for ITP Clothing: By Presence of Children by Age, 2002 (U.S. adults)
• Figure 5-4: Purchasing Indices for ITP Clothing: By Age Bracket of Purchaser, 2002 (U.S. adults)
• Figure 5-5: Purchasing Indices for ITP Clothing: By Household Size, 2002 (U.S. adults)
• Figure 5-6: Purchasing Indices for ITP Clothing: By Ethnic Group, 2002 (U.S. adults)
• Figure 5-7: Purchasing Indices for ITP Clothing: By Region, 2002 (U.S. adults)
• Figure 5-8: Purchasing Indices for ITP Clothing: By Educational Attainment, 2002 (U.S. adults)
• Figure 5-9a: Purchasing Indices for ITP Clothing: By Household Income Bracket, 2002 (U.S. adults)
• Figure 5-9b: Purchasing Indices for ITP Clothing: By Household Income Bracket, 2002 (U.S. adults)

Chapter 6: Looking Ahead

Trends and Opportunities

• Multi-Dimensional Marketing
• Crossing Class Boundaries
• Targeting Ethnic Markets
• Going for Multiple Sales
• Practical Advantages

Appendix: Addresses of Selected Marketers