Recent geopolitical and economic events have a negative impact on the development of all sectors of the economy. The children’s goods market is no exception. Demographic data is also disappointing: not only the number of the country’s inhabitants has decreased, but also the birth rate:
Children’s goods market: how long does childhood last?
Childhood is the best period of almost every person who is loved and surrounded by parents’ care. Children do not worry about the mountain of unwashed dishes or dirty things, about the fact that sandals are small, about what is harmful or healthy.
Modern children are interested in novelties in the world of gadgets, interesting high-tech or mechanical toys, they are fascinated by all that is bright and unusual, that sweet or sour, they are interested in everything new and unknown.
Parents, in turn, try to indulge children’s desires in every way possible and do not forget to make it easier to be, acquiring:
- A sterilizer or diaper storage unit, which many parents don’t use;
- a walker that orthopedic surgeons won’t pat your head for;
- smart tables or playpens when parents are very busy, although playpens are not popular with most children;
- adult clothes that the kid will outgrow in a month, but “it looks cool.”
- ready-made purees, which should not be used to replace homemade food, as the child may have digestive problems, including dysbacteriosis.
Ukraine is home to approximately 7.6 million children aged 0-16 years. Every day about 700 children are born who need basic baby supplies to satisfy the need for food, clothing, sleep and cleanliness. From the age of three years old is the target audience of baby products advertising. Advertising at this age has the right effect on the child who influences the parent with the desire to “nukupi”.
Also, taste preferences are retained for a long time. Practice shows that we remember the “taste of childhood” all our lives – what we loved at a tender age (companies, cafes, products) remains to our liking in more mature years.
Parents who want to give their children what they want are the best advocates for the manufacturers of children’s products and services against economic blows.
The analysis of the Baby Products market will show what is happening in the market in 2017.
Baby food market overview
Parents spend more than one thousand hryvnias annually on baby food. According to Ukrainian legislation, baby food is food for children from birth to 3 years of age. The production itself is controlled by officials. For example, dairy products for children can be made from raw materials produced in special raw material zones, and fruit and vegetable purees are produced according to 24 quality standards. Nutrition for children is divided into categories:
Packaging for children’s products is no less demanding: the presence of a cartoon character and the word “children’s” does not mean that the product can be given to children. The following information must be included on the packaging:
Baby food accounts for the bulk of expenses of young parents. But Ukrainian parents spend 4 times less on nutritious formula than parents from Europe. Although food products produced in Ukraine account for only 20% and the rest is imported from such countries:
Fruit and vegetable purees are intended for children from 4 months and can consist of such fruits, vegetables or their combinations: apple, plum, pear, apple-carrot-aiwa, mango, carrot-pumpkin-apple, cauliflower, apple-strawberry-plum and many others. Main producers:
- Bebivita (Hungary);
- Humana (Germany);
- Gerber (Poland);
- Hipp (Hungary);
- Semper (Sweden);
- Kroha (Belarus);
- Spelenok (Russia);
- Hame (Czech Republic);
- Chudo-Chado (Ukraine);
- Karapuz (Ukraine);
- Milupa (Germany);
- Babydream (Germany);
- Malyatko (Ukraine).
Although canned food is not the best food option for kids, there are canned meat for kids on the market that includes: rabbit, turkey, beef with heart, chicken meat.
Canned meat for children can be purchased from manufacturers such as:
- Tiny;
- Semper;
- Topic;
- Agusha;
- Hame;
- Gerber;
- Hipp;
- Semper; .
- Milupa .
In 2016, the production of milk and cream for baby food increased by 52% compared to the same period in 2015. The main domestic producers of baby food:
For babies from birth, global manufacturers offer such mixtures that replace breast milk:
The target audience for the baby food market is not limited to babies in their first three years of life. When the birth rate in Germany fell, Hipp baby food did not see a decline in sales. The situation was similar for the Japanese company WAKODO. An analysis of the baby food market in Germany and Japan explained this situation by the fact that baby food is also popular with the older generation due to its ease of consumption and ease of digestion. The Japanese have launched new products for the 0-100 age group. The Germans segment baby food into three target audiences:
- toddlers under the age of three;
- boys 13-19 years old;
- elderly people.
But in Ukraine, consumption of baby food has increased:
An alternative to store products for children could be a dairy kitchen, the existence of which was terminated due to numerous food poisonings in children. In Kharkiv, for example, the “City Dairy Factory-Kitchen of Children’s Food” operates, which is quite popular among the local population.
The baby food market is a fast-growing and attractive market for investors. Increased demand for baby food is due to the environmental friendliness of the products produced and increased purchasing power (mothers prefer to work and buy quality food for their babies). This can attract investors and increase the production capacity of domestic manufacturers.
Children’s clothing market
Quality plays an important role in choosing clothes for a child. Since the child is very mobile and has peculiarities of thermoregulation, clothes should not constrain movements and should “breathe”. According to the hygienic classification, children’s clothes are divided into such age groups:
- newborns;
- babies under three years old;
- kids 4 to 7;
- children 8 to 12;
- teenagers 13 to 15.
The children’s clothing market is falling steadily: consumption in 2015 fell by 32%, just as steadily demand fell by 20% in 2016. Demand is much less than supply. Due to the decreasing popularity of children’s clothing stores, retailers are refocusing on adults.
Children’s clothing from Poland and Turkey used to be in great demand. Today, Ukrainian manufacturers are returning to the market, whose goods are much cheaper and are not inferior in quality. In the first six months of 2017, children’s knitwear was imported for $1.616m and exported for $4.195m.
Every second pair of shoes sold is made in China. This does not mean lower quality – it means lower cost of goods. It is true that very cheap made in China is really attractive only in price, but is very inferior in quality, while the Ukrainian manufacturer makes children’s clothes comparable in quality to the best European manufacturers.
The highest requirements are set to clothing for newborns: no internal seams, a minimum of synthetics, buttons and buttons, fabrics only natural.
Knitwear factories in Ukraine can boast high quality products and popularity even abroad. Knitwear factories offer clothes not only for little ones, but also for adults:
- Knitwear factory Cinderella and Co;
- Knitting factory Yuvdi-tex;
- Visa knitwear factory;
- Luli’s Knitting Factory;
- Dune (hosiery products);
- KBS (hosiery);
- World of textiles Komsomolsky knitwear.
Branded clothes for little Ukrainians are not popular, which is due to their higher cost, compared to stock products: couture clothes get about 30% of sales, while small stores, bazaars and second hand stores have the remaining 70%. This does not prevent the emergence of new Ukrainian brands:
- Piaf;
- Ramie;
- Garbuz;
- Jolly Bully;
- BONKA;
- 2х2;
- Helen Laven;
- Monkey;
- Lapin Lapin;
- Vilonna Kids;
- Imagine;
- Fancy baby;
- Grabchak kids;
- 11 shoes;
- Olli baby;
- Amimono.
Separately, it is worth talking about the production of school uniforms, which must be worn by primary school children in some schools in the country. Each school independently determines the color: burgundy, green, blue or black.
The main Ukrainian manufacturers of school uniforms:
- Kharkov Training and Production Enterprise ;
- Kerch sewing factory, Kharkov representative office;
- Fairy, CCI, LLC, Kremenchug;
- Khmelnichanka, LLC, Khmelnitsky;
- Milana, TH, PE, Kiev;
- Shpak B.M., FLP, Lviv;
- Charm, PTF, LLC, Lisichansk;
- Koziatinskaya sewing factory, JSC;
- Popelyushka (Kovtunyak M.A., PE), Berdichev;
- MriyaE, sewing enterprise, LLC, Kropivnitsky.
The most comfortable, practical and popular clothing for everyone is denim. For the littlest ones jeans are sewn by such companies:
- Goldy (Ukraine);
- Unsea (Turkey);
- TYK (Poland);
- SEAGULL (Poland);
- COW DING (Poland);
- F&D (Hungary);
- H.L. XIANG (Hungary)
No less important niche of the children’s clothing market belongs to children’s shoes, which also have a lot of requirements, since the child is just starting to walk and the foot is constantly growing. Shoes for a child should be easy to put on and take off, and the buckle should fix the shoe well on the foot.
The material for children’s shoes should be natural (leather, nubuck) or modern waterproof materials that are, however, highly breathable. The inner lining should be exclusively made of natural materials (leather, textile). The sole should be soft enough (for proper development of the arch of the foot) and flexible with a small heel (helps to shape the gait).
In shoes for children who are learning to walk, it is obligatory to have a back, which prevents the foot from slipping and keeps it in the shoe. Shoes for children are not inferior in cost to adult shoes. Model range is often much more practical and higher quality.
The Ukrainian market is represented by such companies-manufacturers of shoes for children:
- BG (Ukraine);
- Palaris (Ukraine);
- Bistfor (Ukraine);
- Bartek (Poland);
- Demar (Poland);
- ECCO (Denmark);
- CROCS (Italy);
- Elefanten (Germany);
- Flamingo (Russia);
- Geox (Italy);
- NAZO (Poland);
- Kotofei (Russia);
- Shalunishka (Russia);
- Alberes (Turkey);
- SUPER GEAR (Hungary);
- Comfort – baby (China)
- Ortopedia (Turkey);
- Panda (Belarus);
- Superfit (Austria).
The low level of income of Ukrainians does not favor the development of branded stores. A huge part of consumers prefer to shop online. Quality goods can be purchased on more than 500 online sites from manufacturers from Ukraine, Europe, Turkey, China and the USA.
In general, based on the analysis of the children’s clothing market in Ukraine, we can say that it is at the stage of development: new companies are constantly appearing, which are aimed not only at the Ukrainian consumer, but also want to grab the foreign market.
Study of children’s household chemicals and cosmetics
Household chemicals and hygiene products for children should be age-appropriate. Cosmetics for children up to one year old have a neutral odor, do not contain dyes and are hypoallergenic.
Divide cosmetics consumers by age in this ratio:
Main product groups of the market:
- household chemicals (baby powders);
- hygiene products (shampoo, soap, oral care);
- paper and cotton products (cotton swabs, cotton disks, disposable handkerchiefs);
- diapers (diapers, diapers).
Ukrainian manufacturers of children’s household chemicals and hygiene products:
- Carapoose;
- Galinka;
- Poopsie;
- Bimbo;
- Green&Clean Professional;
- “Tortilla.”
- Mother’s Touch;
- Alenka.
Foreign manufacturers of baby products:
- Saraya (Japan);
- Bubchen (Germany);
- Johnson’s baby (Italy);
- Chicco (Italy);
- Hipp (Switzerland);
- Mommy Care (Israel);
- Ushasty Nanny (Russia);
- Little Fairy (Russia);
- Drakosha (Russia);
- Sanosan (Germany).
Almost all of the listed manufacturers offer products for washing and rinsing baby clothes, shampoos, soaps, creams, oils, wipes, cotton swabs. Price category of children’s hygiene products:
- Medium – Drakosha, Karapuz, Ushasty Nanny, Galinka, Alenka;
- above average – Chicco, Sanosan, Pouncy House;
- high – Mommy Care, Bubchen, Saraya.
The diaper category occupies a separate niche in the baby products market. Most manufacturers also offer diapers and wet wipes. The main manufacturers of diapers on the Ukrainian market are:
- Pampers;
- Haggies;
- Dada;
- Helen Harper
- Pi-pi;
- Muumi;
- Libero;
